Financial Performance - For the fiscal year ended December 31, 2024, the Group recorded total revenue of approximately HK$122.1 million, with a shareholders' attributable comprehensive net loss of approximately HK$84.1 million[14]. - Excluding a fair value gain of approximately HK$131.6 million on investment properties, the shareholders' attributable comprehensive net loss was approximately HK$215.7 million, a decrease of 202.5% compared to a profit of HK$210.4 million in 2023[14]. - The increase in finance costs reached HK$338.9 million, an increase of HK$59.3 million or 21.2% compared to HK$279.6 million in 2023[14]. - The share of profits from associates decreased by HK$370.0 million or 86.8%, down from HK$426.3 million in 2023[14]. - The loss per share for 2024 was 5.4 HK cents, compared to earnings per share of 18.2 HK cents in 2023[14]. - For the year ended 31 December 2024, the Group's revenue increased by 0.2% to HK$122.1 million, compared to HK$121.8 million for the year ended 31 December 2023[43]. - The adjusted operating profit for the year ended 31 December 2024 was HK$71.8 million, representing a 4.8% increase from HK$68.5 million in 2023[43]. - The Group recorded a loss attributable to equity holders of approximately HK$84.1 million for the year ended 31 December 2024, a decrease of approximately 129.5% compared to a profit of HK$284.9 million in 2023[45]. - Loss per share for the year ended 31 December 2024 was HK5.4 cents, compared to earnings per share of HK18.2 cents for the year ended 31 December 2023[45]. - The fair value gain on investment properties for the year ended 31 December 2024 was approximately HK$131.6 million, a significant increase of 76.6% from HK$74.5 million in 2023[43]. - The adjusted operating profit for the property investment segment increased by 11.3% to HK$60.3 million in 2024, up from HK$54.2 million in 2023[63]. - The Group's total revenue remained stable at HK$122.1 million for both years, indicating resilience in the property investment segment despite economic uncertainties[60]. Investment Strategy and Market Conditions - The Group aims to optimize operational efficiency and explore new investment opportunities to enhance competitiveness in the evolving market[20]. - The local economy in Hong Kong is showing signs of strong recovery, providing new momentum for growth in the property investment market[20]. - The global economic recovery presents new growth momentum for the property investment market in Hong Kong, despite challenges such as inflation and geopolitical uncertainties[22]. - The company recognizes the upgrading demand of Hong Kong consumers, providing opportunities to tap into market potential through innovative products and services[21]. - The Group's strategy of diversifying its portfolio of investment properties has proven successful and is expected to continue generating sustainable returns for shareholders[55]. - The Group aims to leverage resources from its controlling shareholder, GWAMCC, to expand its domestic business and enhance synergy effects[104]. - The trend of shopping up north poses serious challenges, but has not yet had a material impact on the entire portfolio since 2023[101]. Corporate Governance and Board Composition - The Company is committed to upholding obligations to shareholders and enhancing corporate governance standards[106]. - The Board comprises six Directors, including two executive Directors and four non-executive Directors, with independent non-executive Directors representing more than one-third of the Board[117]. - The Board is responsible for approving strategic direction, business plans, and monitoring operational and financial performance[126]. - The Company has adopted a Whistleblowing Policy to facilitate reporting and investigation of malpractice, which is reviewed annually for effectiveness[132]. - The Company holds a minimum of four regular Board meetings annually, typically quarterly, to ensure effective governance[135]. - The Board oversees the effectiveness of the internal control system of the Group[130]. - The Company is committed to sound corporate governance practices and compliance with obligations under the SFO and Listing Rules[134]. - The Board reviews and monitors the training and continuous professional development of Directors and senior management[129]. - The Company has a policy for the disclosure of inside information to ensure compliance with legal requirements[134]. - The Board discusses major operating issues and evaluates opportunities and business risks regularly[123]. - The Board aims for at least one third of the Board to be independent non-executive Directors, and this objective was met for 2024[155]. - The Board consists of six Directors, including two females, reflecting the Company's commitment to gender diversity[156]. - The Nomination Committee is responsible for leading the process for Board appointments and considers a range of diversity factors[149]. - The Company has procedures for Directors to obtain independent professional advice at the Company's expense[147]. - The Board Diversity Policy influences succession planning and aims to enhance the quality of the Company's performance[149]. - The Company aims to avoid a single-gender workforce and will review gender diversity among all employees as appropriate according to business development[159]. - The Board has set measurable diversity objectives, including at least one female director and at least one director with accounting or other professional qualifications, which have been met as of 2024[157]. Management and Leadership - The management team has extensive experience in the finance industry, with Mr. Wang Hai having over 30 years of experience and serving as Chairman since August 2021[26]. - Mr. Wang Zuomin, the new CEO since August 2024, also brings over 30 years of experience in the finance industry[28]. - Mr. Ren Zhiqiang has been appointed as a non-executive Director and a member of the Audit Committee since August 20, 2024, with extensive experience in various managerial roles at GWAMCC[30]. - Ms. Li Li Hua was appointed as an independent non-executive Director on March 15, 2025, and has over 23 years of experience in securities investment and capital markets[32]. - Mr. Moy Yee Wo Matthew, with over 20 years of finance industry experience, was appointed as an independent non-executive Director on March 15, 2025[33]. - Dr. Xie Wensi, appointed as an independent non-executive Director on March 15, 2025, specializes in corporate finance and has received the Young Researcher Award from The Chinese University of Hong Kong in 2021[37]. - The Company has a diverse board with members possessing extensive backgrounds in finance, management, and corporate governance, enhancing its strategic decision-making capabilities[30][32][33][37]. - The appointments of these directors reflect the Company's commitment to strong governance and expertise in financial management[30][32][33][37]. Financial Position and Liquidity - As of December 31, 2024, the Group's total cash and bank balances were approximately HK$209.3 million, down from HK$232.5 million as of December 31, 2023, representing a decrease of 10.0%[82]. - The Group's gearing ratio increased to 58.0% as of December 31, 2024, compared to 56.2% as of December 31, 2023, reflecting a 3.2% rise due to a decrease in shareholders' funds and an increase in bank borrowing[82]. - Net cash generated from operating activities for the year ended December 31, 2024, was HK$81.6 million, an increase from HK$79.4 million in 2023, primarily due to a decrease in accounts receivable by HK$1.6 million[87]. - Net cash used in financing activities for the year ended December 31, 2024, was HK$104.9 million, compared to HK$56.4 million in 2023, mainly due to the repayment of loans to an intermediate holding company of HK$900.0 million[89]. - The Group had outstanding principal of unsecured shareholder loans of HK$4,760.0 million as of December 31, 2024, down from HK$5,370.0 million as of December 31, 2023[82]. - The Group's investment property had a fair value of approximately HK$2,145.0 million as of December 31, 2024, which was pledged to secure a mortgage loan[86]. - The Group's main source of liquidity is recurring cash flows from property investment and financial services businesses[79]. - The financial services segment did not generate any revenue for the years ended December 31, 2024, and 2023, but the Group plans to explore opportunities in this area[56]. - The financial services segment reported an adjusted operating loss of HK$0.2 million for the year ended December 31, 2024, a substantial improvement from an adjusted operating loss of HK$1.7 million in 2023[72]. Employee and Workforce Management - The Group's total number of employees decreased to 9 as of December 31, 2024, from 12 in 2023, reflecting adjustments in its workforce[94]. - The Group's liquidity position remains adequate to support business activities, with all licensed subsidiaries complying with liquidity requirements under the Securities and Futures (Financial Resources) Rules[83]. - The Company believes that gender diversity enhances Board creativity and supports business development[158]. - All Directors participated in continuous professional development programs during the year ended December 31, 2024[196]. - Training areas for Directors included Corporate Governance, Legal and Regulatory, and Group's Business[198].
长城环亚控股(00583) - 2024 - 年度财报