Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 1,260,799,000, representing a 2.7% increase from HKD 1,227,190,000 in 2023[2] - Gross profit increased by 17.7% to HKD 247,901,000, with a gross margin of 19.7%, up 250 basis points from 17.2% in the previous year[2] - Operating profit surged by 362.2% to HKD 98,764,000, compared to HKD 21,370,000 in 2023[2] - EBITDA rose by 116.2% to HKD 135,947,000 from HKD 62,867,000 in the prior year[2] - Profit attributable to equity holders of the company was HKD 72,234,000, a significant increase of 5,701.9% from HKD 1,245,000 in 2023[2] - Basic and diluted earnings per share reached 72.2 HK cents, compared to 1.2 HK cents in the previous year, marking a 5,701.9% increase[2] - Other net income for 2024 was HKD 23,095,000, a recovery from a loss of HKD 29,159,000 in 2023, driven by fair value changes in financial assets[21] - Total tax expense for 2024 was HKD 10,954,000, compared to HKD 4,240,000 in 2023, reflecting higher taxable profits[24] - The group recorded revenue of HKD 1,260.8 million for the fiscal year 2024, an increase of HKD 33.6 million or 2.7% compared to HKD 1,227.2 million in fiscal year 2023[41] - Gross profit for fiscal year 2024 was HKD 247.9 million, up HKD 37.3 million or 17.7%, with a gross margin increase from 17.2% in fiscal year 2023 to 19.7% in fiscal year 2024[42] - Net profit attributable to equity holders for fiscal year 2024 surged to HKD 72.2 million, a significant increase of HKD 71.0 million or 5,701.9% from HKD 1.2 million in fiscal year 2023[43] Assets and Liabilities - Total assets decreased to HKD 933,499,000 from HKD 965,631,000 in 2023[4] - Total liabilities reduced to HKD 712,360,000 from HKD 815,338,000 in the previous year[5] - Total equity attributable to equity holders increased to HKD 221,139,000 from HKD 150,293,000 in 2023[4] - Trade receivables decreased to HKD 270,925,000 in 2024 from HKD 297,822,000 in 2023, with a slight increase in impairment provisions[27] - Trade receivables decreased from HKD 297,822 thousand in 2023 to HKD 270,925 thousand in 2024, with a notable reduction in receivables aged 91 to 365 days from HKD 24,430 thousand to HKD 5,844 thousand[29] - As of December 31, 2024, the group’s bank borrowings decreased to HKD 188.3 million from HKD 292.6 million in the previous year, while cash and cash equivalents increased to HKD 283.9 million[45] - The group maintained a net cash position of HKD 95.6 million as of December 31, 2024, compared to a net debt of approximately HKD 18.0 million in the previous year[45] Operational Highlights - The company is primarily engaged in the manufacturing and sales of electronic products, with a focus on expanding its market presence and product offerings[6] - Revenue from major customers (contributing over 10% of total revenue) included Customer A at HKD 254,028,000 (up from HKD 142,720,000), Customer B at HKD 133,850,000 (down from HKD 191,074,000), and Customer C at HKD 133,823,000 (new contribution)[15] - Revenue by geographical location showed significant growth in the Philippines at HKD 377,163,000 (up from HKD 228,058,000) and China at HKD 197,136,000 (up from HKD 53,188,000) for 2024[16] - The company established a strategic partnership in Indonesia's Batam Island, enhancing supply chain flexibility and mitigating geopolitical risks, with plans to further expand production capacity there[35] - The company plans to actively participate in international trade exhibitions to attract new global customers and expand its influence[38] - Research and development pipeline products achieved significant progress, with major products entering mass production in early 2024[36] - The company has committed to collaborating with universities and industry partners in Hong Kong and China to leverage expertise in AI and 5G technologies[38] Financial Management - The weighted average effective interest rate on bank borrowings decreased from 6.8% in 2023 to 5.7% in 2024, with total bank loans reducing from HKD 292,603 thousand to HKD 188,279 thousand[31] - The company aims to reduce bank borrowings to manage interest rate risks and enhance financial performance, thereby providing greater financial flexibility for future strategic goals[38] - Total capital expenditure for fiscal year 2024 was HKD 10.4 million, down from HKD 13.8 million in fiscal year 2023[47] Corporate Governance - The company does not recommend any final dividend for the year ended December 31, 2024, consistent with 2023[26] - The group did not declare any final dividend for fiscal year 2024, consistent with fiscal year 2023[44] - The company confirmed compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual since September 30, 2021[61] - The company has adopted the standard code for securities transactions by directors and confirmed compliance throughout the fiscal year 2024[62] - The audit committee, composed of three independent non-executive directors, reviewed the group's accounting principles and discussed financial reporting matters for the fiscal year ending December 31, 2024[64] Employee and Market Position - The group employed approximately 1,900 employees as of December 31, 2024, an increase from 1,600 employees as of December 31, 2023, attributed to a revenue increase of 2.7%[58] - Total employee costs for the fiscal year 2024 amounted to HKD 257.0 million, up from HKD 223.5 million in the fiscal year 2023[58] Miscellaneous - The company did not purchase, sell, or redeem any of its listed securities during the fiscal year 2024, and held no treasury shares as of December 31, 2024[60] - The company maintained sufficient public float during the fiscal year 2024 and up to the date of this announcement[63] - The annual general meeting for shareholders will be held on June 2, 2025[66] - The announcement regarding the annual results and annual report will be published on the company's website and the Hong Kong Stock Exchange website[67] - The group faced foreign exchange risks primarily related to USD and RMB, with most sales denominated in USD[52] - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the fiscal year ending December 31, 2024[50]
丽年国际(09918) - 2024 - 年度业绩