Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 3,811,864, a slight decrease of 0.6% compared to HKD 3,833,194 in 2023[3] - Gross profit increased to HKD 1,312,114, up 0.7% from HKD 1,303,061 in the previous year[3] - Net profit for the year was HKD 207,461, representing a decline of 37.6% from HKD 333,149 in 2023[3] - Basic earnings per share decreased to HKD 19.26, down from HKD 31.64 in the prior year, reflecting a 39% drop[4] - Total comprehensive income for the year was HKD 160,971, down 47.8% from HKD 307,809 in 2023[4] - Total revenue for the year ending December 31, 2024, is reported at HKD 3,811.864 million, a slight decrease from HKD 3,833.194 million in 2023, representing a decline of approximately 0.6%[16] - Revenue from sales of goods amounted to HKD 3,804.858 million for 2024, compared to HKD 3,826.566 million in 2023, indicating a decrease of about 0.6%[16] - Revenue recognized at a point in time was HKD 3,809.278 million for 2024, down from HKD 3,830.438 million in 2023, reflecting a decline of approximately 0.6%[16] - Total external revenue for 2024 was HKD 3,811,864, a slight decrease of 0.6% from HKD 3,833,194 in 2023[30] - Revenue from Hong Kong decreased to HKD 977,391 in 2024, down 20.5% from HKD 1,229,961 in 2023[30] - Revenue from mainland China was HKD 2,271,959, a decrease of 2.3% compared to HKD 2,325,737 in 2023[30] Assets and Liabilities - Non-current assets decreased to HKD 2,336,687 from HKD 2,179,577, indicating a growth of 7.2%[5] - Current assets decreased to HKD 2,419,909 from HKD 2,504,156, a decline of 3.4%[5] - Total equity attributable to owners decreased to HKD 3,620,162 from HKD 3,631,441, a slight decline of 0.3%[6] - As of December 31, 2024, the group's total assets amounted to HKD 4,756.6 million, an increase from HKD 4,683.7 million in 2023, while total equity decreased slightly to HKD 3,670.0 million from HKD 3,674.7 million[86] - The group's cash balance as of December 31, 2024, was HKD 1,402.5 million, up from HKD 1,365.6 million in 2023, with no external borrowings reported[87] Expenses and Costs - The company reported a significant increase in administrative expenses to HKD 313,065, up from HKD 298,049, reflecting a rise of 5%[3] - Total employee costs for 2024 amounted to HKD 754,197,000, an increase of 3.7% from HKD 727,360,000 in 2023[39] - Research and development expenses for 2024 were HKD 35,845,000, slightly down from HKD 36,202,000 in 2023[37] - The total depreciation expense for 2024 was HKD 186,297,000, compared to HKD 166,038,000 in 2023, reflecting an increase of 12.2%[37] Impairment and Losses - The company reported a net loss from property, plant, and equipment impairment of HKD 83,896 in 2024, compared to HKD 8,778 in 2023[32] - Total impairment losses amounted to HKD 135.9 million, including HKD 77.1 million related to property, plant, and equipment in complementary businesses in mainland China and Hong Kong[57] - The company recognized a significant impairment loss of HKD 77.1 million due to the recoverable amount of manufacturing assets related to eight production lines being substantially reduced[59] - The management identified impairment indicators for certain right-of-use assets and property, plant, and equipment with carrying amounts of HKD 38.7 million and HKD 18.1 million, respectively[62] Dividends - The company confirmed a dividend distribution of HKD 165,112,000 for the year, with a proposed final dividend of HKD 9.63 per share and a special dividend of HKD 6.19 per share[38] - The board proposed a final dividend of HKD 0.0963 per share and a special dividend of HKD 0.0619 per share, totaling HKD 0.1582 per share for the year ended December 31, 2024[106] Acquisitions and Expansion - The company completed acquisitions in South Korea and Australia during the year, aiming to leverage growth opportunities in these markets[51] - The company established a wholly-owned subsidiary in Taiwan at the end of 2023 to enhance local distribution and support sales growth[77] - The acquisition of 100% of Gaemi Food for 48,000 million KRW (approximately 271.7 million HKD) was completed on September 2, 2024, expanding the company's non-noodle business portfolio[78] - The company plans to acquire ABC Pastry for a total price of 33.7 million AUD (approximately 178.6 million HKD), expected to be completed by December 2, 2024[79] Market and Product Development - The company is focused on expanding its product offerings and enhancing its market presence in Hong Kong and mainland China[7] - The company continues to focus on high-end instant noodle products, with sales of cup noodles showing recovery due to expanded distribution channels in western and northern regions[83] - The distribution business in Hong Kong recorded growth, benefiting from the recovery of inbound tourism and various promotional activities[74] - The company expanded its non-noodle product offerings, including seasonal products and new flavors in its low-fat yogurt line, to enhance market penetration[75] Regulatory and Governance - The company has applied new Hong Kong Financial Reporting Standards effective from January 1, 2024, which did not have a significant impact on the financial position or performance for the current and prior years[11] - The company has not early adopted any new standards that have been issued but are not yet effective, indicating a cautious approach to regulatory changes[12] - The company's auditors have issued a report without reservations, confirming the integrity of the financial statements[9] - The audit committee, composed of three independent non-executive directors, is responsible for reviewing the group's financial reporting procedures, risk management, and internal controls[102] - The company has adhered to the corporate governance code, with the chairman also serving as the CEO, which the board believes allows for effective decision-making[100] Future Outlook - The company maintains a cautiously optimistic outlook for long-term business development across various regions, focusing on cost control and operational efficiency[93] - The company plans to continue expanding its product line and diversifying its offerings to enhance revenue streams, particularly in response to rising consumer health awareness[93] - The company aims to leverage its strong market position in Hong Kong and mainland China to expand into Taiwan, South Korea, and Australia, thereby broadening its revenue base[95]
日清食品(01475) - 2024 - 年度业绩