Business Strategy and Development - The company aims to achieve a market capitalization of 100 billion by establishing three leading brands in fertilisers, melamine, and polyformaldehyde, contributing to its growth strategy [20]. - The Henan base is focused on building a modern chemical park with a goal of enhancing per capita labour efficiency and reducing energy consumption through technological transformation [17]. - The Jiangxi base plans to develop four business sectors: basic chemicals, high-efficiency fertilisers, fine chemicals, and new materials, aiming for industry-leading safety and profitability [19]. - The Xinjiang base targets to become the leading fertiliser brand in the region, with a focus on increasing the quantity and quality of chemical fertilisers and enhancing melamine technology [21]. - The Guangxi base is set to become the most competitive benchmark in South China, concentrating on base construction and industrial chain planning over the next three years [22]. - The company has established scientific research platforms, including the "National Enterprise Technology Centre" and "Postdoctoral Research Station," to support its technology-leading development strategy [34]. - The company reported a commitment to low-cost and differentiated operational strategies to enhance its competitive edge in the fertiliser market [16]. - The company is actively responding to national strategies aimed at increasing efficiency in fertiliser use and promoting soil testing and formula fertilization [34]. - The company has a strategic focus on high-efficiency, high-end, and lean development to solidify its position as a respected fertiliser enterprise in China [15]. - The company emphasizes creating maximum value for society with minimal resources, reflecting its commitment to sustainable development [10]. Financial Performance - Revenue for FY2024 was RMB 23,128 million, a decrease of 1.5% compared to RMB 23,475 million in FY2023 [47]. - Gross profit for FY2024 was RMB 3,931 million, down 6.1% from RMB 4,187 million in FY2023 [47]. - Profit before tax increased by 22.5% to RMB 2,376 million in FY2024, compared to RMB 1,940 million in FY2023 [47]. - Net profit attributable to the parent rose by 23% to RMB 1,459 million in FY2024, up from RMB 1,187 million in FY2023 [47]. - The Group achieved sales revenue of approximately RMB 23,128 million, representing a year-on-year decline of 1% due to declining product prices [97]. - The net profit increased by 23% year-on-year to RMB 2,014 million, with net profit attributable to the parent company also increasing by 23% year-on-year to RMB 1,459 million [97]. Production and Technology - The new large-scale stable urea production unit began operations in February 2024, breaking the monopoly of foreign companies on this technology [52]. - The group standard of "Urea Humic Acid" led by the company passed technical review in May 2024 and was officially promulgated in December [58]. - The company operates under a flexible production mode allowing for adjustments between products, enhancing operational efficiency [40]. - The company was approved for key R&D projects under the national "14th Five-Year" plan for the fourth time in January 2024 [50]. - The Group successfully completed the construction of new projects, including a 60,000 tons polyformaldehyde project and a 300,000 tons compound fertilizer project, enhancing its market capabilities [96]. Market Trends and Challenges - The fertiliser market has entered a downward trend after a high-price phase, prompting the company to enhance its capabilities to cope with market uncertainties [80]. - The fertilizer market is experiencing increased competition due to demand-supply mismatches, environmental pressures, and geopolitical tensions [147][149]. - The rigid demand for fertilizers is expected to steadily grow due to national policies supporting farmland protection and increasing grain yield per unit area [147][149]. - In 2025, domestic nitrogen fertilizer demand and supply is expected to remain stable, with increased sales driven by stronger demand for differentiated products [145]. Employee and Corporate Governance - The Group's employee count increased to 11,787 as of December 31, 2024, up from 10,390 in 2023 [186]. - The Company provides various employee benefits, including medical and life insurance, and discretionary bonuses based on performance [189]. - The Group has complied with all provisions of the Corporate Governance Code during the year ended December 31, 2024 [175]. Shareholder Returns and Dividends - The proposed final dividend is RMB 0.26 per share for the year ended December 31, 2024, an increase from RMB 0.24 per share in 2023, pending shareholder approval [151][156]. - The Company repurchased a total of 6,312,000 shares at a total consideration of HK$24,609,000, representing approximately 0.5% of the issued shares as of December 31, 2024 [180]. - The repurchase of shares was based on the Company's confidence in its long-term business prospects and potential growth [180].
中国心连心化肥(01866) - 2024 - 年度财报