Financial Performance - For the year ended 31 December 2024, the Group's revenue amounted to RMB241.6 million, representing a decrease of 4.7% compared to the year ended 31 December 2023[17]. - The Group recorded a gross profit of RMB58.0 million for the year ended 31 December 2024, with a stable gross profit margin of 24.0%[17]. - The net loss for the year ended 31 December 2024 was RMB55.3 million, resulting in a net loss margin of 22.9%, compared to a net loss of RMB1.3 million and a margin of 0.5% for the previous year[18]. - Loss attributable to owners of the Company was RMB48.6 million for the year ended 31 December 2024, compared to a profit of RMB1.8 million for the year ended 31 December 2023[18]. - Basic loss per share attributable to owners of the Company amounted to RMB0.036 for the year ended 31 December 2024, compared to basic earnings per share of RMB0.001 for the previous year[19]. - In 2024, the Group's revenue was RMB 241,618,000, a decrease of 4.9% compared to RMB 253,450,000 in 2023[22]. - The Group reported a gross profit of RMB 58,027,000, down from RMB 60,726,000 in 2023, reflecting a gross margin decline[22]. - The loss before income tax for 2024 was RMB 56,761,000, compared to a profit of RMB 680,000 in 2023[22]. - The total assets as of December 31, 2024, were RMB 773,673,000, a decrease from RMB 843,157,000 in 2023[22]. - The Group's equity attributable to owners decreased to RMB 372,344,000 in 2024 from RMB 421,127,000 in 2023[22]. - The Group recorded a net loss of RMB 55.3 million for the year ended December 31, 2024, with a net loss margin of 22.9%, compared to a net loss of RMB 1.3 million and a margin of 0.5% in 2023[90]. Project Development - As of 31 December 2024, the Group has completed 51 hazardous waste incineration projects with an aggregate designed disposal capacity of 1,222,500 tonnes per annum[5]. - The Group has 5 ongoing hazardous waste incineration projects with an aggregate designed disposal capacity of 131,000 tonnes per annum[5]. - The Group completed 8 hazardous waste incineration projects in 2024, increasing the designed disposal capacity by approximately 179,000 tonnes per annum[33]. - The company completed hazardous waste incineration projects with a total designed disposal capacity of 179,000 tonnes per annum in 2024[37]. - Ongoing hazardous waste incineration projects as of December 31, 2024, have a total designed disposal capacity of 131,000 tonnes per annum[40]. - The company constructed an oil sludge thermal desorption treatment project with a designed treatment capacity of 200,000 tonnes per year, which began trial operation in March 2024[42]. - The company is developing a pyrolysis project with a designed disposal capacity of 220,000 tonnes per year, expected to commence trial operation in Q2 2025[46]. Revenue Breakdown - Revenue from oilfield auxiliary services increased by 24.3% to RMB156.4 million in 2024, up from RMB125.8 million in 2023[41]. - Revenue from hazardous waste incineration solutions decreased by 62.6% to RMB38.4 million in 2024, down from RMB102.7 million in 2023[53]. - Revenue from cement plant parallel kiln co-treatment services surged by 115.4% from RMB 14.3 million in 2023 to RMB 30.8 million in 2024, attributed to operations in Yunfu and Maoming projects[56]. - The overall revenue for the company decreased by 4.7% from RMB253.5 million in 2023 to RMB241.6 million in 2024[51]. - Revenue decreased by 4.7% from RMB 253.5 million for the year ended December 31, 2023, to RMB 241.6 million for the year ended December 31, 2024[55]. - Oilfield auxiliary services revenue increased by 24.3% from RMB 125.8 million in 2023 to RMB 156.4 million in 2024, driven by higher demand in the Karamay oilfield[55]. Cost and Expenses - Cost of services decreased by 4.7% from RMB 192.7 million in 2023 to RMB 183.6 million in 2024, mainly due to lower revenue from hazardous waste incineration[59]. - Administrative expenses increased by 6.5% from RMB 55.4 million in 2023 to RMB 59.0 million in 2024, remaining relatively steady[75]. - Research and development costs rose by 11.6% from RMB 11.2 million for the year ended December 31, 2023, to RMB 12.5 million for the year ended December 31, 2024, reflecting a focus on key technologies[81]. - Impairment losses on property, plant, and equipment amounted to RMB 28.8 million for the year ended December 31, 2024, a significant increase from RMB 3.9 million in 2023, primarily due to concerns over the commercial prospects of certain projects[82]. Corporate Governance - The Group is committed to high standards of corporate governance to safeguard shareholder interests and enhance corporate value[195]. - The Company has fully complied with the Corporate Governance Code during the Reporting Period[195]. - The Board has established the Group's purpose, values, and strategy aligned with its culture[196]. - No incidents of non-compliance with the Model Code by relevant employees noted during the Reporting Period[198]. - The Company will continue to review its corporate governance structure and make necessary changes when appropriate[195]. Strategic Focus and Future Plans - The Group aims to leverage its technology advantage to expand its business into new areas of solid waste treatment[7]. - The Group aims to capitalize on opportunities in the environmental protection industry and expand its business scope through technology innovation in 2025[26]. - The Group plans to leverage national policies supporting the environmental protection industry to expand its solid waste treatment business and maintain its market leadership[124][125]. - The Group will focus on technology innovation and commercialization of advanced solid waste treatment technologies to maximize shareholder returns and capture new business opportunities[125][125]. - The Group intends to adopt various project models for solid waste treatment, including operating and maintenance services projects, to enhance its competitiveness and risk management[130]. - The Group is actively exploring the application of artificial intelligence (AI) in environmental technology to improve operational efficiency and environmental data analysis capabilities[131]. Management and Workforce - The management team includes experienced executives with over 26 years in solid waste treatment solutions and operational management[153][154][161]. - The Group's workforce as of December 31, 2024, consists of 341 employees, with over 250 dedicated to R&D, project management, and execution[138]. - The Group's corporate governance and investor relations are overseen by Mr. GU, who is also responsible for corporate investment and finance[164]. - The appointment of independent directors like Mr. Chi and Mr. XIAO strengthens the board's oversight capabilities[169]. Financial Position and Capital Management - Cash and cash equivalents as of December 31, 2024, were approximately RMB49.8 million, down from RMB73.6 million in 2023, with net current assets decreasing from RMB227.9 million to RMB187.0 million[112][119]. - The gearing ratio as of December 31, 2024, was approximately 39%, compared to 37.4% in 2023, indicating a slight increase in financial leverage[113][120]. - The Group's borrowings as of December 31, 2024, amounted to RMB61.8 million, up from RMB32.9 million in 2023, secured by the Group's assets and personal guarantees from controlling shareholders[107][112]. - Capital expenditure for the year ended December 31, 2024, was approximately RMB68.8 million, significantly higher than RMB19.2 million in 2023, primarily for purchasing properties and equipment for oil sludge treatment and solid waste treatment projects[108][108].
维港环保科技(01845) - 2024 - 年度财报