Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately HKD 59,584,000, a decrease of 24.7% compared to approximately HKD 79,105,000 for the same period in 2023[5] - The profit attributable to the company's owners for the fiscal year was approximately HKD 453,000, down from approximately HKD 4,336,000 in 2023[7] - Gross profit for 2024 was HKD 21,992,109, down 20.6% from HKD 27,733,778 in 2023[20] - The net profit for the year was HKD 451,808, a significant decline from HKD 4,334,422 in the previous year, representing a drop of 89.6%[20] - The operating profit before tax for 2024 was HKD 451,808, significantly down from HKD 4,329,715 in 2023[39] - The company reported a net loss in the media and entertainment segment of HKD 3,156,951 for 2024, compared to a loss of HKD 3,058,576 in 2023[38] - The total comprehensive income for the year was HKD 3,751,302, which includes the net profit and foreign exchange losses[26] Revenue Breakdown - The group recorded revenue of approximately HKD 57,400,000 from smart card contract production and sales, a decrease of approximately 27.4% from approximately HKD 79,100,000 in the previous year[10] - Revenue from the sale of smart cards was HKD 57,395,803 in 2024, down from HKD 79,098,836 in 2023, representing a decline of approximately 27.5%[38][39] - Revenue from external customers in China for 2024 was HKD 9,096,932, up from HKD 8,403,153 in 2023, reflecting an increase of approximately 8.2%[41] - Revenue from smart card sales for the fiscal year ending December 31, 2024, was approximately HKD 57,400,000, a decrease of about HKD 21,700,000 or 27.4% compared to HKD 79,100,000 in the same period of 2023[73] Dividends and Shareholder Returns - The board of directors did not recommend the payment of any final dividend for the fiscal year, consistent with the previous year[8] - The company did not recommend any dividend for the year ending December 31, 2024, consistent with the previous year[52] - The basic earnings per share remained unchanged at HKD 0.00 for both 2024 and 2023, with a weighted average number of ordinary shares of 525,347,500[53][54] Assets and Liabilities - Total assets less current liabilities rose to HKD 58,959,322 in 2024, compared to HKD 44,362,935 in 2023, reflecting a growth of 32.9%[23] - The total assets for the group in 2024 amounted to HKD 78,134,086, compared to HKD 69,061,929 in 2023, indicating an increase of approximately 13.5%[39] - The total liabilities for 2024 were HKD 37,209,460, up from HKD 28,622,109 in 2023, reflecting an increase of about 30%[39] - The company's cash and cash equivalents increased to HKD 13,822,703 in 2024, up from HKD 7,224,481 in 2023, indicating improved liquidity[23] Strategic Investments and Acquisitions - The company invested approximately HKD 26,900,000 in the production of the television drama "Snow Leopard 2," which is planned to be released by the end of 2025[13] - The acquisition of 100% equity in Hainan Dongchuang Digital Entertainment Technology Group was completed, aiming to operate a digital e-commerce platform[14] - The acquisition of Hainan Dongchuang is a strategic move to expand the company's digital economy services and market share, with over 30,000 listed products currently in the trial operation phase[17] - The acquisition of Hainan Dongchuang was completed for a cash consideration of RMB 240,000 (approximately HKD 258,065)[70] Operational Efficiency - The new Shenzhen factory layout is expected to improve overall production and operational efficiency by 15% to 20%[12] - The company has successfully upgraded its hardware and software to meet GSMA SAS certification standards by the end of 2024, aiming to attract new international clients in 2025[17] Financial Health and Ratios - The company's cash and cash equivalents for 2024 were HKD 13,822,703, compared to HKD 7,224,481 in 2023, indicating a significant increase of approximately 91.1%[38][39] - The current ratio improved to 1.6 as of December 31, 2024, compared to 1.1 in the previous year[85] - The debt-to-equity ratio was 26.3% as of December 31, 2024, up from 11.3% in 2023[91] Compliance and Governance - The company has not adopted any new or revised Hong Kong Financial Reporting Standards that would significantly impact its financial statements for the current or prior years[30] - The company’s financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and comply with applicable disclosure requirements[27] - The board believes that good corporate governance practices are essential for effective management and enhancing shareholder value, and it has adhered to the corporate governance code throughout the reporting period, except for the separation of the roles of Chairman and CEO[97][98] Future Outlook - The company anticipates facing greater challenges in the smart card business due to price and market pressures from Chinese competitors by 2025[17] - The company expects to receive a 30% share of net profits from the television program investment, projected to be released by the end of 2025[61]
品创控股(08066) - 2024 - 年度业绩