Financial Performance - Revenue for the year ended December 31, 2024, was HKD 186.9 million, a decrease of 13.3% from HKD 215.6 million in 2023[14]. - Gross profit for the same period was HKD 59.6 million, down 21.0% from HKD 75.4 million in 2023, resulting in a gross margin of 31.8%[14]. - Net profit decreased by 55.8% to HKD 6.5 million compared to HKD 14.7 million in 2023, with earnings per share dropping to HKD 1.6 from HKD 3.7[14]. - The company's revenue for the year ended December 31, 2024, was approximately HKD 186.9 million, a decrease of about 13.3% compared to the previous year[18]. - Gross profit for the same period was approximately HKD 59.6 million, down approximately 21.0%, with a gross margin decline from about 35.0% to approximately 31.8%[18]. - Profit attributable to equity holders was approximately HKD 6.5 million, representing a decrease of about 55.8% year-on-year[19]. Market Focus and Strategy - Sales to the UK market increased significantly from 22.9% in 2023 to 45.1% in 2024, highlighting a strategic focus on the European market[8]. - Beauty products accounted for 82.2% of total revenue in 2024, down from 85.3% in 2023, while cosmetic bags increased their share to 17.8%[16]. - Future outlook indicates continued focus on innovative product development and expansion into new regions, particularly Europe[15]. - The company acknowledges the importance of sustainability for Gen Z and millennials, recognizing their potential market impact[15]. - The global business environment remains uncertain and challenging, influenced by import tariffs and high interest rates[12]. - The company is focused on sustainable profit growth while considering business development needs and financial stability for shareholder returns[62]. Cost Management and Operational Efficiency - The company is prioritizing cost control measures and comprehensive risk management strategies to enhance operational efficiency[8]. - Administrative expenses decreased by approximately 5.9% to about HKD 45.9 million, primarily due to reduced bonuses paid to employees and directors[20]. - Sales and distribution expenses decreased by approximately 14.1% to about HKD 14.6 million, mainly due to lower shipping and freight costs[21]. - The total employee cost for the year was approximately HKD 34.3 million, down from HKD 37.3 million in the previous year, mainly due to reduced bonuses[32]. Governance and Management - The company has appointed Ms. Chan as the General Manager and Executive Director, overseeing daily operations including sales, marketing, and business development since 2017[38]. - The company has expanded its board with the appointment of independent non-executive director Mr. Chan, who has extensive experience in financial technology and corporate governance[41]. - The company is committed to maintaining high standards of corporate governance and compliance[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[122]. - The company has established a governance framework based on GEM Listing Rules, emphasizing the importance of corporate governance for effective management[117]. Risk Management - The company faces risks related to U.S.-China trade relations, which could significantly impact sales demand and overall business performance[63]. - The audit committee reviewed the effectiveness of the company's risk management and internal control systems[142]. - The company has implemented anti-fraud and anti-bribery policies to maintain a culture of integrity and prevent corruption[165]. - The company will conduct an annual review of its risk management and internal control systems to ensure their effectiveness[168]. Shareholder Engagement and Communication - The company has implemented a communication policy to enhance engagement with shareholders and stakeholders, with annual reviews of its effectiveness[179]. - The company has established multiple communication channels with key stakeholders, including government, shareholders, employees, and customers[197]. - The company will continue to ensure effective communication and maintain good relationships with its key stakeholders[196]. - The company emphasizes the importance of maintaining employee rights and providing a safe and healthy work environment[199]. Corporate Social Responsibility - The company is actively involved in public service and charitable activities, enhancing its corporate social responsibility profile[44]. - The company engages with the community by providing job opportunities to local individuals and donating products to the community[200]. - The company has made charitable donations of approximately HKD 3,000 during the year, down from HKD 16,000 the previous year[75]. Future Outlook - The company is committed to innovation in product development and market expansion strategies to drive future growth[39][43]. - The company is exploring new strategies for market expansion and product development[48]. - The company emphasizes the importance of sustainable development strategies to achieve business excellence and long-term competitiveness[187].
德宝集团控股(08436) - 2024 - 年度财报