Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 3,373,265 thousand, representing a 2.0% increase from RMB 3,307,839 thousand in 2023[3]. - The gross profit decreased to RMB 1,441,444 thousand, down 1.9% from RMB 1,469,365 thousand, resulting in a gross margin of 42.7%, compared to 44.4% in the previous year[3]. - The company recorded an operating loss of RMB 401,946 thousand, a significant decline from an operating profit of RMB 378,051 thousand in 2023, leading to an operating margin of -11.9%[3]. - The net loss attributable to equity holders was RMB 385,509 thousand, compared to a profit of RMB 233,633 thousand in 2023[3]. - The adjusted EBITDA for the year was RMB 624,126 thousand, down 18.5% from RMB 766,103 thousand, with an adjusted EBITDA margin of 18.5% compared to 23.2% in the prior year[3]. - The company reported a net loss of RMB 458,857,000 for the year ended December 31, 2024, compared to a profit of RMB 290,483,000 in the previous year, indicating a significant decline in profitability[22][23]. - The operating profit margin for 2024 was -11.9%, down from 11.4% in 2023[39]. - The group reported a loss of RMB 458,857,000 for the year ended December 31, 2024, a decline of RMB 749,340,000 compared to a profit of RMB 290,483,000 in the previous year, primarily due to goodwill impairment of RMB 630,887,000[92]. Assets and Liabilities - Total assets decreased to RMB 15,002,076 thousand from RMB 16,002,111 thousand in 2023, reflecting a decline in overall asset value[12]. - The company reported a total equity of RMB 13,720,356 thousand, down from RMB 14,271,137 thousand in the previous year[12]. - The total liabilities decreased to RMB 1,281,720 thousand from RMB 1,730,974 thousand, showing a reduction in financial obligations[12]. - As of December 31, 2024, the group's net current assets were RMB 7,034,542,000, an increase from RMB 6,975,409,000 in the previous year, with cash and bank deposits rising to RMB 5,562,231,000 from RMB 2,539,493,000[95]. - Total bank loans amounted to RMB 194,000,000 as of December 31, 2024, down from RMB 455,250,000 in the previous year, with a debt ratio of 1.6%, a decrease of 2.0 percentage points from 3.6%[96]. Revenue Segmentation - The segment revenue for the Flavor and Food Ingredients business was RMB 1,356,794,000, while the Tobacco Raw Materials segment generated RMB 486,634,000, and the Fragrance Raw Materials segment contributed RMB 799,312,000[22]. - The sales revenue from the flavor and food ingredients business was approximately RMB 1.339 billion, a decrease of 8.6% year-on-year, accounting for about 39.6% of total revenue[47]. - The sales revenue for the tobacco flavoring CGU decreased by 15.89% from approximately RMB 719 million to about RMB 604 million compared to the previous year[56]. - The sales revenue of the flavor raw materials business increased by 26.7% to approximately RMB 792 million, contributing about 23.5% to the group's total revenue[69]. - The revenue from the fragrance raw materials segment increased by 26.7% to RMB 791,523,000, while the seasoning segment's revenue rose by 2.7% to RMB 774,569,000[82]. Expenses and Costs - Total sales cost, marketing, and administrative expenses increased to RMB 3,232,865,000 in 2024 from RMB 2,996,149,000 in 2023, representing an increase of approximately 7.9%[25]. - Employee and welfare expenses rose to RMB 778,305,000 in 2024 from RMB 652,530,000 in 2023, an increase of approximately 19.3%[25]. - Selling and marketing expenses rose by 13.3% to RMB 370,150,000, accounting for approximately 11.0% of total revenue, up from 9.9%[86]. - Administrative expenses increased by 12.0% to RMB 930,894,000, representing about 27.6% of total revenue, up from 25.1%[87]. - The company incurred a total depreciation expense of RMB 227,746,000 and amortization expenses of RMB 104,510,000 for the year ended December 31, 2024[22]. Goodwill and Impairment - The group recognized goodwill impairment of approximately RMB 630 million, compared to RMB 56.5 million in 2023, significantly impacting operating results[46]. - A goodwill impairment loss of approximately RMB 504.56 million was recognized for the tobacco flavoring CGU as of December 31, 2024[58]. - The company recognized a goodwill impairment of approximately RMB 29.31 million for Yancheng Chunzhus CGU, resulting in a goodwill balance of zero[72]. Dividends and Shareholder Returns - The company proposed a special dividend of HKD 0.05 per share, an increase from HKD 0.042 per share in the previous year[3]. - The board recommends a special dividend of HKD 0.05 per share, compared to HKD 0.042 per share in 2023, amounting to approximately RMB 149.55 million (2023: RMB 123.35 million) to reward shareholders[123]. - The company did not declare a final dividend for the year 2023, which was HKD 0.008 per share[123]. Strategic Initiatives and Future Outlook - The company plans to adopt new accounting standards effective from January 1, 2025, which may impact future financial reporting[15][16]. - The company is currently evaluating the impact of new and revised accounting standards on its consolidated financial statements[18]. - The company’s management is focused on enhancing its research and development capabilities in the Flavor and Food Ingredients segment to drive future growth[21]. - The company is focusing on the development of new tobacco products and market opportunities, particularly in the area of reduced-harm technologies[48]. - The company is advancing digital transformation to lower costs and improve operational efficiency[42]. - The management outlined strategic measures for 2025, focusing on R&D innovation, AI empowerment, and international development[79][80]. Compliance and Governance - The group has adhered to the corporate governance code as stipulated by the Hong Kong Stock Exchange for the fiscal year ending December 31, 2024, ensuring compliance with best practices[120]. - The audit committee, composed entirely of independent non-executive directors, has reviewed the group's audited annual performance[128]. - The company has adopted the standard code for securities trading by directors, confirming compliance for the current year[122]. Investment and Financial Management - The company is investing surplus cash in financial products offered by banks in China to achieve higher interest rates while maintaining liquidity[113]. - The group has committed to monitoring market conditions and evaluating investment opportunities to optimize its investment portfolio, focusing on balancing risk and return for sustainable growth and financial stability[114].
华宝国际(00336) - 2024 - 年度业绩