Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately RMB 1.12 billion, a decrease of about 9.7% compared to the previous year due to a decline in sales of other petrochemical products[11]. - Total revenue for the year ended December 31, 2024, was approximately RMB 1,119,646,000, a decrease from RMB 1,239,515,000 in 2023, representing a decline of about 9.7%[12]. - The gross profit for 2024 was approximately RMB 13 million, with a gross margin of 1.1%, which represents a decrease compared to the previous year[6]. - Gross profit for the year ended December 31, 2024, was RMB 12,778,000, with a gross margin of 1.1%, compared to a gross profit of RMB 57,896,000 and a margin of 4.7% in 2023, indicating a significant decline in profitability[15]. - The net loss for the year ended December 31, 2024, increased to approximately RMB 8,842,000 from RMB 1,509,000 in 2023, primarily due to reduced gross profit[22]. - Operating cash flow for the year ended December 31, 2024, was a net cash outflow of approximately RMB 172,017,000, compared to a net inflow of RMB 82,541,000 in 2023[23]. - Cash and cash equivalents as of December 31, 2024, were approximately RMB 33,410,000, down from RMB 189,706,000 in 2023, indicating a decrease of about 82.4%[24]. Sales and Market Dynamics - The total volume sold in 2024 was approximately 361,000 tons, with naphtha accounting for 38%, other chemical products 3%, and gasoline and diesel 59%[6]. - The domestic refined oil market showed an "N" shaped price trend in 2024, influenced by supply-demand dynamics and rising competition in the industry[5]. - The company is actively expanding sales channels for naphtha and industrial raw materials to optimize its revenue structure[6]. - The global economic uncertainties and geopolitical factors are expected to impact the company's performance in 2025, with a focus on promoting consumer spending and infrastructure investment in China[7]. Expenses and Cost Management - Sales cost for the year ended December 31, 2024, was approximately RMB 1,106,868,000, down from RMB 1,181,619,000 in 2023, reflecting a decrease of about 6.3%[13]. - The company paid approximately RMB 11 million in various taxes during the year[6]. - Distribution expenses decreased by approximately RMB 5,178,000 or 32.0% to about RMB 11,022,000 for the year ended December 31, 2024, due to reduced storage and handling costs[17]. - Administrative expenses decreased by approximately RMB 9,948,000 or 42.1% to about RMB 13,667,000 for the year ended December 31, 2024, primarily due to the absence of professional fees related to a stock exchange listing application[18]. Corporate Governance - The company has adhered to the corporate governance code as per the Stock Exchange Listing Rules for the year ending December 31, 2024[54]. - All directors confirmed compliance with the standard code of conduct for securities trading for the year ending December 31, 2024[55]. - The board consists of seven directors, including four executive directors and three independent non-executive directors[58]. - The audit committee held three meetings during the year ending December 31, 2024, focusing on financial reporting and risk management[66]. - The board is committed to maintaining effective corporate governance practices and ensuring compliance with relevant regulations[59]. Risk Management - The board is responsible for establishing and maintaining an effective risk management and internal control system[81]. - The risk management system includes annual risk identification and analysis, assessing the consequences and likelihood of risks, and developing risk management plans[82]. - Market risk is identified as a risk that could adversely affect profitability due to market price fluctuations, which the management actively monitors[84]. - The board has reviewed the risk management and internal control systems and found them effective and sufficient for the year ending December 31, 2024[89]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to aligning its green low-carbon strategy with China's carbon neutrality goals, actively collaborating with stakeholders to enhance operational sustainability[101]. - The company identified "Product Health and Safety," "Occupational Health and Safety," and "Energy Use" as the top three focus areas for the reporting period[114]. - Total greenhouse gas emissions decreased to 37.95 tons, a reduction of 29.66 tons or approximately 43.87% compared to 2023[122]. - The company has established a stakeholder engagement program to ensure a comprehensive understanding of stakeholder opinions and expectations[105]. - The company emphasizes the importance of corporate social responsibility and community investment through charitable activities[110]. Employee Management and Welfare - The total number of employees as of December 31, 2024, is 20, with a decrease of 17.65% in male employees from 17 to 14[146]. - Employee turnover rate for the reporting period is approximately 23.26%, down from 32.73% in the previous year[155]. - The company emphasizes employee welfare and mental health, adhering to national standards for product quality[143]. - The company is committed to providing a safe working environment and encourages employees to report any hazards or potential threats[156]. - The company has implemented various measures to reduce employee turnover, including competitive compensation and benefits[155]. Compliance and Legal Matters - The company has established policies to prevent bribery, fraud, and money laundering, with relevant compliance measures in place[180]. - The company has not been involved in any corruption-related violations or lawsuits during the reporting period[172]. - The company has obtained directors and employees' liability insurance to protect directors from potential claims[194]. - There are no significant contracts or arrangements established between the company and its controlling shareholders during the year ending December 31, 2024[192].
金泰丰国际控股(09689) - 2024 - 年度财报