Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately RMB 26.9 million, a decrease of about 43.22% compared to the same period in 2023[12]. - The company recorded a net loss of approximately RMB 1.34 million for the fiscal year ending December 31, 2024[12]. - The company recorded a consolidated revenue of approximately RMB 27.0 million for the year ending December 31, 2024, a decrease of about RMB 20.5 million or 43.2% compared to the previous year[22]. - Domestic market sales fell from approximately RMB 38.7 million for the year ending December 31, 2023, to about RMB 16.4 million for the year ending December 31, 2024, representing a decline of approximately 57.5%[22]. - The revenue from fiberglass grating products decreased by approximately RMB 4.1 million or 28.3% to about RMB 18.2 million for the year ending December 31, 2024, compared to RMB 22.3 million in the previous year[23]. - The revenue from epoxy wedge products decreased from approximately RMB 25.3 million in 2023 to about RMB 4.2 million in 2024, a decline of approximately RMB 21.1 million[24]. - The group recorded a net loss of approximately RMB 1.3 million for the year ending December 31, 2024, an improvement from a net loss of approximately RMB 8.9 million for the year ended December 31, 2023[31]. Business Strategy and Development - The management plans to strengthen upstream and downstream channel construction to consolidate competitive advantages in core categories and expand market share[13]. - The company aims to increase investment in research and development and enhance brand building to maintain overall competitiveness in cost, technology, and quality[13]. - The company will actively adjust its business structure to increase the proportion of high-resource profitability businesses and clients in the real economy[13]. - The company intends to expand its layout in emerging business areas such as new energy, foundry sand, and oil fracturing sand[13]. - The company will strengthen cooperation with leading new energy clients to explore upgraded business models[13]. Cost and Expenses - Distribution costs increased by approximately RMB 1.2 million or 56% from about RMB 2.0 million for the year ended December 31, 2023, to approximately RMB 3.2 million for the year ending December 31, 2024[30]. - Administrative expenses decreased by approximately RMB 16.5 million or 91% from about RMB 18.1 million for the year ended December 31, 2023, to approximately RMB 1.6 million for the year ending December 31, 2024, mainly due to the reversal of bad debt provisions[30]. Corporate Governance - The company has adhered to the corporate governance code as per GEM Listing Rules throughout the year ending December 31, 2024[59]. - The board of directors is responsible for formulating the overall strategy and setting management goals, with monthly financial and operational data provided to assess performance[60]. - The company has established a corporate governance policy to review and monitor compliance with legal and regulatory requirements[61]. - The board consists of seven members, with four executive directors and three independent non-executive directors[62]. - The board has established a diversity policy, with current composition being three male and four female directors[64]. - The board's independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules[63]. Environmental, Social, and Governance (ESG) - The company reported a total greenhouse gas emissions of 1,247 tons in 2024, a decrease of 50.5% from 2,517 tons in 2023[115]. - Nitrogen oxides emissions increased significantly to 110,613 grams in 2024 from 11,624 grams in 2023, representing an increase of 850.5%[115]. - The company aims to maintain or reduce total greenhouse gas emissions density, which was 46.2 tons per million RMB revenue in 2024, down from 52.9 tons in 2023[115]. - The company has implemented various measures to reduce emissions, including the installation of energy-efficient machinery and maximizing natural light in production facilities[116]. - The company recognizes the risks associated with climate change and is actively developing strategies to manage these risks[127]. Employee and Labor Relations - The total number of full-time employees in China is 64, with 47 males and 17 females[131]. - Employee turnover rates are 45% for males and 29% for females, with a staggering 100% turnover rate for employees aged 18 to 25[133]. - The company has maintained a commitment to employee training, with 18 employees (28%) receiving training during the year, totaling 324 hours[140]. - There were no reported violations of labor laws in the fiscal year ending December 31, 2024[135]. - The company has implemented measures to ensure occupational health and safety, with no work-related injuries reported in 2024[136]. Financial Reporting and Audit - The consolidated financial statements reflect a financial position of the group as of December 31, 2024, in accordance with Hong Kong Financial Reporting Standards[192]. - The audit identified trade receivables impairment as a key audit matter due to the significant balance and management's estimates involved[197]. - The audit was conducted in accordance with Hong Kong Auditing Standards, ensuring independence and ethical compliance[193]. - The company must ensure that the financial statements comply with the disclosure requirements of the Companies Ordinance[200].
硅鑫集团(08349) - 2024 - 年度财报