Financial Performance - The company's revenue for the fiscal year 2024 increased by approximately 11.4% to around RMB 407.5 million, compared to RMB 365.8 million in fiscal year 2023[9]. - The profit attributable to shareholders reached approximately RMB 111.2 million, representing a significant year-on-year growth of about 32.4% from RMB 84.0 million in the previous fiscal year[9]. - The group achieved a net profit margin of 27.6% in FY2024, up from 23.1% in FY2023[25]. - The group recorded a profit of approximately RMB 112.4 million for the year, a growth of 32.9% compared to RMB 84.6 million in FY2023, attributed to increased revenue and other income[39]. - The cost of sales for the year was approximately RMB 245.5 million, an increase of about 11.4% from RMB 220.4 million in the previous year, primarily due to rising production and raw material costs[31]. - Gross profit for the year was approximately RMB 162.0 million, up about 11.3% from RMB 145.5 million, with a stable gross margin of approximately 39.8%[32]. - Other income rose significantly to approximately RMB 20.3 million, an increase of about 178.1% from RMB 7.3 million, mainly due to increased government subsidies and rental refunds[33]. - The total asset return increased to 16.3% in FY2024 from 15.2% in FY2023[25]. - The interest coverage ratio improved significantly to 41.1 times in FY2024, compared to 25.9 times in FY2023[25]. Production and Operations - The company has established two production bases in Dongguan, Guangdong Province, and Anji, Zhejiang Province, with the Dongguan factory fully operational in fiscal year 2024[10]. - The company plans to concentrate operations at its main production base in Changchun, Jilin Province, after ceasing operations at the Dongguan and Anji factories[10]. - Approximately HKD 59.2 million of the funds raised post-IPO have been allocated for expanding the new production line at the Changchun base and for R&D projects[11]. - The company has entered into a transfer agreement to purchase land in Changchun to establish a new production base aimed at increasing production capacity for biodegradable plastic products[9]. - The new production base in Changchun is still in the planning stage as of the report date[9]. - The group plans to consolidate operations by relocating machinery from Dongguan and Anji factories to the main base in Changchun, aiming for cost efficiency and improved production capabilities[16][20]. - The company has initiated trial production of newly purchased machinery and equipment at the Changchun production base, despite not completing the full expansion by the second quarter of 2024[67]. - The company plans to establish a production base in Dongguan instead of Huizhou due to unexpected delays in obtaining necessary approvals, with the decision to use internal funds for initial investments[68]. - The new production base in Changchun will enhance flexibility to meet the growing demand in Northeast China, where biodegradable product sales accounted for over 80% of the company's revenue[71]. Market and Regulatory Environment - The Chinese government has implemented policies to ban non-biodegradable plastic bags by the end of 2025, which is expected to benefit the company's biodegradable plastic product business[12]. - The Chinese government is expanding the ban on non-biodegradable plastic bags to various commercial venues by the end of 2025, increasing demand for biodegradable products[22][23]. - The company is optimistic about the future prospects of its biodegradable plastic products business, supported by favorable government policies and measures[12]. - The group is strategically positioned to meet the growing demand for biodegradable products due to changing consumer habits and supportive government policies[23]. Research and Development - The group is collaborating with the Changchun Institute of Applied Chemistry for R&D on biodegradable plastic products, enhancing competitive advantages in technology and quality control[19]. - The company plans to enhance its R&D capabilities and upgrade existing R&D equipment, with an allocation of approximately HKD 6.68 million[65]. - The company has a strong focus on research and development in biodegradable products, with key personnel involved in industry associations[82]. - The company is focused on developing smart polymer materials and biodegradable multi-phase materials for biomedical and ecological applications[86]. - The company has published over 50 research papers and holds 15 patents in biodegradable polymers, showcasing its commitment to innovation and research[86]. Governance and Compliance - The company has adopted the corporate governance code as per the Stock Exchange's listing rules for the fiscal year 2024, ensuring compliance with all applicable provisions[93]. - The board of directors consists of four executive directors and several independent non-executive directors, ensuring a diverse and independent governance structure[101]. - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and ESG Committee[115]. - The company has adopted a board diversity policy, with a current gender ratio of approximately 0.48:1 among its 161 employees, down from 0.58:1 in 2023[130]. - The company has established a shareholder communication policy to ensure effective communication with shareholders and investors[155]. - The company has implemented a whistleblowing policy to report any suspected violations or misconduct[149]. - The company has adopted a zero-tolerance policy towards bribery, extortion, fraud, and money laundering[148]. - The board has confirmed that the risk management and internal control systems for the fiscal year 2024 are effective and adequate[147]. - The company is committed to transparency and accountability to its shareholders, reinforcing its corporate governance principles[93]. Shareholder Information - The company reported a total issued share capital of HKD 10,000,000, divided into 1,000,000,000 shares with a par value of HKD 0.01 each as of December 31, 2023[159]. - The company has significant shareholdings with Ms. Zhang owning 321,080,700 shares, representing approximately 32.11% of the issued share capital[199]. - Mr. Dan holds 190,822,340 shares, accounting for about 19.08% of the company's issued share capital[199]. - The shareholding structure reflects a concentrated ownership, with the top three shareholders holding over 52% of the total shares[199]. - The report indicates that the company is compliant with the Securities and Futures Ordinance regarding the disclosure of interests[199]. - The company continues to monitor and report on shareholding changes as per regulatory requirements[199]. Employee and Social Responsibility - The total employee cost for the fiscal year 2024 was approximately RMB 14.4 million, an increase from RMB 13.1 million in the previous year[61]. - The company recognizes employees as important assets and provides competitive compensation to attract and retain high-quality staff[165]. - The company made charitable donations of approximately RMB 50,000 in the fiscal year 2024, compared to RMB 30,000 in the fiscal year 2023[176]. - The company has not encountered any significant disputes with customers or suppliers during the fiscal year 2024[166]. - The company has complied with relevant laws and regulations without any serious violations as of the fiscal year 2024[164].
中宝新材(02439) - 2024 - 年度财报