Financial Performance - The company reported a revenue of HKD 4,686.8 million for 2024, reflecting a growth rate of 1.8%[18] - The company's revenue for the year ended December 31, 2024, was HKD 4,686.8 million, an increase of 1.8% compared to HKD 4,604.4 million in 2023[53] - The profit attributable to shareholders increased by 10.1% to HKD 644.3 million, up from HKD 585.1 million in the previous year[53] - Adjusted profit attributable to shareholders rose by 15.7% to HKD 615.5 million, compared to HKD 532.0 million in 2023[53] - Basic earnings per share increased to HKD 34.1, up from HKD 31.0, reflecting a growth of 10.0%[53] - The EBITDA for the year was HKD 1,390.9 million, representing a 13.6% increase from HKD 1,224.9 million in 2023[53] - Gross profit rose by 7.7% to HKD 1,269.1 million, with a gross margin of 27.1%, up from 25.6% in the previous year[91][95] - Operating profit increased by 22.0% to HKD 888.2 million, resulting in an operating margin of 19.0%, compared to 15.8% in 2023[91] - The net profit for the year was HKD 645.8 million, reflecting a 10.1% increase from HKD 586.8 million in 2023, with a net profit margin of 13.8%[91] Business Segments - The revenue breakdown by business segment shows investment casting at 23.5%, surface treatment at 1.3%, precision machining at 38.5%, and other segments at 36.7%[18] - The investment casting segment is the largest business division, accounting for 38.5% of the group's revenue for the year ending December 31, 2024[24] - Precision machining and others represent the second largest business division, contributing 36.7% to the group's revenue for the same period[28] - Sand casting is the third largest business division, making up 23.5% of the group's revenue for the year ending December 31, 2024[31] - Surface treatment is the smallest business division, accounting for 1.3% of the group's revenue for the same period[35] Market Performance - The high-power engine end market experienced strong revenue growth, with expectations to surpass the passenger vehicle end market by 2025 due to increased demand from AI data centers[81] - The aviation segment saw a sales increase of 26.8%, contributing to a total revenue of HKD 786.3 million, with a year-on-year growth of 13.0%[67] - The automotive segment experienced a slight decline of 3.2%, with total revenue of HKD 1,640.5 million, impacted by weak demand in the commercial vehicle market[69] - Revenue from diversified industrial markets rose slightly by 2.1% to HKD 2,260.0 million, driven by the demand for AI-related data centers[66] - The Chinese market showed robust growth, with revenue increasing by 11.0% to HKD 817.9 million, contributing to the overall performance[79] Operational Highlights - The company operates 21 production facilities across China, Turkey, Germany, the Czech Republic, and Mexico, with 19 currently operational[21] - The group manufactures investment casting components in four countries, with over half of the products sold to the Americas, followed by Europe and Asia[25] - The company has established long-term strategic partnerships with industry leaders and sells products to over 30 countries and regions[17] - The company has developed over 1,100 new active part numbers in collaboration with customers in 2024[20] - The company holds a total of 562 registered patents, with 111 new patent applications submitted in 2024[20] Sustainability Initiatives - The greenhouse gas emissions intensity decreased by 0.2% year-on-year in 2024, excluding the new factories in Nantong and Zhenjiang, China[143] - The company achieved a waste recycling rate of 87.8% in 2024, up from 76.9% in 2023[143] - The company has committed to achieving a 40% reduction in greenhouse gas emissions intensity and a 55.9% reduction in water consumption intensity by 2030 compared to the 2020 baseline[146] - The company launched a new energy storage station in December 2024 with a maximum output power of 20MWh and a storage capacity of 40MWh, enhancing energy cost efficiency and supporting green transformation[143] - The company received the Standard Chartered Corporate Achievement Award 2024 for "Sustainable Enterprise (Environment) - Outstanding Award"[144] Employee and Governance - The company employs over 7,700 staff, including approximately 600 engineers from around the world[20] - The board consists of 4 executive directors and 3 independent non-executive directors, ensuring a balance of skills and diverse perspectives[152] - The company has a total of 7,778 employees, with 5,640 male employees and 2,138 female employees, reflecting gender diversity within the workforce[160] - The board has established a formal and transparent nomination policy for selecting and appointing new directors, with all directors required to retire and seek re-election at least every three years[162] - The company is committed to enhancing gender diversity in its senior management and board positions, with ongoing efforts to identify suitable candidates[158] Financial Position - Cash and cash equivalents decreased by 4.6% to HKD 601.7 million from HKD 630.9 million in 2023[56] - Total debt decreased by 2.7% to HKD 2,196.1 million, down from HKD 2,257.8 million[56] - The adjusted return on equity improved to 12.8% from 11.5% in the previous year[56] - Total assets decreased by 1.6% to HKD 8,171.8 million, while total equity decreased by 3.2% to HKD 4,742.9 million[110] - The current ratio improved to 1.63 from 1.55, mainly due to a reduction in short-term bank borrowings[110] Future Outlook - The company expects a mid-to-high single-digit sales growth rate for 2025, despite facing potential downturn risks in some end markets[86] - The company plans to continue expanding into diversified industrial and aviation, energy, and medical end markets while optimizing its automotive product portfolio[88] - The integration of the Foshan Meizhuan factory into the Nantong No. 12 factory is expected to enhance operational efficiency, with significant synergies anticipated by 2026[87] - The company aims to achieve positive EBITDA in the SLP park by 2025, despite current losses, with ongoing construction of five factories[87]
鹰普精密(01286) - 2024 - 年度财报