Revenue and Financial Performance - Revenue from the footwear and apparel business decreased by approximately 60.6% from about HKD 28.7 million in 2023 to about HKD 11.3 million in 2024[14]. - Loss from continuing operations increased from approximately HKD 5.3 million in 2023 to about HKD 10.5 million in 2024[14]. - The decline in revenue was primarily due to decreased global demand for goods amid heightened geopolitical tensions and financial conditions[14]. - The shift in consumer spending habits post-pandemic, with consumers preferring to shop in mainland China or overseas, exerted pressure on the retail business[14]. - The group recorded revenue of approximately HKD 11.3 million in 2024, a decrease of about 60.6% compared to HKD 28.7 million in 2023[26]. - The decline in revenue was primarily due to decreased global demand for goods amid geopolitical tensions and tightened financial conditions[26]. - The company reported a loss of approximately HKD 10.5 million for the year ending December 31, 2024, compared to a profit of about HKD 1.5 million for the previous year[39]. - Revenue decreased from HKD 28.7 million in 2023 to HKD 11.3 million in 2024, primarily due to reduced global demand for products and changes in consumer spending habits in Hong Kong[39]. Business Operations and Strategy - The group plans to open more retail stores in Hong Kong by early 2025, leveraging reduced rental costs to expand its retail coverage[26]. - The group is exploring strategic partnerships with established sales partners to enhance distribution channels and retail networks[26]. - The company aims to adapt to market conditions while pursuing sustainable growth and creating long-term value for stakeholders[26]. Discontinued Operations - There was no revenue from the loan brokerage and credit assessment segment for the year ending December 31, 2024, following its sale on April 20, 2023[14]. - The loan brokerage and credit assessment segment recorded approximately HKD 2,000 in revenue for the year ending December 31, 2023[14]. - No profit or loss was recorded for the discontinued operations for the year ending December 31, 2024, compared to a loss of about HKD 0.2 million in the previous year[14]. - The group has terminated its loan brokerage and credit assessment business, resulting in a 100% revenue drop from approximately HKD 2,000 in 2023 to zero in 2024[28]. Operating Expenses and Costs - Employee benefit expenses decreased from approximately HKD 6.0 million in 2023 to about HKD 5.4 million in 2024 due to hiring restrictions in retail operations[33]. - Other operating expenses increased from approximately HKD 5.6 million in 2023 to about HKD 8.4 million in 2024, mainly due to legal and professional fees[34]. - The company's operating costs increased due to higher legal and professional fees, as well as depreciation of right-of-use assets related to the reopening of a store in Hong Kong[39]. Financial Position and Liquidity - The total borrowings of the company as of December 31, 2024, were approximately HKD 1.7 million, down from HKD 7.3 million in 2023[40]. - The company's debt-to-asset ratio improved to 7.1% in 2024 from 23.8% in 2023[40]. - Cash and bank balances increased to approximately HKD 5.0 million in 2024, compared to HKD 1.5 million in 2023[40]. - The current ratio improved to approximately 3.0 times in 2024 from 2.1 times in 2023, indicating better liquidity[40]. Share Capital and Financing - The company completed a placement of 43,338,240 new shares at a price of HKD 0.25 per share, raising approximately HKD 10.2 million net of expenses[45]. - The total issued share capital increased from 108,345,600 shares to 151,683,840 shares following the completion of the placement[45]. - As of December 31, 2024, the company utilized HKD 2.7 million for loan repayment and HKD 3.346 million for business operations, leaving HKD 4.154 million unutilized[57]. Corporate Governance and Compliance - The company is committed to improving corporate governance practices in line with new guidelines and developments[148]. - The board of directors is responsible for overseeing the company's operations and financial performance, ensuring effective governance and risk management[156]. - The company has established a risk management committee to monitor and assess risks related to sanctions imposed by the US, EU, UN, and Australian governments[134]. - The company has established a corporate risk management framework since 2016, which is based on the COSO framework for effective risk management[187]. - The company has adopted a "three lines of defense" governance structure for operational management and risk control[190]. Board and Management Changes - Dr. Dong Bin was appointed as an executive director on November 8, 2024, and also joined the remuneration, nomination, and risk management committees[158]. - Dr. Zeng Qingyun resigned as an executive director on January 17, 2025[158]. Shareholder Communication and Engagement - The company has set up its own corporate website to facilitate effective communication with shareholders and the public[195]. - The shareholder communication policy was adopted on May 11, 2016, to comply with corporate governance codes[195]. - Shareholders can submit inquiries to the board in writing at any time, and these will be forwarded to the relevant board committees as appropriate[197]. - The company welcomes feedback from investors and the public regarding its communication policies[197]. Risk Management - The risk management committee reviewed the company's risk management policies and monitored sanctions law risks[173]. - The risk register is updated at least annually to reflect new risks and actions taken to mitigate existing risks[190]. - The company will continue to engage external independent professionals for annual reviews of its internal control and risk management systems[191].
积木集团(08187) - 2024 - 年度业绩