Financial Performance - For the fiscal year ending December 31, 2024, the group recorded revenue of approximately RMB 309.8 million, a decrease of about 4.2% compared to RMB 323.3 million in 2023[10]. - The net profit attributable to shareholders for the year was approximately RMB 27.2 million, down from RMB 27.6 million in 2023[10]. - The decline in revenue was primarily due to weak demand for the group's disposable plastic food containers after significant growth in the past two years[10]. - Total revenue for the year ended December 31, 2024, was RMB 309,830,000, a decrease of 4.4% from RMB 323,301,000 in 2023[16]. - Operating profit for 2024 was RMB 41,228,000, down from RMB 42,181,000 in 2023[16]. - Net profit for the year was RMB 27,214,000, a slight decrease from RMB 27,578,000 in 2023[16]. - The adjusted net profit for the year ended December 31, 2024, was RMB 30.41 million, down from RMB 33.41 million in 2023, reflecting a decrease of approximately 9.0%[23]. - The gross profit for the year ended December 31, 2024, was approximately RMB 90.9 million, down about 3.4% from RMB 94.1 million in 2023[29]. - The sales cost decreased from approximately RMB 229.2 million in 2023 to about RMB 218.9 million in 2024, a reduction of approximately 4.5%[28]. - The administrative and other operating expenses decreased by approximately 15.2% to RMB 25.6 million in 2024, primarily due to the absence of legal and professional expenses related to the proposed transfer of listing[31]. Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 339,247,000, an increase from RMB 313,811,000 in 2023[17]. - Total liabilities as of December 31, 2024, were RMB 50,802,000, a decrease from RMB 52,632,000 in 2023[17]. - The company's total equity increased to RMB 288,445,000 in 2024 from RMB 261,179,000 in 2023[17]. - As of December 31, 2024, the group's net current assets increased from approximately RMB 210.2 million to approximately RMB 247.7 million, primarily due to an increase in cash and cash equivalents[41]. - The current ratio improved from approximately 5.3 times on December 31, 2023, to approximately 6.1 times on December 31, 2024[42]. - The debt-to-equity ratio decreased from approximately 18.5% on December 31, 2023, to approximately 16.1% on December 31, 2024[42]. - Cash and cash equivalents as of December 31, 2024, were approximately RMB 206.1 million, up from RMB 165.3 million in 2023, mainly due to net cash generated from operating activities[43]. - As of December 31, 2024, the group had no borrowings, maintaining a zero-debt status[44]. - Lease liabilities decreased from approximately RMB 6.4 million on December 31, 2023, to approximately RMB 4.2 million on December 31, 2024[45]. Business Strategy and Growth - The board believes that maintaining product safety and environmental protection, brand promotion, expanding sales channels, and product customization will be key drivers for growth in the disposable plastic food container business[11]. - The company aims to continue developing its business and optimizing customer experience to maximize shareholder returns[13]. - The company plans to continue expanding its market share through cash and cash equivalents generated from operations, despite facing external challenges and competition from alternative products[26]. - The group anticipates continued market expansion and brand promotion as essential strategies for maintaining its competitive position[144]. - The group is positioned to compete effectively against challenges faced by all competitors in the market, leveraging its experienced management team and reputation[11]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix C1, emphasizing the importance of robust governance practices for growth and shareholder interests[65]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[73]. - The company has complied with the corporate governance code throughout the fiscal year ending December 31, 2024[66]. - Independent non-executive directors play a crucial role in providing strategic advice and ensuring high standards of financial reporting and accountability[75]. - The company emphasizes continuous professional development and training for directors and senior management[71]. - The board has delegated responsibilities to various committees, including the audit committee, remuneration committee, nomination committee, and risk management committee[69]. - The company has established a standard code for securities trading by directors, confirming compliance for the fiscal year ending December 31, 2024[67]. - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee, each with defined terms of reference[4]. Acquisitions and Investments - The group completed the acquisition of Yizhen Media Co., Ltd. for a total consideration of RMB 20,571,430, which is expected to generate revenue and expand the group's business scope[11]. - The company acquired 100% equity of Beijing Youpinhui through the acquisition of Youpinhui Enterprises on June 1, 2022[12]. - The group is considering acquiring a 30% stake in Beijing Zhenpin Network Technology Co., which will enhance the supply chain for its e-commerce platform and expand revenue sources[147]. - The group invested 10% in the film project "English" directed by Chen Chong, with expectations for release in Q4 2024, following a rapid recovery in China's box office, which reached RMB 54.9 billion in 2023, up from RMB 20.3 billion in 2020[145]. Shareholder Relations - The company expressed gratitude to shareholders, business partners, and key customers for their continued support[14]. - The company aims to maintain high transparency to enhance investor relations and regularly updates shareholders through various communications[129]. - The company encourages shareholders to submit proposals for discussion at the annual general meeting[128]. - The company has maintained effective communication with shareholders, particularly through annual general meetings, ensuring transparency in decision-making[122]. Risk Management - The board is responsible for establishing and maintaining an effective risk management and internal control system to achieve business objectives and ensure compliance with relevant laws[133]. - The risk management committee held one meeting to discuss risks related to the group's business for the year ending December 31, 2024[111]. - The company has not established an internal audit function but has outsourced this responsibility to an independent internal audit firm[134]. Compliance and Legal Matters - The company has confirmed compliance with the non-competition agreement established on June 26, 2020, by its controlling shareholders[173]. - There are no significant transactions or contracts involving directors or related entities with the company as of December 31, 2024[166]. - The company has confirmed that there are no conflicts of interest involving directors or controlling shareholders in competitive businesses[170]. - The company has adopted an anti-bribery and anti-corruption (ABAC) policy, with regular training provided to employees[116]. E-commerce Operations - The new e-commerce application platform "Yihe Tianxia" was launched in July 2022, covering daily necessities, beauty products, home appliances, and domestic specialty agricultural products[12]. - The group acquired Youpinhui, which has developed a new e-commerce platform "Yihotianxia," targeting a growing e-commerce market in China, projected to reach approximately RMB 24.6 trillion by 2025[146]. - The company is currently expanding its e-commerce operations through Beijing Yihe, enhancing its service levels with the obtained ICP license[183].
易和国际控股(08659) - 2024 - 年度业绩