Financial Performance - Revenue for the year ended December 31, 2024, increased by 64.7% to RMB 516.0 million from RMB 313.3 million in 2023[2] - Gross profit rose by 49.3% to RMB 143.2 million, compared to RMB 95.9 million in the previous year[2] - Profit before tax increased by 66.3% to RMB 56.7 million, up from RMB 34.1 million in 2023[2] - Net profit for the year was RMB 49.5 million, reflecting a 68.9% increase from RMB 29.3 million in 2023[2] - Basic and diluted earnings per share rose by 68.8% to RMB 38.70, compared to RMB 22.93 in the previous year[2] - Total revenue for the year ended December 31, 2024, was RMB 516,019,000, representing a 64.8% increase from RMB 313,265,000 in 2023[15] - Revenue from the sale of electroplated brass wire production lines reached RMB 98,962,000 in 2024, up from RMB 52,472,000 in 2023, a growth of 88.5%[15] - The company generated RMB 468,626,000 in revenue from China, a significant increase of 50.2% compared to RMB 312,100,000 in 2023[15] - Basic earnings per share for 2024 were RMB 38.70, compared to RMB 29.34 in 2023, reflecting a growth of 31.8%[24] - The net profit for the fiscal year ending December 31, 2024, was RMB 49.5 million, up from RMB 29.3 million in 2023, resulting in a net profit margin of approximately 9.6%[53] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 1,063.6 million, an increase from RMB 1,029.1 million in 2023[6] - Total equity increased to RMB 713.0 million from RMB 673.7 million in the previous year[6] - Current liabilities decreased slightly to RMB 350.5 million from RMB 355.4 million in 2023[7] - The company reported a significant increase in contract assets, rising to RMB 49.5 million from RMB 33.5 million in 2023[6] - Trade receivables decreased to RMB 184,835,000 in 2024 from RMB 236,680,000 in 2023, a decline of 22%[27] - The company recorded a decrease in trade payables and notes payable by 9.5% from RMB 193.3 million at the end of 2023 to RMB 175.0 million at the end of 2024, mainly due to reduced procurement volume[51] - The company’s deferred tax liabilities decreased to RMB 10,654,000 in 2024 from RMB 5,646,000 in 2023, indicating a change in tax position[19] Cash Flow and Investments - As of December 31, 2024, the total cash and bank balances of the group amounted to approximately RMB 424,028,000, an increase from RMB 246,375,000 as of December 31, 2023[54] - The current ratio of the group as of December 31, 2024, was 2.53, compared to 2.31 as of December 31, 2023[55] - The group maintained a zero debt-to-equity ratio as of December 31, 2024, indicating a strong net cash position[56] - Capital expenditures for the year were approximately RMB 984,000, significantly lower than RMB 5,200,000 in the previous year, related to the purchase of machinery and equipment[58] - The net proceeds from the IPO amounted to approximately HKD 209,500,000 (equivalent to about RMB 165,300,000) after deducting underwriting commissions and related expenses[61] - As of December 31, 2024, the unutilized balance of the net proceeds from the IPO was approximately HKD 39,127,000[62] Employee and Compensation - The group employed a total of 181 full-time employees as of December 31, 2024, down from 197 employees in the previous year[66] - Total employee compensation for the year was approximately RMB 28,800,000, compared to RMB 27,900,000 in the previous year[66] Dividends and Shareholder Information - The company proposed a final dividend of RMB 0.08 per share for the fiscal year ending December 31, 2024, totaling RMB 10.24 million, pending shareholder approval[34] - The board proposed a final dividend of RMB 0.08 per share, totaling RMB 10,240,000, subject to shareholder approval at the annual general meeting on June 27, 2025[80] - The annual general meeting is scheduled for June 27, 2025, with a suspension of share transfer registration from May 28, 2025, to June 27, 2025[81] Risk Management - The group faced foreign exchange risk due to transactions denominated in currencies other than its functional currency, with a potential impact of RMB 4,350,000 on after-tax profits if the USD appreciated/depreciated by 5% against the RMB[60] - The company had no outstanding forward foreign exchange contracts as of December 31, 2024[18] Future Plans and Strategy - The company plans to continue investing in R&D and enhancing product quality to meet challenges in the tire market amid global economic fluctuations[65] - The company plans to continue implementing a diversified development strategy and actively seek potential investment opportunities in the future[74] - The company has no significant future investment plans beyond those disclosed in the prospectus or this announcement as of December 31, 2024[75] Other Information - The company recorded a foreign exchange gain of RMB 1,440,000 in 2024, up from RMB 1,120,000 in 2023, an increase of 28.6%[18] - Current tax expense for the year was RMB 17,845,000, compared to RMB 10,401,000 in 2023, an increase of 71.5%[19] - The company’s inventory decreased by 20% from RMB 260.3 million at the end of 2023 to RMB 208.2 million at the end of 2024, primarily due to a reduction in unfinished sales contracts[50] - The company’s other income surged by 325% to approximately RMB 10.2 million in 2024, mainly due to an increase in fixed deposits[40] - Selling expenses rose by 71.4% to approximately RMB 4.8 million in 2024, attributed to an increase in sales orders[41] - Financial assets impairment losses increased from RMB 23.9 million in 2023 to RMB 40.7 million in 2024, reflecting heightened credit risk due to economic changes[43] - The company sold eight properties for a total consideration of RMB 2,560,800, recording a gain of RMB 1,169,000 for the year ending December 31, 2024[70] - Two residential units were sold for approximately RMB 400,000, with the remaining unsold units having a book value of approximately RMB 8,440,000, representing about 4.7% of the total assets as of December 31, 2024[72] - As of December 31, 2024, cash deposits of approximately RMB 76,900,000 were pledged to banks as collateral, an increase from RMB 65,100,000 as of December 31, 2023[73] - The audit committee reviewed the accounting principles and financial reporting systems, ensuring compliance with corporate governance codes[84] - There were no major events after the reporting period up to the date of this report[79]
盛力达科技(01289) - 2024 - 年度业绩