Financial Performance - The company reported a total revenue of HKD 1,276,350,000 for the year ending June 30, 2024, compared to HKD 1,177,827,000 in 2023, representing an increase of approximately 8.4%[1] - Gross profit for the year was HKD 199,263,000, up from HKD 147,704,000 in the previous year, indicating a significant improvement in profitability[1] - The company recorded a net loss of HKD 16,833,000 for the year, a reduction from a net loss of HKD 50,939,000 in 2023, reflecting a decrease in losses by approximately 66.9%[2] - The company reported a total comprehensive loss of HKD 16,493,000 for the year, compared to HKD 107,209,000 in 2023, indicating a substantial improvement in overall financial performance[2] - The company reported a loss attributable to shareholders of HKD 18,041,000 for 2024, a decrease from a loss of HKD 52,007,000 in 2023, indicating an improvement in financial performance[25] - Basic loss per share improved to HKD 4.89 in 2024 from HKD 14.09 in 2023, showing a reduction in losses per share[25] Revenue Breakdown - Revenue from customer contracts for 2024 reached HKD 1,276,350, an increase of 8.4% from HKD 1,177,827 in 2023[11] - The group's total sales for the reporting period amounted to HKD 1,337,806, with external customer revenue contributing HKD 1,276,350[13] - The trading segment reported external customer revenue of HKD 771,942, while the coloring segment generated HKD 367,439[13] - The revenue from the coloring agents, color powders, and blends business increased by 25.8% to HKD 367,439,000, with a pre-tax profit surge of 71.3% to HKD 25,697,000[33] - The revenue from the engineering plastics business slightly decreased by 1.1% to HKD 136,969,000, while pre-tax profit increased by 66.8% to HKD 10,901,000[33] - The revenue from the plastic raw materials trading business rose by 3.3% to HKD 771,942,000, with a significant reduction in pre-tax losses by 43.8% to HKD 39,728,000[33] Assets and Liabilities - Total assets rose to HKD 1,016,883,000 in 2024, compared to HKD 991,269,000 in 2023, marking an increase of approximately 2.6%[4] - Trade receivables increased to HKD 243,833,000 in 2024 from HKD 217,246,000 in 2023, showing a growth of about 12.3%[3] - The company's cash and cash equivalents decreased to HKD 104,233,000 in 2024 from HKD 150,637,000 in 2023, a decline of about 30.8%[3] - Non-current liabilities decreased to HKD 6,272,000 for restoration cost provisions from HKD 10,452,000 in 2023, indicating a reduction of approximately 40.5%[4] - The company’s equity attributable to shareholders decreased to HKD 519,297,000 in 2024 from HKD 536,504,000 in 2023, a decline of about 3.2%[4] - Trade receivables, net of impairment provisions, increased to HKD 206,908,000 in 2024 from HKD 184,072,000 in 2023, indicating growth in receivables[27] Expenses and Financials - Financial income increased to HKD 865,000, while financial expenses rose to HKD 23,601,000, resulting in a net financial expense of HKD 22,736,000[20] - The group recorded a net inventory impairment provision of HKD 3,461,000, a decrease from HKD 7,480,000 in the previous year[19] - The group’s employee benefits expense totaled HKD 134,934,000, slightly down from HKD 136,155,000 in the previous year[19] - The group received government subsidies amounting to approximately HKD 1,595,000, supporting operations in certain regions of mainland China[19] Taxation - Hong Kong profits tax for the year is calculated at a rate of 16.5%, resulting in a tax expense of HKD 335,000 for 2024 compared to HKD 63,000 in 2023, reflecting a significant increase[22] - The corporate income tax in mainland China is calculated at a rate of 25%, with a tax expense of HKD 14,144,000 for 2024, up from HKD 3,307,000 in 2023[22] Corporate Governance - The audit committee consists of three independent non-executive directors and is responsible for reviewing the effectiveness of external audits and internal controls[45] - The remuneration committee held four meetings during the year to assess performance and review the annual compensation and bonuses of senior management[46] - The nomination committee conducted two meetings to review the structure, size, and composition of the board, including the technical knowledge and experience of its members[47] - The corporate governance committee held two meetings to review the group's corporate governance policies and training arrangements for employees[48] - The company has adopted a set of standards for securities trading by directors that meet or exceed the requirements of the Hong Kong Stock Exchange[41] - The company has not appointed a CEO as of the announcement date, with responsibilities shared among the executive directors[43] Future Outlook and Strategy - The company established its first sales point in Vietnam, which is expected to play a significant role in its growth strategy, with plans for the Vietnamese business to mature and become a major revenue contributor within three years[34] - The company is actively managing foreign exchange risks through forward foreign exchange contracts, with a maximum principal amount of HKD 304,200,000 for selling HKD to buy USD as of June 30, 2024[37] - The company will not declare a final dividend for the fiscal year ending June 30, 2024, to retain sufficient funds for business development[32] Employee Information - As of June 30, 2024, the group has approximately 628 full-time employees, with a performance-based compensation policy reviewed annually[38] Shareholder Information - The annual general meeting of shareholders is scheduled for November 14, 2024[42] - The company did not declare any interim or final dividends for the periods ending June 30, 2023, and December 31, 2023, indicating a focus on retaining earnings[23] - The company did not repurchase any of its shares during the year, nor did it buy or sell any listed securities[40]
毅兴行(01047) - 2024 - 年度业绩