Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 113,869,000, representing a 20.9% increase from HKD 94,213,000 in 2023[4] - Gross profit decreased to HKD 15,697,000 in 2024 from HKD 22,405,000 in 2023, reflecting a decline of 30.1%[4] - Operating profit for the year was HKD 17,494,000, a significant recovery from an operating loss of HKD 7,066,000 in the previous year[4] - The net profit for the year was HKD 15,324,000, compared to a net loss of HKD 11,456,000 in 2023, marking a turnaround[4] - Basic and diluted earnings per share improved to HKD 1.90 from a loss of HKD 1.42 in the previous year[4] - Total comprehensive income for the year was HKD 5,514,000, recovering from a total comprehensive loss of HKD 11,558,000 in 2023[5] - The company reported a profit before tax of HKD 15,324,000 for 2024, compared to a loss of HKD 11,456,000 in 2023, marking a significant turnaround[17] - The profit attributable to equity holders for the year ended December 31, 2024, was approximately HKD 15,300,000, compared to a loss of HKD 11,500,000 in the same period last year[47] Revenue and Sales - The company reported a significant increase in sales of goods to HKD 111,139,000 in 2024 from HKD 83,109,000 in 2023, an increase of 33.7%[12] - Revenue from external customers in Asia (excluding China) increased to HKD 72,127,000 in 2024 from HKD 45,352,000 in 2023, representing a growth of 59.0%[21] - Revenue from major customers accounted for over 10% of total revenue, with Customer A contributing HKD 50,176,000 in 2024, a significant increase from HKD 10,588,000 in 2023[22] - The company's revenue increased by approximately 20.9% from about HKD 94,200,000 for the year ended December 31, 2023, to HKD 113,900,000 for the year ended December 31, 2024, primarily due to increased export sales to Japan[43] Expenses and Costs - The cost of goods sold increased to HKD 98,172,000 in 2024 from HKD 71,808,000 in 2023, reflecting a rise in operational expenses[6] - Sales and distribution expenses decreased to approximately HKD 4,700,000 for the year ended December 31, 2024, compared to HKD 7,700,000 for the previous year, due to lower marketing activity levels[45] - The group's administrative expenses for the year ended December 31, 2024, were approximately HKD 8,800,000, a decrease from HKD 22,400,000 for the year ended December 31, 2023, primarily due to the absence of impairment provisions and favorable foreign exchange gains[46] Assets and Liabilities - The company's total assets decreased to HKD 63,288,000 in 2024 from HKD 84,695,000 in 2023, a decline of 25.3%[6] - Current liabilities significantly reduced to HKD 14,150,000 in 2024 from HKD 72,620,000 in 2023, a decrease of 80.6%[6] - The company’s non-current assets in China were valued at HKD 96,698,000 in 2023, significantly higher than HKD 2,610,000 in 2024, indicating a strategic shift in asset allocation[21] - Trade payables decreased to HKD 7,304,000 in 2024 from HKD 9,914,000 in 2023, indicating improved cash flow management[25] - The company's cash and cash equivalents decreased to HKD 26,948,000 from HKD 33,510,000, a decline of 19.6%[6] - The group's cash and bank balances as of December 31, 2024, were HKD 26,900,000, down from HKD 33,500,000 in 2023, with no bank loans compared to HKD 53,800,000 in the previous year[49] - As of December 31, 2024, the company had no mortgaged assets, compared to approximately HKD 70,450,000 in mortgaged properties as of December 31, 2023[63] Dividends and Reserves - The company approved and distributed a special dividend of HKD 0.0751 per ordinary share for the year, compared to zero for the previous year[29] - The total reserves available for distribution to shareholders as of December 31, 2024, amounted to HKD 32,023,000, down from HKD 68,143,000 in the previous year[36] - The company did not recommend any final dividend for the year ending December 31, 2024, consistent with the previous year[75] - A special dividend of HKD 0.0751 per share was approved and paid during the year, with no dividends declared in the previous year[76] Strategic Focus and Market Development - The company is adjusting its business strategy to focus on developing overseas markets, particularly in the Middle East and Japan, in response to declining demand in the Chinese furniture market[42] - The company has successfully increased sales in Japan during the review period[42] - The company plans to enhance research and development and promote new products through exhibitions, focusing on overseas markets, particularly in Asia, Europe, and the United States[66] Financial Ratios and Management - The current ratio as of December 31, 2024, was approximately 4.5, significantly improved from 1.2 in 2023, indicating enhanced liquidity[49] - The group has maintained a debt-to-equity ratio of approximately 0.3 as of December 31, 2024, down from 0.7 in the previous year, reflecting a stronger financial position[49] - The company’s capital management strategy aims to ensure sustainability and maximize returns to shareholders through maintaining a robust capital ratio[37] Compliance and Risk Management - The group has complied with all relevant laws and regulations in both mainland China and Hong Kong, with no significant violations reported[52] - The management continuously monitors foreign exchange risks and considers hedging strategies when necessary, although the current foreign exchange risk is deemed minimal[56] - The group faces various operational risks, which are managed through established procedures and regular assessments by senior management[59] Corporate Governance - The company emphasizes the importance of corporate governance and has adhered to the corporate governance code as per the listing rules[68] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the year[77] Other Information - The company sold its subsidiary, Success Profit International Limited, for a total consideration of HKD 62,000,000, resulting in a net cash inflow of HKD 51,232,000 after related costs and cash balances were deducted[39][40] - The subsidiary contributed revenue of HKD 11,718,000 and a net loss of HKD 1,622,000 for the year ended December 31, 2024[41] - The company recorded a total sale gain of approximately HKD 13,900,000 after accounting for the exchange reserve of approximately HKD 9,600,000 from the sale of its wholly-owned subsidiary Success Profit International Limited[64] - There were no significant events after the reporting period[78] - The company had no significant capital commitments or contingent liabilities as of December 31, 2024, compared to HKD 88,279,000 as of December 31, 2023[65]
兴利(香港)控股(00396) - 2024 - 年度业绩