Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately RMB 198.1 million, a decrease of about 51.3% compared to the previous year[13]. - The company recorded a loss of approximately RMB 13.3 million for the fiscal year, excluding the gain from the sale of the Suizhou-Yueyang Expressway[13]. - For the year ended December 31, 2024, the company's total revenue was approximately RMB 198.1 million, a decrease of about 51.3% compared to RMB 407.1 million for the year ended December 31, 2023[18]. - The company recorded an annual loss of approximately RMB 13.3 million for the year ended December 31, 2024, compared to a profit of approximately RMB 359.3 million for the year ended December 31, 2023[25]. - The gross profit for the year ended December 31, 2024, was approximately RMB 39.5 million, a decrease of about 65.7% from RMB 115 million for the previous year, with a gross profit margin of approximately 19.9%[19]. - The total revenue from liquor sales for the year ended December 31, 2024, was approximately RMB 128.6 million, a decrease of about 60.9% from RMB 329.2 million for the year ended December 31, 2023[18]. - The toll revenue from the Qingping Expressway for the year ended December 31, 2024, was approximately RMB 69.5 million, down about 10.8% from RMB 77.9 million for the previous year, with vehicle traffic decreasing by approximately 6.5%[18]. Assets and Liabilities - The total assets of the company as of December 31, 2024, amounted to RMB 1,412.8 million, an increase from RMB 1,249.2 million in the previous year[9]. - The total liabilities increased to RMB 334.4 million from RMB 125.2 million in the previous year[9]. - As of December 31, 2024, the company had drawn bank loans and other borrowings totaling approximately RMB 244.6 million, compared to zero in the previous year[27]. - The company had cash and cash equivalents totaling approximately RMB 185.8 million as of December 31, 2024, down from approximately RMB 313.7 million in the previous year[27]. Investments and Business Development - The company’s investment in Guizhou Zunpeng Wine Industry Co., Ltd. generated an annual profit of approximately RMB 131.7 million for the fiscal year ending December 31, 2024[14]. - The company has commenced construction on a winery and integrated operations center in Guizhou, expected to be completed by 2025, covering no less than 150,000 square meters[14]. - The company plans to pursue other promising business opportunities in infrastructure projects across China as they arise[14]. - The liquor trade has become one of the company's most important business segments, although it faced challenges due to a shrinking consumer market in China[13]. - Guizhou Renhuai Huayu Liquor Co., Ltd. became a 51% subsidiary after the company increased its stake by 21% in 2023, with a planned winery and operational center expected to be completed by 2025[38]. - The company plans to enhance its competitiveness by investing in upstream liquor production and logistics through Guizhou Renhuai, which will become the main production and logistics base[44]. - The company has initiated construction on the winery and operational center, expected to be completed by 2025, to expand its liquor business[44]. - The company acquired a 28% stake in Huajia, which holds a 44.94% stake in Guizhou Zunpeng, facilitating entry into the liquor supply chain production segment[44]. Corporate Governance - The board of directors has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance as of December 31, 2024[47]. - All directors confirmed adherence to the standard code for securities trading as of December 31, 2024[48]. - The board consists of three executive directors and three independent non-executive directors, with no financial, business, or familial relationships among them[49]. - The attendance record for board meetings shows full participation from all directors, with each executive director attending 4 out of 4 meetings[51]. - The company has achieved gender diversity on the board with one female executive director, enhancing the board's expertise and perspectives[52]. - The chairman and CEO roles are clearly defined, with the chairman responsible for leading the board and ensuring effective governance practices[55]. - All directors are required to participate in continuous professional development to enhance their knowledge and skills[62]. - The company has established appropriate insurance arrangements for its directors and senior officers against legal actions[61]. - The service contracts for directors are set for three years, with provisions for termination with three months' notice[57]. - The company regularly reviews its corporate governance policies and practices to ensure compliance with legal and regulatory requirements[54]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the company's operations in expressway management and liquor trading, focusing on key performance indicators related to ESG matters[92]. - The company emphasizes the importance of stakeholder engagement for sustainable development, collecting opinions to identify significant ESG issues[100]. - The main source of gas emissions comes from the company's liquor production and related businesses, with efforts made to reduce operational emissions[102]. - The company strictly adheres to government regulations to limit emissions from vehicles using its expressways, despite limited control over these vehicles[103]. - The company has implemented measures to mitigate noise pollution from traffic on expressways, including the installation of sound barriers[103]. - The company is committed to environmental protection and compliance with applicable laws and regulations[183]. - The company has not set quantitative emission reduction targets but will consider establishing such targets in the future[154]. - The total energy consumption increased to 6,970,537 kWh, up from 2,393,687 kWh in 2023, representing a 191% increase[118]. - Greenhouse gas emissions (Scope 1) rose significantly from 236 tons CO2 equivalent in 2023 to 1,103 tons in 2024, marking a 367% increase[108]. - The total water consumption surged to 96,012 cubic meters in 2024, compared to 25,604 cubic meters in 2023, indicating a 274% increase[118]. Employee and Labor Practices - The company has a total of 390 employees, with a turnover rate of 13.1%[127]. - The employee composition includes 227 males and 163 females, with a turnover rate of 20.2% for females[127]. - Among employees under 30 years old, the turnover rate is 22.5%, while it is only 3.3% for those over 50[127]. - The company has implemented various health and safety policies, with zero work-related deaths reported from 2022 to 2024[132]. - In 2024, there was 1 work-related injury resulting in 2 lost workdays[132]. - The training participation rate is 97% for male employees and 99% for female employees, with average training hours of 7.0 and 9.8 respectively[135]. - Management-level employees have a training participation rate of 97% with an average training time of 6.7 hours[135]. - The company has established a training management system specifically for its liquor trade business, ensuring employees acquire necessary qualifications[134]. - The company adheres to labor laws, strictly prohibiting forced labor and child labor, and encourages open communication regarding employee concerns[126]. Supplier and Procurement Management - The company has a total of 27 suppliers, all located in China[139]. - The company emphasizes sustainable partnerships with suppliers, focusing on their environmental, social, and governance performance[137]. - A standardized management manual for the supply department has been established to guide supplier collaboration and ensure compliance with national standards[137]. - The company implements a procurement management system to maintain a high-quality supplier network and improve overall supplier management[138]. - Regular evaluations of supplier performance are conducted, with underperforming suppliers being disqualified from future contracts[137]. Risk Management and Compliance - The company has established a risk management and internal control system aimed at ensuring the reliability of financial reporting and compliance with applicable laws and regulations[79]. - The internal audit department, composed of professionals such as practicing accountants, conducts evaluations of the risk management and internal control systems annually[81]. - The board emphasizes the importance of maintaining clear and timely communication with shareholders and investors to build confidence and attract new investments[82]. - The company has implemented procedures to ensure timely assessment and reporting of any significant information that may impact the company's stock price[80]. - The company has a policy in place to prevent bribery, extortion, fraud, and money laundering[161]. Community Engagement and Contributions - The company has made charitable contributions to the Bama Education Foundation and the Bama County Education Bureau to enhance educational opportunities in the region[151]. - The company is focused on community investment in areas such as education, environmental issues, labor needs, health, culture, and sports[161].
华昱高速(01823) - 2024 - 年度财报