Financial Performance - The Group recorded a sales growth of 5.2% for the year, reaching RMB 2.57 billion[16] - The Group experienced a loss of RMB 43.0 million for the year, attributed to the inventory impairment[16] - The Group's revenue for the year increased by approximately 5.2% year-on-year to RMB 2,571,606,000, compared to RMB 2,445,428,000 in 2023[39] - Gross profit decreased by approximately 62.8% year-on-year to RMB 153,274,000, with a gross profit margin dropping by 10.8 percentage points to 6.0%[39] - The Group's loss for the year amounted to RMB 43,338,000, compared to a profit of RMB 162,790,000 in 2023[39] - Revenue from overseas sales amounted to RMB 1,492,134,000, representing approximately 58.0% of the Group's total revenue[44] - Revenue from the European Union countries was approximately RMB 516,543,000, accounting for about 20.1% of total revenue, while non-EU countries contributed approximately RMB 975,591,000, or 37.9%[44] - Domestic sales in China dropped by approximately 9.6% to RMB 1,079,472,000, representing about 42.0% of total revenue[46] - Other income and gains decreased to approximately RMB 11,384,000 from RMB 18,927,000 in 2023, primarily due to lower interest income and government grants[76] - Selling and distribution expenses amounted to approximately RMB 34,476,000, accounting for 1.3% of revenue, down from 1.7% in 2023, attributed to reduced sales commissions[77] - The Group recorded a net loss of approximately RMB 43,338,000 for the year, compared to a profit of approximately RMB 162,790,000 in 2023[89] Inventory and Impairment - An impairment provision of approximately RMB 199 million for inventories was recognized due to significant drops in raw material and flax yarn prices in Q4 2024[16] - A provision for inventory impairment of approximately RMB 199,431,000 was made as of December 31, 2024, due to significant drops in raw material and flax yarn prices[39] - The impairment provision for inventories as of December 31, 2024, was approximately RMB199,431,000, reflecting the difference between inventory costs and net realizable values[71] Production and Capacity - The Group's production capacity in China totals 23,000 tonnes, with all four production bases operating at near full capacity[59] - The new production facility in Ethiopia has boosted the Group's annual production capacity by 5,000 tonnes, with production ramping up to about 70%[66] - The Group owns 78.67% equity interest in the Heilongjiang facility, marking its entry into the industrial hemp yarn market, which is expected to grow due to national policies[60] Supply Chain and Operations - The company aims to improve operational efficiency and optimize the global supply chain through globalization, process orientation, standardization, and digitalization strategies[22] - The Group is collaborating with CottonConnect to develop the REEL Linen Code of Conduct, focusing on sustainability and traceability in the linen supply chain[54] - The Group plans to build a warehouse in Heilongjiang to manage the supply chain of hemp materials, aiming to establish it as a national trading hub for hemp in China[53] - The Group's production bases are continuously being improved with the latest management systems and technologies, enhancing overall production efficiency and reducing costs[58] Financial Position - The total assets of the Group as of December 31, 2024, were RMB 3,115,009,000, a decrease from RMB 3,283,176,000 in 2023[31] - The total liabilities of the Group as of December 31, 2024, were RMB 1,640,180,000, compared to RMB 1,695,964,000 in 2023[31] - The Group's net current assets as of December 31, 2024, were approximately RMB 477,487,000 (2023: RMB 562,864,000), with total cash and deposits decreasing to approximately RMB 277,650,000 (2023: RMB 521,256,000)[107] - The liquidity ratio as of December 31, 2024, was approximately 129.9% (2023: 134.6%), and total equity was approximately RMB 1,474,829,000 (2023: RMB 1,587,212,000)[108] - The gross debt gearing ratio increased to approximately 69.4% as of December 31, 2024 (2023: 54.8%) due to higher borrowings[109] Dividends - The Board has recommended a final dividend of HK$0.05 per share for the year, down from HK$0.09 in 2023[40] - The Board proposed a final dividend of HKD 0.05 per share for the year, down from HKD 0.09 per share in 2023[43] - A final dividend of HK$0.05 per ordinary share has been recommended for the Year, pending approval at the upcoming annual general meeting[182] - The board proposed a final dividend of HKD 0.05 per ordinary share, subject to shareholder approval at the upcoming annual general meeting[189] Employee and Governance - The Group has 3,703 employees as of December 31, 2024, a slight increase from 3,700 employees in 2023[131] - The Group has adopted a share option scheme and a share award plan to incentivize Directors and employees contributing to the Group's success[135] - The company has a strong governance structure with a mix of executive and independent non-executive directors to ensure effective oversight[153][154] - The management team has a significant ownership stake in the company, aligning their interests with those of shareholders[145][147][148] Market and Economic Conditions - The Group faces risks including unstable demand for linen yarn, protectionism, and potential punitive tariffs on products made in China[176] - The Group's diversification of the supply chain is deemed urgent due to the aging population in China and rising operating costs in Asia[137] - The management team anticipates challenges in 2025 and beyond due to ongoing tariffs and political divergences among superpowers[137] Charitable Contributions - Charitable donations made by the Group during the Year totaled approximately RMB200,000, compared to RMB139,000 in 2023[185] - Charitable donations made by the group during the year totaled approximately RMB 200,000, compared to RMB 139,000 in 2023[192]
金达控股(00528) - 2024 - 年度财报