Business Operations and Strategy - In 2024, the company stabilized its core business operations despite a complex global economic environment and elevated supply chain costs[15]. - The company plans to focus on core consumer segments by enhancing brand penetration through accurate marketing and innovative channels, aiming to provide more consumers with firsthand experience of the premium quality of "5100" water[17]. - The company will implement rigorous cost control and innovation by optimizing the entire production process and introducing new products such as portable and family-size packaging[25]. - The company aims to integrate ESG principles into its core strategy, implementing measures like water-conservation technologies and low-carbon packaging to achieve ecological preservation alongside commercial value[25]. - The management team is committed to delivering tangible results in 2025 to rebuild market confidence and reward shareholder trust[22]. - The company acknowledges that its current share price does not fully reflect its intrinsic value, emphasizing a united management team focused on transformation[22]. - The company has faced challenges in recent years but views these experiences as opportunities to sharpen its vision and enhance capabilities[16]. - The company is committed to maintaining its high-end brand positioning while adapting to market demands and consumer preferences[17]. - The company recognizes the importance of adapting to market fluctuations and strategic adjustments to remain competitive in the industry[15]. Financial Performance - In 2024, the total revenue of the Group amounted to RMB 226 million, representing a decrease of 28.2% compared to 2023[35]. - The revenue from the water business segment was RMB 88 million, reflecting a year-on-year increase of 1%[36]. - The beer business segment experienced a sales volume decrease of 35.4%, with revenue declining by 38.5% to RMB 137.3 million[38]. - The overall gross profit margin increased to 27.1%, up by 2.4 percentage points from 2023[39]. - Selling and distribution costs rose by 25.4% to RMB 63 million, primarily due to increased marketing and promotion expenses[40]. - Administrative expenses decreased by 13.7% to RMB 77 million, attributed to reductions in staff costs and special service fees[40]. - The Group's operating loss for 2024 was RMB 89 million, compared to a loss of RMB 83 million in 2023, marking an increase of 6.8%[27]. - Loss for the year attributable to owners of the Company was RMB 573.9 million, a 62.7% increase from RMB 352.9 million in 2023[26]. - Total assets as of December 31, 2024, were RMB 3,507.5 million, down from RMB 3,985.6 million in 2023[26]. - Equity attributable to owners of the Company decreased to RMB 2,380 million from RMB 2,856 million in 2023[27]. - The allowance for expected credit losses (ECL) on financial assets rose to RMB48 million in 2024 from RMB37 million in 2023, with trade receivables allowance increasing to RMB43 million from RMB24 million[43]. - Other gains, net, amounted to RMB37 million in 2024, up from RMB15 million in 2023, including government grants of RMB18 million and a gain on disposal of a subsidiary of RMB17 million[44]. - Finance costs increased by RMB3 million to RMB44 million in 2024, while finance income decreased by RMB6 million to RMB31 million[45]. - The Group recognized an impairment loss on investments of RMB295 million and RMB168 million for Shannan Yalaxiangbu and Highland Natural Water, respectively, due to adverse market conditions[50]. - The loss for the year was RMB574 million in 2024, compared to a loss of RMB353 million in 2023[55]. - As of December 31, 2024, investments accounted for using the equity method decreased to RMB742 million from RMB1,216 million in 2023, primarily due to the recognized impairment losses[56]. - As of December 31, 2024, net trade receivables decreased to RMB134 million from RMB182 million in 2023, mainly due to an increase in the allowance for ECL on trade receivables[58]. - As of December 31, 2024, the Group's inventory was RMB 72 million, a decrease from RMB 119 million as of December 31, 2023, mainly due to a reduction in raw material inventory[61]. - As of December 31, 2024, the Group's contract liabilities increased to RMB 123 million from RMB 17 million as of December 31, 2023, due to higher advances received from customers for water and beer product sales[64]. - As of December 31, 2024, the Group's bank borrowings were RMB 394 million, a decrease of RMB 33 million compared to December 31, 2023, due to net repayments of principal[68]. - The gearing ratio as of December 31, 2024, was 21.59%, compared to 20.94% as of December 31, 2023[77]. - In 2024, the Group acquired property, plant, and equipment (PP&E) amounting to RMB 12 million, down from RMB 14 million in 2023[79]. - The total number of employees decreased to 342 as of December 31, 2024, from 368 as of December 31, 2023, with relevant staff costs amounting to RMB 73 million in 2024[70]. - There were no merger and acquisition transactions in 2024[78]. - The Group's debt ratio was 21.59%, an increase from 20.94% on December 31, 2023[82]. Environmental and Social Responsibility - The Group has established a "water protection zone" of 60 square kilometers around its water source to maintain product quality and safety[98]. - The Group has implemented procedures for waste storage, handling, and disposal to minimize environmental impact during production activities[99]. - The Group will continue to improve its social responsibility management system to align ESG philosophy with business goals[124]. - The group is committed to improving its social responsibility management system, integrating ESG concepts into its business, and contributing to economic prosperity, ecological harmony, and improved livelihoods[129]. Governance and Board Composition - The Company emphasizes high standards of corporate governance to enhance shareholder value and safeguard interests, complying with the CG Code for 2024[172]. - The Board is responsible for overseeing the Company's business direction and financial performance, with established committees for various responsibilities[173]. - The Board currently comprises nine members, including three executive Directors, three non-executive Directors, and three independent non-executive Directors, ensuring a balance of skills and diversity[178]. - Independent non-executive Directors represent one third of the Board, with the Audit, Nomination, and Remuneration Committees chaired by independent non-executive Directors[185]. - The Company has established effective mechanisms to support an independent Board and independent views, with regular reviews of the remuneration of independent non-executive Directors[189]. - The Nomination Committee assesses Board composition and recommends new Directors, considering factors such as gender, age, and professional experience[186]. - The Board Diversity Policy aims to achieve diversity in the Board's composition, reflecting the Group's business scope and specific needs[186]. - The roles of chairman and chief executive officer are separated, with Dr. ZHANG Chunlong as chairman and Mr. WANG Dong and Mr. DU Hui as co-chief executive officers[194]. - The Board is responsible for overseeing the Company's overall development and direction, aiming to enhance shareholder value[176]. - Regular Board meetings are held to review financial information, material investments, and changes in accounting policies[199]. - Directors have access to legal advice to ensure compliance with Board procedures and regulations[199]. - Directors with a conflict of interest abstain from voting on relevant resolutions and are not counted in the quorum[200]. Leadership and Management - The group has a strong executive team with extensive experience in corporate management, finance, and legal compliance, which supports its strategic initiatives[132][137]. - The group is focused on business development and merger and acquisition activities, leveraging the expertise of its executives in e-commerce and corporate finance[137]. - The group plans to enhance its operational management and quality control through experienced leadership in its major subsidiary, Tibet Glacier Mineral Water Co., Ltd.[139]. - The group is actively pursuing new product innovations and cost control measures to improve profitability and market competitiveness[127]. - The group is committed to expanding its market presence and enhancing its product offerings to meet diverse consumer needs[128].
西藏水资源(01115) - 2024 - 年度财报