Financial Performance - The company's revenue for 2024 was approximately RMB 4.83 billion, a decrease of 6.4% compared to RMB 5.16 billion in 2023[3]. - Net profit attributable to shareholders for 2024 was RMB 358.76 million, down from RMB 370.21 million in 2023, resulting in basic earnings per share of RMB 0.131[3]. - The total revenue for the fiscal year 2024 decreased by 6.4% to RMB 4,832,036,000 compared to RMB 5,163,306,000 in 2023[19]. - The company's net profit attributable to equity holders decreased by 3.1% to RMB 358,757,000 in 2024 from RMB 370,209,000 in 2023[38]. - Total comprehensive income attributable to equity holders for 2024 was RMB 271,536,000, down from RMB 349,996,000 in 2023, impacted by foreign currency translation differences and fair value adjustments[55]. - The sales cost for 2024 was RMB 3,848,493,000, a reduction of 4.3% compared to RMB 4,019,922,000 in 2023, due to decreased revenue and related processing costs[40]. - The distribution costs increased to RMB 144,072,000 in 2024 from RMB 118,053,000 in 2023, representing about 3.0% of total revenue[48]. - The company's interest-bearing borrowings increased to RMB 3,284,666,000 as of December 31, 2024, up from RMB 2,895,021,000 in 2023[103]. - The adjusted net debt-to-equity ratio as of December 31, 2024, was 36%, slightly up from 35% in 2023[102]. - The net cash generated from operating activities for the year was RMB 501,762,000, a significant increase from RMB 55,129,000 in 2023, primarily due to stricter control over receivables[103]. Sales and Market Trends - The sales of mold steel, which accounted for 47.1% of total revenue, declined by 3.1% to RMB 2,273,870,000 from RMB 2,345,986,000 in the previous year[23]. - Domestic sales of mold steel increased by 16.2% to RMB 1,008,398,000, while export sales decreased by 14.4% to RMB 1,265,472,000[20][22]. - High-speed steel revenue, representing 17.0% of total revenue, saw a slight increase of 0.7% to RMB 821,478,000 from RMB 815,904,000[24][25]. - Domestic sales of high-speed steel rose by 9.8% to RMB 422,033,000, while export sales fell by 7.4% to RMB 399,445,000[24][26]. - The cutting tools segment, which accounted for 18.2% of total revenue, experienced a 2.9% decline in sales to RMB 879,342,000 from RMB 905,754,000[27][28]. - Domestic sales of cutting tools decreased by 13.6% to RMB 333,274,000, while export sales increased by RMB 26,040,000[27][29]. - Titanium alloy revenue, making up 15.6% of total revenue, dropped by 21.5% to RMB 756,370,000 from RMB 963,836,000[30][31]. - Domestic sales of titanium alloys fell by 21.8% to RMB 747,406,000, while export sales increased by 15.1% to RMB 8,964,000[30][31]. - The demand for high-performance materials in downstream high-end manufacturing sectors, including automotive and aerospace, is driving the growth of special steel, with a continuous increase in production and quality[69]. Research and Development - The company’s R&D expenditure rate exceeded 6% for two consecutive years, with 59 ongoing R&D projects and 16 new initiatives planned for 2025[10]. - The company plans to establish a precision tool research institute to enhance its technological influence and market coverage in high-performance cutting tools[14]. - The company invested RMB 301.55 million in R&D, accounting for 6% of total annual revenue[143]. - The company has applied for 89 patents during the reporting period, including 26 invention patents and 63 utility model patents, with a total of 277 patents held as of the end of 2024[159]. - The company initiated a national key R&D project in collaboration with Tsinghua University and other renowned institutions, focusing on new die-casting mold steel powder metallurgy and additive manufacturing technologies[78]. Product Development and Innovation - The company launched new products including TGE22 and TGE23 large-size die steel for die-casting, which have already been delivered to downstream customers[10]. - The company has made breakthroughs in key technologies related to powder preparation, forming, sintering, and heat treatment, establishing a comprehensive technical system for powder high-speed steel[62]. - The company developed a double-spiral hole hard alloy bar, which is set to enter mass production, optimizing cooling effects and improving processing efficiency for high-performance tools[76]. - The company successfully delivered its first aerospace-grade titanium alloy wire order, meeting high standards and passing strict certification processes[79]. - The company has established a postdoctoral research station in Jiangsu Province, which has been upgraded to a national level, focusing on research in die steel processes and powder metallurgy materials[153]. Sustainability and ESG Initiatives - The company emphasizes green development and resource management, focusing on reducing carbon emissions and optimizing production processes[90]. - The company has implemented measures to mitigate credit risk, including insurance for trade receivables and regular reviews of recoverable amounts[111]. - The ESG report covers the performance of Tian Gong International Limited and its subsidiaries for the fiscal year 2024, from January 1, 2024, to December 31, 2024[122]. - The company is committed to continuous monitoring of greenhouse gas emissions, energy efficiency, and waste management goals[129]. - The group has established a three-tier environmental management system, with five subsidiaries obtaining ISO 14001 certification by the end of 2024[176]. Market Expansion and Global Presence - The company is expanding its global footprint, with the precision tool factory in Thailand increasing production capacity to 12 million units per month[11]. - The company successfully penetrated the North American market with high-quality titanium alloy wire for 3D printing applications, establishing a reputation in the supply chain[34]. - The company has expanded its international presence by adding sales points in Canada and Vietnam, supplying raw materials to well-known enterprises in Europe and the United States[171]. - The company is actively exploring new markets to reduce dependence on any single economy, addressing risks related to global macroeconomic uncertainties[114]. Operational Efficiency - The company has implemented a strict product quality control system to ensure excellence from raw materials to finished products[142]. - The company has integrated various systems such as ERP, MES, and SCADA to optimize production and supply chain management[157]. - The company has streamlined its customer complaint handling process, simplifying issue categorization and conducting monthly reviews of complaints for continuous improvement[172]. - The company has invested in advanced quality inspection equipment, including a thermal expansion deformation testing instrument and a fluorescence spectrometer, to enhance steel performance testing capabilities[163]. Employee and Workforce Management - Employee costs for the year totaled RMB 421,605,000, up from RMB 397,116,000 in 2023, attributed to an increase in employee numbers and salary adjustments[109]. - The company employs 3,527 staff as of December 31, 2024, compared to 3,517 in 2023, maintaining a gender ratio of approximately 73% male to 27% female[109][117]. - The company has conducted regular training on intellectual property protection to enhance employee awareness and prevent infringement of third-party rights[159]. Future Projections and Industry Trends - The integrated die-casting industry in China is expected to reach a market size of RMB 38.9 to 40.5 billion by 2025, with new energy vehicles accounting for RMB 25.8 to 30 billion[93]. - The demand for high-strength, lightweight special steel is expected to continue rising, particularly driven by the rapid development of new energy vehicles and smart cars[91]. - By 2025, the automotive industry is projected to consume approximately 57.5 million tons of steel, with a year-on-year growth of 1.8%[93]. - The global market for high-speed steel cutting tools reached RMB 21.749 billion in 2023, with China's market size at RMB 6.794 billion, projected to grow to RMB 30.995 billion by 2029 at a CAGR of approximately 5.84%[73].
天工国际(00826) - 2024 - 年度财报