Financial Performance - Revenue decreased from RMB 48,620 million in 2022 to RMB 46,260 million in 2023, and is projected to decline further to RMB 42,957 million in 2024, representing a year-over-year decrease of 4.7% in 2023 and 2.8% in 2024[6]. - Profit attributable to owners of the Company fell from RMB 808 million in 2022 to a loss of RMB 160 million in 2023, with a projected recovery to RMB 149 million in 2024[6]. - EBITDA decreased from RMB 2,357 million in 2022 to RMB 1,279 million in 2023, with an expected increase to RMB 1,500 million in 2024[6]. - The adjusted profit for the year (a non-HKFRS measure) dropped from RMB 513 million in 2022 to RMB 4 million in 2023, with an expected recovery to RMB 266 million in 2024[6]. - The Company reported a loss before income tax of RMB 315 million in 2023, compared to a profit of RMB 756 million in 2022, with a projected profit of RMB 228 million in 2024[6]. - The overall gross profit increased by approximately 147.1% to approximately RMB 1.77 billion, marking a significant turnaround from a net loss to a net profit[48]. - The net profit for 2024 was approximately RMB 225 million, an increase of approximately 214.5% compared to the net loss of approximately RMB 196 million in 2023[48]. - The consolidated gross profit for 2024 was RMB 1,027 million, an increase of approximately 165.4% compared to RMB 387 million in 2023[117]. - The gross profit per tonne of steel products increased from RMB 50 in 2023 to RMB 143 in 2024, reflecting an increase of 186.0%[120]. Sales and Production - The average selling price per tonne of self-manufactured steel products decreased from RMB 3,974 in 2022 to RMB 3,557 in 2023, and is projected to decline further to RMB 3,432 in 2024[18]. - Total sales volume of self-manufactured steel products increased from 7,102,000 tonnes in 2022 to 7,733,000 tonnes in 2023, but is expected to decrease to 7,169,000 tonnes in 2024[13]. - H-section steel products accounted for 46.1% of total sales volume in 2024, with a sales volume of 3,302,000 tonnes, down 8.3% from 3,600,000 tonnes in 2023[109]. - Strips and strip products represented 40.5% of total sales volume in 2024, with a sales volume of 2,900,000 tonnes, down 3.8% from 3,014,000 tonnes in 2023[109]. - The total sales volume for 2024 was 7,169,000 tonnes, a decrease of approximately 7.3% from 2023's 7,733,000 tonnes[107]. - The Group's annual production output capability of steel products was more than 10 million tonnes in 2024[110]. Market and Industry Trends - In 2024, the total profit of the iron and steel industry in China was approximately RMB 29.19 billion, representing a year-on-year decrease of approximately 54.6%[40]. - The national production volume of pig iron, crude steel, and steel products in 2024 was approximately 852 million tonnes, 1.005 billion tonnes, and 1.400 billion tonnes respectively, with decreases of approximately 2.3% and 1.7% for pig iron and crude steel, while steel products saw an increase of approximately 1.1% compared to 2023[40]. - The global economy is expected to continue a slow recovery in 2025, benefiting from declining inflation and easing monetary policies, but faces challenges such as trade protectionism and geopolitical tensions[79]. - The iron and steel industry anticipates improved downstream demand and rising product prices, with no significant decline in annual steel consumption expected in 2025[80]. Strategic Initiatives - The Company plans to focus on improving operational efficiency and exploring new market opportunities to enhance profitability in the upcoming years[6]. - The Group aims to enter the Fortune Global 500, focusing on specialization, industry chain extension, and high-tech development[33]. - The Group aims to enhance core competitiveness through digitalization, lean management, and the development of high-value-added products, with several green and low-carbon factory projects expected to launch in 2025[83]. - The Group plans to diversify its business by expanding into trading steel products, precast components, and recycling solid waste residues[88]. - The Group is committed to achieving carbon neutrality by 2050, investing in emission-reduction technologies and environmental protection projects[92]. Environmental and Sustainability Efforts - Jinxi Limited achieved an annual emission reduction of approximately 1.10 million tonnes of carbon dioxide, 53 tonnes of nitrogen oxide, and 26 tonnes of sulfur dioxide in 2024[45]. - The self-generated electricity rate for Jinxi Limited increased to approximately 52.4%, while externally purchased electricity was reduced by approximately 260 million kWh per year[45]. - Policies in the iron and steel industry are focusing on energy efficiency improvement, green and low-carbon transformation, and achieving carbon peak by 2027[43]. - Jinxi Limited was rated as a "Grade A in Environmental Protection Performance Rating" enterprise, being the second enterprise in Tangshan City to achieve this[60]. - The Group has implemented various green energy projects, resulting in a reduction of approximately 1.1 million tonnes of CO2 emissions annually[61]. Financial Position and Investments - As of December 31, 2024, the Group had unutilized banking facilities of approximately RMB 14.5 billion, an increase from RMB 13.9 billion in 2023[136][138]. - The current ratio of the Group was 1.3 times as of December 31, 2024, compared to 1.2 times in 2023, while the gearing ratio was 50.2%, slightly up from 50.1% in 2023[139][144]. - Cash and cash equivalents amounted to approximately RMB 3,516 million as of December 31, 2024, down from RMB 3,618 million in 2023[140][144]. - The debt-to-capital ratio of the Group increased to 65.8% in 2024 from 63.0% in 2023[142][145]. - The Group reported investment gains from steel products, iron ore, and related raw materials derivative financial instruments of approximately RMB22 million for the year ended 31 December 2024, compared to losses of approximately RMB40 million in 2023[156][159]. Dividends and Shareholder Returns - The Group proposed a final dividend of HK$0.01 per ordinary share and a special dividend of HK$0.05 per ordinary share for 2024[75]. - The Group aims to assess the possibility of increasing dividend distribution to reward shareholders for their support[96]. - The Board proposed a final dividend of approximately HK$37 million (approximately RMB34 million) and a special dividend of approximately HK$186 million (approximately RMB172 million) for the year ended 31 December 2024[157][160].
中国东方集团(00581) - 2024 - 年度财报