Financial Performance - Revenue for the year ended December 31, 2024, was HKD 1,233,870, a decrease of 11.4% compared to HKD 1,391,960 in 2023[4] - The company reported a loss attributable to owners of HKD 197,069 for 2024, compared to a profit of HKD 83,142 in 2023[6] - Basic loss per share for the year was HKD 25.09, down from earnings of HKD 10.59 per share in the previous year[7] - Total comprehensive loss for the year amounted to HKD 267,005, compared to a total comprehensive income of HKD 68,958 in 2023[7] - The company reported a loss before tax of HKD 189,360,000 for the year ended December 31, 2024, compared to a profit of HKD 109,624,000 in 2023[28] - The company's loss before tax for 2024 was HKD 197,069,000, compared to a profit of HKD 83,142,000 in 2023, resulting in a basic loss per share of HKD (25.09) versus a profit of HKD 10.59 in the previous year[38] - The loss attributable to the company's owners for 2024 was HKD 197.1 million, mainly due to losses from the sale of battery production lines and impairment provisions related to intangible assets associated with lithium battery product development costs[55] Asset and Liability Changes - Non-current assets decreased to HKD 1,105,426 in 2024 from HKD 1,212,973 in 2023, primarily due to impairment losses[9] - Current assets also declined to HKD 908,349 from HKD 1,120,370, with cash and cash equivalents dropping to HKD 111,706 from HKD 206,549[9] - The company's net assets decreased to HKD 963,892 in 2024 from HKD 1,225,283 in 2023[9] - Total assets as of December 31, 2024, were HKD 2,013,330,000, down from HKD 2,332,891,000 in 2023[30] - Total liabilities as of December 31, 2024, were HKD 580,219,000, compared to HKD 573,656,000 in 2023[32] - The company's bank borrowings decreased to HKD 467.8 million as of December 31, 2024, from HKD 532.2 million the previous year, while unused bank financing increased to HKD 1,136.6 million[113] Revenue Breakdown - The group reported total external customer revenue of HKD 1,233,870,000 for the year ending December 31, 2024, with contributions from various segments: Energy Storage Business (HKD 172,387,000), EPC Services (HKD 611,817,000), Photovoltaic Film (HKD 341,527,000), Automotive Glass Repair and Replacement Services (HKD 57,413,000), and Others (HKD 50,726,000) [25] - The gross profit for the group was HKD 203,117,000, with the following segment contributions: Energy Storage Business (HKD 8,392,000), EPC Services (HKD 157,481,000), Photovoltaic Film (HKD 8,555,000), Automotive Glass Repair and Replacement Services (HKD 18,312,000), and Others (HKD 10,377,000) [25] - Revenue from China decreased to HKD 723,458,000 in 2024 from HKD 962,301,000 in 2023, representing a decline of approximately 25%[29] - The energy storage business revenue fell by 51.6% to HKD 172.4 million from HKD 356.1 million, attributed to a shift from self-produced lithium batteries to third-party sourced batteries[79] - EPC services revenue increased by 7.0% to HKD 611.8 million from HKD 572.0 million, supported by stable contributions from China and Canada[79] Impairment and Losses - The company incurred impairment losses on property, plant, and equipment amounting to HKD 49,498, and on intangible assets amounting to HKD 60,645 during the year[6] - The company reported a significant loss of HKD 99,883,000 from the sale or write-off of facilities and equipment in 2024[34] - A loss of HKD 95.6 million was recognized from the sale of a battery production line, with the sale price being RMB 26.2 million (approximately HKD 28.1 million)[87] - Impairment losses of HKD 41.4 million on property, plant, and equipment and HKD 4.4 million on intangible assets were recognized for the photovoltaic film business due to market price declines[90] - The mobile energy storage business was discontinued, resulting in impairment losses of HKD 2.0 million on property, plant, and equipment and HKD 25.5 million on intangible assets[91] Operational Changes and Strategies - The board has not provided specific guidance for future performance but indicated ongoing challenges in the market[6] - The company has transformed its main business from automotive glass and repair services in Hong Kong to a comprehensive solution provider focusing on energy storage, EPC services, and photovoltaic (PV) films[103] - The company has decided to sell its lithium battery production line, resulting in a one-time loss of HKD 95.6 million, to better allocate resources towards energy storage system integration[65] - The company is adjusting its energy storage system product development to assess the impact of using different lithium batteries following the cessation of lithium battery production[69] - The company is actively expanding its photovoltaic EPC business in overseas markets, particularly in South Africa and Indonesia, to capitalize on the growing demand for distributed solar power systems[109] Research and Development - Research and development expenses increased to HKD 49,874,000 in 2024 from HKD 32,039,000 in 2023, reflecting a growth of approximately 55.7%[38] - The company aims to enhance its photovoltaic film production capabilities and is investing in R&D for next-generation products, including 0BB component packaging materials and perovskite battery encapsulation films[107] Governance and Compliance - The group maintained compliance with the corporate governance code applicable to GEM listed companies throughout the year[128] - The auditor for the group is Hong Kong Lixin Dehao Certified Public Accountants Limited, which has verified the financial data for the year ending December 31, 2024, but did not provide any opinions or conclusions on the preliminary announcement[137]
信义储电(08328) - 2024 - 年度业绩