Financial Performance - In 2024, the group's coke sales volume decreased by approximately 4.4% compared to 2023, with an average selling price drop of about 10.0%[28] - The performance of the coke segment fell significantly from approximately RMB 464.4 million in 2023 to about RMB 102.5 million in 2024, while the chemical products segment's loss increased from approximately RMB 76.0 million to about RMB 124.0 million due to a tax provision[28] - The group's gross margin declined from approximately 3.7% in 2023 to about 1.3% in 2024, with a net loss attributable to shareholders of approximately RMB 345.9 million in 2024, down from a profit of about RMB 22.3 million in 2023[28] - The company's revenue for the year ended December 31, 2024, decreased by approximately RMB 473.8 million or about 3.9% to approximately RMB 11,598.5 million compared to 2023[47] - The gross profit margin significantly declined from 3.7% in 2023 to 1.3% in 2024 due to a smaller decrease in raw material prices compared to product prices[47] - Other income fell from approximately RMB 103.2 million in 2023 to approximately RMB 65.5 million in 2024, primarily due to a repayment of interest from Yilong Coal Industry in 2023[48] - The company's pre-tax loss increased dramatically from approximately RMB 51.0 million in 2023 to approximately RMB 538.8 million in 2024, a rise of about RMB 487.9 million[56] - The total comprehensive loss for the year increased significantly from approximately RMB 6.0 million in 2023 to approximately RMB 469.5 million in 2024, with the loss attributable to the company's owners amounting to approximately RMB 340.6 million[59] Market Conditions - The overall economic growth in China for 2024 is projected to be around 5%, with the real estate sector experiencing a slowdown in investment growth[28] - The coke market in 2024 is characterized by weak supply and demand, with prices showing a downward trend due to excess production capacity[28] - The demand for coke and derivative chemical products is primarily driven by the domestic steel and chemical industries, with coke being a key raw material for steel production[35] Production and Sales - The average selling price of coke decreased from RMB 2,235.74 per ton in 2023 to RMB 2,012.50 per ton in 2024, representing a decline of approximately 10.0%[38] - The average selling price of LNG also decreased from RMB 4,360.35 per cubic meter in 2023 to RMB 4,197.43 per cubic meter in 2024, reflecting a decrease of about 3.7%[38] - The production of coke in 2024 is approximately 3.6 million tons, with coal tar and crude benzene processing volumes at around 172,426 tons and 353,683 tons, respectively[43] - The coal coking segment's revenue decreased by approximately 13.9% in 2024, with a significant drop in gross profit margin from 5.6% in 2023 to 1.4% in 2024[60] - The energy products segment recorded a slight revenue decline of about 1.1% in 2024, but the gross profit increased significantly to RMB 111.4 million due to improved production efficiency[61] - The trading segment's revenue for 2024 decreased by approximately RMB 125.3 million or about 23.8% compared to 2023, primarily due to reduced trading volume in the coke trading business amid falling coke prices, with gross margin declining from approximately 5.5% in 2023 to about 3.9% in 2024[62] Cost Management - The average procurement price of coal, a key raw material for coke production, decreased by approximately 7.8% in 2024 compared to 2023[28] - The company aims to stabilize its business in 2025 by expanding sales and procurement channels, optimizing product pricing, and reducing raw material costs[28] - The company has implemented measures to optimize supply chain management and reduce production costs, aiming to enhance profitability[98] Financing and Borrowings - The company's interest-bearing borrowings as of December 31, 2024, are approximately RMB 3,348.7 million, down from RMB 3,943.8 million in 2023[44] - The financing cost for the company in 2024 is approximately RMB 144.0 million, which accounts for about 1.2% of total revenue, compared to 1.0% in 2023[44] - The net cash used in financing activities for 2024 was approximately RMB 633.4 million, primarily due to interest expenses of about RMB 161.1 million and a net decrease in bank and other borrowings of approximately RMB 595.1 million[67] - As of December 31, 2024, total bank borrowings amounted to approximately RMB 3,258.7 million, a decrease of RMB 635.1 million from RMB 3,893.8 million in 2023[69] - The actual interest rates for fixed-rate borrowings ranged from 3.35% to 5.70% in 2024, compared to 3.85% to 5.70% in 2023, while floating-rate borrowings ranged from 2.80% to 5.05% in 2024, compared to 2.60% to 5.60% in 2023[71] Governance and Compliance - The company has established a governance framework that includes various committees such as the audit committee and remuneration committee to oversee corporate governance functions[110] - The company has adopted a series of internal control systems, including internal audit and compliance management, to ensure good corporate governance[105] - The company has implemented a whistleblowing mechanism to prevent fraud and enhance governance and internal control[155] - The audit committee confirmed that there were no significant deficiencies in the company's internal control system during the reporting period[165] - The company has established a comprehensive risk management and internal control system, which is reviewed annually by the audit committee[157] Environmental, Social, and Governance (ESG) - The group is committed to enhancing its ESG governance framework in 2024, aiming to improve overall performance in environmental, social, and governance areas[172] - The group aims to reduce carbon emissions, prevent pollution, and improve energy efficiency as part of its 2021-2025 environmental goals[178] - The company is committed to enhancing its compliance management and has established a disciplinary committee for ongoing anti-corruption efforts[189] - The company has established a comprehensive environmental management framework to drive energy conservation and pollution prevention[190] - The company has implemented advanced technologies such as IoT and big data for ultra-low emission control, enhancing environmental monitoring and compliance[198] Employee and Stakeholder Engagement - The company emphasizes the importance of employee rights and welfare, ensuring legal protections and support for staff[184] - The company encourages all directors to attend the annual general meeting to engage with shareholders and address their inquiries[148] - A total of 5,751 employees participated in anti-corruption training sessions, with 3 sessions conducted during the reporting period[187] - The company has implemented measures to attract more female employees, including health check activities and facilities for nursing mothers[136]
金马能源(06885) - 2024 - 年度财报