Financial Performance - In 2024, the company achieved total operating revenue of RMB 3.667 billion, a decrease of 10.06% year-on-year[13]. - The net profit attributable to shareholders was RMB 234 million, reflecting a year-on-year decrease of 17.96%[13]. - The group's revenue from waste treatment and energy conversion business for the year was approximately RMB 3,666,591,000, a decrease of about 10.06% compared to RMB 4,076,596,000 in the same period of 2023[36]. - The gross profit margin for the year was approximately 35.70%, an increase from approximately 34.02% in 2023, attributed to increased waste processing volume and improved power generation efficiency[37]. - The net profit attributable to the owners of the company was approximately RMB 234,123,000, down about 17.96% from RMB 285,380,000 in 2023, mainly due to a reduction in overall business activities[37]. Assets and Liabilities - Total assets reached RMB 20.881 billion, an increase of 2.92% year-on-year, while net assets grew by 4.41% to RMB 6.991 billion[13]. - As of December 31, 2024, the total assets of the group were approximately RMB 20,880,537,000, with net assets attributable to the owners of the company at approximately RMB 6,661,471,000[38]. - The debt-to-asset ratio was 66.52%, a decrease of 0.47% from 66.99% on December 31, 2023[38]. - The outstanding borrowings amounted to approximately RMB 10,647,211,000, an increase of about RMB 175,167,000 from RMB 10,472,044,000 on December 31, 2023[41]. Project and Investment Overview - The company has a total of 65 projects in China with a total investment of approximately RMB 19.758 billion, with RMB 17.2 billion already invested[13]. - The group has a total of 65 projects in operation, including 27 waste-to-energy projects and 5 landfill projects, with a total investment of approximately RMB 19.758 billion[23][24]. - Strategic investments and acquisitions will focus on high-quality projects with technological synergy and regional advantages to accelerate resource integration[14]. Market and Industry Trends - In 2024, the environmental protection market reached RMB 783.5 billion, with service projects accounting for 84% and asset projects for 16%[20]. - The urban and rural sanitation sector achieved a transaction value of RMB 168.1 billion, with new energy equipment penetration exceeding 30% and smart management platform coverage over 50%[20]. - The waste treatment industry in China is in a strategic adjustment period, with traditional landfill operations entering a decline phase and the market for site restoration rapidly developing[178]. - The waste incineration industry has matured with a complete business model, while the environmental sanitation industry is transitioning towards maturity after a rapid development phase[178]. Operational Efficiency and Management - The company aims to enhance operational management capabilities and improve the standardized system and intelligent platform for better digital service efficiency[14]. - The group improved operational efficiency, achieving a 6.8% year-on-year increase in electricity generation from incineration projects and a 10.4% increase in capacity utilization rate[26]. - The company aims to optimize its operating cash flow continuously, becoming a core pillar of the parent group's stable growth[12]. Corporate Governance - The company has maintained compliance with all applicable code provisions of the corporate governance code as of December 31, 2024[67]. - The board believes that high standards of corporate governance are key to the company's success and is committed to maintaining these standards[66]. - The board consists of two executive directors, one non-executive director, and four independent non-executive directors, ensuring a diverse governance structure[72]. Risk Management and Compliance - The board confirmed its responsibility for ongoing supervision of the risk management and internal control systems, ensuring they are effective and adequate[105]. - The company has established a risk governance framework to enhance internal controls and improve execution effectiveness[98]. - The company has implemented a unique internal control system to meet regulatory requirements and improve governance standards[99]. Sustainability and Innovation - The company emphasizes technology innovation to drive development and enhance its technological innovation capabilities for high-quality growth[22]. - The company is committed to continuous innovation and has established partnerships with leading international environmental management firms to enhance service quality[117]. - The company will publish its sustainability report by the end of April 2025, detailing its environmental and social responsibilities[177]. Employee and Board Diversity - The gender ratio of employees in the group is approximately 77.7% male and 22.3% female as of December 31, 2024[83]. - The board currently consists of seven members, with two female directors, achieving a gender diversity rate of 28.6%[82]. - The company recognizes the importance of protecting employee rights and providing equal opportunities regardless of gender, age, or background[83].
首创环境(03989) - 2024 - 年度财报