Financial Performance - For the twelve months ending December 31, 2024, the company reported a revenue of HKD 80,546,000, a significant decrease of 91.5% compared to HKD 950,271,000 for the same period in 2023[4] - The cost of goods sold for the same period was HKD 47,751,000, down from HKD 887,219,000, resulting in a gross profit of HKD 32,795,000, a decline of 48.0% year-over-year[4] - The company incurred an operating loss of HKD 51,945,000, contrasting with an operating profit of HKD 43,217,000 in the previous year[4] - The net loss for the period was HKD 134,367,000, compared to a profit of HKD 53,971,000 in 2023, indicating a substantial decline in profitability[6] - The company reported a basic and diluted loss per share of HKD 56.5 cents, compared to earnings of HKD 29.1 cents per share in the previous year[4] - The group recorded a net cash outflow from operating activities of HKD 64,787,000, with current liabilities amounting to HKD 133,906,000 as of the reporting date[19] - Other income for the twelve months ended December 31, 2024, totaled HKD 5,379,000, a decrease from HKD 9,628,000 in 2023[27] - The company reported a net loss attributable to shareholders of HKD (134,367,000) for the twelve months ended December 31, 2024, compared to a profit of HKD 53,971,000 in 2023[32] - The company incurred a loss of approximately HKD 134,400,000 during the period, compared to a profit of HKD 54,000,000 in 2023[47] Assets and Liabilities - The company's total assets decreased to HKD 329,462,000 from HKD 409,733,000, reflecting a reduction of 19.6% year-over-year[8] - Current liabilities increased to HKD 226,138,000 from HKD 147,369,000, representing a rise of 53.4% compared to the previous year[9] - The company's cash and bank balances decreased to HKD 6,448,000 from HKD 16,109,000, a decline of 60.0% year-over-year[8] - The total accounts receivable increased significantly to HKD 22,800,000 in 2024 from HKD 2,003,000 in 2023, with a net accounts receivable of HKD 20,687,000 after expected credit loss provisions[39] - The company’s total borrowings increased to HKD 64,033,000 in 2024 from HKD 47,513,000 in 2023, with other borrowings rising significantly[40] - As of December 31, 2024, the net current liabilities amounted to approximately HKD 133,906,000, compared to HKD 53,000,000 on December 31, 2023[77] - The group's asset-to-liability ratio as of December 31, 2024, was approximately 0.86, compared to 0.4 on December 31, 2023[78] Revenue Breakdown - Revenue from the sale of beauty, health, and lifestyle products was HKD 51,079,000 for the year ended December 31, 2024, down from HKD 64,824,000 in 2023, representing a decrease of approximately 21%[21] - Revenue from technology product sales was HKD 29,467,000 for the year ended December 31, 2024, significantly lower than HKD 885,447,000 in 2023, indicating a decline of approximately 97%[21] - Total revenue for the group was HKD 80,546,000 for the year ended December 31, 2024, compared to HKD 950,271,000 in 2023, reflecting a decrease of approximately 92%[21] - Revenue from Hong Kong for the twelve months ended December 31, 2024, was HKD 76,179,000, compared to HKD 934,619,000 for the previous year[26] - Major clients contributed significantly to revenue, with Client A generating HKD 22,320,000 in 2024, while Client B contributed HKD 14,357,000, down from HKD 393,878,000 in 2023[27] Strategic Initiatives - The group implemented various cost control measures to tighten operating costs and is actively negotiating with external parties and banks to secure new financing sources[21] - The group plans to change its financial year-end from December 31 to June 30, with the next financial year-end set for June 30, 2025[20] - The group’s major operating decisions are divided into two reportable segments: wholesale and retail of beauty, health, and lifestyle products, and wholesale of technology products[22] - The group is focusing on sustainable growth by exiting traditional retail markets and reallocating resources to digital new retail models, which is expected to strengthen long-term profitability despite short-term revenue impacts[60] - The group is enhancing its retail ecosystem through a multi-channel approach, optimizing supply chain dynamics based on consumer behavior insights[71] Investments and Future Outlook - The group is investing heavily in the construction of bonded warehouses in Hainan and Guangzhou to enhance cross-border sales capabilities and multi-channel strategies[58] - The group maintains an optimistic outlook on the growth potential of cross-border e-commerce and omnichannel retail, emphasizing the need for a resilient and flexible business model[62] - The group expects to leverage synergies between existing retail infrastructure and advanced digital platforms as new businesses approach commercialization[76] - The group is poised to leverage post-pandemic opportunities, aiming to create sustainable returns for shareholders while reinforcing its leadership in the digital economy[74] Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee external audits and risk management assessments[102] - The company has complied with the corporate governance code as stipulated in the listing rules throughout the period[100] - The Nomination Committee has been restructured, now consisting of three members: Mr. Zhen Zhuoning (Chairman), Ms. Zhao Lijuan, and Mr. Guo Zhicheng[105] - Ms. Zhao Lijuan has been appointed as a member of the Nomination Committee effective February 28, 2025[105] - The Board of Directors includes Executive Directors Mr. Chen Jianwen and Ms. Zhao Lijuan, along with Independent Non-Executive Directors Mr. Guo Zhicheng, Mr. Li Guanqun, and Mr. Zhen Zhuoning[105] Cost Management - Employee costs, including director remuneration, have been significantly reduced to approximately HKD 43,900,000, down from HKD 59,100,000 in the previous year[92] - The group implemented strict cost control and risk mitigation measures to ensure a return to profitability and focus on sustainable technology-driven growth[76]
卓悦控股(00653) - 2024 - 中期业绩