Financial Performance - The Group achieved total revenue of approximately HK$1,595.1 million, representing an increase of 56.8% compared to the previous year[21]. - Gross profit for the Group was approximately HK$48.3 million, reflecting an increase of 8.2% year-over-year[21]. - Net profit reached approximately HK$16.9 million, marking a significant increase of 92.5% compared to the prior year[21]. - Revenue from diesel sales amounted to approximately HK$1,511.5 million, accounting for 94.8% of total revenue, with a sales quantity increase of approximately 99.7% from 135.0 million litres to 269.7 million litres[30][31]. - Revenue from lubricant oil sales was approximately HK$44.4 million, representing 2.8% of total revenue, with a sales quantity decrease of approximately 37.0% from 2.7 million litres to 1.7 million litres[37][38]. - Revenue from fleet card services was approximately HK$33.5 million, accounting for 2.1% of total revenue, showing a slight increase from HK$32.4 million in the Corresponding Period[40][45]. - Revenue from other products, mainly bitumen and kerosene, was approximately HK$5.7 million, representing 0.4% of total revenue, down from HK$10.0 million in the Corresponding Period[41][46]. - The Group's cost of sales increased by approximately 59.1% to HK$1,546.7 million from HK$972.3 million in the Corresponding Period[50]. - Selling and distribution expenses decreased by approximately HK$1.8 million or 27.4% to HK$4.7 million due to a drop in salaries and allowances[52]. - Administrative expenses decreased by approximately HK$5.5 million or 18.8% to approximately HK$23.7 million, primarily due to the reversal of impairment allowance for trade receivables[57]. - Net profit for the Current Period increased by approximately HK$8.1 million or 92.5% to approximately HK$16.9 million, with net profit margin rising from 0.9% to 1.1%[61]. Market Conditions and Business Outlook - The increase in revenue was primarily driven by sales of diesel following the reopening of the China border[21]. - The Group's operations benefited from a gradual economic recovery and increased logistics demand in Hong Kong[22]. - Future economic uncertainties include reduced consumer spending and a sluggish property market, which may impact business operations[10]. - The Group remains cautiously optimistic about business prospects, anticipating fluctuations in demand for petrochemical products[11]. - The Group aims to navigate economic uncertainties through strategic planning, operational efficiency, and innovation to deliver consistent value to stakeholders[28]. Corporate Governance and Management - The management team includes experienced executives with over 52 years of experience in the sales and distribution of petrochemical products[93]. - The Chief Executive Officer, Mr. Eric Hui, has 11 years of experience in promoting fleet cards and managing corporate strategies[97]. - The marketing director, Mr. Kong Man Ho, oversees the sales and marketing strategies of the Group, bringing 10 years of experience in sales and marketing[101]. - The Group's overall business development strategies are primarily managed by the Chairman, Mr. Hui, who has extensive experience in the industry[93]. - The Board consists of 2 female members and 6 male members, establishing effective risk management and internal control systems[147][150]. - The Company has implemented comprehensive risk management procedures and guidelines for key business processes, including financial reporting and human resources[146][149]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development, as highlighted in its seventh Environmental, Social and Governance (ESG) report, which details achievements in promoting sustainability[129]. - The ESG report covers the sustainability performance of the company’s diesel sales, fleet card services, and lubricant oil segments for the period from April 1, 2023, to March 31, 2024[130]. - The Board has adopted the Environmental, Social and Governance Reporting Guide requirements as per the Stock Exchange of Hong Kong[131]. - The company calculates and discloses environmental and social KPIs based on relevant standards and guidelines issued by the Stock Exchange of Hong Kong[140]. - The Group is committed to supporting 9 of the 17 United Nations Sustainable Development Goals, focusing on global challenges such as poverty, inequality, and climate change[165]. - The Group has implemented energy and water-saving initiatives to conserve natural resources, regularly reviewing daily operations for efficiency[171]. - The Group adheres to "Green Operations" principles, regularly upgrading production equipment and encouraging carbon reduction actions among employees[173]. - The Group promotes energy-saving practices, such as installing energy-efficient lighting and maintaining office temperatures between 24 to 26 degrees Celsius[178]. - The Group has joined "Earth Hour 2024" to enhance staff understanding of low carbon office operations and energy-saving habits[180]. - The Group is implementing carbon reduction strategies and formulating department-level carbon footprint targets and action plans[200]. Stakeholder Engagement and Communication - The Group emphasizes stakeholder engagement, maintaining communication with key stakeholders such as government bodies, customers, and investors[159][160]. - The Company maintains various communication channels with stakeholders, including annual reports and employee satisfaction surveys[161]. - The Company encourages employees to raise concerns regarding financial reporting and internal control[146][149]. - The Board regularly reviews ESG guidelines and management objectives to identify and manage ESG-related risks[154][157].
域高国际控股(01621) - 2024 - 年度财报