Tianyang HotMelt Adhesives(SH:603330)2025-04-25 12:20Financial Performance - The company reported a net profit of negative value for the year 2024, leading to a decision not to distribute cash dividends or stock dividends [7]. - The cumulative undistributed profits as of December 31, 2024, are negative, reflecting ongoing financial challenges [7]. - The company's operating revenue for 2024 was CNY 1,318,698,602.59, a decrease of 0.50% compared to CNY 1,325,361,963.89 in 2023 [23]. - The net profit attributable to shareholders of the listed company for 2024 was CNY -212,655,120.56, compared to CNY -94,208,715.73 in 2023, indicating a significant decline [23]. - The net cash flow from operating activities for 2024 was CNY 51,141,687.92, down 29.8% from CNY 72,848,801.31 in 2023 [24]. - The total assets at the end of 2024 were CNY 2,660,264,597.04, a decrease of 7.65% from CNY 2,880,493,567.33 in 2023 [24]. - The weighted average return on equity for 2024 was -12.89%, a decrease of 2.54 percentage points from -10.35% in 2023 [25]. - The net assets attributable to shareholders of the listed company decreased by 14.41% to CNY 1,537,098,950.15 at the end of 2024 [24]. - The company reported a significant increase of over 100% in net profit from reactive adhesives, despite overall profit decline [26]. - The company reported a net profit attributable to shareholders, excluding non-recurring items, of CNY -22.05 million, a decline of 105.79% year-on-year [37]. Operational Structure - The company has a total of six wholly-owned subsidiaries and one majority-owned subsidiary, indicating a diversified operational structure [13]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties [9]. - The company has not violated any decision-making procedures regarding external guarantees [9]. - The company has established direct procurement relationships with major suppliers such as Hanwha and LG Chem, optimizing its supply chain through a dynamic qualified supplier database [58]. - The company has achieved over 20% improvement in production efficiency for photovoltaic encapsulation films through equipment upgrades and online monitoring systems, with a total of 221 authorized patents, including 157 invention patents [65]. Market Strategy and Development - The company is focused on expanding its market presence and developing new technologies, although specific details were not disclosed in the report [8]. - The company plans to continue focusing on the stable operation of hot melt adhesives and the growth of reactive adhesives in the future [26]. - The company plans to expand into high-margin markets such as wind power and new energy vehicles while developing eco-friendly polyurethane adhesives [37]. - The company aims to optimize its organizational structure and improve production efficiency through process re-engineering and information system implementation [37]. - The company is actively expanding its dealer channels to better serve C-end consumers, anticipating significant growth opportunities as the economy recovers [55]. Risk Factors - The company faces significant risks including policy risk, macroeconomic fluctuations, and raw material price volatility, which could impact future performance [9]. - The company emphasizes the importance of investor awareness regarding investment risks associated with its future plans and strategies [8]. - The company is exposed to raw material price volatility, which could impact production costs and profit margins if not effectively managed [128][129]. - The company faces risks related to fixed asset depreciation due to increased fixed asset growth and potential underperformance in production, which may lead to negative impacts on financial statements [132]. - There is uncertainty in the implementation and effectiveness of new projects, which could result in asset impairment risks if project progress, investment costs, or market demand change [133]. Corporate Governance - The board of directors and management have confirmed the authenticity and completeness of the annual report, ensuring accountability [4]. - The company has established a governance structure that complies with relevant laws and regulations, ensuring equal treatment of all shareholders, particularly minority shareholders [138]. - The board of directors operates independently without interference from the controlling shareholder, and there are currently no related party transactions [140]. - The company has implemented a robust investor relations management system to enhance communication with investors and protect shareholder rights [145]. - The company is committed to continuous improvement in corporate governance and compliance with regulatory requirements [138]. Environmental and Social Responsibility - The company has been strictly adhering to environmental protection laws and regulations, with ongoing investments in safety and environmental management to mitigate risks associated with regulatory changes [136]. - The company has received environmental impact approvals for multiple projects, including a 60,000-ton hot melt adhesive project and a 1.5 billion square meter photovoltaic film production project [188][189]. - The company has installed online monitoring systems for VOCs and particulate matter in waste gas systems, ensuring 24-hour monitoring and compliance with environmental regulations [190]. - The company has reduced carbon emissions by 1,987.7 tons through measures such as utilizing solar energy for production facilities and implementing water-saving technologies [191]. - The company emphasizes the importance of environmental protection, maintaining stable compliance with industrial wastewater, waste gas, and noise emissions [193].