Financial Performance - The company's revenue for the year was HKD 25.995 billion, an increase of 3.4% from HKD 24.937 billion in 2023[4] - The net profit for the year was HKD 1.358 billion, representing a growth of 17.7% compared to HKD 1.154 billion in 2023[4] - Gross profit for the year was HKD 2.502 billion, down from HKD 3.113 billion in 2023, indicating a decrease of 19.6%[5] - The total comprehensive income for the year was HKD 1.517 billion, compared to HKD 708.6 million in 2023, reflecting a significant increase of 113%[7] - The group reported a pre-tax profit of HKD 1,612,349 for the fiscal year ending December 31, 2024, compared to HKD 1,412,359 in 2023, indicating a growth of about 14.1%[20] - The group reported a net profit of HKD 1,312,839 thousand for 2024, up from HKD 1,050,931 thousand in 2023, reflecting an increase of approximately 25%[42] - Total revenue for 2024 increased by 4.2% to HKD 26 billion, compared to the previous year[60] - Annual profit rose by 17.6% to HKD 1.4 billion, with earnings per share at HKD 30.56, up from HKD 24.39 in 2023[60] Dividends and Equity - The stable dividend payout ratio is approximately 35%, with a final dividend of HKD 0.045 per share[4] - The proposed final dividend for the year ending December 31, 2024, is HKD 0.045 per share, down from HKD 0.061 per share in 2023[41] - Total equity attributable to owners of the company decreased slightly to HKD 28,004,102 thousand in 2024 from HKD 28,757,512 thousand in 2023, a decline of about 2.6%[10] - The group's total equity as of December 31, 2024, was HKD 28.013 billion, a decrease from HKD 28.767 billion in 2023[78] Assets and Liabilities - The company's total assets less current liabilities amounted to HKD 42.767 billion, slightly up from HKD 42.661 billion in 2023[9] - Total assets as of December 31, 2024, amounted to HKD 55,350,359, compared to HKD 54,097,321 in 2023, showing an increase of about 2.32%[23] - The total liabilities for the group as of December 31, 2024, were HKD 27,337,184, up from HKD 25,330,359 in 2023, representing an increase of approximately 7.9%[24] - The company's bank borrowings rose to HKD 8.931 billion from HKD 7.037 billion in 2023, an increase of 27%[9] - Non-current liabilities increased to HKD 13,050,914 thousand in 2024 from HKD 12,256,122 thousand in 2023, representing a growth of approximately 6.5%[10] - The total non-current liabilities, including bank borrowings and lease liabilities, amounted to HKD 14,753,827 thousand in 2024, compared to HKD 13,894,293 thousand in 2023, reflecting an increase of about 6.2%[10] Financial Costs and Expenses - The company's financial costs increased to HKD 326.2 million from HKD 278.1 million in 2023, marking a rise of 17.3%[5] - Total financial costs increased to HKD 935 million, primarily due to higher bank borrowings and average interest rates[75] - Distribution and selling expenses for the year were HKD 656 million, accounting for approximately 2.5% of revenue, up from 2.4% in the previous year[73] - Administrative expenses rose to HKD 1.297 billion, representing 5.0% of revenue, an increase from 4.5% in the previous year[74] Operational Metrics - The inventory turnover period for raw materials and finished goods was 54 days and 14 days, respectively, down from 66 days and 17 days in the previous year[76] - The accounts receivable turnover period was 47 days, compared to 42 days in the previous year, aligning with the credit terms offered to customers[77] - The aging analysis of accounts receivable shows an increase in amounts not exceeding 30 days to HKD 2,178,694,000 in 2024 from HKD 1,809,940,000 in 2023[48] Employee and Operational Insights - The group has over 10,000 employees, with competitive salary levels and annual performance evaluations[81] - The group has not faced any significant employee issues or labor disputes during the year[81] - The group has maintained a strong cash flow and banking facilities to meet operational needs[79] Future Outlook and Strategic Initiatives - The company plans to enhance domestic sales and improve production efficiency through technological upgrades and product development to meet market demand[65] - The company anticipates gradual recovery in downstream demand due to government stimulus policies[60] Regulatory and Reporting Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which did not have a significant impact on the financial position and performance for the current and prior years[13] - The group is currently assessing the specific impact of the new Hong Kong Financial Reporting Standard No. 18 on its consolidated financial statements, which will take effect from January 1, 2027[19] - The total liabilities classification as current or non-current has been retrospectively applied, with no significant impact on the consolidated financial statements for the year[16] Miscellaneous - The annual general meeting is scheduled for May 8, 2025[88] - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2024[85]
理文造纸(02314) - 2024 - 年度业绩