旷世芳香(01925) - 2024 - 年度业绩

Financial Highlights The company reported strong financial performance in 2024, with significant growth in revenue, gross profit, and net profit 2024 Annual Financial Highlights | Indicator | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 1,001,219 thousand | RMB 806,551 thousand | +24.1% | | Gross Profit | RMB 224,195 thousand | RMB 162,132 thousand | +38.3% | | Gross Profit Margin | 22.4% | 20.1% | +2.3 percentage points | | Profit for the Year | RMB 118,664 thousand | RMB 60,797 thousand | +95.2% | | Earnings Per Share (Basic and Diluted) | 29.3 cents | 15.0 cents | +95.6% | Management Discussion & Analysis This section provides an overview of the group's operational strategies and detailed financial performance for the reporting period Business Review The group's core business involves designing and manufacturing home decor and fragrance products, focusing on wholesale, while expanding customer base and investing in R&D - The core business provides design and manufacturing solutions for home decor and home fragrance products, such as scented candles and diffusers[4] - The company's strategies include: - Deepening customer relationships: Providing more tailored solutions for existing loyal customers - Expanding new customers: Actively exploring new customers in European and American markets for sustainable business growth - Continuous R&D investment: Collaborating with universities to develop new technologies and products, such as shea butter wax products and biodegradable glitter products, to meet customer demands[4][5] Financial Review The group achieved strong financial results in FY2024, driven by revenue growth, improved gross margin, and significant non-recurring gains, despite increased operating expenses Revenue Group revenue increased by 24.1% to RMB 1,001.2 million, driven by increased orders from existing clients, new customer acquisition, and favorable USD appreciation Revenue Performance | Period | Revenue (RMB millions) | Year-on-Year Growth | | :--- | :--- | :--- | | 2024 | 1,001.2 | 24.1% | | 2023 | 806.6 | - | - Key drivers for revenue growth include: - Increased purchase orders from existing customers - Acquisition of several new customers - Appreciation of the US dollar against the RMB, leading to increased revenue from USD-denominated overseas orders[6] Gross Profit and Gross Profit Margin Gross profit grew 38.3% to RMB 224.2 million, with margin improving to 22.4% due to economies of scale and favorable exchange rates Gross Profit and Gross Profit Margin Performance | Indicator | 2024 (RMB millions) | 2023 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 224.2 | 162.1 | +38.3% | | Gross Profit Margin | 22.4% | 20.1% | +2.3 percentage points | Administrative Expenses Administrative expenses increased by 30.5% to RMB 101.2 million, primarily due to increased staffing for the new Wuhu production facility and salary adjustments - Administrative expenses increased by 30.5% from RMB 77.5 million in 2023 to RMB 101.2 million in 2024, mainly due to increased administrative staff to support the new Wuhu production facility and adjustments to existing employee salaries[9] Selling and Marketing Expenses Selling and marketing expenses rose 10.7% to RMB 30.9 million, mainly driven by increased sales team salary costs to support business growth - Selling and marketing expenses increased by 10.7% from RMB 27.9 million in 2023 to RMB 30.9 million in 2024, primarily due to increased salary costs for the sales team[11] Other Gains, net Net other gains increased to RMB 33.5 million, primarily due to a non-recurring gain of approximately RMB 21.7 million from the disposal of a subsidiary - The increase in net other gains was primarily due to a non-recurring gain of approximately RMB 21.7 million from the disposal of a subsidiary[12] Finance Income/(Costs), net The financial position shifted from a net cost of RMB 1.4 million to a net income of RMB 3.9 million, primarily due to higher interest income from Hong Kong bank deposits - The financial position shifted from a net cost of RMB 1.4 million in 2023 to a net income of RMB 3.9 million in 2024, primarily due to net interest income from high-interest bank deposits in Hong Kong[13][14] Income Tax Despite increased pre-tax profit, income tax expense decreased by 17.3% to RMB 13.8 million, mainly due to reduced deferred tax expenses - Income tax expense decreased by 17.3% from RMB 16.7 million in 2023 to RMB 13.8 million in 2024, primarily due to a reduction in deferred tax expenses[19] - Subsidiary Ningbo Kuangshi, as a "High-Tech Enterprise," enjoys a preferential corporate income tax rate of 15% from 2023 to 2026[19] Review of Financial Position As of year-end 2024, total assets increased to RMB 1,003.3 million, driven by growth in property, plant, equipment, inventory, and a significant rise in cash and bank balances Key Balance Sheet Item Changes | Item | December 31, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | Reason for Change | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 197,503 | 164,801 | Capitalized construction costs for Wuhu production base | | Inventories | 101,283 | 68,653 | Consistent with business growth | | Trade Receivables | 163,705 | 151,192 | Consistent with revenue growth | | Cash and Bank Balances | 355,512 | 183,765 | Good sales collection | | Lease Liabilities | 19,721 (Current + Non-current) | 1,122 | New production facility lease arrangements | Outlook The group outlines its strategic initiatives for future growth, including production capacity expansion and market diversification Recent Developments The group is constructing a new production base in Wuhu, Anhui, expected to commence operations in H1 2025, and has invested surplus cash in Chinese investment funds - The new production base in Wuhu, Anhui, is expected to commence operations in the first half of 2025 due to delays in surrounding facilities, aiming to enhance product quality and production efficiency with more advanced machinery[31] - In January 2025, the group invested RMB 100 million of surplus cash into two Chinese investment funds for low-risk wealth management[32] Future Plans The group plans to explore establishing overseas production facilities and actively expand its customer base, focusing on new markets like the United States - Future plans include: - Capacity Expansion: Exploring the establishment of new production facilities overseas in addition to the Wuhu base - Market Expansion: Actively expanding the customer base, including entering new markets such as the United States, while solidifying existing customer relationships[33] Financial Information This section presents the consolidated financial statements, including the income statement, balance sheet, and detailed notes on key accounts Consolidated Statement of Profit or Loss and Other Comprehensive Income The 2024 financial report shows group revenue of RMB 1,001.2 million, gross profit of RMB 224.2 million, and net profit of RMB 118.7 million, with basic and diluted EPS at RMB 0.29 Consolidated Statement of Profit or Loss Summary (For the year ended December 31) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 1,001,219 | 806,551 | | Gross Profit | 224,195 | 162,132 | | Operating Profit | 128,542 | 78,847 | | Profit Before Income Tax | 132,441 | 77,456 | | Profit for the Year | 118,664 | 60,797 | | Earnings Per Share (Basic and Diluted) | 29 cents | 15 cents | Consolidated Statement of Financial Position As of December 31, 2024, total assets reached RMB 1,003.3 million, with total liabilities at RMB 472.5 million and total equity at RMB 530.8 million Consolidated Statement of Financial Position Summary (As at December 31) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Assets | | | | Total Non-current Assets | 256,853 | 217,361 | | Total Current Assets | 746,456 | 536,862 | | Total Assets | 1,003,309 | 754,223 | | Equity and Liabilities | | | | Total Equity | 530,769 | 445,555 | | Total Non-current Liabilities | 12,288 | 26,000 | | Total Current Liabilities | 460,252 | 282,668 | | Total Liabilities | 472,540 | 308,668 | | Total Equity and Liabilities | 1,003,309 | 754,223 | Notes to the Financial Statements The notes provide detailed explanations of key accounting items, including revenue breakdown by product category, expense analysis, and earnings per share calculation Revenue by Category (Note 3) | Category | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Candles | 700,178 | 546,884 | | Home Fragrance | 212,456 | 142,814 | | Home Decor | 88,585 | 116,853 | | Total | 1,001,219 | 806,551 | Earnings Per Share Calculation (Note 9) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB thousands) | 118,602 | 60,645 | | Weighted average number of ordinary shares in issue (thousands) | 405,042 | 405,042 | | Basic earnings per share (RMB) | 0.29 | 0.15 | - Total trade receivables increased from RMB 154 million to RMB 167 million, with USD-denominated receivables increasing from RMB 112 million to RMB 154 million, reflecting growth in overseas business[50][51] Other Information This section covers the board's dividend recommendation and the company's adherence to corporate governance principles Dividend The Board of Directors does not recommend the payment of any final dividend for the year ended December 31, 2024 - The Board of Directors does not recommend a final dividend for the year 2024[59] Corporate Governance The company generally complies with corporate governance codes, with a noted deviation where the Chairman and CEO roles are combined - The company deviates from the Corporate Governance Code's requirement for separation of Chairman and Chief Executive Officer roles, as both positions are currently held by Mr Jin Jianxin[62]