CROSS-HAR(HOLD)(00032)2025-03-24 11:31Financial Performance - The group recorded a profit attributable to shareholders of HKD 434.5 million for the year ended December 31, 2024, a decrease of 16.4% compared to HKD 520.0 million in 2023 [4]. - Earnings per share for the year were HKD 1.17, down from HKD 1.40 in 2023 [4]. - Total revenue for the year was HKD 976.6 million, an increase from HKD 875.2 million in 2023, driven by customer contract revenue of HKD 795.1 million, up from HKD 684.3 million [8]. - Operating profit for the year was HKD 574.7 million, compared to HKD 386.8 million in 2023, reflecting improved financial management operations [8]. - The group's total comprehensive income for the year was HKD 522.5 million, down from HKD 586.3 million in 2023 [13]. - The profit before tax from continuing operations for 2024 was HKD 563,163,000, an increase of 65.9% compared to HKD 339,406,000 in 2023 [42]. - The profit from discontinued operations for 2024 was HKD 3,442,000, a significant decrease from HKD 294,430,000 in 2023 [46]. Revenue and Dividends - The group proposed a final dividend of HKD 0.24 per share, maintaining the total annual dividend at HKD 0.42 per share, consistent with 2023 [5]. - Total revenue for 2024 reached HKD 976,551,000, an increase of 11.6% compared to HKD 875,164,000 in 2023 [28]. - Revenue from driving school courses amounted to HKD 781,269,000, up from HKD 670,465,000, reflecting a growth of 16.6% [28]. - The company declared an interim dividend of HKD 0.18 per share for both 2024 and 2023, totaling HKD 67,084,000 [56]. - The proposed final dividend for 2024 is HKD 0.24 per share, consistent with 2023, amounting to HKD 89,445,000 [56]. - The total dividends payable for the year amount to HKD 156,529,000, unchanged from the previous year [56]. Assets and Liabilities - Non-current assets decreased to HKD 4,484.2 million from HKD 4,670.1 million in 2023, primarily due to a reduction in property, plant, and equipment [15]. - Current assets increased to HKD 4,113.2 million from HKD 3,845.7 million in 2023, with cash and bank deposits remaining stable at HKD 2,767.4 million [15]. - The group's total liabilities decreased to HKD 713.0 million from HKD 828.9 million in 2023, indicating improved financial stability [15]. - The net asset value increased to HKD 7,684,303,000 in 2024 from HKD 7,413,033,000 in 2023, representing a growth of 3.7% [17]. - The company's total assets less current liabilities rose to HKD 7,883,381,000 in 2024, compared to HKD 7,686,853,000 in 2023, marking an increase of 2.6% [17]. - The company's equity attributable to shareholders increased to HKD 7,494,805,000 in 2024 from HKD 7,215,185,000 in 2023, a growth of 3.9% [17]. Segment Performance - Reported segment revenue for 2024 was HKD 976,128,000, an increase of 11.8% from HKD 873,978,000 in 2023 [36]. - Pre-tax profit from reportable segments reached HKD 683,737,000 in 2024, up 50.9% from HKD 453,459,000 in 2023 [36]. - Total reportable segment assets increased to HKD 8,556,527,000 in 2024, compared to HKD 8,477,781,000 in 2023, reflecting a growth of 0.9% [36]. - Reportable segment liabilities decreased to HKD 839,874,000 in 2024 from HKD 1,009,515,000 in 2023, a reduction of 16.8% [36]. - The financial management segment recorded a net profit of HKD 349.0 million, significantly improved from the previous year, driven by fair value gains of HKD 245.8 million from financial assets [69]. Investment and Financial Management - The company aims to diversify its investment portfolio, focusing on non-listed funds, equity securities, and debt securities to enhance shareholder returns [64]. - The total amount of new financial assets added during the year was HKD 638.1 million, including investments in 34 non-listed funds totaling HKD 375.2 million and 14 listed equity securities totaling HKD 262.9 million [76]. - The total amount of financial assets sold and distributed during the year was HKD 793.0 million, including divestments from 24 non-listed funds totaling HKD 554.3 million and 10 listed equity securities totaling HKD 238.7 million [77]. - The fair value of the Diversified Absolute Return Fund (DARF) held by the group was HKD 653.1 million as of December 31, 2024, representing a fair value loss of HKD 20.5 million for the year [78]. - The group held a total of 49 non-listed funds with a total fair value of HKD 3,090.6 million, accounting for 36.0% of the group's total assets [79]. Market Outlook and Challenges - The driving training market is expected to shrink in 2025 due to a decrease in new students, influenced by a challenging business environment [61]. - The revenue from electronic road toll services is expected to decline further, but contributions from smart city projects are anticipated to increase in 2025 [62]. Corporate Governance - The company has complied with the Corporate Governance Code as per the Main Board Listing Rules, except for the absence of formal appointment letters for directors, which deviates from the code's C.3.3 provision [86]. - All directors have confirmed adherence to the Standard Code of Conduct for Securities Transactions throughout the year, as stipulated in the Corporate Governance Code [87]. - There were no purchases, sales, or redemptions of the company's shares by the company or any of its subsidiaries during the year [88].