Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 623,460,000, an increase of 41.4% compared to HKD 440,813,000 in 2023[3] - Gross profit decreased to HKD 31,303,000 from HKD 36,618,000, representing a decline of 14.5% year-over-year[3] - The company reported a profit from continuing operations of HKD 66,618,000, compared to a loss of HKD 139,820,000 in the previous year[4] - Other income and gains significantly increased to HKD 74,659,000 from HKD 11,476,000, marking a rise of 551.5%[3] - The total comprehensive income for the year was HKD 121,392,000, down from HKD 299,112,000 in 2023, a decrease of 59.4%[5] - Basic earnings per share from continuing operations improved to HKD 0.038 from a loss of HKD 0.092 in the previous year[5] - The group reported a pre-tax profit from continuing operations of HKD 58,651,000 in 2024, down from HKD 63,584,000 in 2023[44] - The company reported a profit for the year of HKD 66,618,000, which includes a tax credit of HKD 9,369,000[35] - The company recorded a net profit attributable to owners of approximately HKD 66,600,000 for the year, compared to a net loss of HKD 139,800,000 in 2023[91] - EBITDA from continuing operations was approximately HKD 124,700,000, a significant improvement from the LBITDA of HKD 39,300,000 in 2023[91] Assets and Liabilities - Non-current assets increased to HKD 434,429,000 from HKD 352,842,000, reflecting a growth of 23.1%[6] - Current liabilities decreased to HKD 786,765,000 from HKD 956,860,000, a reduction of 17.8%[6] - The company's total liabilities net worth improved to HKD (218,254,000) from HKD (381,855,000), indicating a positive change in financial position[7] - As of December 31, 2024, the group recorded a net current liability of approximately HKD 652.4 million, down from HKD 734.3 million in 2023, and a net liability of approximately HKD 218.3 million, down from HKD 381.9 million in 2023[12] - The group reported a deferred loss of HKD 28,685,000 related to the convertible bonds, which has not been recognized in profit or loss[66] - The company's total liabilities for trade payables decreased to 134,308 thousand HKD in 2024 from 138,045 thousand HKD in 2023, indicating improved cash flow management[56] Revenue Segments - For the fiscal year ending December 31, 2024, the total revenue from external customers for the corn sweetener segment was HKD 623,460,000, while the corn refining products segment reported no revenue[35] - Revenue from continuing operations increased to HKD 623,460,000 in 2024, up 41.4% from HKD 440,813,000 in 2023[39] - Revenue from the corn syrup segment increased by approximately 30.1% to about HKD 498.3 million, driven by a sales volume increase of about 46.5% to approximately 145,000 tons[81] - The solid corn syrup segment's revenue surged by approximately 117.0% to HKD 125.2 million, with sales volume rising to about 41,000 tons[82] Cost and Expenses - The cost of goods sold increased to HKD 592,157,000 in 2024, compared to HKD 404,195,000 in 2023, indicating a rise of 46.5%[44] - Financial costs decreased to HKD 34,552,000 in 2024 from HKD 42,442,000 in 2023, a reduction of 18.6%[46] - The average unit production cost of sweetener products decreased by about 9.4%, but the average unit selling price fell by 12.5%, leading to a gross profit margin reduction of 3.3 percentage points to 5.0%[79] Debt and Financing - The group has secured additional bank borrowings of approximately RMB 27 million (equivalent to about HKD 28.7 million) during the year to improve financial conditions and liquidity[12] - The group is in discussions with Jinzhou Bank for a debt restructuring of a loan totaling RMB 212.5 million, which could significantly enhance the group's financial position if successful[12] - The company issued convertible bonds with a total principal amount of RMB 120,000,000 (approximately HKD 138,000,000), convertible into 1,380,000,000 new ordinary shares at an initial conversion price of HKD 0.1 per share, representing a premium of approximately 16.3% over the closing price on the agreement date[61] - The first tranche of convertible bonds totaling RMB 60,000,000 was completed on May 3, 2024, with all conditions met[62] - The second tranche of convertible bonds, also totaling RMB 60,000,000, was completed on July 19, 2024, with additional subscriptions by the underwriters[64] Operational Developments - The company has maintained its primary business focus on the production and sale of corn refining products and sweeteners, with no significant changes reported in business nature[8] - The group has implemented measures to reduce operating costs and enhance cash flow, including maximizing production capacity in Shanghai and launching high-value products[13] - The company plans to restore its Jinzhou downstream production facilities and enhance its market share while focusing on customer needs and continuous R&D investment[78] - The group plans to resume upstream operations in 2025 after completing renovations of its Jinzhou production facilities by the end of 2024[76] Shareholder and Governance - Major shareholders have confirmed financial support for the group over the next 12 months, ensuring no repayment demands will be made during this period[14] - The board believes that the group will have sufficient working capital to meet its financial obligations due within the next 12 months[16] - The board of directors did not recommend a final dividend for the year, consistent with 2023[111] - The audit committee, consisting of three independent non-executive directors, reviewed the group's financial reporting procedures and risk management without any objections[114] Market Conditions - The average operating rate for corn starch production in China increased to 69.26% in 2024, up from 61.67% in 2023[76] - China's corn production for 2024 reached 294,900,000 tons, a year-on-year increase of 2.1%[76] - The international corn price fell significantly in 2024, ending the year at USD 451.5 per bushel, down from USD 471.3 per bushel in 2023[75] - In the 2023/24 fiscal year, global sugar production reached 183.8 million tons, up from 179.1 million tons in 2022/23, while consumption was estimated at 177.6 million tons, compared to 176.4 million tons in the previous year[77]
大成糖业(03889) - 2024 - 年度业绩