Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately RMB 1,434.9 million, a decrease of about 1.4% or RMB 20.8 million compared to the same period in 2023[8]. - The gross profit for the same period was approximately RMB 281.9 million, reflecting a decline of about 27.3% or RMB 105.6 million year-over-year[8]. - The gross profit margin decreased to approximately 19.6%, down from 26.6% in the previous year, representing a reduction of about 7.0%[8]. - The profit attributable to owners of the company was approximately RMB 50.6 million, a decrease of about RMB 48.7 million compared to the previous year[8]. - Revenue from the electronic cigarette segment was RMB 770.5 million, a slight increase of 0.2% from RMB 768.8 million in 2023, while revenue from paper cigarette packaging decreased by 3.3% to RMB 664.4 million[26]. - Distribution costs increased by approximately 10.2% to RMB 83.3 million, driven by higher employee costs to expand the sales team and promote electronic cigarette products[28]. - Administrative expenses rose by about 6.6% to RMB 156.2 million, primarily due to increased rental and employee costs, especially in the R&D department[29]. - The company's attributable profit for the year was approximately RMB 50.6 million, a decrease of about RMB 48.7 million compared to the previous year[35]. Market and Strategic Focus - The Asia-Pacific region is identified as a key market for the electronic cigarette industry, showing strong growth opportunities in 2024[12]. - The company has undergone a strategic transformation to focus exclusively on the e-cigarette industry, marking a significant shift from its previous diversified operations[19]. - The global e-cigarette market reached a valuation of $24.6 billion in 2024, driven by changing consumer behaviors and technological advancements[17]. - The company successfully entered the European market, which is a cornerstone of its global expansion strategy, unlocking new market opportunities and revenue channels[19]. - The company is committed to sustainable business performance and maximizing shareholder returns through its focused operations in the high-growth e-cigarette sector[19]. - The company is focusing on targeted capital allocation and enhancing R&D to strengthen its market position and technological capabilities[55]. - The strategic expansion acknowledges the vast development potential in overseas markets, allowing the company to leverage emerging global opportunities[55]. Operational Efficiency - The average turnover days for trade receivables increased from approximately 68 days in 2023 to about 74 days in 2024[8]. - The average turnover days for trade payables decreased significantly from approximately 202 days in 2023 to about 124 days in 2024[8]. - The average inventory turnover days improved from approximately 74 days in 2023 to about 51 days in 2024[8]. - Trade and other receivables decreased by approximately 31.5% to RMB 361.5 million, mainly due to a reduction in trade receivables[36]. - Trade and other payables decreased by approximately 73.0% to RMB 211.9 million, primarily due to a significant reduction in trade payables[37]. Corporate Governance - The company has adhered to the corporate governance code as per the listing rules, ensuring compliance for the fiscal year ending December 31, 2024[67]. - The board of directors is committed to maintaining high standards of business ethics and corporate governance across all activities and operations[67]. - The independent non-executive directors have extensive experience in finance and management, contributing to effective oversight[64]. - The board consists of six members, including one executive director, two non-executive directors, and three independent non-executive directors[69]. - The board held a total of 7 meetings during the fiscal year ending December 31, 2024, with full attendance from all directors[78]. - The company has established a board diversity policy aimed at enhancing performance through a diverse board composition, considering skills, experience, and gender[91]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to minimize the impact on the environment by implementing cost-effective and eco-friendly printing technologies[125]. - The total greenhouse gas emissions decreased from 2,608.5 tons in 2023 to 2,012.6 tons in 2024, representing a reduction of approximately 22.7%[130]. - The company promotes water conservation and encourages the recycling of water to reduce wastewater generation[132]. - The company has obtained wastewater discharge permits for operations in Hubei and Guangdong provinces, ensuring compliance with national regulations[128]. - The company emphasizes the importance of stakeholder engagement to enhance its ESG performance[122]. - The company has a zero-tolerance policy towards corruption and has established reporting procedures for employees to report misconduct[104]. Human Resources and Employee Development - The company has implemented a comprehensive human resources management system to ensure compliance with local labor laws and promote a fair working environment[142]. - The total number of employees participating in training decreased from 1,582 in 2023 to 825 in 2024, representing a decline of 47.8%[148]. - The percentage of employees participating in training increased from 95.5% in 2023 to 97.1% in 2024[148]. - The company achieved zero work-related fatalities over the past three years, including the reporting year[146]. - The company strictly adheres to labor standards, with no violations related to child labor or forced labor during the reporting period[150]. Risk Management - The board is responsible for risk management and internal controls, ensuring compliance with applicable laws and regulations[100]. - The company has established a comprehensive risk management framework to identify, assess, and manage risks impacting business objectives[103]. - Major risks and uncertainties are detailed in the management discussion and analysis section of the annual report[102]. Shareholder Information - The company has established a dividend policy to provide stable dividends while retaining sufficient reserves for future development[96]. - The board will consider various factors, including actual and expected financial performance, when determining dividend amounts and frequency[97]. - The company's distributable reserves as of December 31, 2024, were approximately RMB 1,527 million, unchanged from RMB 1,527 million as of December 31, 2023[186].
嘉耀控股(01626) - 2024 - 年度财报