Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 187.85 million, a decrease of 36% compared to HKD 291.93 million in 2023[5] - Revenue from graphene products declined by 40% to HKD 117.95 million from HKD 194.93 million[5] - Adjusted segment EBITDA fell by 40% to HKD 20.11 million from HKD 33.24 million[5] - The company reported a pre-tax loss of HKD 119.17 million, a 4% increase from a loss of HKD 114.28 million in the previous year[5] - Basic loss per share attributable to ordinary equity holders of the parent was HKD 11.5 cents, a 22% improvement from HKD 14.8 cents in 2023[5] - The company reported a total comprehensive loss of HKD 121,248,000 for the year ended December 31, 2024, compared to a loss of HKD 120,927,000 in 2023, indicating a slight increase in losses[8] - The company recorded a loss attributable to equity holders of HKD 111,435,000 for the year ending December 31, 2024, with a net current liability of HKD 104,616,000[13] - The net loss attributable to the owners of the parent company for the year ending December 31, 2024, was approximately HKD 111.4 million, compared to a net loss of approximately HKD 113.2 million in 2023[49] Assets and Liabilities - Total assets decreased by 5% to HKD 809.35 million from HKD 847.34 million[5] - Net asset value dropped by 24% to HKD 280.36 million from HKD 369.64 million[5] - Cash and bank balances decreased by 43% to HKD 15.55 million from HKD 27.19 million[5] - The company’s total debt, including lease liabilities, increased by 1% to HKD 235.98 million from HKD 233.17 million[6] - The total liabilities increased to HKD 528,988,000 in 2024 from HKD 477,705,000 in 2023, showing an increase of approximately 10.7%[10] - The company’s equity attributable to shareholders decreased to HKD 280,359,000 in 2024 from HKD 369,687,000 in 2023, a decline of about 24.1%[10] - Current assets as of December 31, 2024, were HKD 262.4 million, while current liabilities were HKD 367.0 million, resulting in a current ratio of 0.71, down from 0.77 in 2023[51][52] Revenue Breakdown - Revenue from landscape design services was HKD 69,899,000, compared to HKD 97,000,000 in 2023[18] - Geographically, total revenue from mainland China was HKD 160,472,000, while revenue from Hong Kong was HKD 24,842,000[19] - Revenue from the graphene segment decreased to approximately HKD 118 million, a reduction of about 40% compared to HKD 194.9 million for the year ending December 31, 2023; total revenue decreased to approximately HKD 187.9 million, down about 36% from HKD 291.9 million[44] Cost Management - The cost of sales for 2024 was HKD 119,543,000, down from HKD 195,108,000 in 2023, indicating a significant reduction in operational costs[25] - Administrative expenses for 2024 were HKD 134,456,000, a decrease from HKD 143,267,000 in 2023, reflecting improved cost management[26] - Financial costs decreased from HKD 23,748,000 in 2023 to HKD 17,011,000 in 2024, indicating a reduction in interest expenses[27] - Selling, marketing, and administrative expenses decreased to approximately HKD 136.2 million, down about 8% from HKD 148.5 million in the same period of 2023[47] Strategic Focus and Future Plans - The company is focused on developing graphene products, particularly for electric vehicles and energy storage systems, indicating a strategic emphasis on innovation and market expansion[11] - The company has established a comprehensive five-year plan focusing on capacity expansion, strengthening R&D, and exploring innovative battery systems to meet the evolving demands of various battery chemistry structures[67] - The company plans to raise approximately HKD 119.7 million through a rights issue at an issue price of HKD 0.170 per share, with 704,284,056 shares to be issued[14] - The company plans to invest approximately RMB 1 billion in the lithium-ion battery anode materials project in Laixi, Shandong, pending government approvals[57] Corporate Governance and Compliance - The company is committed to high standards of corporate governance to ensure shareholder rights and enhance corporate value and accountability[68] - The company has confirmed compliance with the corporate governance code as of December 31, 2024[68] - The independent auditor's report indicates that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024[75] Market Conditions and Risks - The global shift towards electrification is expected to drive demand for rechargeable batteries, particularly in electric vehicles and renewable energy storage[66] - The demand for graphite, a key material for lithium-ion battery anodes, is anticipated to remain strong due to its advantages in reliability, efficiency, and cost-effectiveness[66] - There are significant uncertainties regarding the company's ability to continue as a going concern due to financial losses and liabilities exceeding assets[76] Employee and Operational Insights - The company employs approximately 232 employees, providing competitive salaries and benefits, including mandatory provident fund and retirement plans[60] - The company has committed capital expenditures of RMB 563.7 million for the purchase of properties, plants, and equipment as of December 31, 2023[56]
烯石电车新材料(06128) - 2024 - 年度业绩