Financial Performance - The company recorded a loss of approximately HKD 133 million for the year, compared to a loss of HKD 42 million in the same period last year, primarily due to a fair value loss of HKD 100 million on investment properties[5]. - The annual revenue, including rental income from investment properties, was approximately HKD 9 million, an increase from HKD 7 million in the previous year[6]. - Revenue for the year ended June 30, 2024, was HKD 22,733,000, an increase of 23.5% from HKD 18,386,000 in 2023[126]. - Gross profit for the same period was HKD 13,591,000, up 34.8% from HKD 10,093,000 in 2023[126]. - The company reported a net loss of HKD 133,409,000 for the year, compared to a loss of HKD 41,764,000 in 2023, indicating a significant increase in losses[126]. - Total comprehensive loss for the year was HKD 135,867,000, compared to HKD 42,169,000 in the previous year[126]. - The company has identified significant uncertainties regarding its ability to continue as a going concern, which may impact future operations[125]. - The group incurred a loss of approximately HKD 133,409,000 for the year ending June 30, 2024, with a net current liability of about HKD 94,878,000, raising significant doubts about the group's ability to continue as a going concern[134]. Investment and Growth - The technology department has invested approximately HKD 160 million in collaboration with the Finnish National Technology Innovation Agency and anticipates significant investments in the coming years[7]. - The company expects the technology department to generate USD 29 million in revenue by 2029, driven by advancements in semiconductor and artificial intelligence industries[7]. - Pexray Oy, a subsidiary, reported total sales of approximately HKD 14 million for the fiscal year ending June 30, 2024, focusing on portable X-ray inspection equipment for industrial and security applications[8]. - The portable X-ray source powered by a new battery was launched in 2022 and is expected to drive growth in the non-destructive testing market[9]. - The sales growth for the fiscal years 2023-2024 and 2024-2025 is primarily driven by non-destructive testing sales, which outpace security sales[9]. - The company is exploring investment opportunities to strengthen its investment portfolio[6]. Corporate Governance - The board of directors recommends not to declare a final dividend for the year 2023[21]. - The board consists of one executive director, two non-executive directors, and three independent non-executive directors, bringing diverse expertise in management, property market, electronics, accounting, finance, and corporate development[27]. - The company has complied with all corporate governance codes as per the Hong Kong Stock Exchange regulations, with some minor deviations disclosed[25]. - The board held four meetings and one annual general meeting during the year ending June 30, 2024, with attendance details provided[29]. - The chairman and CEO roles are currently held by Dr. Weng Shihua, with the board believing this structure provides strong leadership for effective business planning and execution[30]. - Independent non-executive directors are selected based on required skills and experience to ensure strong independent judgment within the board[29]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance for the year ending June 30, 2024[26]. - The board is responsible for setting the strategic direction and policies of the group, overseeing management, and approving significant transactions[27]. - The company regularly reviews its corporate governance practices to ensure compliance with the established codes[25]. - The board includes members with over 45 years of experience in corporate finance, financial management, auditing, and accounting[23]. Environmental and Sustainability Efforts - The total greenhouse gas emissions for the reporting period were 149 tons, a decrease from 160 tons in the previous year, with a per employee emission of 3.17 tons compared to 2.39 tons last year[62]. - The total operational emissions from vehicles were 3.9 tons, down from 4.5 tons in the previous year, with nitrogen oxides (NOX) emissions at 3.5 kg, sulfur oxides (SOX) at 0.1 kg, and particulate matter (PM) at 0.3 kg[59]. - The company has set an environmental policy for employees, addressing significant environmental issues including emissions and resource usage, and has complied with relevant environmental laws without any major non-compliance incidents during the reporting period[57]. - The company has implemented green office initiatives to reduce environmental impact and encourages virtual meetings to avoid unnecessary travel[62]. - The company has adopted a quantitative approach to disclose key performance indicators related to environmental, social, and governance (ESG) policies[53]. - The company aims to integrate ESG measures into its strategy to minimize adverse environmental impacts[56]. Risk Management - The group faces significant business risks due to the performance of the Hong Kong real estate market, which could adversely affect financial conditions and lead to fair value losses on investment properties[89]. - The high-tech product market is characterized by intense competition and short product cycles, necessitating continuous investment in research and development[90]. - The group operates in a competitive environment in the Hong Kong property leasing market, where transparency in rental prices puts pressure on income and profitability[90]. - The group has a comprehensive risk management plan focused on minimizing potential adverse impacts on financial performance due to market unpredictability[197]. - Credit risk is managed through established policies and procedures, with individual credit assessments for customers exceeding certain limits[199]. Financial Position and Liabilities - As of June 30, 2024, the group's current liabilities net amount is approximately HKD 95 million, with a current ratio of 0.33[18]. - The group's total outstanding debt as of June 30, 2024, is approximately HKD 162 million, including secured bank loans of about HKD 104 million[18]. - The capital debt ratio of the group is approximately 22.97%[18]. - The group has available bank financing of approximately HKD 83,011,000 as of June 30, 2024, which will support its financial position[134]. - The group has implemented various strategies to enhance revenue and profitability, including cost control measures[134]. Audit and Compliance - The external auditor, Roshan Mei CPA, provided audit services costing HKD 610,000 and non-audit services costing HKD 150,000, totaling HKD 760,000 for the fiscal year ending June 30, 2024[44]. - The audit committee consists of one non-executive director and three independent non-executive directors, regularly reviewing the effectiveness of internal control systems[112]. - The auditors provided reasonable assurance that the financial statements are free from material misstatement due to fraud or error[123]. - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and the Companies Ordinance[118]. - The group has complied with all relevant laws and regulations without any significant violations during the review period[91]. Employee and Workforce Management - The group employed a total of 47 employees as of June 30, 2024, with compensation determined based on market conditions[20]. - Employee turnover rate was reported at 19% in Asia, 26% in Europe, and 9% in North America, with a total of 47 employees[74]. - The workforce consists of 40 males and 7 females, with 44 full-time and 3 part-time/contract employees[74]. - The company provided training courses for employees, with an average training time of 1 hour for male employees and 0.5 hours for female employees[77]. - The remuneration policy for employees is determined based on merit, qualifications, and capabilities, while directors' remuneration is based on responsibilities and company performance[113]. Shareholder Information - The total number of shares held by major shareholders includes 508,848,531 shares (36.31%) held by Basurto Holdings Limited and 309,388,211 shares (38.39%) held by Gold Seal Holdings Limited[98]. - The company has granted stock options totaling 397,721,900 shares, which accounts for approximately 28.38% of the total issued shares as of the report date[102]. - The stock options plan was adopted on December 8, 2015, to reward selected participants contributing to the group[102]. - The company maintains a balanced ownership structure with significant shares held by family trusts and related parties[99]. - The company will hold meetings every six months to consider and declare interim or final dividends, with the possibility of special dividends as well[39].
PALADIN(00495) - 2024 - 年度财报