Financial Performance - The group's revenue increased by 34.8% to HKD 664.7 million for the year ended December 31, 2024, compared to HKD 493.1 million in 2023[10] - Gross profit rose by 4.9% to HKD 66.1 million, with a gross margin decrease to 10.0% from 12.8% due to increased costs from overseas production[11] - The group recorded a loss of HKD 33.8 million, a 279.8% increase from a loss of HKD 8.9 million in 2023, primarily due to a rise in administrative and operational expenses[16] - Revenue for the year ended December 31, 2024, was HKD 664,688,000, an increase of 34.8% compared to HKD 493,060,000 in 2023[32] - Gross profit for the same period was HKD 66,136,000, representing a gross margin of 9.94%[32] - The company reported a loss before tax of HKD 33,793,000 for 2024, compared to a loss of HKD 8,917,000 in 2023, indicating a significant increase in losses[32] - The group reported external sales of HKD 664,688,000 for the year ending December 31, 2024, with a reported loss of HKD 18,128,000[45] - For the year ending December 31, 2023, external sales were HKD 493,060,000, resulting in a reported profit of HKD 1,070,000[46] Expenses and Costs - Administrative and other operating expenses increased by 45.6% to HKD 78.6 million, driven by one-time costs related to the shutdown of the production facility in Heshan[12] - Selling and distribution expenses increased by 25.5% to HKD 13.8 million, consistent with the increase in sales revenue[13] - Employee costs decreased to HKD 39,380,000 in 2024 from HKD 46,877,000 in 2023, a reduction of 16.0%[62] - The cost of goods sold amounted to HKD 598,552,000 in 2024, up from HKD 430,109,000 in 2023, indicating a 39.2% increase[62] Assets and Liabilities - Total assets decreased from HKD 216,025,000 in 2023 to HKD 179,157,000 in 2024, a decline of 17.0%[33] - Current liabilities decreased from HKD 83,465,000 in 2023 to HKD 72,921,000 in 2024, a reduction of 12.6%[33] - The total equity decreased from HKD 177,844,000 in 2023 to HKD 147,923,000 in 2024, a decline of 16.8%[34] - The total liabilities of the group decreased from HKD 101,453,000 in 2023 to HKD 91,636,000 in 2024, reflecting a reduction of around 9.7%[47] Revenue Sources - Revenue contribution from the U.S. and Europe accounted for 85.3% of the apparel manufacturing and trading segment, totaling HKD 567.1 million[6] - Products manufactured in Southeast Asia contributed 98% to the apparel manufacturing and trading segment's revenue, up from 84% in 2023[8] - External customer revenue from the US rose from HKD 240,450,000 in 2023 to HKD 333,540,000 in 2024, an increase of approximately 38.7%[48] - Revenue from the European market increased from HKD 167,402,000 in 2023 to HKD 233,565,000 in 2024, reflecting a growth of about 39.5%[52] Investment and Financing - The securities investment division recorded no fair value changes, maintaining a cautious investment strategy amid market volatility[9] - Cash and bank balances as of December 31, 2024, were HKD 111.0 million, down from HKD 120.2 million in 2023[17] - Operating working capital decreased to HKD 106.2 million from HKD 132.6 million in 2023[17] - The total capital expenditure for the year is HKD 5.7 million, an increase from HKD 2.6 million in 2023, primarily for production equipment in Cambodia and Indonesia[19] - Bank borrowings were fully repaid by December 31, 2024, totaling HKD 33.0 million in 2023, with a fixed interest rate of 3.7%[18] - The group has pledged land use rights valued at HKD 7.2 million and buildings valued at HKD 37.3 million as collateral for loans from subsidiary directors[22] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors[78] - The audit committee has reviewed the financial statements for the year ending December 31, 2024, and confirmed compliance with relevant accounting standards and regulations[79] - The company has adhered to all corporate governance codes as of December 31, 2024[80] - There was a vacancy in the CEO position as of December 31, 2024, with responsibilities assumed by an executive director[82] - The company faced non-compliance with corporate governance rules due to the resignation of independent non-executive directors, but has since rectified this by appointing a new independent director[83] - The company has adopted a set of guidelines for directors' securities trading, ensuring compliance with the standards set forth in the listing rules[84] Future Outlook - The company plans to seek opportunities for collaboration with new manufacturing partners or invest in new factories in other countries following the cessation of production in mainland China[27] - The company anticipates continued growth in the garment manufacturing industry driven by sustainable development and technological advancements, despite challenges in supply chain disruptions and rising production costs[28] - The company will continue to strengthen sustainable practices and invest in automation and digital tools to maintain its competitive advantage[28] - The company plans to continue focusing on its existing garment manufacturing and trading business while monitoring macroeconomic factors[29] Miscellaneous - The company did not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[30] - The annual general meeting is scheduled for June 13, 2025, with a suspension of share transfer registration from June 10 to June 13, 2025[31] - The group has applied the revised Hong Kong Financial Reporting Standards for the first time this year, which did not have a significant impact on the financial position and performance[38] - The group is currently evaluating the specific impact of the new Hong Kong Financial Reporting Standard No. 18 on its consolidated financial statements[41] - The group anticipates that the application of new standards will affect the presentation and disclosure in future financial statements[41] - There were no significant events after the reporting period up to the date of this announcement[76] - The annual results announcement for the year 2024 will be published on the Hong Kong Stock Exchange and the company's website[85]
恒富控股(00643) - 2024 - 年度业绩