Revenue and Profitability - The group's revenue increased from approximately HKD 168.2 million for the year ended December 31, 2023, to approximately HKD 205.8 million for the year ended December 31, 2024, representing a growth of about HKD 37.6 million or 22.3%[3] - The total profit and comprehensive income for the year was approximately HKD 8.7 million, a decrease of about HKD 5.2 million or 37.3% compared to HKD 13.9 million for the year ended December 31, 2023[3] - The group's gross profit for the year was HKD 17.7 million, down from HKD 20.7 million in the previous year[4] - Public project revenue contributed HKD 193,598,000, up from HKD 146,409,000, reflecting a growth of 32.2% year-over-year[23] - Private project revenue decreased to HKD 12,182,000 from HKD 21,793,000, representing a decline of 44.0%[23] - Basic earnings per share for the year ended December 31, 2024, were HKD 8,745, down from HKD 13,942 in 2023[38] Dividends - The board of directors did not recommend the declaration and payment of a final dividend for the year ended December 31, 2024, compared to no dividend declared for the year ended December 31, 2023[3] - A special dividend of HKD 0.175 per ordinary share was distributed on February 16, 2024, totaling HKD 70.0 million[3] - The company declared a special dividend of HKD 70,000,000 for the year ending December 31, 2024, compared to no special dividend in 2023[34] - The company has not provided a final dividend recommendation for the year ending December 31, 2024, indicating a potential shift in capital allocation strategy[35] Financial Position - The group's total assets decreased from HKD 160.2 million in 2023 to HKD 103.7 million in 2024, reflecting a significant reduction in cash and bank balances[6] - The net asset value of the group decreased from HKD 143.1 million in 2023 to HKD 81.8 million in 2024[6] - Current liabilities increased from HKD 23.0 million in 2023 to HKD 28.7 million in 2024, indicating a rise in trade and other payables[6] - The current ratio decreased from approximately 7.0 times as of December 31, 2023, to approximately 3.6 times as of December 31, 2024, with net current assets of approximately HKD 74.9 million, down from approximately HKD 137.2 million[88] - The asset-liability ratio increased from approximately 0.5% as of December 31, 2023, to approximately 1.4% as of December 31, 2024, due to a decrease in equity attributable to shareholders[86] Financial Reporting Standards - The adoption of revised Hong Kong Financial Reporting Standards effective from January 1, 2024, is not expected to have a significant impact on the group's financial performance[14] - The group is currently evaluating the impact of the new standards on its consolidated financial statements and performance indicators[18] - The group anticipates that other newly issued and revised Hong Kong Financial Reporting Standards will not have a significant impact on its consolidated financial statements[21] - The group’s financial reporting will include new classifications and disclosures as per the revised standards, enhancing clarity in financial performance reporting[19] - The group’s management has defined performance indicators that will be disclosed in the financial statements, improving transparency[19] Costs and Expenses - Service costs rose by approximately HKD 40.5 million or 27.5%, from about HKD 147.5 million to approximately HKD 188.1 million for the same periods[72] - Gross profit decreased by approximately HKD 3.0 million or 14.4%, from about HKD 20.7 million to approximately HKD 17.7 million, with gross margin dropping from 12.3% to 8.6%[73] - Subcontracting costs increased by approximately 63.0% compared to the previous year, impacting overall profit margins[74] - Employee benefit expenses for 2024 are HKD 60,872,000, slightly increasing from HKD 60,181,000 in 2023, reflecting a 1.15% growth[32] - Financial costs increased by approximately HKD 19,000 or 22.9%, from about HKD 83,000 to approximately HKD 102,000 due to higher interest expenses on long-term service obligations[77] Cash Flow and Investments - As of December 31, 2024, the group's cash and bank balances were approximately HKD 63.4 million, a decrease of about HKD 51.2 million or 44.7% from approximately HKD 114.6 million as of December 31, 2023, primarily due to dividend payments of approximately HKD 70.0 million during the year[83] - The group invested approximately HKD 5.8 million in the acquisition of property, plant, and equipment for the year ended December 31, 2024[91] - The group had no significant capital commitments or contingent liabilities as of December 31, 2024[81] Long Service Payment Obligations - The present value of the unallocated long service payment liability as of December 31, 2024, is estimated at HKD 293,000, with a current service cost of HKD 266,000 and interest cost of HKD 27,000[57] - The long service payment liability has a weighted average term of 18 years, indicating a long-term financial commitment[59] - The discount rate used for calculating the long service payment liability increased from 3.8% in 2023 to 4.1% in 2024, while the salary growth rate rose from 2.0% to 3.1%[57] - The maximum benefit payment under the long service payment scheme remains capped at HKD 390,000 per employee[54] - The Hong Kong government has announced the repeal of the offsetting mechanism for long service payments, effective May 1, 2025, which will impact the company's long service payment obligations[52] Operational Highlights - The group continues to focus on slope engineering in Hong Kong, with no new product or technology developments reported in the current financial year[9] - The group is involved in various slope engineering projects, including soil nail drilling and installation, construction of retaining walls, and installation of drainage systems[65] - The group secured 20 contracts with a total contract value of approximately HKD 806.1 million, of which 3 contracts worth about HKD 47.1 million have been completed as of December 31, 2024[66] Compliance and Governance - The company has confirmed that as of December 31, 2024, there are no direct or indirect competitive businesses or interests held by directors, major shareholders, or their associates[98] - The company has adopted a strict code of ethics and securities trading standards, ensuring compliance with the listing rules as of December 31, 2024[100] - The audit committee, consisting of four members, has reviewed the annual performance for the fiscal year ending December 31, 2024, and confirmed compliance with applicable accounting standards[106] - The company's preliminary performance figures for the fiscal year ending December 31, 2024, have been verified to be consistent with the audited consolidated financial statements[107]
丰城控股(02295) - 2024 - 年度业绩