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[7]. - The net profit attributable to the owners of the company for the year was approximately RMB 27.2 million, down from RMB 27.6 million in 2023[7]. - The decline in revenue was primarily due to weak demand for the group's disposable plastic food containers after significant growth in the previous two years[7]. - Total assets increased to RMB 339,247 thousand in 2024, up from RMB 313,811 thousand in 2023, representing a growth of 8.5%[14]. - Revenue for 2024 was RMB 309,830 thousand, a decrease of 4.5% compared to RMB 323,301 thousand in 2023[15]. - Gross profit for 2024 was RMB 90,930 thousand, down from RMB 94,122 thousand in 2023, reflecting a decline of 3.5%[15]. - Operating profit for 2024 was RMB 41,228 thousand, slightly lower than RMB 42,181 thousand in 2023, indicating a decrease of 2.3%[15]. - Net profit for 2024 was RMB 27,214 thousand, a decrease of 1.3% from RMB 27,578 thousand in 2023[15]. - Adjusted net profit for 2024 was RMB 30,410 thousand, down from RMB 33,405 thousand in 2023, a decline of 9.0%[20]. - The company reported a decrease in sales expenses to RMB 17,277 thousand in 2024 from RMB 20,077 thousand in 2023, a reduction of 13.9%[15]. - The company experienced a fair value loss on financial assets of RMB 4,209 thousand in 2024, compared to a loss of RMB 947 thousand in 2023[20]. - Sales costs decreased from approximately RMB 229.2 million for the year ended December 31, 2023, to approximately RMB 218.9 million for the year ended December 31, 2024, a reduction of about 4.5%[25]. - Gross profit decreased by approximately RMB 3.2 million or about 3.4% to approximately RMB 90.9 million, with gross profit margins remaining stable at approximately 29.1% and 29.3% for the respective years[26]. - Administrative and other operating expenses decreased by approximately RMB 4.6 million or about 15.2% to approximately RMB 25.6 million, primarily due to the absence of legal and professional expenses related to the proposed transfer of listing[28]. Acquisitions and Business Expansion - 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 company's business scope[8]. - The group acquired 100% equity of Beijing Youpinhui Trading Co., Ltd. through the purchase of Youpinhui Enterprises, enhancing its presence in the e-commerce sector[9]. - A new e-commerce application platform named "Yihotianxia" was launched, covering a range of products including daily necessities and domestic specialty agricultural products[9]. - The company invested 10% in a film project titled "The Englishman" directed by Chen Chong, with expectations for release in Q4 2024, following the recovery of the Chinese film market[142]. - The company is in discussions to potentially acquire a 30% stake in Beijing Zhenpin Network Technology Co., which collaborates with over 400 brands and offers over 100,000 products[144]. Financial Position and Ratios - Total liabilities decreased to RMB 50,802 thousand in 2024 from RMB 52,632 thousand in 2023, a reduction of 3.1%[14]. - Total equity increased to RMB 288,445 thousand in 2024, up from RMB 261,179 thousand in 2023, marking a growth of 10.4%[14]. - The current ratio improved from approximately 5.3 times as of December 31, 2023, to approximately 6.1 times as of December 31, 2024[39]. - The debt-to-equity ratio decreased from approximately 18.5% as of December 31, 2023, to approximately 16.1% as of December 31, 2024[39]. - The group has no borrowings as of December 31, 2024, remaining consistent with the previous year[41]. Corporate Governance - The board is committed to maintaining high standards of corporate governance based on the GEM Listing Rules Appendix C1[62]. - The company has complied with the corporate governance code throughout the financial year ending December 31, 2024[63]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced composition[68]. - All directors possess appropriate professional qualifications or substantial experience and industry knowledge, reflecting a proper balance of skills and experience[70]. - The company has adopted the GEM Listing Rules as its standard code for securities trading by directors, confirming compliance for the fiscal year ending December 31, 2024[64]. - The board is responsible for formulating the overall strategy and setting management objectives, with management reporting to the board on significant matters[66]. - Independent non-executive directors play a crucial role in providing strategic advice and ensuring high standards of financial reporting and governance[72]. - Continuous professional development programs are in place for all directors, ensuring they remain informed about regulatory requirements and corporate governance practices[75]. - The company has mechanisms to ensure the independence of the board, with six out of eight directors being independent non-executive directors, exceeding the GEM Listing Rules requirement[74]. - The board conducts annual evaluations of the performance and independence of independent non-executive directors[74]. - The company encourages directors to express independent views and constructive inquiries during board meetings[74]. - The company held a total of 4 board meetings and 1 annual general meeting, with all executive directors attending all meetings[80]. - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance for the year ending December 31, 2024, before submission to the board[85]. - The remuneration committee held one meeting to review and recommend the remuneration policy for executive directors and senior management for the year ending December 31, 2024[89]. - The nomination committee is responsible for reviewing the board's structure and recommending suitable candidates for board membership[96]. - The company aims to ensure that appointed directors possess relevant business, financial, and management skills necessary for informed decision-making[97]. - The audit committee recommended the reappointment of the external auditor, subject to shareholder approval at the upcoming annual general meeting[84]. - The remuneration policy links discretionary bonuses and other payments to the company's performance and individual performance of directors and senior management[91]. - The company established four committees: audit, remuneration, nomination, and risk management, to oversee specific aspects of its operations[81]. - The company is committed to maintaining transparency and governance standards as outlined in its corporate governance report[89]. - The company auditor provided audit services and non-audit services for a total fee of RMB 1,142,000, which includes RMB 1,013,000 for annual audit services and RMB 129,000 for non-audit services[114]. Risk Management - The risk management committee is responsible for identifying existing and potential risks faced by the company's operations and evaluating the risk status and management strategies[106]. - The company has established a whistleblowing policy to encourage employees to report any misconduct related to financial reporting and compliance[112]. - The board of directors is responsible for ensuring that the audited consolidated financial statements reflect the group's affairs, financial performance, and cash flow accurately[109]. - The board is fully responsible for establishing and maintaining an effective risk management and internal control system, with the internal audit function outsourced to an independent internal audit firm[130]. - The board has not identified any significant deficiencies in the internal control measures implemented for the year ending December 31, 2024[131]. - The risk management committee must hold at least one meeting annually to discuss risks related to the group's business[105]. Shareholder Relations and Dividends - The company will continue to pay annual dividends to shareholders, contingent upon profitability and stable operating conditions[127]. - The company does not recommend any final dividend for the year ending December 31, 2024, consistent with the previous year[139]. - The company maintains a policy of open and effective communication with investors, ensuring timely disclosure of relevant business information[120]. - The company encourages shareholder participation in annual meetings and provides channels for feedback and inquiries[119]. - The company has made amendments to its articles of association to comply with the latest legal and regulatory requirements[121]. Market Trends and Future Outlook - Future growth will be driven by maintaining product safety and environmental standards, brand promotion, expanding sales channels, and product customization[23]. - The company aims to expand its market share by leveraging the net proceeds from its listing on GEM on July 13, 2020, amidst competition from eco-friendly disposable food containers[141]. - The board believes that maintaining product safety, environmental protection, brand promotion, and expanding sales channels will be key drivers for growth in the disposable plastic food container business[141]. - China's online retail sales increased from approximately RMB 5.2 trillion in 2016 to about RMB 11.8 trillion in 2020, with a cumulative annual growth rate of approximately 22.9%[143]. - The retail e-commerce market in China is projected to reach approximately USD 3.8 trillion (around RMB 24.6 trillion) by 2025[143].
易和国际控股(08659) - 2024 - 年度财报