Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was HKD 69,629,000, representing an increase of 2.6% from HKD 67,860,000 in the previous year[4]. - Gross profit for the year was HKD 12,717,000, up 37.5% from HKD 9,259,000 in 2023[4]. - The net profit for the year was HKD 11,293,000, a significant increase of 138.5% compared to HKD 4,722,000 in the prior year[4]. - Basic and diluted earnings per share increased to HKD 0.24 from HKD 0.21, reflecting a growth of 14.3%[4]. - Other income and gains rose to HKD 26,626,000, compared to HKD 16,816,000 in the previous year, marking an increase of 58.5%[4]. - The total comprehensive income for the year was HKD 20,124,000, compared to a loss of HKD 6,102,000 in 2023[5]. - The company reported a pre-tax profit of HKD 10,941,000 for the year ended December 31, 2024, compared to HKD 7,091,000 in 2023, marking an increase of approximately 54%[21]. - Net profit for the year ended December 31, 2024, was approximately HKD 11,293,000, a significant increase from HKD 4,722,000 in the previous year, driven by higher gross profit and reduced administrative expenses[41]. Assets and Liabilities - Non-current assets decreased to HKD 398,981,000 from HKD 426,412,000, a decline of 6.4%[6]. - Current assets decreased significantly from HKD 778,487,000 to HKD 457,820,000, a drop of 41.2%[6]. - Total liabilities decreased from HKD 926,309,000 to HKD 569,701,000, a reduction of 38.6%[7]. - The total assets of the company as of December 31, 2024, amounted to HKD 856,801,000, compared to HKD 1,204,899,000 in 2023, reflecting a decrease of approximately 29%[21]. - The total liabilities for the year ended December 31, 2024, were HKD 572,701,000, down from HKD 926,309,000 in 2023, a reduction of about 38%[21]. - The company's net current liabilities improved to approximately HKD 10,168,000 from HKD 29,308,000 in the previous year[54]. - The debt ratio decreased to approximately 49.0% as of December 31, 2024, compared to 55.7% in the previous year[58]. Segment Performance - The group operates in four main segments: shallow geothermal energy systems, air energy/shallow geothermal heat pump products, property investment for potential rental income, and securities investment for strategic purposes[10][18]. - Revenue from contracts with customers was HKD 63,627,000 for 2024, up from HKD 62,212,000 in 2023, indicating a year-over-year increase of about 2.3%[25]. - The segment profit for the air energy division was HKD 3,283,000, while the geothermal energy segment reported a loss of HKD 3,412,000, resulting in a total segment performance of HKD 7,572,000[20]. - The air energy segment generated external sales of HKD 62,918,000, while the geothermal energy segment contributed HKD 709,000 to external sales[20]. Administrative and Operational Changes - Administrative expenses decreased by 25% to approximately HKD 39,566,000 from HKD 52,758,000 in the previous year, attributed to cost control measures[44]. - The company is undergoing a management transformation and organizational restructuring to enhance operational efficiency and budget execution capabilities[80]. - The group’s performance evaluation is based on adjusted profit before tax, excluding certain income and costs, to assess resource allocation and performance across its segments[16]. Shareholder and Governance Matters - The company did not declare any final dividends for the years ended December 31, 2024, and 2023[33]. - The board of directors consists of both executive and independent non-executive members, ensuring a diverse governance structure[91]. - The 2020 Share Incentive Plan was approved on January 15, 2020, allowing for a total of 98,000,000 shares to be granted, representing approximately 2.18% of the company's issued shares as of the announcement date[60]. - The 2024 Share Option Plan and 2024 Share Incentive Plan were approved on June 7, 2024, allowing for a total of 452,692,516 shares to be issued, which is up to 10% of the issued shares as of the adoption date[65]. Compliance and Regulatory Matters - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which include significant changes in lease liabilities and classification of liabilities[11][12]. - The group has not early adopted any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, indicating a cautious approach to regulatory changes[12][15]. - The company has complied with the GEM Listing Rules, except for a temporary non-compliance regarding the minimum number of independent non-executive directors[82]. Cash Flow and Financing - The company had cash and cash equivalents of approximately HKD 52,586,000 as of December 31, 2024, down from HKD 69,553,000 in the previous year[54]. - Financing costs decreased to HKD 3,544,000 in 2024 from HKD 4,175,000 in 2023, primarily due to lower interest on borrowings[28]. - The company holds repurchased shares as treasury shares, allowing for flexibility in raising additional funds or for other permitted uses under GEM listing rules[89]. Research and Development - Research and development costs were reduced to HKD 822,000 in 2024 from HKD 1,931,000 in 2023, indicating a strategic shift in investment[29]. - The company is focusing on the commercialization of innovative shallow geothermal energy technologies for winter heating, aiming for a transition to a zero-emission heating solution[79].
中国恒有源集团(08128) - 2024 - 年度业绩