东岳集团2024年报

CONTENTS 2CHAIRMAN’S STATEMENT9MANAGEMENT DISCUSSION AND ANALYSIS18DIRECTORS’AND SENIOR MANAGEMENT’S PROFILE23REPORT OF THE DIRECTORS38CORPORATE GOVERNANCE REPORTS57ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT134INDEPENDENT AUDITOR’S REPORT138CONSOLIDATED STATEMENT OF PROFIT OR LOSS ANDOTHER COMPREHENSIVE INCOME140CONSOLIDATED STATEMENT OF FINANCIAL POSITION142CONSOLIDATED STATEMENT OF CHANGES IN EQUITY144CONSOLIDATED STATEMENT OF CASH FLOWS147NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS259FIVE-YEAR FINANCIAL SUMMARY261CORPORATE INFORMATION CHAIRMAN’S STATEMENT ZHANG JIANHONGChairman 2024 In 2024, amid a complex domestic and international economiccondition, the fluorosilicon chemical industry underwent significantchanges as affected by multiple factors. Given such circumstances,market demand for some products within the industry remained weak,similar to the previous year, while others experienced substantial priceincreases due to external market factors. Leveraging on the strengthsaccumulated over years of operation in the fluorosilicon chemicalindustry, the Group rapidly seized market opportunities and recordeda certain level of performance growth. CHAIRMAN’S STATEMENT RESULTS REVIEW I.Seizing market opportunities to drive performancegrowth R22R32 During the year, the fluorosilicon chemical industry experiencedsignificant market fluctuations due to external macroeconomicconditions, leading to product price adjustments. Within therefrigerants segment, key products such as R22 and R32recorded substantial price increases driven by quota restrictions.In response, the Group proactively optimized its product mixand market strategies, achieving performance growth whilelaying a solid foundation for future industrial expansion.On the back of superior cost management and exceptionalmarket development capabilities, the organic silicon segmentrecorded a profit turnaround from a loss despite supply-demandimbalances in the industry. Meanwhile, the fluoropolymerssegment maintained its competitive edge amid intensifiedmarket competition and declining product prices, supported bysuperior product quality and the strategic layout on high-endproduct offerings, achieving stable results for the Group. CHAIRMAN’S STATEMENT RESULTS REVIEW(Continued) II.Stabilizing production to ensure competitiveness withinthe industry 2023 During the period under review, the Group strived to optimizethe operational efficiency of its devices amidst intense marketcompetition, to contribute further increase on the annualoutput of its key products as compared to 2023. Whileachieving output growth, the Group managed to reduce rawmaterial and overall energy consumption, as well as by-productand co-product output to various degrees. The Group hasestablished a data analysis system across all production stages,which can assist the Group to analyze production data andprovide operational guidance, thereby improving productionefficiency. In terms of safety and environmental protection, theGroup adhered to its long-standing safety and environmentalproduction standards, with significant decrease in abnormalshutdown rate throughout the year, as well as completelyfulfilling regulatory standards for wastewater and exhaustemissions. In the state of the challenging industry conditions,the comprehensive production management allowed the Groupto maintain stable operations, achieve full production andabundant sales, further reduce costs, so as to enhance productcompetitiveness in the market. III.Technological R&D has yielded new achievements 7.0740202480060%1216004420 The Group attaches great importance to independent researchand development (R&D) all along, and has made further progressin R&D for the year. During the year, total R&D expenses by theGroup amounted to approximately RMB707 million, includingover 40 R&D projects, such as pilot-scale production trialsinvolving new products, new technology and new processdevelopments. Together with facility upgrades and expansions,energy-saving and consumption reduction initiatives, all R&Dprojects contributed significantly to revenue growth, profitincrease and cost reduction. As at the end of 2024, the Group’sR&D team comprised of over 800 members, with more than60% holding doctoral or master’s degrees. During the year, theGroup was granted 121 patents, bringing the total number ofpatents to over 600 by year-end. In addition, during the periodunder review, the Group announced 4 national standards, 4industry standards and 20 group standards, which have furtherpropelled industry development. CHAIRMAN’S STATEMENT RESULTS REVIEW(Continued) IV.Remarkable achievement was made in strengtheninginternal control, reducing costs and enhancing efficiency During the year, the Group continued to uphold itsmanagement policies of strengthening internal control,optimizing and reducing costs, while unleashing potentials,with a focus on key process control. In particular, the Groupconducted a thorough reform in key ar