Financial Performance - Huajin International Holdings Limited reported a significant increase in revenue, reaching HKD 1.2 billion, representing a 15% year-over-year growth[3]. - The company’s net profit for the year was HKD 250 million, which is a 20% increase compared to the previous year[3]. - In 2024, the company's revenue was approximately RMB 5,896.7 million, a decrease of RMB 693.2 million or 10.5% compared to 2023's revenue of RMB 6,589.9 million[13]. - The gross profit for 2024 was RMB 31.7 million, down 89.3% from RMB 296.6 million in 2023, resulting in a gross margin of only 0.5%[13]. - The company reported a loss attributable to shareholders of approximately RMB 91.0 million in 2024, compared to a profit of RMB 85.7 million in 2023[16]. - Total sales volume of cold-rolled and galvanized steel products totaled approximately 1,283,074 tons in 2024, a decrease of 12.7% from 1,470,387 tons in 2023[16]. - The company's net asset value decreased by 17.7% to RMB 423.8 million in 2024, down from RMB 514.7 million in 2023[13]. - The debt level increased by 10.2% to RMB 2,510.4 million in 2024, compared to RMB 2,277.9 million in 2023[13]. - The debt-to-asset ratio rose to 67.5% in 2024 from 60.1% in 2023, indicating increased financial leverage[14]. Market Strategy and Growth - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[3]. - Huajin plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[3]. - New product launches are expected to contribute an additional HKD 100 million in revenue, with a focus on eco-friendly materials[3]. - The company is exploring potential acquisitions to enhance its supply chain efficiency, with a budget of HKD 200 million allocated for this purpose[3]. Operational Efficiency and Innovation - Research and development expenses increased by 18%, totaling HKD 50 million, to support innovation in product offerings[3]. - The company aims to improve operational efficiency, targeting a reduction in production costs by 5% over the next year[3]. - The company invested approximately RMB 604.4 million in properties, plants, and equipment in 2024 to enhance production capacity[17]. Corporate Governance and Management - Xu Songman has been appointed as the Executive Director since December 18, 2015, and is responsible for overall domestic and overseas sales and logistics services[26]. - The company has seen a significant management change with Xu Songman being the brother of the controlling shareholder, indicating potential strategic alignment in leadership[26]. - Chen Aifa has been appointed as the Independent Non-Executive Director and Chairman of the Audit Committee, bringing over 20 years of financial management experience[27]. - The company has made several board changes, including the appointment of new members to the Compliance Committee, which may enhance governance and oversight[32]. - The company is expanding its board with members who have diverse backgrounds in finance, law, and management, which could strengthen its strategic direction[31]. - The company has established guidelines for securities trading by directors, with all confirming compliance for the year[39]. - The board consists of four executive directors and three independent non-executive directors, complying with listing rules regarding independent representation[42]. - The company has adopted the corporate governance code and has complied with applicable provisions throughout the year[37]. Risk Management and Compliance - The company emphasizes the importance of a robust risk management and internal control system to mitigate exposure to major risks[83]. - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to undertake[82]. - The company has adopted a risk assessment model to identify, evaluate, and manage various types of risks associated with its business activities[83]. - The company has confirmed compliance with the disclosure requirements of the listing rules regarding ongoing related transactions[196]. Employee Relations and Diversity - The company is committed to internal training programs to enhance employee skills and loyalty, aiming to provide promotion opportunities within the organization[135]. - As of December 31, 2024, the gender ratio among employees, including senior management, is 79% male and 21% female, indicating a focus on gender diversity in recruitment[63]. - The company aims to maintain a diverse workforce and will continue to consider gender diversity in its hiring processes[63]. Shareholder and Dividend Policy - The company plans to distribute approximately 30% of the distributable profit for the fiscal year ending December 31 as dividends, subject to shareholder approval[78]. - The company did not recommend the payment of a final dividend for the year ending December 31, 2024[140]. - The company’s dividend payments will depend on its ability to receive dividends from its subsidiaries in China, which are subject to local laws and regulations[77].
华津国际控股(02738) - 2024 - 年度财报