Financial Performance - For the fiscal year ending December 31, 2024, the group recorded a revenue of approximately HKD 356.4 million, an increase of 14.2% compared to the restated revenue of HKD 312.1 million for 2023[4]. - The net profit attributable to the company's owners for the fiscal year was approximately HKD 63.8 million, a significant decrease from HKD 1,200.8 million in 2023[4]. - The gross profit for the year was HKD 29.2 million, down 21.0% from HKD 37.0 million in 2023[5]. - The total comprehensive income for the year was HKD 65.7 million, compared to HKD 1,193.5 million in the previous year, reflecting a substantial decline[6]. - The company reported a basic loss per share from continuing operations of HKD (1.34), compared to a profit of HKD 666.54 in the previous year[6]. - The company reported a loss from discontinued operations of approximately HKD 68,625,000, compared to a loss of HKD 7,711,000 in 2023, resulting in a basic loss per share of HKD 0.1896 for 2024, compared to a loss of HKD 0.0425 per share in 2023[59]. - The group reported an annual operating loss of approximately HKD 4,844,000 for the year ending December 31, 2024[141]. Dividends and Share Capital - The board of directors did not recommend any final dividend for the fiscal year ending December 31, 2024, consistent with the previous year[4]. - The company's issued and paid-up capital is now HKD 3,425,728.57, consisting of 342,572,857 shares at a par value of HKD 0.01 per share[19]. - Following the capital restructuring, the company's authorized share capital is HKD 200,000,000, divided into 20,000,000,000 shares at a par value of HKD 0.01 each[18]. - The company plans to issue 2,260,980,856 new shares at an issue price of HKD 0.044 per share as part of the investor subscription agreement[19]. - The company issued a total of up to 823,739,687 new shares to creditors at a rate of one new share for every HKD 1.80 of recognized debt[100]. - The company completed the issuance of 2,260,980,856 new shares at an issue price of HKD 0.044 per share on July 11, 2023[103]. - The company's share capital was reduced from 20 billion shares to 2 billion shares, with a par value adjustment from HKD 0.20 to HKD 0.10 per share[68]. Assets and Liabilities - The company's current assets decreased to HKD 58.1 million from HKD 96.1 million in 2023, indicating a liquidity challenge[8]. - The total liabilities decreased significantly from HKD 160.3 million in 2023 to HKD 23.4 million in 2024, improving the company's financial position[8]. - As of December 31, 2024, non-current liabilities decreased to HKD 4,022,000 from HKD 9,725,000 in 2023, representing a reduction of approximately 58.6%[9]. - The company's net assets improved to HKD 39,235,000 in 2024, compared to a net liability of HKD 41,711,000 in 2023, indicating a significant turnaround[9]. - The group’s total assets decreased to HKD 66,700 thousand in 2024 from HKD 128,298 thousand in 2023, representing a decline of 48.0%[40]. - Current assets decreased to HKD 58,145,000 in 2024 from HKD 96,088,000 in 2023, while current liabilities dropped significantly from HKD 160,284,000 to HKD 23,443,000, resulting in a current ratio increase from 0.60 to 2.48[118]. Financial Restructuring - The company has undergone a financial restructuring process under the supervision of the Cayman Islands court to address its debt obligations[13]. - The restructuring plan has been approved by the required majority of creditors, making it legally binding for the company and its creditors[16]. - The company has successfully withdrawn from provisional liquidation following the completion of its debt restructuring plan, alleviating immediate liquidity risks[23]. - The company announced on June 16, 2023, that it would have the ability to meet its debt obligations following the completion of the capital restructuring and investor subscription[101]. - The capital restructuring became effective on May 17, 2023, after all conditions were met, including court orders and approvals from the stock exchange[96]. Operational Performance - The wood-related business segment generated revenue of HKD 355,317 thousand in 2024, up from HKD 312,085 thousand in 2023, reflecting a growth of 13.9%[40]. - The financing services and investment segment reported a loss of HKD 1,291 thousand in 2024, compared to a profit of HKD 1,213,358 thousand in 2023, indicating a significant decline in performance[40]. - The food and beverage segment achieved revenue of HKD 1,057 thousand in 2024, with no prior year data available for comparison[40]. - The company has completed the sale of its car leasing business segment as of October 2024, which has been classified as discontinued operations[11]. - The company plans to terminate its car rental business by October 2024 to free up financial resources for the functional food and beverage sector[76]. - The group has been continuously developing its core timber-related business since 2020, including processing and distribution of furniture timber, and manufacturing and selling antique-style wooden furniture and other timber products[86]. Cash Flow and Financial Health - As of December 31, 2024, the company reported a net operating cash outflow of approximately HKD 11,321,000 and a cash balance of HKD 706,000, significantly lower than current liabilities of HKD 23,443,000[27]. - The company is actively taking measures to control administrative costs and curb capital expenditures to improve operational cash flow[27]. - The company has prepared cash flow forecasts covering at least twelve months from the date of the annual performance announcement, indicating sufficient operating funds to meet financial obligations[28]. - The net cash outflow from operating activities was approximately HKD 11,321,000, indicating significant cash flow challenges[141]. - As of December 31, 2024, the group's cash and bank balance was approximately HKD 706,000, significantly lower than current liabilities of HKD 23,443,000[141]. Future Plans and Market Strategy - The company plans to conduct a rights issue, proposing to issue 1 new share for every existing share, aiming to raise approximately HKD 44,600,000 to improve liquidity and financial condition[27]. - The company plans to raise up to HKD 45,600,000 through a rights issue of 411,219,340 shares, expected to be completed by the end of March 2025[73]. - The company has allocated up to HKD 2 million for the establishment and operation of Shenzhen Weijianbao Food Technology Co., Ltd., focusing on functional food and beverage business in China[83]. - The company is exploring strategic collaboration opportunities with downstream market participants in the timber supply chain, such as real estate developers and high-end furniture retailers[86]. - The company plans to continue expanding its operations in the timber-related business and functional food and beverage sectors in the foreseeable future[86]. Governance and Compliance - The board believes that having the same individual serve as both Chairman and CEO enhances responsiveness and efficiency in business strategy formulation[135]. - The audit committee consists of three independent non-executive directors, ensuring oversight of internal controls and financial reporting[139]. - The company has adopted a standard code for securities trading by directors, ensuring compliance during the blackout period before earnings announcements[137]. - The annual general meeting for the year ending December 31, 2024, is planned, with a notice to be issued in due course[143]. - The company will publish its annual report containing all required information within the designated period[144]. - The independent auditor's report highlighted significant uncertainties regarding the group's ability to continue as a going concern[141].
中木国际(01822) - 2024 - 年度业绩