EBEM(SH:603002)2025-04-23 09:45Financial Performance - The company's operating revenue for 2024 was CNY 2,144,384,497.46, a decrease of 4.29% compared to CNY 2,240,423,623.58 in 2023[24]. - The net profit attributable to shareholders for 2024 was CNY 50,606,364.59, down 41.59% from CNY 86,634,602.19 in 2023[24]. - The basic earnings per share for 2024 was CNY 0.04, a decline of 55.56% compared to CNY 0.09 in 2023[25]. - The total assets at the end of 2024 were CNY 4,605,197,992.72, a decrease of 2.37% from CNY 4,717,091,479.77 at the end of 2023[24]. - The cash flow from operating activities for 2024 was CNY 68,122,150.46, down 75.93% from CNY 283,002,491.78 in 2023[24]. - The weighted average return on equity for 2024 was 1.47%, down from 3.59% in 2023, reflecting a decrease of 2.12 percentage points[25]. - The net profit after deducting non-recurring gains and losses for 2024 was CNY 42,492,551.90, a decrease of 47.06% from CNY 80,269,540.79 in 2023[24]. - The gross profit margin for the main business decreased by 1.43 percentage points to 6.81%[102]. - The company achieved operating revenue of 2.144 billion yuan, a decrease of 4.29% year-on-year[101]. - Net profit for the period was 50.61 million yuan, down 41.59% compared to the previous year[101]. Dividend Distribution - The proposed profit distribution plan for 2024 includes a cash dividend of RMB 0.20 per 10 shares, totaling RMB 22,681,570.18, which represents 44.82% of the net profit attributable to shareholders of RMB 50,606,364.59[6]. - The total number of shares as of December 31, 2024, is 1,134,078,509, which will be the basis for the dividend distribution[6]. - The company has established a cash dividend policy, emphasizing sustainable returns to investors based on actual conditions and shareholder demands[194]. - The company plans to conduct cash dividends annually, contingent on achieving positive distributable profits and sufficient cash flow[197]. - The company’s cash dividend policy allows for a combination of cash and stock dividends, prioritizing cash distributions[196]. - The company mandates a minimum cash dividend distribution of 80% of profits for mature-stage companies without significant capital expenditure plans[198]. - For mature-stage companies with significant capital expenditure plans, the minimum cash dividend distribution is set at 40%[198]. - Companies in the growth stage with significant capital expenditure plans must distribute at least 20% of profits as cash dividends[198]. - The company has consistently executed cash dividends according to its articles of association since its listing, distributing no less than 30% of the annual distributable profits in cash[200]. - The company's dividend standards and ratios are clearly defined, with a complete decision-making process and mechanism in place[199]. Audit and Compliance - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm, ensuring the accuracy and completeness of the financial report[5]. - The company maintains strict internal control measures, with no significant deficiencies reported during the audit period[171]. - The company has not faced any penalties from securities regulatory agencies in the past three years[182]. - The company held two shareholder meetings during the reporting period, ensuring compliance with legal requirements and facilitating shareholder participation[165]. - The company conducted seven board meetings, with committees effectively overseeing operations and compliance[166]. Production and Capacity Expansion - The company plans to expand its production capacity with the "Zhuhai Hongchang Phase II Project" aiming for an annual output of 140,000 tons of liquid epoxy resin[14]. - The second phase of the annual production project for 140,000 tons of liquid epoxy resin has a total investment of CNY 77,925 million, with an adjusted fundraising amount of CNY 63,277.75 million[42]. - The third phase project for 80,000 tons of electronic-grade functional epoxy resin has a total investment of CNY 42,099 million, with an adjusted fundraising amount of CNY 17,136.71 million[46]. - The company is currently constructing a second phase project with an annual production capacity of 140,000 tons of liquid epoxy resin, expected to be completed by 2025[140]. - The company is currently in the construction phase for a third project with an annual capacity of 80,000 tons of electronic-grade functional epoxy resin[142]. Research and Development - The company has developed a new generation of polyether resin formula to meet high-temperature and high-humidity application scenarios, which has passed customer evaluations[55]. - The company is actively pursuing the development of halogen-free phosphorus-containing polyether resin to address the negative impacts of adding flame retardants to resin systems[55]. - The company has completed product optimization for ultra 5G resin and is conducting laboratory evaluations with downstream customers, aiming for certification in 2024[56]. - The company has developed low dielectric performance polyether resin intermediates to match the quality of foreign 5G high-frequency resin materials, achieving domestic leadership with 1 patent granted[58]. - The company has applied for a total of 20 patents related to high-frequency and high-speed materials, with 10 patents granted[59]. - The company has established an electronic-grade epoxy resin R&D center and holds 51 invention patents, with 5 patents currently under review[130]. - The company has 138 R&D personnel, accounting for 21% of the total workforce[115]. - In 2024, the company has 11 ongoing R&D projects, with 4 new projects initiated during the reporting period, resulting in 5 new products developed[116]. Market and Industry Trends - The company is facing challenges from a complex external environment and weak downstream demand, impacting profit margins[31]. - The epoxy resin market is experiencing weak demand and profit compression due to macroeconomic factors and new industry capacity, with some companies facing losses[72]. - The copper-clad laminate (CCL) industry is stabilizing after intense competition, with significant advancements in technology and capacity since 2019, particularly in high-frequency and high-speed materials for 5G applications[73]. - The PCB market demand is gradually recovering, driven by strong AI server demand and the implementation of new policies, with expectations for continued growth in 2025[74]. - The company anticipates market capacity expansion in the copper-clad laminate industry driven by the growth of 5G, automotive electronics, and IoT[153]. Strategic Initiatives - The company is focused on developing new materials for advanced packaging processes, particularly in semiconductor applications[14]. - The company is strategically positioned to meet market demands by focusing on high-end, environmentally friendly products and customized solutions[71]. - The company is enhancing production efficiency by advancing production equipment and processes, aiming to increase the capacity of the Zhuhai plant to 80,000 tons of electronic-grade functional epoxy resin annually[156]. - The company is focusing on expanding the market share of lead-free and halogen-free eco-friendly products, particularly in the lightweight/intelligent and 5G-related product segments[157]. - The company is committed to complying with environmental regulations and has implemented measures to reduce hazardous waste generation[125]. Risk Management - The company emphasizes the importance of risk awareness regarding future operational and strategic plans, indicating potential investment risks[7]. - The company is facing risks from fluctuations in raw material prices and changes in downstream industry demand, particularly for epoxy resin and copper-clad laminates[158]. - The company is exposed to market competition risks that could lead to price declines and reduced profit margins[160]. - The company's copper-clad laminate business has a high customer concentration, which poses risks if major clients experience adverse changes in their operations[161]. - The company is navigating risks from changes in the domestic and international economic environment, including global supply chain disruptions and trade uncertainties[162]. Corporate Governance - The company has a management structure that includes various directors and supervisors with extensive experience in their respective fields[179]. - The remuneration for directors and supervisors is determined by the shareholders' meeting, while senior management remuneration is decided by the board of directors[181]. - The independent director's resignation will take effect after the election of a new independent director, in compliance with relevant laws and regulations[178]. - The company approved 17 proposals during the annual shareholder meeting held on May 15, 2024, with no rejected proposals[173]. - The company is committed to transparency, as evidenced by the detailed reports on financial performance and related party transactions presented at the meetings[173].