Financial Performance - In 2024, the Group achieved revenue of RMB 18,854.6 million, representing a year-on-year increase of 8.7% compared to RMB 17,352.6 million in 2023[38]. - The sales volume for the Group was 809,312 tonnes, reflecting a year-on-year increase of 6.8% from 757,480 tonnes in 2023[38]. - The net profit attributable to shareholders was RMB 826.0 million, a year-on-year increase of 2.7% compared to RMB 804.2 million in 2023[38]. - Gross profit decreased by 11.4% year-on-year to approximately RMB 1,763.7 million, while profit attributable to shareholders increased by 2.7% to approximately RMB 826 million[23]. - Revenue from construction aluminium profiles grew by 17.7% year-on-year to approximately RMB 16,621.2 million, with sales volume increasing by 8.1% to approximately 672,915 tonnes[55]. - Revenue from industrial aluminium profiles decreased by 27.6% year-on-year to approximately RMB 1,914.5 million, despite an 8.1% increase in sales volume to approximately 136,397 tonnes[57]. - The Group's gross profit margin decreased by 2.1% to 9.4% (2023: 11.5%), with the sales to production ratio slightly decreasing to 98.8% (2023: 99.5%) [80]. Market Strategy and Development - The Group adopted a prudent approach to overseas business development, enhancing research on trade policies and market dynamics to mitigate risks from trade frictions and exchange rate fluctuations[18]. - The Group is accelerating its expansion into the home decoration and overseas markets, developing lightweight and high value-added products[24]. - The Group aims to maintain market competitiveness and profitability through diversified development in the aluminium profile business[33]. - The Group is focused on expanding its production capacity and overseas deployment, with 7 domestic production bases and ongoing projects in Australia and Vietnam[66]. - The Group plans to enhance cooperation with market partners and explore opportunities in the home decoration market and public facility projects[63]. - The Group is moving towards higher quality, more resilient, and sustainable development in the aluminium profiles industry[19]. Innovation and R&D - The Group has participated in the formulation of over 100 national and industry standards and holds more than 900 valid patents, emphasizing its commitment to innovation[24]. - The Group is focusing on R&D to develop new industrial aluminium profile products to capture market opportunities[46]. - The Group's digital and automated production base in Zhejiang has commenced production, aiming to improve land use and reduce personnel costs[48]. - The Group emphasizes continuous innovation and adaptation to maintain a competitive edge in the challenging market environment[67]. Leadership and Management - The Group's leadership under the board of directors has been pivotal in navigating the challenges of the market and achieving growth[18]. - The company has a strong leadership team with diverse backgrounds in finance, marketing, and engineering, enhancing its operational capabilities[144][145][146][149][151][152]. - The management team has been recognized with various awards, indicating their expertise and contributions to the industry[151]. - The company aims to leverage its leadership's extensive experience to navigate market challenges and capitalize on opportunities[161]. Financial Health and Risk Management - The Group maintained healthy cash flow by deepening relationships with real estate developers with good cash flow conditions, reducing financial risks amid market fluctuations[19]. - The gearing ratio decreased to 19.8% (2023: 24.5%) due to a reduction in loans and borrowings as of December 31, 2024[101]. - The impairment loss on trade and other receivables decreased by RMB225.3 million to RMB67.9 million (2023: RMB293.2 million)[88]. - Finance costs remained stable at approximately RMB104.6 million for the Year (2023: RMB138.1 million) despite an increase in bank borrowings[89]. Market Conditions and Challenges - The international trade situation remains complex and volatile, prompting the Group to adopt a more cautious stance in its overseas operations[18]. - The sales area of newly built commercial housing in China decreased by 12.9% year-on-year in 2024, indicating challenges in the real estate sector[33]. - The demand for construction aluminium profiles is expected to be sustained in the long term due to supportive policies in the real estate market[27]. - The real estate market in China is showing signs of recovery, with new policies expected to further stabilize the market in 2025[34].
兴发铝业(00098) - 2024 - 年度财报