Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 1,075,732, a decrease of 21.1% compared to HKD 1,362,732 in 2023[3] - Gross profit for the year was HKD 149,463, down 18.6% from HKD 183,725 in the previous year[3] - The net profit attributable to shareholders for the year was HKD 45,219, representing a decline of 33.4% from HKD 67,871 in 2023[3] - Basic earnings per share decreased to HKD 9.02, down from HKD 13.54 in the previous year, reflecting a 33.4% drop[3] - Total comprehensive income for the year was HKD 72,406, an increase of 15.3% compared to HKD 62,768 in 2023, driven by revaluation gains[4] - Adjusted EBITDA for 2024 is HKD 63,850,000, down 29.0% from HKD 89,913,000 in 2023[14] - The net profit for the fiscal year 2024 was HK$45,219,000, down about 33.38% from HK$67,871,000 in the fiscal year 2023[35] - Basic earnings per share for fiscal year 2024 were HK$0.0902, compared to HK$0.1354 in fiscal year 2023[35] - The group reported a total tax expense of HKD 8,924,000 for 2024, compared to HKD 10,627,000 in 2023[18] Assets and Liabilities - Non-current assets increased to HKD 166,614 from HKD 129,095 in 2023, marking a growth of 29.1%[5] - Current assets decreased to HKD 713,630 from HKD 761,955, a decline of 6.3%[5] - Total assets as of December 31, 2024, are HKD 877,608,000, a slight decrease from HKD 885,964,000 in 2023[15] - Total liabilities as of December 31, 2024, are HKD (201,565,000), improved from HKD (215,764,000) in 2023[15] - The company's total equity increased slightly to HKD 675,762 from HKD 673,541, reflecting a growth of 0.3%[5] Revenue Sources - Major customer A contributed HKD 310,902,000 in 2024, up from HKD 261,243,000 in 2023[16] - Major customer B generated HKD 240,839,000 in 2024, a decrease from HKD 247,606,000 in 2023[16] Costs and Expenses - The cost of goods sold for 2024 is HKD 927,604,000, down from HKD 1,153,330,000 in 2023[19] - Employee costs for 2024 total HKD 241,761,000, slightly down from HKD 242,236,000 in 2023[19] - The cost of inventory was approximately HK$193,627,000 for the year 2024, compared to HK$196,331,000 in 2023[21] - Product development costs were around HK$29,693,000 for 2024, an increase from HK$27,539,000 in 2023[21] Cash Flow and Dividends - In the fiscal year 2024, the operating cash generated was HKD 77,239,000, with a net cash and cash equivalents balance of HKD 349,130,000 at the end of the fiscal year[36] - The cash dividend proposed for the fiscal year 2024 is HKD 0.02 per share, down from HKD 0.04 per share in 2023, and a special dividend of HKD 0.06 per share, unchanged from 2023[41] - The company declared an interim dividend of HK$0.04 per share for 2024, up from HK$0.03 per share in 2023[22] Operational Insights - The company continues to focus on expanding its operations in the home appliance sector, primarily in China, with ongoing investments in manufacturing facilities[8] - The group invested HKD 37,931,000 in new injection molding machines and precision laboratory testing equipment, compared to HKD 40,505,000 in the fiscal year 2023[37] - The company will continue to invest in computerized production and has integrated its enterprise resource planning system with Microsoft Power BI for detailed financial analysis, aiming to unlock operational potential and manage working capital more effectively[49] Risk Management and Compliance - The group has taken crisis risk management measures following severe flooding in 2023, with no damages reported in 2024[39] - The group has maintained its status as a high-tech enterprise in China, which allows for a lower profit tax rate and tax incentives from the government[37] - The group successfully obtained ISO 27001 certification, demonstrating satisfactory cybersecurity measures to protect data privacy[38] - The company remains compliant with the corporate governance code as per the Hong Kong Stock Exchange listing rules[54] - The audit committee reviewed the company's accounting principles and internal controls for the fiscal year ending December 31, 2024[57] Future Outlook - The company anticipates significant challenges in the second half of 2024 due to geopolitical tensions and economic instability, with a focus on innovation and market segmentation to develop differentiated new products by 2025[48] - The workforce includes approximately 19 employees in Hong Kong and between 531 to 569 employees in factories in China, with a total of about 1,596 to 2,058 workers directly or indirectly employed[50] Meetings and Governance - The annual general meeting is scheduled for May 20, 2025, at the InterContinental Hotel in Tsim Sha Tsui, Hong Kong[60] - No significant acquisitions or disposals of subsidiaries or associates were reported for the year ending December 31, 2024[53]
利民实业(00229) - 2024 - 年度业绩