Financial Performance - The company's revenue for 2024 was RMB 7,724,326 thousand, an increase of 5.1% compared to RMB 7,346,895 thousand in 2023[5]. - Gross profit for 2024 was RMB 439,850 thousand, with a gross margin of 6%, consistent with the previous year[5]. - Net profit attributable to equity shareholders for 2024 was RMB 67,791 thousand, up 71.8% from RMB 39,489 thousand in 2023[5]. - The total assets of the company decreased to RMB 1,877,283 thousand from RMB 1,914,596 thousand in 2023[5]. - The company recorded a revenue of RMB 7,724.3 million in 2024, an increase of RMB 377.4 million or 5% compared to RMB 7,346.9 million in 2023, driven by higher sales volumes of wholesale and retail petroleum products[27]. - The sales volume of finished oil products reached approximately 1,028,000 tons in 2024, up about 13% from 913,000 tons in 2023, with sales revenue of RMB 7,395.7 million, a year-on-year increase of about 5%[24]. - The company's natural gas sales revenue decreased by 5% to RMB 253.4 million in 2024, with compressed natural gas sales volume dropping by 31% to 47.1 million cubic meters[25]. - Transportation services revenue increased by 11% to RMB 75.2 million in 2024, compared to RMB 67.7 million in 2023[26]. - In 2024, the sales cost rose by 5% to RMB 7,284.5 million, up from RMB 6,924.6 million in 2023, due to increased procurement costs associated with higher sales volumes[28]. - Profit before tax increased by RMB 30.2 million to RMB 94.3 million in 2024, compared to RMB 64.1 million in 2023[36]. - Net profit for 2024 was RMB 70.7 million, up from RMB 43.3 million in 2023, reflecting an increase of RMB 27.4 million[38]. - Total assets remained stable at approximately RMB 1,877.3 million, while total equity increased by 7% to RMB 548.0 million[39]. - As of December 31, 2024, the debt ratio was 71%, a decrease from 73% in 2023[43]. Business Expansion and Strategy - The company expanded its business into liquefied petroleum gas (LPG) wholesale, signing agreements with PetroChina Kunlun Gas and Songyuan Petrochemical[11]. - The company aims to diversify its business and revenue sources while focusing on opportunities in the new energy sector[13]. - The company expanded its gas station network through partnerships with smaller gas stations, allowing customers to use prepaid cards for purchasing fuel[24]. - The company is focused on maintaining financial flexibility and will continue to assess the use of funds to adapt to changing market conditions[45]. - The company aims to optimize its natural gas and oil distribution and transportation business while focusing on the operation of gas and oil stations[59]. - By 2025, the company plans to align with China's energy transition and the collaborative development of traditional and renewable energy[59]. - The company will actively seek growth opportunities in the construction of new energy vehicle gas stations and charging infrastructure to broaden revenue sources[59]. Market and Economic Outlook - In 2024, China's natural gas consumption increased by 8% to 426.05 billion cubic meters, with industrial natural gas production rising by 6.2%[10]. - The forecast for China's GDP growth in 2025 is around 5%, with expectations for continued growth in natural gas production and consumption[12]. - The global oil demand is expected to see a slight recovery in 2025, but overall supply may remain excessive, putting downward pressure on international oil prices[12]. - Global economic growth is projected at around 2.7% for 2025, indicating a slow recovery[56]. - Global oil demand is expected to rise from 8.3 million barrels per day in 2024 to slightly over 10 million barrels per day in 2025, with Asia contributing nearly 60% of this growth[57]. - Global natural gas demand is anticipated to grow by less than 2% in 2025, primarily supported by the Asian market[58]. Corporate Governance and Compliance - The company provided comprehensive training materials to all directors to ensure they are updated on legal, regulatory, and corporate governance developments[70]. - The Audit Committee held two meetings in 2024, with all members attending both sessions, ensuring effective oversight of financial reporting and compliance[74]. - The Compensation Committee met once in 2024 to review and approve performance-based compensation for executive directors and senior management[76]. - The Nomination Committee held two meetings in 2024, focusing on board composition and diversity policies, with all members present at both meetings[83]. - The company adopted a board diversity policy, considering factors such as gender, age, and professional experience to enhance board composition[81]. - The company confirmed that there are no significant uncertainties affecting its ability to continue as a going concern[74]. - The company ensures that no director participates in determining their own remuneration, maintaining transparency in the compensation process[77]. - The Audit Committee is responsible for reviewing the independence of external auditors and the effectiveness of audit procedures[74]. - The company has established a preliminary goal to appoint at least one director of a different gender to the board, which has been achieved[85]. - The company has implemented risk management and internal control objectives to identify, assess, and manage significant risks[90]. - The board has authorized the maintenance of a robust internal control system to ensure effective resource utilization and compliance with laws[89]. - The company has a policy to provide a fair and equal working environment, not considering gender, race, or religion in recruitment and promotion[85]. - The company has engaged independent professional consultants to assist in monitoring its risk management and internal control systems[91]. - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[98]. - The company’s governance practices include providing timely information to shareholders and ensuring compliance with applicable laws and regulations[103]. Environmental, Social, and Governance (ESG) Initiatives - The group emphasizes the importance of building a safe, reliable, resilient, and sustainable supply chain to support the orderly development of the natural gas industry and contribute to national "dual carbon" goals[106]. - The group aims to enhance talent recruitment and training, fostering a diverse and inclusive corporate culture for mutual growth with employees[107]. - The ESG report for the fiscal year ending December 31, 2024, will showcase the group's performance in ESG management and corporate sustainability[108]. - The report will cover the group's core business operations, including natural gas refueling stations, retail and wholesale of petroleum products, and transportation services[109]. - The group applies a quantitative principle to disclose environmental and social performance based on key performance indicators, including emissions and resource consumption[111]. - A comprehensive risk management system is established to embed ESG strategies into the business development blueprint, promoting low-carbon transformation and green growth[115]. - The board of directors is fully responsible for overseeing ESG-related matters and ensuring effective internal communication and collaboration[115]. - The group continuously optimizes its ESG policies and management systems to enhance transparency and accuracy of information[106]. - The board conducts two comprehensive reviews of the group's ESG performance annually, providing specific improvement recommendations based on the assessment results[116]. - The group aims to deepen collaboration with upstream and downstream partners to enhance the sustainable development management system, targeting a dual win in economic and environmental benefits[119]. - The group maintains a stable communication mechanism with stakeholders, utilizing various channels to capture market dynamics and emerging risks[121]. - The group prioritizes compliance with local laws and regulations, ensuring operational legality across all business areas[117]. - The board integrates sustainability into the long-term strategy, ensuring all employees conduct business activities under ESG principles[120]. - The group focuses on continuous optimization of management systems through regular monitoring and reviews of operational safety and service quality[119]. - The group engages with stakeholders through diverse communication channels, including regular reports and meetings, to align business operations with stakeholder concerns[121]. - The group is committed to enhancing its sustainable development system and fulfilling environmental and social responsibilities[122]. - The group identified 28 sustainability issues related to its environmental and social impacts[124]. - Six key ESG issues were determined to be of significant importance: business ethics and anti-corruption, internal complaint mechanisms, adaptability and resilience of business models to environmental, social, political, and economic risks, legal and regulatory management, emergency response capabilities, and systematic risk management[127]. Employee Management and Safety - The company has a total of 1,375 employees, with 918 males and 457 females, all of whom are full-time[179]. - Employee distribution by age shows that 37% of females and 31% of males are aged 31 to 40[180]. - The total employee turnover rate for the fiscal year 2024 is 15.1%[190]. - Male employee turnover rates by age group are 26.9% (30 or younger), 17.0% (31-40), 10.7% (41-50), and 13.6% (51 and older) with an overall male turnover rate of 15.0%[191]. - Female employee turnover rates by age group are 32.8% (30 or younger), 12.9% (31-40), 12.6% (41-50), and 8.3% (51 and older) with an overall female turnover rate of 15.3%[191]. - The highest employee turnover rate by location is in Yanji at 32.2% and Wuchang at 28.6%[191]. - The company has established a center safety committee composed of the president, vice presidents, and business unit managers to oversee safety policy implementation[197]. - Four center safety committee meetings were held in fiscal year 2024 to review safety performance and optimize safety management practices[197]. - The company conducted a safety knowledge competition on June 13 to enhance employee safety awareness and emergency response capabilities[197]. - The company emphasizes a zero-tolerance policy for discrimination and harassment, promoting a fair and respectful work environment[193]. - The company emphasizes the importance of occupational disease prevention as a key component of its health and safety management[198]. - Regular training sessions on occupational health and safety have been organized, with relevant knowledge included in the annual training plan[198]. - The company has established a comprehensive monitoring system for safety management, including daily safety checks on transportation vehicles[200]. - An emergency response plan has been implemented to address unexpected incidents, with a dedicated emergency response team in place[200]. - The company has installed monitoring systems at gas stations to ensure real-time safety oversight[200]. - A special health check event for employees was organized to enhance health management awareness and disease prevention measures[198]. - The company has committed to continuous improvement in safety management by engaging professional industrial safety consulting services since 2012[200]. - Strict safety regulations are enforced at gas stations, including prohibitions on smoking and unauthorized equipment use[199]. - The company has received high praise from experts for its emergency response drills, which tested its incident handling capabilities[200].
众诚能源(02337) - 2024 - 年度财报