Financial Performance - The company recorded a loss attributable to shareholders of HKD 169 million for the fiscal year 2024, compared to a profit of HKD 2.7 million in fiscal year 2023, primarily due to increased inventory provisions of HKD 83.4 million and foreign exchange losses of approximately HKD 14.6 million [3]. - Total revenue decreased by 15% from HKD 3,135.4 million in fiscal year 2023 to HKD 2,664.9 million in fiscal year 2024, reflecting the impact of global economic downturn and weak end-market demand [16]. - For the fiscal year ending March 31, 2024, the company's revenue decreased by 15% to HKD 2,664.9 million compared to the previous year [26]. - The company reported a loss attributable to shareholders of HKD 169.3 million for the fiscal year 2024, a significant decline from a profit of HKD 92.5 million in 2021 [23]. - Basic loss per share for the fiscal year 2024 was HKD (170.00), compared to earnings of HKD 108.54 in 2021 [23]. - The gross profit margin faced pressure due to weak market demand, inventory pressure, and exchange rate fluctuations [26]. - The company's gross profit margin fell sharply from 8.9% in the previous fiscal year to 3.8% in the current fiscal year, primarily due to intensified price competition and inventory provisions [111]. - Overall revenue decreased by 15.0% year-on-year to HKD 2,664.9 million, as all segments reported lower sales compared to the previous year's revenue of HKD 3,135.4 million [118]. Segment Performance - The automotive electronics segment accounted for 29.9% of total sales in fiscal year 2024, an increase of 2.9% year-on-year, despite a 5.7% decline in sales revenue [4]. - The electronic manufacturing services segment's sales amounted to HKD 236.0 million in fiscal year 2024, with a year-on-year decline of 3.7%, but its contribution to total revenue increased from 7.8% to 8.8% [5]. - For the fiscal year ending March 31, 2024, the automotive electronics segment became the largest revenue source for the company, recording sales of HKD 797.4 million, despite a 5.7% decrease compared to the previous fiscal year [76]. - Revenue from the electronic manufacturing services segment decreased by 3.7% year-on-year to HKD 236.0 million, primarily due to trade tensions affecting export markets [105]. - Revenue from the telecommunications segment decreased by 16.1% year-on-year to HKD 170.4 million, driven by reduced consumer demand for smartphones [106]. - The audio-visual segment reported revenue of HKD 157.6 million, a year-on-year decrease of 17.9%, with expectations of ongoing challenges [107]. - The distribution segment's revenue was HKD 182.7 million, down 0.2% year-on-year, impacted by weak demand for consumer electronics [108]. - The lighting segment recorded revenue of HKD 55.2 million, a significant decline of 43.7%, reflecting weak demand in the consumer and commercial lighting markets [109]. - Other segments saw a revenue decline of 39.7% year-on-year to HKD 25.7 million, attributed to decreased demand for personal computers and electronic toys, although AI growth is expected to improve the situation [110]. Strategic Focus and Investments - The company plans to continue investing in the automotive electronics sector to enhance customer engagement and increase market share [4]. - The company will continue to focus resources on sectors with growth potential, particularly in automotive electronics, industrial, and home appliance areas [18]. - The company plans to focus on high-growth industries such as automotive electronics and renewable energy, which will remain key development areas for the fiscal year ending March 31, 2025 [89]. - The company will continue to invest in key customers and suppliers to enhance sales and market share in the automotive electronics segment [76]. - The company aims to align inventory levels with demand to mitigate potential risks and achieve sustainable growth [19]. Financial Position and Assets - The total assets of the company as of March 31, 2024, were HKD 1,869.8 million, a decrease from HKD 2,017.8 million in the previous fiscal year [8]. - The net asset value per share decreased to HKD 573.47 in fiscal year 2024 from HKD 788.10 in fiscal year 2023 [8]. - The net asset liability ratio increased to 99.5% as of March 31, 2024, from 78.6% as of March 31, 2023, primarily due to a decrease in shareholder equity [150]. - Trade receivables increased from HKD 806.0 million in FY2023 to HKD 816.5 million in FY2024, with average credit terms of 30 to 120 days [132]. - Inventory increased from HKD 586.3 million in FY2023 to HKD 707.7 million in FY2024, with inventory turnover days rising from 2.5 months to 3.4 months [133]. - Financing costs rose by 20.2% from HKD 43.8 million in FY2023 to HKD 52.6 million in FY2024, mainly due to increased average effective interest rates [140]. - The group has unutilized bank financing of HKD 489.6 million as of March 31, 2024, compared to HKD 416.6 million as of March 31, 2023 [170]. - The group’s secured bank borrowings amounted to HKD 78.8 million as of March 31, 2024, up from HKD 19.8 million the previous year [171]. Market Challenges and Outlook - The company anticipates challenges in the global semiconductor market and macroeconomic uncertainties in the upcoming fiscal year [26]. - The company's sales in the consumer electronics market have been adversely affected by geopolitical conflicts and a downturn in demand [26]. - The geopolitical tensions and ongoing trade conflicts have created challenges in the business environment, impacting the macroeconomic outlook [175]. - The group expects the current inventory clearance situation among distributors and OEMs to persist throughout the remainder of calendar year 2024, with a positive shift in supply-demand dynamics anticipated in 2025 [151]. Governance and Compliance - The company appointed a new independent non-executive director on August 11, 2023, and subsequently appointed a chief independent director on August 23, 2023 [184]. - The company has a diverse board with members holding qualifications from various professional accounting and legal institutions [184][200]. - The company maintains compliance with the listing rules and has engaged internal auditors for the environmental, social, and governance report [192]. - The environmental, social, and governance report covers the company's operations in Hong Kong and mainland China from April 1, 2023, to March 31, 2024 [192]. - The company ensures the quality of reported data by adhering to GRI standards, emphasizing accuracy, balance, clarity, comparability, completeness, materiality, sustainability, timeliness, and verifiability [194]. Human Resources and Development - As of March 31, 2024, the group employed 325 full-time employees, a decrease from 377 employees as of March 31, 2023, with 23.4% based in Hong Kong, 72.9% in mainland China, and the remainder in Taiwan [155]. - The group has implemented strategies for talent recruitment, retention, and development, including regular training programs and performance-linked compensation [178]. Research and Development - The group has invested in research and development to accumulate expertise in energy efficiency, driven by the growing importance of energy demand due to AI applications [176]. - The group is increasingly focusing on the development of AI, particularly generative AI applications that can be integrated into various devices, believing this will drive energy demand growth [176].
威雅利(00854) - 2024 - 年度财报