Financial Performance - The company achieved a revenue of approximately HKD 351.2 million for the year ending December 31, 2024, a significant increase from approximately HKD 152.1 million in 2023, representing a growth of about 130.7%[20] - Operating profit rose to approximately HKD 11.2 million, up from HKD 5.7 million in the previous year, marking a substantial increase of approximately 96.5%[20] - Total revenue for the year ended 31 December 2024 was approximately HK$351,188,000, an increase of approximately 130.8% compared to HK$152,137,000 for the year ended 31 December 2023[58] - The Hong Kong market contributed approximately 89.9% of total revenue, up from approximately 73.5% in 2023[45] - Revenue from the sales and distribution of IT products accounted for approximately 92.1% of total revenue, up from approximately 87.4% in 2023[40] - Revenue from the repairs and service support segment increased significantly to approximately HK$27,825,000, up from approximately HK$19,133,000 in 2023[42] - The net profit for the year was approximately HK$272,000, a decrease of HK$6,343,000 compared to the net profit of approximately HK$6,615,000 recorded for the year ended December 31, 2023[71] - Basic earnings per share decreased to approximately HK$0.19 cents in 2024, compared with approximately HK$25.14 cents in 2023[72] Sustainability and Business Strategy - The company is aligning its strategies with the global trend towards sustainability, focusing on refurbishing IT products and offering repair options to extend product lifecycles, thereby contributing to the reduction of electronic waste[20] - The commitment to sustainability and the circular economy remains central to the Group's operations, aiming to create long-term value for shareholders[26] - The Group is actively exploring after-sales service opportunities for third-party IT products to manage electronic waste sustainably[25] - The growing global trend towards sustainability has led to increased consumer demand for refurbished IT products, aligning with the Group's business strategy[24] - The Group has expanded its consumer electronics product offerings, focusing on used and refurbished units to contribute to a sustainable post-sales circular economy[48] - The Group intends to allocate additional resources to further develop its repairs and service support segment, aiming to improve profitability and return on capital employed[57] - The Group is actively exploring investment opportunities within the "Circular Economy" to align with its commitment to sustainability and responsible business practices[57] Cost and Expenses - The sales cost increased by approximately 139.3% to about HK$331,024,000 for the year ended 31 December 2024, compared to approximately HK$138,346,000 for the previous year[59] - Gross profit increased by approximately HK$6,373,000 to about HK$20,164,000 for the year ended 31 December 2024, while the overall gross margin decreased from approximately 9.1% to about 5.7%[60] - Selling and distribution costs decreased by approximately 45.1% to approximately HK$914,000 for the year ended December 31, 2024, down from approximately HK$1,665,000 in 2023[64] - Administrative expenses decreased by approximately 21.5% from approximately HK$13,265,000 to approximately HK$10,410,000 for the year ended December 31, 2024[70] Shareholder and Capital Management - The Board does not recommend the payment of a final dividend for the year ended December 31, 2024[80] - The distributable reserves of the Company as of December 31, 2024, totaled HK$105,748,000, an increase from HK$101,897,000 in 2023[154] - The Company completed the first tranche of a subscription agreement, issuing 2,605,000 shares at a subscription price of HK$3.0 per share, with a net subscription price of approximately HK$2.76 per share after expenses[94] - The second tranche involves the subscription of 5,206,261 shares at HK$3.9 per share, with an estimated net subscription price of approximately HK$3.88 per share after expenses[95] - The gross proceeds from the subscription are expected to be approximately HK$28.1 million, with net proceeds estimated at approximately HK$27.4 million after expenses[95] - The net proceeds from the first tranche, approximately HK$7.1 million, will be allocated to expand IT product sales and distribution, enhance a repair center in China, and establish an overseas repair center[98] - The expected net proceeds from the second tranche are approximately HK$20.3 million, intended for similar expansions and enhancements as the first tranche[99] Management and Governance - Mr. Chang Chuan-Wang appointed as non-executive Director and chairman of the Board on April 14, 2023, with 32 years of experience in the information and communication technology industry[123] - Mr. Hsia Ke-Ping appointed as non-executive Director on May 17, 2024, with over 26 years of service at Hon Hai, previously responsible for E Business Group Operations[124] - Mr. Lin Weiru appointed as non-executive Director on December 11, 2024, founder of Hong Kong Kintex Worldwide Limited, which has a global presence in North America, Europe, and Asia[129] - Mr. Miao Benny Hua-ben appointed as independent non-executive Director on June 27, 2016, currently an executive vice president at Cathay United Bank, with extensive experience in investment banking[133] - Mr. Li Robin Kit Ling appointed as independent non-executive Director on December 1, 2017, with a background in accounting and finance at major corporations including Apple and Pepsi-Cola[132] - Mr. Yeung Wai Hung Peter appointed as independent non-executive Director on June 10, 2016, with over 34 years of experience as a solicitor in Hong Kong[130] - Mr. Tam Kai-Kwong appointed as company secretary on October 4, 2024, with over 14 years of experience in accounting and auditing[134] - Mr. Gong Wen-Lin appointed as Chief Financial Officer on May 17, 2024, with significant contributions in corporate finance and strategic investments[135] Risks and Challenges - The Group faces risks related to rapid technological changes in the IT products sector, necessitating thorough market research and strategic pricing models[50] - The Group is exposed to foreign exchange risk primarily with respect to USD, and has not entered into any foreign currency derivative financial instruments for the year ended 31 December 2024[117] - As of December 31, 2024, the Group did not have any material contingent liabilities[118] Corporate Structure and Investments - The Group holds a 21% equity interest in 4Square Return GmbH, valued at approximately HK$9,774,000 as of December 31, 2024, representing 5.7% of the Group's total assets[102] - The Group recorded a profit of approximately HK$531,000 from its share of 4Square's results for the year ended 31 December 2024[105] - The Group did not make any material acquisitions or disposals of subsidiaries, associates, or joint ventures for the year ended 31 December 2024[113] - The Group plans to consider fundraising and/or financing to strengthen its human resources, plant and equipment, and working capital[115] - The Board may contemplate selective strategic investments in stock and/or cash when suitable opportunities arise[116] Supplier and Customer Concentration - The largest supplier accounted for 87.2% of total procurement, while the top five suppliers collectively represented 95.2%[198] - The largest customer contributed 83.2% of total sales, with the top five customers together accounting for 93.5%[198]
讯智海(08051) - 2024 - 年度财报