稀镁科技：2024年全年业绩公告

RARE EARTH MAGNESIUM TECHNOLOGY GROUP HOLDINGS LIMITED 601 2024 202412 312024202420254 30www.hkexnews.hkwww.remt.com.hk 2025328http://www.remt.com.hk CONTENTS 48Independent Auditors’ Report56Consolidated Statement of Profit or Loss andOther Comprehensive Income58Consolidated Statement of Financial Position60Consolidated Statement of Changes in Equity62Consolidated Statement of Cash Flows64Notes to Financial Statements175Financial Summary 12Management Discussion and Analysis 21Corporate Governance Report 36Directors and Senior Management Profiles CORPORATE INFORMATION DIRECTORS Executive Directors: Shum Sai Chit(Chairman and Chief Executive Officer)Chi Sile Independent Non-executive Directors: Cheung Sound PoonSheng HongShen Yimin AUDIT COMMITTEE Cheung Sound Poon(Chairman)Sheng HongShen Yimin REMUNERATION COMMITTEE Shum Sai Chit(Chairman)Cheung Sound PoonSheng Hong NOMINATION COMMITTEE Shum Sai Chit(Chairman)Cheung Sound PoonSheng Hong COMPANY SECRETARY Fan Kwok Man, Raymond AUDITORS 8191903A-1905 Prism Hong Kong Limited (formerly know as Prism Hong Kong andShanghai Limited)Certified Public AccountantsRegistered Public Interest Entity AuditorUnit 1903A-1905, 19/F.,8 Observatory Road,Tsim Sha Tsui,Hong Kong PRINCIPAL BANKERS O-Bank Co., LtdDBS Bank (Hong Kong) Limited REGISTERED OFFICE Clarendon House2 Church StreetHamilton HM11Bermuda Clarendon House2 Church StreetHamilton HM11Bermuda PRINCIPAL PLACE OF BUSINESS 16th Floor, Tower 5The GatewayHarbour cityTsim Sha Tsui, KowloonHong Kong 516 PRINCIPAL SHARE REGISTRAR ANDTRANSFER OFFICE IN BERMUDA Ocorian Management (Bermuda) LimitedVictoria Place, 5th Floor31 Victoria Street, PO Box HM 1624Hamilton HM 10Bermuda OcorianManagement(Bermuda)LimitedVictoria Place, 5th Floor31 Victoria Street, PO Box HM 1624Hamilton HM 10Bermuda BRANCH SHARE REGISTRAR ANDTRANSFER OFFICE IN HONG KONG 1617 Tricor Secretaries Limited17/F, Far East Finance Centre16 Harcourt RoadHong Kong http://www.remt.com.hk WEBSITE http://www.remt.com.hk 00601 STOCK CODE 00601 CHAIRMAN’S STATEMENT 2024 2024113102.690.8%25%202421%202417,920/13%1216,000/ 1. 202413.6%7.1%15% 2. CBAM 3. 202412816,000/ On behalf of the Board of Directors (the "Board"), I am pleased to present the annual results of Rare Earth MagnesiumTechnology Group Holdings Limited (the "Company") and its subsidiaries (collectively referred to as "REMT" or the“Group")for the year ending December 31, 2024 (the "Year") for all stakeholders to review. Introduction In 2024, REMT continued to focus on the magnesium business while facing multiple challenges, including a slowdown inglobal economic growth, structural adjustments in the Chinese industrial economy, and the impact of periodic overcapacity,which has led to declining magnesium prices. Despite the clear advantages of magnesium over aluminum and its increasinglydiverse applications, domestic magnesium enterprises in China continue to suffer from cost pressures due to persistent priceinversions, with the overall industry remaining sluggish. There is a need to seek a balance between short-term pressuresand long-term strategic layouts. Multiple Factors Leading to Continued Decline in Magnesium Prices Production Growth but Price Pressure:In 2024, global magnesium production is expected to be approximately 1.13 milliontons, with China accounting for 1.026 million tons, or 90.8% of the total, reflecting a significant year-on-year increase of 25%.However, magnesium prices showed a stepwise decline in 2024, with an annual drop of 21%. The domestic average pricefor the year was RMB17,920 yuan/ton (a year-on-year decrease of 13%), hitting a low of RMB16,000 yuan/ton in December,pushing the industry into overall losses. The reasons for the continuous price decline include: 1.Weak Demand: Traditional application fields such as sponge titanium and steel desulfurisation are experiencing shrinking demand.Although China's magnesium ingot exports grew by 13.6% year-on-year in 2024, the average price fell by 7.1%. Demandfor lightweight magnesium alloys in sectors like new energy vehicles and aerospace is increasing, but practicalusage remains below 15% due to limitations in technology maturity and costs. Downstream companies are cautious inprocurement due to declining prices, exacerbating inventory pressures. 2.Policy and Market Risks: China's "dual carbon" policy has raised electricity costs, and the EU's Carbon Border Adjustment Mechanism (CBAM)has increased export uncertainties. The acceleration of industry consolidation has led to the exit of small capacities ormismatches in supply and demand, further depressing prices. 3.Inventory Pressure: Significant capacity release in major production areas such as Shaanxi and Xinjiang, combined with weak demand, hasled to an expected national total inventory exceeding 80,000 tons by December 2024, a historical high. The imbalancebetween supply and demand has caused magnesium prices to drop belo