Revenue Performance - The company's revenue decreased from approximately RMB 1,530.9 million in the year ended December 31, 2023, to approximately RMB 750.6 million in the year ended December 31, 2024, representing a decline of 51.0%[11]. - Revenue from construction projects fell by approximately RMB 568.0 million or 57.6%, from RMB 985.5 million in 2023 to RMB 417.5 million in 2024[15]. - Revenue from municipal public works projects decreased by approximately RMB 74.5 million or 21.7%, from RMB 343.6 million in 2023 to RMB 269.0 million in 2024[16]. - Revenue from foundation engineering projects plummeted by approximately RMB 103.6 million or 97.6%, from RMB 106.1 million in 2023 to RMB 2.6 million in 2024[17]. - Revenue from specialized contracting projects decreased by approximately RMB 34.3 million or 35.8% to about RMB 61.5 million for the year ending December 31, 2024, primarily due to the completion of most existing projects[18]. Financial Performance - Total revenue costs for the year ending December 31, 2024, decreased by approximately RMB 732.6 million or 50.8% compared to the previous year, consistent with the reduction in revenue from construction projects[20]. - Gross profit for construction projects was RMB 41.3 million with a gross margin of 5.5% for the year ending December 31, 2024, down from RMB 89.1 million and 5.8% in the previous year[21]. - Net profit for the year ending December 31, 2024, was approximately RMB 1.9 million, a decrease of about 93.9% from RMB 31.8 million in the previous year[28]. - Cash and cash equivalents were approximately RMB 96.7 million as of December 31, 2024, down from RMB 147.1 million in the previous year[29]. - Total bank borrowings as of December 31, 2024, were approximately RMB 56.3 million, compared to RMB 32.3 million in the previous year[30]. - The debt-to-equity ratio increased to approximately 11.8% as of December 31, 2024, from 7.9% in the previous year[31]. - Capital expenditures for the year ending December 31, 2024, were approximately RMB 8.4 million, down from RMB 42.0 million in the previous year[35]. Corporate Governance - The company has adopted a corporate governance code that aligns with the principles and provisions of the listing rules[63]. - The company emphasizes integrity, accountability, and transparency as core values in its corporate culture[64]. - The board consists of two executive directors and three independent non-executive directors, with four board meetings held since the listing date[70]. - The board of directors has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[84]. - The board believes that transition risks driven by policy changes and market expectations are more manageable, allowing for timely adjustments to new procedures[167]. Risk Management - The company has established a risk management and internal control framework based on the COSO framework, focusing on managing key risks to acceptable levels[97]. - The board conducts an annual review of the effectiveness of the company's risk management and internal control systems, which are deemed sufficient and effective[98]. - The company has engaged an independent internal control consultant to review key business processes and internal control systems for the year ending December 31, 2024[97]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a governance framework to oversee environmental, social, and governance (ESG) risks, with a dedicated ESG working group comprising senior management[122]. - The ESG working group meets regularly, at least once a year, to manage and report on ESG-related issues[123]. - The company has set a quantitative target to manage diesel consumption, maintaining it at 2.6 tons per million revenue for 2022 and 2023, with a plan to reduce it to 2.5 tons by 2025[139]. - The company has complied with all applicable environmental laws and regulations, with no significant claims or penalties related to environmental protection during the reporting period[136]. - The company has implemented measures to reduce Scope 3 emissions by considering environmental compliance history and certifications in the selection of suppliers and subcontractors[150]. Employee Management - The company employed a total of 237 employees as of December 31, 2024, compared to 225 in 2023, indicating a growth in workforce[186]. - The overall employee turnover rate increased to 42.7% in the reporting period, up from 30% in 2023, with 94% of the turnover being frontline staff[186]. - The company has established a standardized employment contract with employees, which includes confidentiality clauses and competitive compensation packages[188]. - The company is committed to providing a safe and fair working environment, adhering to labor standards and prohibiting child labor and forced labor[189]. Safety and Quality Control - The company has established a three-tier occupational safety system to address the inherent high safety risks in the construction industry[194]. - The company has achieved GB/T45001-2020/13045001:2018 standard certification for occupational health and safety management systems[193]. - There were no reportable accidents or related lost time injury frequency during the reporting period[198]. - The company has implemented strict quality control measures throughout the construction project lifecycle, ensuring compliance with contractual and technical specifications[177].
中深建业(02503) - 2024 - 年度财报