Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 328,578,000, representing a 8.25% increase from HKD 303,527,000 in 2023[5] - Gross profit increased to HKD 94,409,000, up 9.3% from HKD 86,426,000 in the previous year[5] - Operating profit rose significantly to HKD 29,604,000, a 62.1% increase compared to HKD 18,301,000 in 2023[5] - Profit attributable to shareholders for the year was HKD 25,804,000, which is a 63.9% increase from HKD 15,746,000 in 2023[5] - Basic and diluted earnings per share increased to HKD 13.0, up from HKD 7.9 in the previous year, reflecting a 64.6% growth[5] - Net profit for the year was HKD 25,804,000, up 64% from HKD 15,746,000 in 2023, resulting in a net profit margin of 7.9% compared to 5.2% in the previous year[53] - Basic earnings per share improved to HKD 0.13 in 2024, compared to HKD 0.08 in 2023, representing a growth of 62.5%[30] Assets and Equity - Total assets as of December 31, 2024, amounted to HKD 495,982,000, an increase of 9.05% from HKD 454,852,000 in 2023[7] - Total equity attributable to shareholders increased to HKD 431,650,000, up from HKD 409,524,000, marking a 5.4% rise[7] - The total segment assets for 2024 were HKD 401,581,000, an increase of 9.6% from HKD 366,466,000 in 2023[21] Cash Flow and Investments - The company’s cash and cash equivalents increased to HKD 52,765,000, up from HKD 39,008,000, indicating a 35.2% growth[7] - Operating cash flow for 2024 was HKD 21,656,000, a decrease of 63.0% from HKD 58,535,000 in 2023[11] - Net cash used in investing activities improved to HKD (3,035,000) in 2024 from HKD (11,300,000) in 2023, a reduction of 73.1%[11] - The company reported a net increase in cash and cash equivalents of HKD 14,241,000 for 2024, compared to HKD 18,046,000 in 2023[11] Revenue Segmentation - The Americas segment generated revenue of HKD 236,405,000 in 2024, up from HKD 212,293,000 in 2023, marking an increase of 11.4%[21] - The company's sales distribution for 2024 was approximately 72% from North America, 12% from China, and 8% from Japan[58] - The sales of power cords accounted for 53% of total revenue, while harnesses accounted for 45%[63] - Production in the company's Vietnam factory contributed 67% to total revenue, up from 59% in 2023, due to increased orders and new equipment[64] Customer Dependency - The company has two major customers contributing over 10% of total revenue, with revenue from the Americas segment[22] - The company’s top five customers accounted for approximately 82% of total revenue in 2024, up from 79% in 2023, indicating a high dependency on a limited customer base[69] - Customer A revenue increased to HKD 123,441,000 in 2024 from HKD 107,914,000 in 2023, representing a growth of 14.5%[23] - Total revenue from customers B reached HKD 83,902,000 in 2024, up from HKD 78,571,000 in 2023, marking a 6.7% increase[23] Expenses and Costs - Employee costs increased significantly to HKD 94,590,000 in 2024, up from HKD 74,894,000 in 2023, an increase of 26.3%[25] - The total tax expense for 2024 was HKD 3,792,000, significantly higher than HKD 1,866,000 in 2023, an increase of 102.5%[29] - The impairment loss on property, plant, and equipment was nil in 2024, compared to HKD 5,192,000 in 2023, indicating a recovery[24] Dividends - The company paid dividends of HKD 3,926,000 in 2024, down from HKD 5,969,000 in 2023, a decrease of 34.3%[11] - The company declared an interim dividend of HKD 0.02 per share for 2024, totaling HKD 3,926,000, compared to no dividend in 2023[31] - The company proposed a final dividend of HKD 0.03 per share, bringing the total dividend for the year to HKD 0.05, compared to no dividends in 2023[49] Inventory and Receivables - Total inventory as of December 31, 2024, was HKD 129,365,000, an increase from HKD 110,269,000 in 2023, with inventory turnover days decreasing from 216 to 187 days[54] - Trade receivables and notes receivable rose to HKD 80,903,000 from HKD 69,054,000 in 2023, indicating increased sales activity[54] Market Outlook and Strategy - Management anticipates a recovery in economic activity for 2024, but acknowledges ongoing global economic uncertainties and challenges[63] - The company plans to focus on stable business growth in 2025 despite potential geopolitical and trade tensions affecting the market[66] - The company plans to continue developing and launching new cable and power line products to maintain revenue momentum in a rapidly changing business environment[70] - The ongoing geopolitical tensions and unresolved conflicts are reshaping international relations and impacting global trade, which may affect the company's operations[69] Corporate Governance and Social Responsibility - The company is committed to corporate social responsibility and regularly participates in social activities in Hong Kong, China, and Vietnam[74] - The executive directors include Meng Zhenxiong, Chen Zhenyao, Meng Weiqi, Meng Weiyi, and Meng Weihao, while the non-executive director is Gu Diyan[82] Financial Reporting - The group announced preliminary results for the year ending December 31, 2024, including consolidated financial statements[82] - The financial statements have been prepared and verified by the auditor, but no assurance has been provided according to Hong Kong auditing standards[82]
恒都集团(00725) - 2024 - 年度业绩