Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately RMB 45,801,000, a decrease of about RMB 60,783,000 or 57.0% compared to RMB 106,584,000 in 2023[8]. - The company reported a loss attributable to owners of approximately RMB 7,042,000 for the year ended December 31, 2024, compared to a profit of RMB 2,870,000 for the year ended December 31, 2023[9]. - The group's gross profit for the year ended December 31, 2024, was approximately RMB 11,060,000, a decrease of about 63.8% compared to RMB 30,581,000 in 2023[26]. - Other income and gains increased by approximately 48.6% to RMB 7,111,000 for the year ended December 31, 2024, compared to RMB 4,786,000 in 2023, mainly due to increased rental income and bank interest income[27]. - The group recorded a loss of approximately RMB 7,042,000 for the year ended December 31, 2024, compared to a profit of RMB 2,870,000 in 2023, primarily due to project delays and the completion of existing projects in Vietnam[31]. - The company's total revenue for the year ended December 31, 2024, was approximately RMB 45,801,000, a decrease of about 57.0% compared to RMB 106,584,000 for the year ended December 31, 2023[16]. Revenue Breakdown - The revenue breakdown includes EPC projects at RMB 5,384,000, construction projects at RMB 1,431,000, equipment projects at RMB 14,106,000, and service concession arrangements at RMB 13,370,000[9]. - Revenue from EPC projects decreased by approximately 91.4% to RMB 5,384,000 in 2024, primarily due to the completion of a large project in Vietnam in 2023[18]. - Revenue from construction projects increased by approximately 266.9% to RMB 1,431,000 in 2024, attributed to two new projects[19]. - Revenue from equipment projects decreased by approximately 47.9% to RMB 14,106,000 in 2024, due to fewer large projects compared to the previous year[21]. - Revenue from service concession arrangements increased by approximately 5.8% to RMB 13,370,000 in 2024, driven by service income and interest income[22]. - Other segment revenue, including maintenance services, increased by approximately 178.1% to RMB 11,510,000 in 2024[23]. Market and Business Strategy - The decline in revenue was primarily due to delays in the progress of engineering, procurement, and construction projects, and the completion of existing projects in Vietnam with new projects starting only at the end of 2024[9]. - The company has increased its investment in the Vietnamese market, leveraging its successful operational experience to attract long-term and new customers[10]. - A new business contract worth several tens of millions of RMB was signed with a long-term partner at the beginning of 2023, which commenced construction at the end of 2024[10]. - The company is cautious in handling new engineering, procurement, and construction projects for local clients due to extended payment terms and declining customer payment capabilities[11]. - More resources are being allocated to service concession arrangements and other environmental projects, which have relatively lower cash flow risks compared to traditional projects[11]. - The company continues to focus on the Guangdong-Hong Kong-Macao Greater Bay Area and aims to maintain communication with new customers as the economy recovers[11]. - The company believes that it will achieve better and more stable performance in familiar markets like the Greater Bay Area as economic recovery progresses[11]. - In 2024, the company plans to enter the data business market, expecting to generate millions in revenue from this sector, leveraging the Greater Bay Area's market advantages[12]. Cost and Expenses - The company's cost of sales decreased by approximately 54.3% to RMB 34,741,000 in 2024, mainly due to the completion of a large EPC project in Vietnam[24]. - Administrative expenses decreased by approximately 6.7% to RMB 16,016,000 for the year ended December 31, 2024, down from RMB 17,165,000 in 2023, mainly due to reduced R&D costs[29]. Shareholder and Governance - The company did not recommend a final dividend for the year ended December 31, 2024, consistent with the previous year[32]. - The group completed a rights issue, raising approximately HKD 5.81 million, which was fully utilized for EPC project working capital and general operational funding[37]. - The company has established a governance framework where the board is responsible for corporate governance policies and practices, ensuring compliance with legal and regulatory requirements[133]. - The company has a remuneration committee that reviews compensation policies and considers company and individual performance when determining remuneration for directors and senior management[110]. - The company has established multiple communication channels for investors, including annual and quarterly reports, announcements, and its website[177]. Environmental, Social, and Governance (ESG) - The company has established a comprehensive environmental, social, and governance (ESG) report for the fiscal year ending December 31, 2024, focusing on sustainable development and pollution reduction efforts[179]. - The company is expanding its environmental services beyond wastewater treatment to include soil remediation, solid and hazardous waste management, sludge treatment, and air pollutant management[179]. - The company has been certified under the international environmental management system ISO 14001:2015 and quality management system ISO 9001:2015 since 2016, indicating a commitment to sustainable practices[179]. - The ESG report is prepared in accordance with the GEM listing rules and emphasizes key performance indicators for better assessment and tracking of the company's performance[181]. - The company aims to minimize greenhouse gas emissions through a dedicated greenhouse gas emission policy and monthly monitoring of emissions[190]. - The group has set a target of 100% compliance for wastewater and sludge discharge standards, with ongoing monitoring and third-party inspections[199]. - The group has established a zero hazardous waste generation goal and aims to minimize non-hazardous waste production in the next five years[198]. - The group has not generated any hazardous waste in 2024, with strict adherence to relevant laws and regulations for any potential hazardous waste produced[197]. Employee and Workforce - The company employed 39 employees as of December 31, 2024, down from 52 employees in 2023, with employee costs approximately RMB 86 million for the year, compared to RMB 159 million in 2023[70]. - The company recognizes employees as valuable assets and offers competitive compensation and training opportunities[98]. - The total number of employees decreased from 52 in 2023 to 39 in 2024, indicating a reduction of approximately 25%[191]. Risk Management and Compliance - The company acknowledges ongoing challenges in the business environment, including global political issues and the need for differentiated strategies in traditional business areas[13]. - The company’s ability to comply with new regulatory standards and government policies will be crucial for maintaining competitiveness and growth[90]. - The company has implemented compliance procedures to ensure adherence to relevant laws and regulations in China and Hong Kong[97]. - The internal audit team conducts assessments of business, financial, compliance, and operational risks, reporting to the audit committee and the board[160].
中国天亿福(08196) - 2024 - 年度财报