Company Overview - Shougang Century Holdings Limited has been listed on the Stock Exchange since April 1992, with substantial shareholders including Shougang Group, Bekaert, and Redamancy[5]. - The company aims to achieve an annual manufacturing capacity exceeding 300,000 tonnes of high-quality steel cord and become one of the top three manufacturers in China's steel cord industry[11]. - The company is focused on manufacturing and sales of steel cords for radial tyres, sawing wires, and hose wires[11]. - The company is actively pursuing market expansion and aims to enhance its competitive position in the steel cord manufacturing sector[11]. - The company is considering establishing a production base in Europe, preferably in Eastern Europe, to enhance market competitiveness[150]. Financial Performance - The Group's revenue for the year ended December 31, 2024, was HK$2,396,950,000, a decrease of 3.9% compared to HK$2,494,534,000 in 2023[80]. - The net profit attributable to the owners of the Company was HK$31,647,000, down 49.4% from HK$62,506,000 in the previous year[96]. - The gross profit decreased by 13.0% to HK$325,569,000 from HK$374,166,000 in 2023[96]. - The steel cord segment sold 240,049 tonnes, an increase of 5.0% from 228,637 tonnes last year[99]. - The sales volume of sawing wire products increased by 11.9% from 757 tonnes to 847 tonnes[99]. - The Group raised net proceeds of approximately HK$128,547,000 through a rights issue, enhancing its capital position[81]. - The final dividend recommended for the year ended December 31, 2024, is approximately HK$40,186,000[83]. - The Group's net asset value per share was HK$0.76 as of December 31, 2024[80]. - The steel cord segment's revenue amounted to HK$2,395,754,000, representing 99.9% of total revenue, down 3.9% from HK$2,493,165,000 in the previous year[111]. - The gross profit for the steel cord segment decreased by 13.0% to HK$324,492,000, with a gross profit margin of 13.5%, down from 15.0% in the previous year[108]. Management and Governance - Mr. Su Fanrong resigned as managing director on July 1, 2023, but remains as chairman of the company[30]. - Mr. Li Jinping was appointed as managing director effective July 1, 2023, and has extensive experience in financial supervision and risk control[36]. - The company has appointed directors with extensive experience in the steel industry and financial management, enhancing its leadership capabilities[30][36][41]. - The company has a strong governance structure with experienced directors in key positions[58]. - The Company has three independent non-executive Directors, representing one-third of the Board, ensuring a strong element of independence[184]. - The Company does not grant equity-based remuneration to independent non-executive Directors to maintain their objectivity and independence[192]. Market Conditions and Outlook - In 2024, China's passenger car market saw vehicle production and sales reach 31.28 million and 31.43 million units, representing increases of 3.7% and 4.5% respectively[77]. - Retail sales of new energy vehicles achieved a record high, supported by policies such as the purchase tax exemption and the automobile to the countryside program[77]. - The introduction of new tariff policies by the United States has created significant uncertainties and contributed to inflation, impacting both export and domestic markets in China[77]. - The Group anticipates market expansion for domestic steel cords due to rising demand for electric vehicles and replacement tyres[88]. - The increasing output of electric vehicles is expected to drive demand for accessory tyres, which will accelerate the market expansion of steel cords for domestic radial tyres[162]. - The company is optimistic about its business outlook despite uncertainties in global political and economic conditions, including U.S.-China relations and the ongoing conflicts in Ukraine and the Middle East[161]. Expenses and Cost Management - Selling and distribution expenses increased by 4.1% to HK$129,167,000, primarily due to increased sales volume in the steel cord segment[114]. - Administrative expenses rose by 11.2% to HK$62,768,000, with plans for cost control measures[115]. - Research and development expenses decreased by 5.8% to HK$101,977,000, aligning with customer requirements in tyre manufacturing[116]. - The total employee benefit expense for the year amounted to approximately HK$319.1 million[153]. Shareholder Information - As of the last trading day of 2024, the company had issued 2,350,058,193 shares with a market capitalization of HK$988,774,732 and a closing share price of HK$0.425[20]. - The 2024 Annual General Meeting is scheduled for June 10, 2025, with the closure of the register of members from June 3 to June 10, 2025[21]. - The total number of issued shares increased to 2,350,058,193 as of 31 December 2024, up from 1,968,903,828 shares in 2023[130]. Risk Management - Two risk assessment meetings were held during the year to address risk management issues of the Group[199]. - The Board has established various committees, with the majority of members being independent non-executive Directors, to ensure independent views are available[184]. - The Company has mechanisms in place to ensure independent views are available to the Board, reviewed annually for effectiveness[183].
首佳科技(00103) - 2024 - 年度财报