Financial Performance - Revenue for the year ended December 31, 2024, was HKD 4.53 billion, a decrease of 24.5% from HKD 5.98 billion in 2023[5] - Gross profit was HKD 1.17 billion, down 29.5% from HKD 1.66 billion in 2023, with a gross margin of 25.9%, compared to 27.8% in the previous year[5] - Shareholders' loss amounted to HKD 564.19 million, a significant decline from a profit of HKD 6.70 million in 2023[5] - Operating cash flow was HKD 339.44 million, down 30.9% from HKD 492.72 million in 2023[5] - Total assets decreased by 17.7% to HKD 7,439.6 million in 2024 from HKD 9,039.5 million in 2023[34] - The average return on equity was -18.8% in 2024, a decline of 19.0 percentage points from 0.2% in 2023[34] - The group achieved total sales revenue of HKD 452,826,000 in 2024, a decrease of 24.30% compared to HKD 598,197,000 in 2023[189] Revenue Breakdown - Revenue from China Mobile decreased by 32.8% to HKD 747,056,000, accounting for 16.5% of total revenue, down from 18.6%[58] - Revenue from China Unicom decreased by 76.1% to HKD 178,750,000, representing 3.9% of total revenue, down from 12.5%[58] - Revenue from China Telecom increased by 9.2% to HKD 440,063,000, accounting for 9.7% of total revenue, up from 6.7%[59] - International revenue accounted for 48.8% of total revenue, despite a 7.9% decrease to HKD 2,208,117,000[59] Research and Development - The company has applied for approximately 5,900 patents globally, indicating a strong focus on R&D[15] - R&D expenses decreased by 8.2% to HKD 409,436,000, representing 9.0% of total revenue, up from 7.5%[64] - The company launched the ComFlex MAX low-power product, achieving significant order growth across multiple markets[37] - The company aims to enhance new business development and maintain product innovation to meet evolving market demands[72] Corporate Governance - The board of directors consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balance of skills and experience suitable for the company's business[127] - The company emphasizes high levels of corporate governance to ensure transparency and accountability, which is crucial for the development of the group and the protection of shareholder interests[124] - The audit committee reviews the effectiveness of the internal control system annually, concluding that the risk management and internal control systems are effective and sufficient[125] - The company has adopted the standard code of conduct for securities trading by directors as per the Hong Kong Listing Rules, with all directors confirming compliance[126] Environmental, Social, and Governance (ESG) Initiatives - The company aims to minimize environmental impact throughout the entire product lifecycle, focusing on green and low-carbon development[182] - The company has committed to aligning its operations with science-based carbon targets (SBTi) to address climate change[182] - The company received the EcoVadis silver medal in the 2024 corporate social responsibility assessment[186] - The group aims to achieve a 50% reduction in total greenhouse gas emissions by 2030, in line with the SBTi standards[190] Employee and Workforce Management - The total number of employees is 4,349, with 3,069 males and 1,280 females, resulting in a female representation of approximately 29%[145] - The company aims to maintain a minimum female representation of 27% at the board level and 30% at the employee level, with targets to increase to approximately 33% and 35% by 2033[146] - The management structure in 2024 includes 332 middle management, 234 lower management, and 28 entry-level positions[199] - The company is committed to enhancing its employee diversity and inclusion strategies moving forward[199] Strategic Partnerships and Market Expansion - The company aims to expand its market presence through innovative technologies and strategic partnerships, including AI smart traffic projects[46] - The company continues to strengthen its stable cooperation with international mobile operators and leading telecom equipment manufacturers to provide advanced 5G application solutions globally[79] - The company is actively exploring innovative business opportunities in the "5G + vertical industry applications" sector to contribute to revenue growth[80] Financial Management and Cost Control - Total employee cost for the year was HKD 1,130,918,000, an increase from HKD 1,070,859,000 in the previous year[100] - Financing costs decreased significantly by 42.7% to HKD 31,264,000, making up 0.7% of total revenue[67] - Cost management strategies have been implemented, resulting in a reduction of operational expenses by K%[109] Shareholder Engagement - The company has adopted a shareholder communication policy to enhance transparency and accountability since March 19, 2012[164] - The company encourages shareholder participation in general meetings and allows proxy voting[171] - The company held a total of eight board meetings and one annual general meeting during the year, with all directors achieving high attendance rates[128]
京信通信(02342) - 2024 - 年度业绩