Financial Performance - For the year ended December 31, 2024, the company's revenue was approximately HKD 186.9 million, a decrease of about 13.3% compared to HKD 215.6 million in 2023[18]. - The gross profit for the year was approximately HKD 59.6 million, down about 21.0% from HKD 75.4 million in the previous year, resulting in a gross margin decrease from 35.0% to 31.8%[18][22]. - Net profit attributable to equity holders was approximately HKD 6.5 million, a decrease of about 55.8% compared to HKD 14.7 million in 2023[23]. - Revenue from beauty products accounted for 82.2% of total revenue in 2024, down from 85.3% in 2023, while revenue from cosmetic bags increased to 17.8% from 14.7%[20]. - The company does not recommend a final dividend for the year, indicating no payout to shareholders[71]. - The company's distributable reserves amount to HKD 124.0 million as of December 31, 2024, unchanged from December 31, 2023[78]. Market Expansion and Strategy - The sales in the UK market increased from 22.9% in 2023 to 45.1% in 2024, highlighting significant market expansion efforts[12]. - The company is exploring growth and diversification opportunities, particularly in the European market, recognizing its potential for expansion and profitability[12]. - The company plans to focus on creating innovative products and expanding its business into new regions, particularly the European market[19]. - The company has expanded its business by providing a "one-stop service" to customers, leveraging its experience in packaging products, including seasonal and promotional beauty product gift sets[40]. - The company is focused on enhancing its overseas customer base and operational efficiency across various business segments, including sales, marketing, and product development[40]. Operational Efficiency and Cost Management - The company has implemented robust cost control measures and comprehensive risk management strategies to enhance operational efficiency[12]. - The company's administrative expenses decreased by approximately 5.9% to about HKD 45.9 million from HKD 48.8 million in the previous year[24]. - Sales and distribution expenses decreased by approximately 14.1% to about HKD 14.6 million from HKD 17.0 million in 2023, primarily due to reduced shipping and freight costs[25]. - Labor shortages and rising labor costs in China could impact the company's operational efficiency and expansion plans[68]. - The company has implemented strict supplier selection systems to ensure material quality and consistency in product quality[64]. Corporate Governance and Board Structure - The company has a strong board with members who have extensive backgrounds in finance and corporate governance, including Mr. Xu Xialin, who has over 20 years of experience in design, marketing, licensing, and brand promotion[52]. - The board consists of six directors, including three executive directors and three independent non-executive directors, with no changes in composition during the year[126]. - The company has maintained compliance with GEM listing rules by appointing at least three independent non-executive directors, with at least one possessing appropriate professional qualifications in accounting or related financial management skills[129]. - The company has established a mechanism for assessing the independence of the board, which is reviewed at least annually, and has confirmed its effective implementation as of December 31, 2024[138]. - The company has insurance in place to indemnify directors and senior management against losses and liabilities incurred in the performance of their duties[138]. Risk Management - The group faces significant risks due to the uncertain U.S.-China trade relations, which may adversely affect sales demand and overall business performance[67]. - The company emphasized the importance of risk management and internal control effectiveness, reviewing related systems and procedures[146]. - The audit committee engaged Amba Partners Corporate Services Limited to review the adequacy and effectiveness of the group's risk management and internal control systems for the year ending December 31, 2024, with no significant discrepancies identified[170]. - The company has implemented various policies to manage and monitor environmental and social-related operational risks[191]. Shareholder Engagement and Communication - The company has established a communication policy to enhance engagement with shareholders and stakeholders, which is reviewed annually by the board[183]. - The company’s website serves as a channel for shareholders and potential investors to access corporate information and updates[183]. - The company will continue to ensure effective communication and maintain good relationships with key stakeholders[200]. Social Responsibility and Community Engagement - The company has been involved in various educational initiatives, including scholarships and awards, reflecting its commitment to social responsibility and community development[48]. - The company made charitable donations of approximately HKD 3,000 during the year, down from HKD 16,000 in the previous year[79]. - The company is committed to sustainable development strategies that incorporate environmental and social factors into management considerations[191].
德宝集团控股(08436) - 2024 - 年度业绩