Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 453,581,000, representing a 15.3% increase from HKD 393,284,000 in 2023[3] - Gross profit decreased to HKD 44,665,000, down 21.5% from HKD 56,979,000 in the previous year[3] - The company reported a net loss attributable to shareholders of HKD 21,632,000, compared to a profit of HKD 1,388,000 in 2023[3] - The basic and diluted loss per share was HKD 4.33, a significant decline from earnings of HKD 0.28 per share in the prior year[4] - The total revenue from other income sources decreased from HKD 24,102,000 in 2023 to HKD 12,801,000 in 2024, representing a decline of approximately 47%[17] - The group reported a net loss of HKD 21,632,000 for 2024, compared to a profit of HKD 1,388,000 in 2023, reflecting a significant downturn in performance[24] - The company recorded revenue of approximately HKD 453,600,000 for the year ending December 31, 2024, representing an increase of about 15.3% compared to HKD 393,300,000 for the year ending December 31, 2023[35] - The company reported a loss of approximately HKD 21,600,000 for the year ending December 31, 2024, compared to a profit of about HKD 1,400,000 in the previous year, primarily due to reduced profit margins on eyewear sales and the absence of dismantling compensation income[44] Revenue Sources - Revenue from Italy was HKD 175,833,000, up 27.3% from HKD 138,222,000 in 2023[12] - Revenue from major customers contributing over 10% to the group's total revenue for 2024 includes Customer A at HKD 124,987,000, Customer B at HKD 40,808,000, Customer C at HKD 64,509,000, and Customer D at HKD 57,704,000, with Customer A showing a 22% increase from 2023[15] Costs and Expenses - The cost of goods sold for the year 2024 was HKD 405,583,000, up from HKD 331,349,000 in 2023, indicating a 22% increase[22] - The group’s employee costs increased to HKD 129,255,000 in 2024 from HKD 123,118,000 in 2023, marking a rise of approximately 5%[22] - Selling and distribution expenses decreased by approximately HKD 2,300,000 or 13.5% to about HKD 14,800,000 for the year ending December 31, 2024, mainly due to a reduction in advertising and promotional expenses[40] - Administrative and other operating expenses increased by approximately HKD 1,800,000 or 3.0% to about HKD 62,000,000 for the year ending December 31, 2024, primarily due to an increase in employee costs[41] - Financing costs increased by approximately HKD 300,000 or 17.6% to about HKD 2,000,000 for the year ending December 31, 2024, mainly due to bank loan interest to enhance overall liquidity[42] Assets and Liabilities - Trade receivables increased to HKD 116,775,000 from HKD 109,067,000, indicating a 7.8% rise[5] - Inventory levels rose to HKD 85,807,000, up from HKD 74,764,000, reflecting a 14.8% increase[5] - Non-current assets decreased to HKD 43,750,000 from HKD 51,336,000, a decline of 14.7%[5] - The company’s total assets less current liabilities were HKD 165,619,000, down from HKD 195,861,000, a decrease of 15.4%[6] - The current ratio decreased to approximately 2.0 times from 3.1 times, and the quick ratio decreased to about 1.3 times from 2.0 times, indicating a decline in liquidity[45] - Cash and cash equivalents increased by approximately HKD 7,500,000 to about HKD 27,800,000 as of December 31, 2024, primarily due to net cash generated from operating activities[46] Trade Receivables and Payables - Trade receivables for 2024 amounted to HKD 117,374,000, with a provision for impairment of HKD 599,000, resulting in a net trade receivable of HKD 116,775,000[24] - Trade receivables impairment loss recorded approximately HKD 100,000 for the year ending December 31, 2024, based on expected credit loss calculations[39] - Trade payables increased significantly to HKD 91,173,000 in 2024 from HKD 44,175,000 in 2023, indicating a rise in supplier credit terms[26] Market and Operational Challenges - The company faced significant challenges in the European market, resulting in a gross profit decrease of 21.6% and a shift from profit to loss[33] - The company is exploring opportunities for business and revenue diversification to mitigate potential risks and uncertainties[34] - The company plans to continue monitoring market trends and consumer behavior while implementing cost-saving measures to enhance financial performance[34] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and believes it has complied with all applicable provisions for the year ended December 31, 2024[63] - The audit committee has reviewed the group's consolidated performance for the year ended December 31, 2024, confirming compliance with applicable accounting principles and sufficient disclosures[69] Employee Information - The group had a total of 1,025 employees as of December 31, 2024, with 1,008 located in China and 17 in Hong Kong[57] - As of December 31, 2024, the total employee benefits expenditure (including director remuneration) was approximately HKD 129.3 million, compared to HKD 123.1 million for the year ended December 31, 2023, reflecting an increase of about 5.5%[57] Dividends and Investments - The group did not declare any dividends for the years ending December 31, 2024, and 2023[23] - The company did not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with the previous year[65] - The group has no plans for significant investments or acquisitions of major capital assets as of December 31, 2024[60] - There were no major acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended December 31, 2024[59]
恒发光学(01134) - 2024 - 年度业绩