Revenue and Business Segments - The Group's revenue is derived from two business segments: upstream products and fermented and downstream products, with production activities carried out in the People's Republic of China (PRC) [5]. - Total revenue for the Group decreased slightly by 3.2% to approximately RMB11,415,755,000, while gross profit increased significantly from approximately RMB556,572,000 to RMB1,163,247,000 [91]. - Revenue from fermented and downstream products rose significantly by 37.7% to RMB4,407,871,000 (2023: RMB3,200,671,000) [105]. - Lysine revenue increased by 51.5% to RMB3,427,579,000 (2023: RMB2,261,792,000), with sales volume reaching 578,095 tonnes, a 69.7% increase [107]. - The annual production capacity for starch and lysine reached 2,800,000 tonnes and 560,000 tonnes, respectively, an increase from 2,700,000 tonnes and 500,000 tonnes in 2023 [77]. Financial Performance - Profit after taxation increased over fourfold to RMB625,589,000, with basic earnings per share rising to RMB0.0808 [92]. - The Group's gross profit for upstream products increased by 230.4% to RMB429,334,000, despite a substantial decrease in market prices for corn kernel and upstream products [83]. - The profitability of the corn-refined industry improved despite a decline in market prices for starch and lysine, as raw corn kernel prices dropped significantly [75]. - Total cost of sales for 2024 was approximately RMB10,252,508,000, an 8.8% decrease from RMB11,240,962,000 in 2023, primarily due to lower raw material prices [110]. - The average corn kernel cost for 2024 was about RMB2,071 per tonne (2023: RMB2,543), reflecting a significant decrease [111]. Dividends and Shareholder Returns - The Board recommends a final dividend of HK0.98 cents per share for the year ended 31 December 2024, expected to be paid on or about 16 July 2025 if approved at the AGM [13]. - The total shareholder return for 2024 was 44.8%, a significant recovery from a negative return of -36.5% in 2023 [132]. - The Company had reserves available for distribution to shareholders amounting to approximately RMB126,115,000 as of December 31, 2024 [140]. Corporate Governance and Compliance - Related party transactions for the year ended 31 December 2024 are fully exempt connected transactions as defined in the Listing Rules [8]. - No significant transactions, arrangements, or contracts involving Directors' material interests were reported during the financial year [25]. - The Directors and other officers are indemnified against losses and liabilities incurred in the execution of their duties, excluding those arising from fraud and dishonesty [26]. - The company has maintained appropriate directors' and officers' liability insurance for indemnifying against losses from legal actions [36]. - There were no incidents of non-compliance with relevant laws and regulations during the year under review, indicating a strong adherence to legal standards [198]. Environmental and Sustainability Efforts - The Group is committed to complying with all environmental policies and has an internal laboratory to monitor product quality to ensure compliance with national standards, including food safety standards [7]. - The Group's environmental and sustainability efforts are detailed on pages 20 to 31, highlighting compliance and stakeholder relationships [6]. - The report highlights the company's commitment to environmental sustainability and compliance with local regulations [164]. - The company recognizes the significance of ESG (Environmental, Social, and Governance) issues and integrates them into its business operations [168]. Risk Management - The Risk Review Report on pages 32 to 36 provides a comprehensive review of principal risks and uncertainties facing the Group [6]. - The Group does not consider foreign exchange risk significant, as most transactions are denominated in Renminbi [148]. Employee and Training Initiatives - The number of employees in 2024 is 2,205, a decrease of 2.6% from 2,263 in 2023 and 6.6% from 2,360 in 2022 [194]. - The staff turnover ratio for all grades in 2024 is 3.6%, down from 4.7% in 2023 and 5.8% in 2022 [194]. - Mandatory in-house training is provided to all staff, enhancing awareness of anti-corruption and conflict of interest situations [197]. - The training hours per month for general staff increased to 15.0 hours in 2024 from 14.6 hours in 2023 [194]. Share Option Scheme - The Share Option Scheme was adopted on May 19, 2017, to incentivize directors and employees [40]. - The Company has not granted any share options under the Share Option Scheme since its adoption [48]. - Eligible participants of the Share Option Scheme include employees, non-executive directors, suppliers, customers, and other contributors to the Group's growth [45]. - Any grant of options to a director or substantial shareholder exceeding 0.1% of the issued shares or valued over HK$5 million requires shareholder approval [46]. Production and Operational Efficiency - The Group's production volume increased due to technological upgrades and improved operational efficiency [74]. - The modified starch business recorded increased sales supported by enhancements in sewage treatment capabilities and increased customer orders [90]. - New thermal power facilities are expected to enhance operational efficiency and reduce energy costs over time [80]. - The management anticipates continued stock competition in 2025 and is exploring opportunities to extend the industrial chain and diversify its business layout [76].
中国淀粉(03838) - 2024 - 年度财报