Financial Performance - For the year ended December 31, 2024, the company reported a loss attributable to equity holders of RMB 213.0 million, compared to a profit of RMB 11.9 million in 2023[11]. - Revenue for the period was RMB 8,608.9 million, a decrease of 21.6% compared to the same period in 2023, driven by a 15.8% decline in new car sales to 27,107 units[13]. - The gross loss for the period was RMB 29.8 million, with a gross loss margin of 0.3%, down from a gross profit margin of 3.8% in 2023[13]. - The company’s after-sales service revenue decreased by 8.4% to RMB 1,154.2 million, while used car sales revenue increased by 2.3% to RMB 431.5 million[13]. - The company recorded a significant increase in used car transactions, achieving a total of 7,673 units sold during the period[23]. - The company’s pre-tax loss for the period was RMB 187.7 million, compared to a profit of RMB 18.0 million in 2023[13]. - Basic and diluted loss per share attributable to ordinary equity holders was RMB 0.36, compared to earnings of RMB 0.02 per share in 2023[12]. - The group achieved a revenue of RMB 8,608.9 million in 2024, with 37 operational outlets as of December 31, 2024[40]. - The group reported a 12.9% year-over-year increase in renewal policy numbers and a 14.8% increase in premiums, despite a competitive market environment[44]. - The group’s revenue for the year ended December 31, 2024, was RMB 8,608.9 million, a decrease of RMB 2,368.9 million or 21.6% compared to the same period in 2023[52]. - New car sales revenue was RMB 7,023.2 million, down RMB 2,272.4 million or 24.4% year-on-year, accounting for 81.6% of total revenue[52]. - The after-sales service revenue was RMB 1,154.2 million, a decrease of RMB 106.3 million or 8.4% year-on-year, representing 13.4% of total revenue[52]. - The used car sales revenue increased to RMB 431.5 million, up RMB 9.8 million or 2.3% year-on-year, contributing 5.0% to total revenue[52]. - The gross profit from dealership sales of used cars was RMB 20.7 million, an increase of 3.9% year-on-year[47]. - The cost of sales and services for the year was RMB 8,638.7 million, a decrease of RMB 1,919.0 million or 18.2% compared to 2023[55]. - The cost of new car sales was RMB 7,503.5 million, down RMB 1,896.1 million or 20.2% year-on-year[55]. - The company recorded a gross loss of RMB 298 million for the year ended December 31, 2024, compared to a gross profit of RMB 420.1 million for the same period in 2023, primarily due to a decline in new car sales profitability[56]. - The gross loss margin for the year ended December 31, 2024, was 0.3%, down from a gross profit margin of 3.8% in 2023[57]. - Other income and net gains increased by 30.4% to RMB 622.3 million for the year ended December 31, 2024, compared to RMB 477.4 million in 2023, driven by improved commission income from automotive financing agency services[58]. - Selling and distribution expenses decreased by RMB 97.8 million to RMB 445.4 million for the year ended December 31, 2024, a decline of 18.0% from RMB 543.2 million in 2023[59]. - Administrative expenses decreased slightly by RMB 2.7 million to RMB 238.5 million for the year ended December 31, 2024, a decrease of 1.1% from RMB 241.2 million in 2023[60]. - The company reported a loss before tax of RMB 187.7 million for the year ended December 31, 2024, compared to a profit before tax of RMB 18.0 million in 2023[62]. - The net loss for the year ended December 31, 2024, was RMB 213.0 million, a significant decline from a profit of RMB 11.9 million in 2023[65]. - Cash inflow from operating activities increased to RMB 523.2 million for the year ended December 31, 2024, compared to RMB 365.7 million in 2023[67]. - Inventory decreased by 20.8% to RMB 1,011.5 million as of December 31, 2024, down from RMB 1,277.5 million in 2023, reflecting improved inventory management[69]. - The company's bank loans and other borrowings decreased by 18.2% to RMB 2,062.9 million as of December 31, 2024, compared to RMB 2,521.1 million in 2023[70]. - The total capital expenditure for the group amounted to RMB 257.5 million for the year ending December 31, 2024, a decrease of RMB 82.2 million from RMB 339.7 million for the year ending December 31, 2023, representing a reduction of approximately 24.2%[73]. - Employee costs decreased by 17.2% to RMB 319.8 million for the year ending December 31, 2024, down from RMB 386.0 million for the previous year, due to active adjustments in personnel and performance schemes[74]. Market Trends - In 2024, the domestic GDP reached RMB 13,490.84 billion, growing by 5.0% year-on-year[28]. - The total retail sales of consumer goods in 2024 amounted to RMB 4,878.95 billion, an increase of 3.5% compared to the previous year[28]. - In Shaanxi Province, the GDP for 2024 was RMB 3,553.88 billion, with a year-on-year growth of 5.3%[29]. - The retail sales of new energy vehicles in Shaanxi Province increased by 36.9% year-on-year in 2024[29]. - In 2024, the production and sales of new energy vehicles reached 12.89 million and 12.87 million units, respectively, marking year-on-year growth of 34.4% and 35.5%[33]. - The market share of new energy vehicles in total vehicle sales reached 40.9%, up by 9.3 percentage points from 2023[33]. - The total number of motor vehicles in China reached 453 million, with 35.3 million being cars, and new registrations of electric vehicles accounted for 41.83% of total new car registrations[34]. - In 2024, Porsche delivered a total of 310,718 vehicles globally, with 56,887 units delivered to Chinese customers, representing 18.31% of its global market share[34]. - BMW Group's sales in China reached 714,530 units in 2024, maintaining its position as the top luxury car seller in the market[35]. - Mercedes-Benz sold 1.9834 million passenger cars in 2024, with over 714,000 units delivered to Chinese customers, continuing to lead the luxury car market[35]. - Audi's global sales for 2024 reached 1.6712 million vehicles, with over 649,000 units delivered in China, a decrease of approximately 11% year-over-year, accounting for 39% of global sales[36]. - BYD's global sales of new energy vehicles in 2024 totaled 4.27 million units, with passenger car sales increasing by 41.1% year-over-year to 4,250,370 units, making it the top seller in the Chinese automotive market[38]. - The total sales of Seres Group's new energy vehicles in 2024 reached 426,885 units, representing a year-over-year growth of 182.84%, with the Wanjie series accounting for 386,300 units, or 90% of total sales[38]. - In 2025, China's total automobile sales are expected to reach 32.9 million units, a year-on-year increase of 4.7%[86]. - The domestic passenger car market is projected to achieve a total sales volume of 28.9 million units in 2025, reflecting a year-on-year growth of 4.9%[86]. - The sales of new energy vehicles in China are anticipated to reach 16 million units in 2025, representing a year-on-year growth rate of 24.4%[86]. Strategic Initiatives - The company introduced competitive new energy brands, which are expected to become a core growth driver in the future[22]. - The company is focusing on enhancing customer service through the establishment of specialized centers in key cities[23]. - The overall replacement rate for used cars improved year-on-year, indicating a positive trend in the used car business[23]. - The group is focusing on enhancing customer satisfaction and loyalty through a digital management platform and customized services[50]. - The group has expanded its used car business by establishing sales centers in Xi'an, Lanzhou, and Yinchuan, leading to increased sales scale in these regions[48]. - The company is actively enhancing its digital infrastructure, implementing advanced technologies such as electronic work badges and large models[92]. - The company plans to continue expanding its network and collaboration with leading new energy brands in key regions like Shaanxi, Gansu, and Ningxia[88]. - The company is exploring new market opportunities and potential acquisitions to expand its market presence and enhance competitive advantage[94]. - The company plans to continue enhancing its talent reserve and management of human resources to align with business volume changes[74]. - The company is committed to providing ongoing training and professional development for its directors to keep them informed of legal and regulatory developments[125]. Governance and Compliance - The company adheres to the corporate governance code, ensuring compliance and regular reviews to protect shareholder interests[110]. - The board is responsible for overall development and strategic approval, ensuring operational and financial performance monitoring[113]. - Independent non-executive directors are encouraged to actively participate in board meetings, ensuring compliance with listing rules[113]. - The company has mechanisms in place for independent opinions to assist the board in fulfilling its responsibilities[113]. - The board conducted an independence assessment for all directors, with satisfactory results reported[113]. - The board of directors held 4 meetings during the reporting period, discussing and approving the overall strategy and policies of the company[118]. - All directors attended the board meetings with a 100% attendance rate, ensuring active participation in decision-making[119]. - The company has no significant uncertainties that could cast doubt on its ability to continue as a going concern[126]. - The independent non-executive directors are deemed independent and have no relationships that could significantly interfere with their independent judgment[117]. - The company has adopted corporate governance codes to ensure compliance with legal and regulatory requirements[125]. - The board reviewed and approved the audited annual results for the year ending December 31, 2023, and the unaudited interim results for the six months ending June 30, 2024[118]. - The company has established a risk management and internal control system, which was reviewed during the board meetings[118]. - The board consists of 2 female directors and 5 male directors, meeting the requirement of at least one different gender director as per listing rules[129]. - The current gender diversity in the board is 28.57% female, with 25% of senior management being female, and 39.6% of the total workforce being female[132]. - The company has appointed three independent non-executive directors, fulfilling the requirement that they constitute at least one-third of the board[139]. - The audit committee is composed of three independent non-executive directors, responsible for reviewing the financial reporting process and risk management[141]. - The company has established a board diversity policy, which considers various factors such as gender, age, and professional experience in board member selection[129]. - The board has formed four committees: audit, remuneration, nomination, and finance and investment, each with clear written terms of reference[140]. - The company has purchased directors' liability insurance for all directors[128]. - The chairman and CEO positions are separated, with Mr. Hu Delin serving as the chairman and Ms. Zhao Min as the CEO[135]. - The nomination committee is responsible for the selection and appointment of directors, ensuring they possess the necessary skills and experience[133]. - The audit committee held 2 meetings during the reporting period, with a 100% attendance rate from all members present[142]. - The remuneration committee reviewed the remuneration packages for senior management, with 2 individuals earning between RMB 0-500,000 and 1 individual earning between RMB 500,001-1,000,000 for the year ending December 31, 2024[150]. - The nomination committee confirmed the diversity of the board, including two female members and members with deep understanding of automotive dealerships and financial experience[156]. - The finance and investment committee held 1 meeting during the reporting period, with a 100% attendance rate from all members present[158]. - The audit committee reviewed the annual financial statements for the year ending December 31, 2023, and the interim financial statements for the six months ending June 30, 2024[143]. - The remuneration committee recommended the reappointment of Chen Wei as an executive director, along with her remuneration and contract terms[151]. - The finance and investment committee evaluated the independence of independent non-executive directors during the reporting period[159]. - The audit committee discussed the performance and effectiveness of the risk management and internal control systems[143]. - The nomination committee is responsible for identifying and recommending suitable candidates for the board[153]. - The company plans to reappoint external auditors based on the audit committee's recommendations[143]. - The audit fee for the year ending December 31, 2024, is RMB 2,280,000, with no non-audit service fees incurred[167]. - The board has confirmed that the risk management and internal control systems are effective and adequate for the year ending December 31, 2024[170]. - The company held one annual general meeting on May 30, 2024, with a 100% attendance rate from all executive directors[175]. - The company has implemented a series of risk management measures, including property protection control and performance evaluation control, to keep risks within acceptable limits[171]. - The company has adopted a written guideline for employees regarding securities trading, which is as stringent as the standard code[167]. - The company has established a management system for insider information to ensure compliance with disclosure regulations[172]. - The company emphasizes effective communication with shareholders through various channels, including annual meetings and performance briefings[173]. - The company has conducted professional training for the company secretary, totaling no less than 15 hours for the year[165]. - The board has reviewed the effectiveness of the risk management and internal control systems once during the reporting period[170]. - The company has adopted a policy to ensure timely disclosure of information to facilitate informed investment decisions by shareholders[173]. - The company plans to distribute dividends not exceeding 30% of distributable profits for each financial year, subject to board discretion based on financial performance and cash flow[181]. - The company remains committed to enhancing environmental performance and implementing energy-saving measures in its operations[191]. - The company operates in a highly regulated industry, requiring various licenses and permits for automotive dealership and maintenance services[193]. - The company provides a comprehensive range of automotive sales and services, including after-sales services and value-added services[190]. - The board emphasizes effective communication with shareholders and encourages active participation in company affairs[182]. - The company has established multiple channels for ongoing dialogue with shareholders, including announcements and a corporate website[183][184]. - The company has not reported any significant legal or regulatory violations that could adversely impact its operations as of December 31, 2024[193]. - The company continues to focus on risk management and has discussed major risks and uncertainties faced during the financial year[189]. - The company’s main business nature has not undergone significant changes during the financial year ending December 31, 2024[188]. - The board has reviewed the implementation of the shareholder communication policy and found the results satisfactory[182]. - The company will hold its 2025 Annual General Meeting on May 28, 2025, with a suspension of share transfer registration from May 23 to May 28, 2025[196]. - The board has decided not to recommend any final dividend for the year ending December 31, 2024[197]. - Details regarding changes in property, plant, and equipment for the year are included in the financial statements note 13[198]. - As of the report date, the company's authorized share capital is $100,000.00, divided into 1,000,000,000 shares with a par value of $0.0001 each, with no changes in issued shares during the year[199]. - Changes in reserves for the company and the group during the year are detailed in financial statements notes 42 and 32, with distributable reserves for shareholders also outlined in these notes[200].
新丰泰集团(01771) - 2024 - 年度财报