Financial Performance - The financial year ended 31 December 2024, with the annual report presented to shareholders[17] - The company reported a consolidated profit of HK$XX million, representing a YY% increase compared to the previous year[9] - For the year ended December 31, 2024, the Group's total revenue was HK$721.1 million, a decrease of HK$7.8 million or 1.1% compared to HK$728.9 million for the year ended December 31, 2023[49] - Gross profit for the year ended December 31, 2024, was HK$246.0 million, an increase of HK$5.4 million or 2.2% from HK$240.6 million for the year ended December 31, 2023[51] - The Group's profit for the year increased by HK$10.4 million, or 21.4%, from HK$48.7 million for the year ended 31 December 2023 to HK$59.1 million for the year ended 31 December 2024[63] - The Group's net profit margin increased from 6.7% for the year ended 31 December 2023 to 8.2% for the year ended 31 December 2024[68] Revenue Breakdown - Revenue generated in Hong Kong increased by HK$11.4 million, or 2.3%, from HK$492.3 million in 2023 to HK$503.7 million in 2024[34] - Revenue generated in Mainland China decreased by HK$18.8 million, or 8.6%, from HK$219.3 million in 2023 to HK$200.5 million in 2024[35] - Revenue from other markets slightly decreased by HK$0.4 million, or 2.3%, from HK$17.3 million in 2023 to HK$16.9 million in 2024[36] - Revenue from Hong Kong increased by HK$11.4 million or 2.3% to HK$503.7 million for the year ended December 31, 2024, driven by higher sales of coffee, tea, and dairy products[38] - Revenue from Mainland China decreased by HK$18.8 million or 8.6% to HK$200.5 million for the year ended December 31, 2024, primarily due to reduced sales of tea and instant products[39] Cost Management - The Group's cost of sales decreased by HK$13.2 million or 2.7% to HK$475.2 million for the year ended December 31, 2024, attributed to lower procurement costs of various raw materials[50] - General and administrative expenses increased by HK$1.5 million or 1.9% to HK$80.8 million for the year ended December 31, 2024, primarily due to higher staff costs[59] - Financing costs increased by HK$0.8 million or 80.0% to HK$1.8 million for the year ended December 31, 2024, mainly due to increased lease liabilities[66] - Tax expenses increased by HK$4.7 million or 45.6% to HK$15.0 million for the year ended December 31, 2024, resulting in an effective tax rate increase from 17.5% to 20.2%[67] Strategic Initiatives - The company anticipates a revenue growth of BB% for the upcoming financial year, driven by new product launches and market expansion[9] - Research and development efforts have led to the introduction of CC new products, enhancing the company's competitive edge[9] - The company is exploring strategic acquisitions to bolster its market presence and diversify its product offerings[9] - The Group plans to strengthen its cost management framework while maximizing the operational benefits of the new coffee production line[24] - The Group will focus on optimizing production capabilities, enhancing operational efficiency, and exploring growth opportunities in Hong Kong and Mainland China[44] Market Conditions - Coffee bean prices increased from US$1.90 per lb to US$3.20 per lb, representing a 68% rise during 2024[18] - The Group anticipates significant challenges in 2025 due to high global coffee commodity prices and market volatility, requiring careful navigation of the business landscape[42] - The Hong Kong food service market experienced a marginal decline of approximately 0.1% in overall sales, yet the Group maintained its leading position in the B2B coffee market[30] - The group adopted a prudent approach to market expansion in the PRC, focusing on enhanced credit risk management and strict oversight of accounts receivable[31] Governance and Management - The company emphasizes high standards of corporate governance, focusing on transparency, independence, accountability, and fairness[129] - The company recognizes the importance of integrity and ethical conduct, which are essential for long-term growth and sustainability[130] - The Board comprises eight directors, including three executive directors, two non-executive directors, and three independent non-executive directors[144] - The Company has mechanisms in place for Directors to seek independent professional advice at the Company's expense to ensure they can fulfill their duties[165] - The Company has established effective mechanisms to ensure independent views and input are available to the Board[149] Board Diversity and Composition - Independent non-executive directors represent 37.5% of the Board, exceeding the Listing Rules requirement of one-third[146] - The Board has adopted a Board Diversity Policy, reviewed annually, to enhance diversity in terms of gender, age, cultural background, and professional experience[151] - The Board's diversity policy, adopted in May 2018, emphasizes the importance of various factors such as gender, culture, and professional experience in board composition[156] - As of December 31, 2024, the gender ratio in the workforce is 59% male and 41% female, indicating a balanced gender diversity within the Group[160] Committees and Meetings - The Company has established a Remuneration Committee, an Audit Committee, and a Nomination Committee, with specific terms of reference for each[167] - The Audit Committee met three times in-person during the financial year 2024, with attendance records also available in the Annual Report[186] - The Remuneration Committee reviewed the remuneration policies, including KPI Policy, Performance Management Policy, Salary Review Policy, and Annual Performance Policy for the financial year 2024[180] - The Nomination Committee held one in-person meeting during the financial year of 2024[199] - The Committee is responsible for identifying measurable objectives for achieving board diversity and monitoring progress[197]
捷荣国际控股(02119) - 2024 - 年度财报