Market Position and Production Capacity - The company maintains its market leadership, being recognized as the largest global producer of agar and refined and semi-refined carrageenan products for 2023 and 2024, according to a report by Frost & Sullivan[5][18]. - As of December 31, 2024, the total designed production capacity is 27,390 tons, including 7,265 tons of agar, 10,355 tons of carrageenan, 1,500 tons of konjac composite products, and 3,300 tons of blended products[6]. - The company completed the acquisition of 82% of Hong Tai Shun International Trading Co., which holds 99.83% of PT Hongxin Algae International, enhancing its production capacity for semi-refined carrageenan by 4,300 tons annually[10]. - The designed production capacity for konjac gum products at the Shiyan Haiyi production base is 660 tons annually, maintaining the same capacity as in 2023[6]. - The company has been recognized as the leading producer of carrageenan and agar in China for 2020 and 2021, and continues to hold this position for 2023 and 2024[17][18]. Financial Performance - For the fiscal year 2024, the company's revenue was RMB 989.3 million, a decrease of RMB 184.7 million or 15.7% compared to RMB 1,174.0 million in 2023[36]. - The gross profit for fiscal year 2024 increased by RMB 184.8 million or 491.0%, resulting in a gross margin of 22.5%, up 19.3 percentage points from the previous year[37]. - The net profit for fiscal year 2024 was RMB 60.9 million, a turnaround from a net loss of RMB 85.4 million in 2023, representing an increase of RMB 146.3 million[37]. - Sales revenue from carrageenan products decreased by RMB 220.9 million or 31.2% compared to the previous year, primarily due to a decline in seaweed material prices[36]. - The sales revenue from compound products increased by RMB 29.1 million or 17.4% in fiscal year 2024[36]. - The total asset value for fiscal year 2024 was RMB 1,572.3 million, an increase from RMB 1,205.3 million in 2023[26]. - The net debt to total asset ratio for fiscal year 2024 was 26.9%, compared to 24.3% in 2023[29]. - The group's revenue for fiscal year 2024 was RMB 989.3 million, a decrease of RMB 184.7 million or 15.7% compared to RMB 1,174 million in fiscal year 2023[54]. - The group's gross profit for fiscal year 2024 was RMB 222.5 million, an increase of RMB 184.9 million or 491.8% compared to fiscal year 2023[58]. - The overall gross profit margin for fiscal year 2024 was 22.5%, an increase of 19.3 percentage points from fiscal year 2023[58]. Research and Development - The number of R&D personnel increased to 106 in 2024, up from 80 in 2023, indicating a focus on innovation and product development[7]. - The company launched the production of agarose microspheres in 2022, aimed at the biopharmaceutical sector, indicating a diversification of its product offerings[10]. - The company established "Xiamen Blue Seaweed Film Biotechnology Co., Ltd." in July 2023 to develop 100% biodegradable seaweed films for beauty masks and plastic alternatives, reflecting its commitment to sustainability[10]. Corporate Governance and Management - The board of directors includes independent non-executive directors who have confirmed their independence as per the listing rules[100]. - The company emphasizes high standards of corporate governance, which are crucial for balancing the interests of shareholders, customers, and employees[168]. - The board has appointed Mr. Chen Jincong as both Chairman and CEO, emphasizing the importance of his leadership in the group's strategic planning and business development[176]. - The company has established appropriate insurance arrangements for directors and senior officers facing legal claims[186]. - The board confirmed that there are no significant uncertainties regarding the company's ability to continue as a going concern[196]. Employee Relations and Compensation - The group has 1,148 full-time employees as of December 31, 2024, with 961 located in mainland China and 187 in Hong Kong and other regions[73]. - Competitive compensation packages are offered to employees, with regular reviews based on group performance and individual contributions[73]. - The company has maintained competitive compensation to attract and motivate employees, with no major disputes with customers or suppliers during the year[97]. Environmental and Regulatory Compliance - The company has not recorded any environmental violations or exceeded environmental standards during the reporting period[98]. - The company has complied with all relevant laws and regulations without any significant violations during the review period[99]. Shareholder Information and Dividends - The company proposed a final cash dividend of HKD 0.012 per share for the fiscal year 2024, totaling HKD 10.5 million[40]. - As of December 31, 2024, the company's distributable reserves were approximately RMB 867 million[93]. - The company proposed a final dividend of HKD 0.012 per share, totaling HKD 10.5 million, compared to HKD 0 in the previous year[90]. Future Outlook - The company expects a rebound in global demand for hydrophilic colloid products in the foreseeable future, driven by a decline in seaweed prices and an anticipated increase in customer demand[38]. - The group anticipates a rebound in global demand for hydrophilic colloid products in the foreseeable future, supported by a decrease in seaweed sales prices[49]. Audit and Risk Management - The audit committee consists of three independent non-executive directors, with Mr. He Guicheng serving as the chairman, responsible for reviewing financial statements and overseeing risk management policies[164]. - The internal audit department is responsible for reviewing operational, financial, and compliance controls to ensure adherence to the group's risk management and internal control policies[200]. - Audit results and control deficiencies are reported to management responsible for ensuring timely remediation[200].
绿新生物科技(01084) - 2024 - 年度财报