Financial Performance - For the year ended December 31, 2024, the company reported revenue of RMB 18,396 million, a decrease of 31.6% compared to RMB 26,908 million in 2023[13]. - Gross profit for 2024 was RMB 10,885 million, down 12.1% from RMB 12,387 million in the previous year, resulting in a gross margin of 59.2%[13][15]. - The company recorded a pre-tax loss of RMB 177,301 million, an improvement of 65.7% from a loss of RMB 516,700 million in 2023[13]. - The net loss attributable to equity holders of the parent was RMB 145,755 million, a significant reduction of 72.8% compared to RMB 535,918 million in the prior year[13]. - Total assets as of December 31, 2024, were RMB 2,051,581 million, a decrease of 3.5% from RMB 2,126,038 million in 2023[13]. - The total equity attributable to equity holders of the parent increased by 103.6% to RMB 116,640 million from RMB 57,293 million in 2023[13]. Industry Trends and Opportunities - The Chinese economy grew by 5% in 2024, providing a stable backdrop for the landscaping industry, which continued to expand due to urbanization and ecological demands[21]. - The landscaping industry is experiencing new development opportunities driven by national strategies such as urban renewal and ecological protection[21]. - The adoption of smart landscaping and technological innovations, including IoT and AI, is enhancing operational efficiency and promoting digital transformation in the industry[21]. - The Chinese landscaping industry is projected to reach a market size of several hundred billion RMB by 2028, with an average growth rate remaining high in the coming years[38]. - The landscaping industry is moving towards ecological, intelligent, and diversified development, with significant growth points in ecological restoration and environmental governance[41]. Strategic Initiatives - The group completed a significant equity restructuring, transforming into a mixed-ownership listed company, supported by Greenland Group, which enhanced its strategic operational capabilities and resource integration efficiency[30]. - The group announced the acquisition of 51% of ZDX Energy International Co., Ltd., including its wholly-owned subsidiary engaged in hydropower station operation and maintenance services[31]. - A new joint venture, Shanghai Green Energy Zhihui Energy Technology Co., Ltd., was established to develop renewable energy projects, leveraging the partner's extensive experience in photovoltaic investment and construction[31]. - The group is actively exploring opportunities in the renewable energy sector, particularly in photovoltaic, wind, and hydropower fields, to diversify its business[30]. - The group emphasizes the integration of green technology and social responsibility into its long-term strategy, aligning with national policies on ecological civilization and carbon neutrality[32]. Operational Efficiency and Management - The group is focusing on optimizing existing project operational efficiency and compliance management to ensure stable cash flow and project progression[28]. - The group has implemented a refined project cost control model, establishing a unified supplier database and utilizing a self-developed project management information platform to ensure all expenditures strictly adhere to budget management[48]. - The group has received support from a well-known domestic procurement platform, fully opening supply chain channels to achieve cost reduction and efficiency improvement[48]. - The company has established a project management information platform to enhance operational efficiency and ensure compliance with budgetary constraints[48]. - The company aims to enhance its core competitiveness through capital structure optimization, cost control, and operational efficiency improvements[28]. Corporate Governance - The board of directors is composed of five members, including two executive directors and three independent non-executive directors, ensuring a diverse governance structure[61]. - The company has adopted the principles and provisions of the corporate governance code as the basis for its governance practices, ensuring compliance throughout the reporting period[57]. - The company has established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each with defined responsibilities[74]. - The board retains final decision-making authority on significant matters, including policy issues, strategy, budget, and major transactions[69]. - The company has adopted a board diversity policy since August 28, 2014, aimed at achieving diversity among board members for sustainable development[82]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to a comprehensive ESG (Environmental, Social, and Governance) management approach, focusing on sustainable development practices[146]. - The company has established a sustainable operating system centered on ESG, gradually enhancing project quality and compliance levels[145]. - The company has established an ESG working group led by the board of directors, responsible for identifying and managing key ESG issues[154]. - The company aims to integrate ESG principles into daily operations and has developed an integrated data management platform for better ESG management[159]. - The company conducts long-term risk assessments and collects relevant information for analysis[117]. Environmental Impact and Sustainability - Green State's greenhouse gas emissions decreased by approximately 11.9% compared to 2023, primarily due to a reduction in project numbers[173]. - The total greenhouse gas emissions for 2024 amounted to 80.89 tons of CO2 equivalent, down from 111.83 tons in 2023[175]. - The company has committed to actively aligning with national emission reduction policies and aims to gradually lower total emission density through project design optimization and green technology[174]. - The company has implemented a series of long-term environmental protection measures to reduce waste and promote recycling[182]. - The company has developed multiple soil improvement technologies tailored to different regional soil structures, including key greening techniques for inland saline-alkali land, which combine physical and chemical methods to enhance soil structure and eliminate saline hazards[195].
中国绿地博大绿泽(01253) - 2024 - 年度财报