Financial Performance - In 2024, the company's revenue decreased to RMB 5,885,495, down 20.7% from RMB 7,427,010 in 2023[14] - The gross profit for 2024 was RMB 592,563, representing a gross profit margin of 10%, compared to 14% in 2023[14] - The company reported a loss for the year of RMB 262,565, a significant decline from a profit of RMB 111,235 in 2023[14] - In 2024, Asia Cement (China) reported operating revenue of RMB 5,885,495,000, a year-on-year decrease of 21%[22] - The gross profit for 2024 was RMB 592,563,000, representing a year-on-year decrease of 45%[22] - The net loss for the year amounted to RMB 262,565,000, a decrease of RMB 373,800,000 from a profit of RMB 111,235,000 in 2023[22] - The Group's cost of sales decreased by approximately 17% to RMB 5,292,932,000 in 2024 from RMB 6,356,723,000 in 2023, attributed to lower coal costs[45] - Profit before tax for 2024 was RMB 54,439,000, a decrease of RMB 417,192,000 compared to a profit of RMB 471,631,000 in 2023[52] - Cash generated from operating activities decreased from RMB 1,531,770,000 in 2023 to RMB 459,738,000 in 2024, representing a decline of approximately 70%[64] - Cash used in investing activities amounted to RMB 4,124,058,000 in 2024, compared to cash inflow of RMB 2,814,690,000 in 2023[65] - Cash used in financing activities was RMB 759,138,000 in 2024, down from cash inflow of RMB 973,667,000 in 2023, primarily due to repayments of bank borrowings[66] Asset and Liquidity Position - Total assets decreased to RMB 19,677,550, down from RMB 20,282,899 in the previous year[14] - The current ratio fell to 4.77 from 4.92, indicating a decrease in liquidity[14] - The Group's bank balances and cash as of December 31, 2024, were approximately RMB 8,883,071,000, down from RMB 9,256,549,000 in 2023[63] - Total assets decreased by approximately 3% to RMB 19,677,550,000 as of December 31, 2024, from approximately RMB 20,282,899,000 in 2023[69] - The Group's borrowings as of December 31, 2024, totaled RMB 1,144,000,000, down from RMB 1,773,000,000 in 2023, with short-term borrowings increasing to 88% of total borrowings[74] - The gearing ratio as of December 31, 2024, was approximately 14%, a slight decrease from 15% in 2023[75] Market and Industry Trends - The cement industry is expected to control production capacity at approximately 1.8 billion tonnes by the end of 2025, as per the State Council's Action Plan[16] - National cement output in 2024 was 1,830 million tonnes, reflecting a year-on-year decrease of 9.5%[28] - The cement industry's profits were expected to be approximately RMB 25 billion, with a year-on-year narrowed decrease of about 20%[28] - The Group anticipates that property investment will not show positive growth in 2025, with cement demand continuing to decline[99] - The planned cement sales volume for the Group in 2025 is expected to be similar to that of 2024, considering various market factors[100] - The average price of coal is likely to decline in 2025, which may reduce production costs but could also intensify price competition in the cement market[95] - Cement price competition was fierce in the first three quarters of 2024, leading to a significant downward trend in average prices, but a recovery in profitability is expected as companies respond to "anti-involution" strategies[98] Strategic Initiatives - The company is focusing on low-carbon development and has integrated AI digital technology into its operations[17] - The company expanded its market presence along the Yangtze River and increased clinker production capacity in the Hubei region[17] - A centralized purchasing and smart procurement strategy was implemented to reduce costs and facilitate project advancement[17] - The company aims to complete the upgrade of 50% of clinker production capacity to ultra-low emissions by the end of 2025[16] - Asia Cement (China) is focusing on green transformation and intelligent upgrades to lay a foundation for future profitability recovery[22] - The company plans to deepen transformation in strategy, organization, and talent to reshape core competitiveness[23] - The Group will focus on operational strategies emphasizing high efficiency, quality, service, and environmental protection in 2025[101] Corporate Governance - The Company complied with all provisions of the Corporate Governance Code for the year ended December 31, 2024, except for the noted deviations[108] - Mr. Lee Kao-chao resigned as an independent non-executive Director effective October 17, 2024, resulting in the number of independent non-executive Directors falling below one-third of the Board[106] - Mr. Wu Chun-pang was appointed as an independent non-executive Director effective January 1, 2025, restoring compliance with the relevant Listing Rules[107] - The Company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the CG Code[111] - The Board currently consists of eleven Directors, including three executive Directors, four non-executive Directors, and four independent non-executive Directors[114] - The Company has established a Board Independence Evaluation Mechanism to ensure a strong independent element on the Board[137] - The Company has provisions requiring Directors to abstain from voting on transactions where they have a material interest[155] Committee Activities - The Audit Committee is responsible for reviewing the financial statements and the effectiveness of the Company's financial reporting system and internal control system[166] - The Remuneration Committee is tasked with making recommendations on the remuneration policy and structure for executive Directors and senior management[170] - The Audit Committee held four meetings in 2024, with Mr. TSIM, Tak-lung Dominic and Mr. HSU, Shu-tong attending all meetings[169] - The Remuneration Committee held one meeting in 2024, with all members attending[175] - The Independence Committee also held one meeting in 2024, with all members present except for Mr. WU, Chun-pang who was appointed after the meeting[186] - The Nomination Committee conducted one meeting in 2024, with all members in attendance[194] Diversity and Inclusion - The Nomination Committee has adopted a Board Diversity Policy to enhance diversity among Board members, considering factors such as gender, age, cultural and educational background, and professional experience[195] - As of the annual report date, the Board consists of 1 female and 10 male directors, reflecting the company's commitment to gender diversity[198] - The company aims to achieve at least one female Director and an appropriate balance of female employees at all levels, considering its current gender diversity satisfactory[199] - The Director Nomination Policy was adopted on December 31, 2018, to ensure a balance of skills, experience, and diversity of perspectives on the Board[200]
亚洲水泥(中国)(00743) - 2024 - 年度财报