Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 13,210,519, a decrease of 23.5% compared to HKD 17,133,960 in 2023[11]. - The company reported a loss before tax of HKD 757,073 for 2024, compared to a profit of HKD 109,930 in 2023[11]. - The net loss for the year was HKD 801,966, a significant decline from a profit of HKD 72,386 in the previous year[11]. - The loss attributable to the owners of the company was HKD 725,070, compared to a profit of HKD 64,144 in 2023[11]. - The company incurred an income tax expense of HKD 44,893 for the year, compared to HKD 37,544 in the previous year[11]. - The company reported a significant increase in non-current assets, rising to HKD 5,063,574,000 in 2024 from HKD 5,025,589,000 in 2023, an increase of about 0.8%[12]. - The company reported a total available distributable reserve of HKD 2,618,617,000 as of December 31, 2024, which can be used to offset accumulated losses of HKD 1,074,959,000 and distribute dividends to shareholders[42]. - The group recorded a consolidated net loss of HKD 802.0 million for the year ended December 31, 2024, compared to a profit of HKD 72.4 million in 2023[130]. - The group reported a loss attributable to shareholders of HKD 725.1 million in 2024, compared to a profit of HKD 64.1 million in 2023[115]. - The loss per share for 2024 was HKD 0.2115, compared to earnings per share of HKD 0.0187 in 2023[116]. Operational Strategy and Future Outlook - The company is focusing on expanding its market presence and exploring new strategies for growth[2]. - Future outlook includes potential new product development and technological advancements[2]. - The company is actively considering mergers and acquisitions to enhance its market position[2]. - The management is committed to improving operational efficiency to mitigate losses[2]. - The company aims to strengthen its financial position through strategic investments and partnerships[2]. - The company aims to address market challenges and promote the manganese industry towards higher quality and sustainability[23]. - The operational strategy includes increasing production capacity, reducing costs, and improving management efficiency to achieve high-quality development by 2025[141]. - The company plans to implement detailed cost control measures and strengthen audit supervision to achieve significant cost reduction[145]. Market and Sales Performance - Sales to the top five customers accounted for 21.4% of total sales during the year, with the largest customer contributing 7.2%[44]. - The average selling price of electrolytic manganese products dropped by 9.3% to HKD 12,289 per ton in 2024, down from HKD 13,556 per ton in 2023[83]. - The average selling price of lithium manganese oxide decreased by 49.4% to HKD 34,731 per ton in 2024, but the unit sales cost improved due to better management of raw material prices[101]. - The manganese mining segment's revenue decreased by 10.5% to HKD 1,175.3 million in 2024, primarily due to a drop in the average selling price of Gabon ore[93]. - The revenue from electrolytic manganese products accounted for 15.4% of total revenue in 2024, up from 12.3% in 2023[91]. - The revenue from the electrolytic manganese and alloy materials production segment decreased by 21.5% to HKD 2,162.9 million, compared to HKD 2,754.0 million in 2023[95]. - The revenue from alloy products dropped by 84.8% to HKD 96.2 million in 2024, primarily due to an 82.9% decrease in sales volume to 13,805 tons[97]. Environmental and Social Responsibility - The company emphasized the importance of safety and environmental responsibility, achieving zero environmental incidents during the year[18]. - The company is focused on green transformation and sustainable development through various environmental protection initiatives[18]. - The company made charitable donations totaling HKD 704,000 during the year, a decrease from HKD 2,539,000 in the previous year[43]. Corporate Governance and Management - The company has established appropriate compliance procedures to ensure adherence to relevant laws and regulations[32]. - The company has a remuneration policy aimed at providing fair market compensation to attract and retain talent, with salaries based on individual knowledge, skills, and performance[50]. - The company has established a stock option plan to incentivize qualified personnel, including full-time and part-time employees, to contribute to the company's interests[59]. - The company’s board of directors includes independent non-executive directors appointed on September 10, 2024[46]. - The company has a maximum limit on the total number of shares that can be issued under the stock option plan, not exceeding 10% of the total issued shares at the time of listing without shareholder approval[59]. - The company has no directors with direct or indirect interests in any competing businesses during the year[52]. - The company has no management contracts related to the majority of its business operations as of December 31, 2024[41]. Financial Position and Assets - Total assets decreased to HKD 8,786,603,000 in 2024 from HKD 11,366,020,000 in 2023, representing a decline of approximately 22.5%[12]. - Current liabilities reduced to HKD 5,382,420,000 in 2024 from HKD 7,231,694,000 in 2023, a decrease of about 25.5%[12]. - Net assets fell to HKD 1,977,187,000 in 2024 compared to HKD 2,828,362,000 in 2023, reflecting a decline of approximately 30%[12]. - The group’s current assets, including prepayments and other receivables, decreased by 42.0% to HKD 1,062.1 million as of December 31, 2024[122]. - The group’s borrowings as of December 31, 2024, decreased to HKD 3,945.6 million from HKD 5,120.6 million in 2023[125]. - The group has a remaining unutilized portion of HKD 75.0 million from the IPO proceeds, expected to be fully utilized by December 31, 2032[118]. Production and Mining Activities - Total mining production for Daxin Manganese Mine in 2024 is 593,000 tons, down from 940,000 tons in 2023, with an average manganese grade of 11.9% compared to 12.5%[172]. - Total mining production for Tiandeng Manganese Mine in 2024 is 234,000 tons, down from 666,000 tons in 2023, with an average manganese grade of 11.9%[173]. - Total mining production for Bembélé Manganese Mine in 2024 is 1,954,000 tons, down from 2,240,000 tons in 2023, with an average manganese grade of 30.7% compared to 29.0%[176]. - The company has not conducted any significant exploration activities in China during the year, focusing instead on geological exploration at the Bembélé Manganese Mine in Gabon[157]. - The company has completed infrastructure projects at Bembélé Manganese Mine, enhancing processing capacity and transportation capabilities[170]. - The company has invested in upgrading and maintaining mining equipment across various mines to improve operational efficiency[166][168]. Challenges and Risks - The company anticipates ongoing challenges due to rising production costs and geopolitical tensions affecting energy and raw material prices[82]. - The company faces interest rate risk from floating rate debt, which may increase financial costs if the Chinese loan market interest rates rise[136]. - The company is actively seeking other financing options, including equity issuance, to strengthen its financial position and reduce reliance on short-term borrowing[137].
南方锰业(01091) - 2024 - 年度财报