Financial Performance - The revenue for the year ended December 31, 2024, was HKD 1,016.4 million, an increase of 3.8% compared to HKD 979.2 million for the year ended December 31, 2023[3]. - The net profit for the year was HKD 39.7 million, a decrease of 17.6% from HKD 48.2 million for the year ended December 31, 2023[3]. - The basic earnings per share attributable to equity shareholders was approximately HKD 0.06, a decrease of about 25.0% compared to HKD 0.08 for the previous year[3]. - The total comprehensive income attributable to owners showed a significant drop, with a loss of HKD 7,345,000 in 2024 compared to a profit of HKD 34,471,000 in 2023[5]. - The group reported a pre-tax profit of HKD 12,828,000 in 2024, compared to HKD 11,684,000 in 2023, indicating an increase of 9.8%[32]. - The group's net profit for the year was HKD 39.7 million, a decrease of HKD 8.5 million or 17.6% compared to HKD 48.2 million for the year ended December 31, 2023, primarily due to increased labor costs and financing costs[77]. Revenue Breakdown - Revenue from high-end hair extension products increased significantly by 36.3% to HKD 109,678,000 from HKD 80,423,000[20]. - The group reported a decrease in revenue from Halloween products, which fell by 32.7% to HKD 24,621,000 from HKD 36,561,000[20]. - Revenue from wigs and related products increased by 2.3% to HKD 882.1 million, supported by stable demand for lower-margin braid products[60]. - The revenue contribution from the Bangladesh factory accounted for 98.9% of the group's total revenue, up from 98.7% in the previous year[59]. - The group's revenue increased to HKD 1,016.4 million, representing a 3.8% increase compared to HKD 979.2 million for the year ended December 31, 2023, primarily due to higher sales of human hair extension and lace wig products[55]. Expenses and Costs - The total administrative expenses for the year were HKD 132.5 million, compared to HKD 119.1 million for the previous year[4]. - The financing costs for the year were HKD 42.4 million, an increase from HKD 36.8 million in the previous year[4]. - The total employee expenses for the year were HKD 354.7 million, up from HKD 308.7 million in the previous year[88]. - The group's sales cost increased by 3.6% to HKD 772.8 million, mainly due to rising direct labor costs and expenses related to the new hair design business and acquisitions[63]. Assets and Liabilities - Non-current assets decreased from HKD 646,996,000 in 2023 to HKD 602,912,000 in 2024, a reduction of approximately 6.8%[7]. - Current assets also saw a decline, dropping from HKD 984,570,000 in 2023 to HKD 932,027,000 in 2024, a decrease of about 5.3%[7]. - The total equity attributable to owners decreased from HKD 851,626,000 in 2023 to HKD 800,139,000 in 2024, a decline of approximately 6%[8]. - The company’s total liabilities decreased from HKD 734,054,000 in 2023 to HKD 668,917,000 in 2024, a reduction of about 8.9%[7]. - The company’s non-current borrowings increased from HKD 35,172,000 in 2023 to HKD 55,176,000 in 2024, an increase of approximately 56.9%[8]. Dividends and Share Capital - The board has proposed a final dividend of HKD 0.028 per share, along with an interim dividend of HKD 0.030 per share, totaling HKD 0.058 per share, with a payout ratio of approximately 95.1%[3]. - The company declared an interim dividend of HKD 3.0 cents per share for 2024, down from HKD 4.2 cents per share in 2023, representing a decrease of 28.6%[34]. - As of December 31, 2024, the total issued and paid-up share capital was HKD 6,467,000, down from HKD 6,557,000 in 2023[48]. - The company repurchased a total of 8,978,000 ordinary shares at a total cost of approximately HKD 5.7 million during the year, which is expected to enhance the net asset value and/or earnings per share[103]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code as its corporate governance standard[105]. - The audit committee confirmed that the consolidated financial statements for the year ended December 31, 2024, were prepared in accordance with applicable accounting standards and fairly presented the financial position and performance of the group[110]. - The company has complied with the Corporate Governance Code throughout the year[107]. Future Outlook - The group plans to expand its sales team and develop product lines to meet customer demands and expectations[95]. - The group anticipates a steady increase in market demand for hair and hair extension products until the end of 2025[95]. - The group has no major investments or acquisitions planned for the current year[93].
训修实业(01962) - 2024 - 年度业绩