Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of HKD 8,095,338,000, a decrease of 6.85% from HKD 8,692,870,000 in 2023[2] - The company recorded a net loss of HKD 340,721,000 for the year, compared to a net loss of HKD 187,802,000 in the previous year, representing an increase in losses of 81.2%[3] - The group incurred a total loss of HKD 354,013,000 for the year ending December 31, 2024, compared to a loss of HKD 211,417,000 in the previous year, indicating a significant increase in losses[15] - The basic and diluted loss per share was HKD 130.03, compared to HKD 72.56 in the previous year, indicating a worsening financial position[2] - The group reported a loss of HKD 338.07 million for the year, compared to a loss of HKD 188.66 million in 2023, resulting in a basic loss per share based on 260 million shares issued[21] - The adjusted EBITDA for the group was a loss of HKD 246.7 million, increasing from a loss of HKD 157.8 million in 2023, primarily due to decreased revenue[40] - The group's adjusted EBITDA for 2024 was HKD (246,652) thousand, compared to HKD (157,811) thousand in 2023, indicating a decline in operational performance[43] Revenue Breakdown - Direct sales contributed HKD 7,619,076,000, with HKD 3,478,040,000 from Hong Kong and HKD 4,141,036,000 from Mainland China for the year ending December 31, 2024[10] - The company's Hong Kong business recorded a revenue decline of 9.5%, totaling HKD 3,746.0 million in 2024, compared to HKD 4,140.9 million in 2023[31] - The group's revenue for the year in mainland China was HKD 4,349.3 million, a decrease of 4.5% from HKD 4,552.0 million in 2023, with a recorded loss of HKD 65.9 million compared to a loss of HKD 61.5 million in 2023[33] - The overall revenue for the group decreased by 6.9% to HKD 8,095.3 million in 2024, down from HKD 8,692.9 million in 2023, with a gross profit margin reduction of 0.3% to 28.9%[39] Assets and Liabilities - Total assets less current liabilities amounted to HKD 2,529,350,000, an increase from HKD 2,409,776,000 in 2023[4] - The company's current liabilities net amount was HKD 1,199,273,000, indicating a significant financial burden[6] - The group’s total liabilities increased to HKD 3,045,539,000 from HKD 3,049,656,000, showing a slight decrease of 0.14%[4] - The net current liabilities as of December 31, 2024, amounted to HKD 1,199.3 million, an increase from HKD 683.7 million in 2023[41] - The group has a negative debt-to-equity ratio of -53.32% as of December 31, 2024, due to a loan of HKD 229.7 million from the ultimate holding company AEON Co., Ltd.[41] Cash Flow and Financial Support - The company's operating cash flow and lease liabilities showed a net outflow of HKD 447,630,000 as of December 31, 2024[6] - The group’s cash flow forecast indicates a need for continued support from its parent company, AEON Co., Ltd., including the extension of repayment for inter-company loans of HKD 229,659,000[7] - As of December 31, 2024, the group's cash and bank deposits reached HKD 830.6 million, down from HKD 1,149.6 million in 2023[41] - The group experienced a net cash outflow of HKD 447.6 million from operating activities and lease liabilities for the year ended December 31, 2024[51] Cost Management and Operational Efficiency - The company reported a decrease in employee costs to HKD 965,101,000 from HKD 1,013,050,000, a reduction of approximately 4.73%[2] - The total advertising, promotion, and selling expenses for 2024 were HKD 290.07 million, a slight decrease from HKD 295.98 million in 2023[6] - The total administrative expenses for 2024 were HKD 221.63 million, slightly down from HKD 224.66 million in 2023[6] - The group implemented cost control measures, reducing overall operating expenses through refined management and process optimization[30] - The group will optimize internal management and conduct a comprehensive review of existing systems to improve operational efficiency and productivity[35] Government Support and Subsidies - The group received government subsidies amounting to HKD 7,432,000 in 2024, a substantial increase from HKD 751,000 in 2023[17] - The group achieved a significant increase in government subsidies, rising by HKD 6.7 million to HKD 7.4 million in 2024, compared to HKD 0.7 million in 2023[39] Future Plans and Developments - The group plans to open 8 new stores in the Greater Bay Area in 2025, including independent supermarkets in Guangzhou, Foshan, Shenzhen, and Jiangmen[37] - The group aims to enhance its digital transformation, focusing on O2O integration to improve customer experience and reduce marketing costs[33] - The group will introduce smart loss prevention systems and smart shopping carts in select stores to enhance customer shopping experience and operational efficiency[36] - The group will continue to promote high-potential product categories and increase the sales composition of its own brands to strengthen market competitiveness[35] - The group plans to invest approximately HKD 256 million in capital expenditures for new store openings and renovations in 2025[38] Challenges and Market Conditions - The group faced significant external challenges, including weak external demand and rising geopolitical risks, impacting the retail sector in Hong Kong and mainland China[27] - The group confirmed that the application of revised Hong Kong Financial Reporting Standards did not have a significant impact on the financial position and performance for the current and prior periods[8] Employee and Operational Metrics - The group employed approximately 4,900 full-time and 3,900 part-time staff as of December 31, 2024, focusing on employee development and service quality[44] - The average settlement period for accounts receivable is 10 days, with HKD 28.73 million due within 30 days, down from HKD 46.12 million in 2023[23] Audit and Compliance - The audit committee reviewed the annual performance for the year ended December 31, 2024, in conjunction with management[48] - The company did not declare any final dividend for the year ending December 31, 2024, maintaining a zero dividend policy as in 2023[20]
永旺(00984) - 2024 - 年度业绩