Financial Performance - The company's revenue decreased by 14.3% year-on-year to HKD 106.4 million, while the profit attributable to shareholders fell by 51.6% to HKD 5.7 million[8]. - The company recorded revenue of approximately HKD 106,360,000, a decrease of 14.3% year-on-year (previous year: HKD 124,041,000) due to reduced demand for printed documents and a continued decline in IPO activities[14]. - Printing services revenue decreased by 17.6% to approximately HKD 53,510,000 (previous year: HKD 64,911,000), while translation services revenue decreased by 8.9% to approximately HKD 43,583,000 (previous year: HKD 47,854,000)[14]. - The company's gross profit decreased by 11.3% to approximately HKD 56,068,000 (previous year: HKD 63,246,000), with a gross profit margin increasing to 52.7% (previous year: 51.0%) due to strict cost control measures[15]. - The company's net profit for the year was approximately HKD 5,669,000, a decrease of 51.6% year-on-year (previous year: HKD 11,714,000), with a net profit margin decreasing by 4.1 percentage points to 5.3% (previous year: 9.4%)[20]. - Total revenue for the year ended December 31, 2024, was HKD 106,360,000, a decrease of 14.4% compared to HKD 124,041,000 in 2023[186]. - Gross profit for 2024 was HKD 56,068,000, down from HKD 63,246,000 in 2023, reflecting a decline of 11.4%[186]. - The net profit attributable to the company's owners for 2024 was HKD 5,669,000, a significant decrease of 51.6% from HKD 11,714,000 in 2023[186]. Market Conditions - The Hong Kong capital market saw a significant recovery in the latter part of the year, with the Hang Seng Index rising by 18% and total fundraising from IPOs increasing by 89% year-on-year to HKD 87.5 billion[8][12]. - The number of new listings in Hong Kong was 71, slightly down from 73 in the previous year, indicating that several large companies dominated the IPO market[8]. - The company anticipates ongoing challenges in the financial printing business due to the transition to paperless listings, with further reforms expected in January 2025[9][12]. - The company expects an improvement in overall liquidity in the Hong Kong capital market due to the Chinese government's economic stimulus policies[37]. - The company predicts an increase in the number of IPOs and capital market transactions in 2025[37]. Operational Efficiency - The company has implemented strict controls on sales, distribution, and administrative expenses to improve operational efficiency and safeguard profitability[12]. - The company maintained cash and bank balances of approximately HKD 55,298,000 as of December 31, 2024, compared to HKD 54,231,000 in the previous year, indicating stable liquidity[22]. - The total lease liabilities increased to approximately HKD 36,419,000 (previous year: HKD 8,545,000), resulting in a capital-to-debt ratio of 0.46 (previous year: 0.12) due to new lease agreements for office properties[22]. - Capital expenditures for the year were approximately HKD 272,000, an increase from HKD 135,000 in the previous year, with no significant capital commitments as of December 31, 2024[23]. Corporate Governance - The company emphasizes the importance of effective risk management and internal control systems for long-term sustainable development[29]. - The risk management framework includes a three-tier approach to identify, assess, mitigate, and respond to risks, with business units as the first line of defense[30]. - The company has established an audit committee, remuneration committee, and nomination committee, ensuring effective corporate governance and risk management[50]. - The board has been closely monitoring the implementation of corporate governance practices, risk management, and internal control systems to align corporate values with company culture[51]. - The company has adopted the principles and code provisions of the corporate governance code as per the listing rules, ensuring prudent regulation of business activities and decision-making processes[49]. - The board is committed to maintaining good corporate governance to provide a framework for decision-making and to create long-term sustainable growth for shareholders[50]. - The board consists of five directors, including three independent non-executive directors, promoting critical review and monitoring of management processes[71]. - The board has implemented mechanisms to ensure independent viewpoints are considered in decision-making processes[59]. Employee and Social Responsibility - The company has a strong focus on ethical and responsible conduct, promoting a culture of integrity among all directors[50]. - The company has engaged in various employee activities to promote a balanced work-life environment, including Christmas parties and casual dress days[163]. - The group aims to provide a safe and healthy working environment for employees, reflecting its commitment to corporate social responsibility[163]. - The company has established a zero-tolerance policy towards corruption, applicable to all employees and business levels[103]. - The company has implemented a code of conduct and compliance manual applicable to employees and directors[93]. Shareholder Information - The company plans to hold its annual general meeting on April 17, 2024, to discuss key business matters with shareholders[66]. - The company has a mechanism in place for shareholders to request a special general meeting if they hold at least 10% of the paid-up capital[106]. - The company has not declared any interim dividends for the year ending March 6, 2025[130]. - The company declared a final dividend of HKD 0.15 per share for the year 2023, totaling HKD 38,400,000 paid on May 12, 2023[131]. - The company has not made any charitable donations during the year, consistent with the previous year[138]. Financial Position - The company's total equity increased to HKD 79,733,000 in 2024, up from HKD 72,754,000 in 2023, reflecting a growth of 9.1%[187]. - The company’s cash and cash equivalents increased to HKD 55,298,000 in 2024 from HKD 36,220,000 in 2023, a growth of 52.7%[187]. - The group reported a net trade receivables balance of approximately HKD 21,862,000, with an expected credit loss provision of about HKD 2,920,000 for the year[173]. - The expected credit loss provision increased from HKD 2,759,000 in the previous year, indicating a rise in credit risk assessment[173]. - The independent auditor has reviewed the consolidated financial statements and found them to be fairly presented in accordance with Hong Kong Financial Reporting Standards[167].
REF HOLDINGS(01631) - 2024 - 年度财报