Financial Performance - Revenue for the year ended December 31, 2024, was HKD 307,364,000, representing an increase of 5.8% from HKD 291,560,000 in the previous year[2] - The company reported a net loss of HKD 4,447,000 for the year, compared to a profit of HKD 1,088,000 in the previous year, indicating a significant decline in profitability[5] - Basic and diluted loss per share was HKD (0.37), down from earnings of HKD 0.09 per share in the previous year[7] - Gross profit for the year was HKD 50,579,000, an increase from HKD 42,301,000, showing a growth of 19.0%[5] - Other income and gains decreased significantly to HKD 3,003,000 from HKD 14,046,000, a decline of 78.7%[5] - Total expenses for 2024 were HKD 311,825 million, up from HKD 303,388 million in 2023, reflecting an increase of approximately 2.4%[31] - Cost of goods sold increased to HKD 256,785 million in 2024 from HKD 249,259 million in 2023, marking a rise of about 3.0%[31] - Employee benefits expenses remained relatively stable, increasing slightly from HKD 49,099 million in 2023 to HKD 49,383 million in 2024[31] - The company reported a significant increase in other income, with total other income rising from HKD 14,046 million in 2023 to HKD 3,003 million in 2024[30] - The company’s administrative expenses increased to HKD 43,518 million in 2024, compared to HKD 42,180 million in 2023, reflecting a growth of approximately 3.2%[31] Assets and Liabilities - Total assets increased to HKD 260,599,000 from HKD 252,905,000, reflecting a growth of 3.0%[2] - Total liabilities rose to HKD 129,434,000, up from HKD 116,429,000, marking an increase of 11.0%[2] - The total equity decreased slightly from HKD 136,476,000 in 2023 to HKD 131,165,000 in 2024, a decline of approximately 3.4%[9] - Cash and cash equivalents increased to HKD 54,056,000 in 2024 from HKD 51,618,000 in 2023, showing a growth of about 4.4%[9] - Trade and other receivables increased significantly from HKD 66,792,000 in 2023 to HKD 85,678,000 in 2024, a rise of approximately 28.2%[9] - Current liabilities decreased slightly from HKD 128,720,000 in 2023 to HKD 113,398,000 in 2024, a reduction of approximately 11.9%[10] - The company's retained earnings decreased from HKD 71,090,000 in 2023 to HKD 66,643,000 in 2024, a decline of about 6.4%[9] - Trade receivables, net of expected credit loss provisions, amounted to HKD 68,762,000 in 2024, compared to HKD 56,709,000 in 2023, representing an increase of approximately 21.5%[42] - Trade payables totaled HKD 60,781,000 in 2024, an increase from HKD 56,700,000 in 2023, indicating a growth of about 8.8%[43] Financial Ratios - The debt-to-equity ratio remained stable at 39.0% compared to 30.3% in the previous year[3] - The debt-to-asset ratio increased to 39.0% as of December 31, 2024, compared to 30.3% as of December 31, 2023[64] Taxation - The group’s subsidiaries in China are subject to a corporate income tax rate of 25% for the fiscal year ending December 31, 2024[34] - The group’s subsidiaries in Hong Kong are estimated to be taxed at a rate of 16.5% for the fiscal year ending December 31, 2024[33] - The group’s subsidiaries in the UAE are subject to a corporate tax rate of 9% for the fiscal year ending December 31, 2024[34] - The group’s estimated taxable income in Hong Kong is subject to a two-tiered profits tax system, with the first HKD 2 million taxed at 8.25%[33] - The group reported a total income tax expense of HKD 1,108,000 for the fiscal year ending December 31, 2024, compared to HKD (1,264,000) for the fiscal year ending December 31, 2023[35] Strategic Initiatives - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[30] - The company aims to enhance its competitive position in the luggage and bag industry by expanding its customer base and optimizing its cost structure and supply chain[51] - The company continues to focus on providing comprehensive supply chain solutions to ensure stable quality supply and product design optimization for its diverse global customer base[50] - The company will focus on diversifying its supply chain network, particularly in Southeast Asia, including Vietnam, Thailand, Cambodia, and Indonesia[93] - The company aims to build a highly competitive and reliable supply system for its various products[93] - The company will strategically focus on market penetration and diversifying its customer base to seize new opportunities[93] Governance and Compliance - The company has adhered to the corporate governance code during the reporting period, with some exceptions noted[96] - The audit committee has been established in accordance with Listing Rule 3.21, consisting of three independent non-executive directors[102] - The consolidated financial statements for the reporting period have been reviewed and approved by the audit committee, ensuring compliance with applicable accounting standards and regulations[104] - The external auditor has confirmed that the performance announcement data is consistent with the audited consolidated financial statements for the reporting period[105] Future Outlook - The company anticipates a continued global economic recovery in 2025, with improvements in GDP growth rate and employment rate[91] - The group has not implemented any foreign exchange hedging policy, exposing it to risks primarily related to USD and RMB fluctuations[74] Related Party Transactions - Independent non-executive directors confirmed that the ongoing related party transactions are conducted on normal commercial terms and are in the best interest of the company's shareholders[83] - The independent auditor has issued an unqualified opinion regarding the related party transactions disclosed in accordance with the listing rules[84] - The group has not entered into any other related party transactions that require disclosure under the listing rules during the reporting period[86]
植华集团(01842) - 2024 - 年度业绩