Financial Performance - The total revenue for the year ended December 31, 2024, was HKD 66,713,000, a decrease of 48.3% compared to HKD 129,159,000 in 2023[2] - The gross profit for the year was HKD 368,000, down 83.2% from HKD 2,192,000 in the previous year[2] - The operating loss increased to HKD 160,679,000 from HKD 96,236,000, representing a 67.0% increase year-over-year[2] - The net loss attributable to the owners of the company was HKD 142,893,000, compared to HKD 89,726,000 in 2023, reflecting a 59.4% increase in losses[3] - Total comprehensive expenses for the year amounted to HKD 184,258,000, up from HKD 113,044,000, indicating a 63.0% increase[3] - The total reported segment loss for fiscal year 2024 was HKD 142,106,000, compared to a loss of HKD 79,087,000 in fiscal year 2023, indicating a significant increase in losses[14] - The group incurred a comprehensive loss of HKD 163,587,000 for fiscal year 2024, compared to a loss of HKD 101,013,000 in fiscal year 2023, representing a 62.0% increase in losses[14] - Other losses and net income for the year amounted to a loss of HKD 27,332,000, mainly due to impairment losses of HKD 19,250,000 on properties, plants, and equipment[38] Assets and Liabilities - Non-current assets decreased to HKD 152,597,000 from HKD 264,594,000, a decline of 42.3%[4] - Current liabilities decreased to HKD 302,467,000 from HKD 361,126,000, a reduction of 16.2%[4] - The company's total equity decreased to HKD 112,918,000 from HKD 227,521,000, a decline of 50.5%[5] - The total assets for the reported segments decreased to HKD 410,548,000 in fiscal year 2024 from HKD 597,564,000 in fiscal year 2023, reflecting a decline of 31.2%[14] - The total liabilities for the reported segments also decreased to HKD 223,955,000 in fiscal year 2024 from HKD 273,007,000 in fiscal year 2023, a reduction of 18.0%[14] - Trade receivables decreased from HKD 30,239 thousand in 2023 to HKD 18,277 thousand in 2024, with a provision for impairment of HKD 2,067 thousand in 2023 and HKD 2,252 thousand in 2024[23][26] - Trade payables decreased from HKD 77,795 thousand in 2023 to HKD 58,635 thousand in 2024, indicating improved cash flow management[28] - Total contract liabilities decreased to HKD 419,000 in 2024 from HKD 3,541,000 in 2023, reflecting a significant reduction[29] - Other borrowings decreased to HKD 30,965,000 in 2024 from HKD 48,113,000 in 2023, indicating improved financial management[30] Revenue Sources and Market Dynamics - The group's revenue from lithium-ion battery products for the fiscal year 2024 was HKD 66,713,000, a decrease of 48.3% compared to HKD 129,159,000 in fiscal year 2023[11] - Total revenue for the group is derived entirely from China, with one customer accounting for over 10% of total revenue in 2024[15] - The lithium-ion battery market experienced a price drop of approximately 20% in 2024 due to increased industry competition and market dynamics[31] - The production and sales volume in the new energy vehicle market grew by about 35% in 2024, despite a 10% decrease in vehicle prices[31] - Raw material prices for lithium-ion battery products decreased by 18-30% throughout the year, benefiting manufacturers but intensifying competition[32] - The lithium-ion battery production market in China is expected to see capacity increases and technological advancements in 2025, reshaping competitive dynamics[36] - The group's revenue from lithium-ion battery business decreased from HKD 129,159,000 to HKD 66,713,000, primarily due to market deterioration[37] Research and Development - The company has invested significant resources in R&D to enhance the quality and stability of lithium-ion batteries in response to new industry standards[33] - Research and development expenses decreased from HKD 24,351 thousand in 2023 to HKD 15,092 thousand in 2024, reflecting a strategic shift in investment priorities[18] Corporate Governance and Management - The company has not provided specific guidance for future performance or new product developments in the conference call[2] - The company plans to consider market expansion and strategic partnerships to create greater value for shareholders in the new energy market[36] - The company will continue to enhance its corporate governance practices to ensure proper management of business activities and decision-making processes[59] - The audit committee reviewed the accounting principles and practices adopted by the group and discussed risk management and internal control systems[61] - The company confirmed compliance with the corporate governance code, except for the absence of two executive directors at the annual general meeting on June 21, 2024[58][59] - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[64] Financial Management and Future Plans - The company raised approximately HKD 59.3 million through a rights issue, with net proceeds of about HKD 57.9 million allocated for various operational needs[49] - The company plans to use the raised funds for improving existing facilities, including purchasing and upgrading machinery, and for general working capital[50] - The company plans to adopt new accounting standards effective from January 1, 2024, which may impact future financial reporting[8] - The company entered into a subscription agreement on September 20, 2024, to issue 120,000,000 subscription shares at a price of HKD 0.10 per share, raising approximately HKD 11,740,000 after expenses[52] - The company plans to use the net proceeds to support operations for approximately four months at its Hong Kong headquarters and production base in China[52] Employee and Operational Changes - Total employee costs for the year were HKD 24,864,000, down from HKD 31,129,000 in 2023, with a significant reduction in the number of employees from 294 to 123[44] - Administrative expenses increased from HKD 117,525,000 to HKD 129,468,000, driven by depreciation of HKD 64,382,000 and employee costs of HKD 18,246,000[40] - The group has not recognized any government grants in fiscal year 2024, compared to HKD 63,000 in fiscal year 2023[11] - The company has no significant contingent liabilities as of December 31, 2024[46] - Management has identified low foreign exchange risk due to transactions being primarily denominated in RMB, despite some exposure in HKD[45] Shareholder Actions - The group did not recommend any dividend payment for the year ending December 31, 2024, consistent with the previous year[20] - Basic and diluted loss per share for the year ended December 31, 2024, was HKD 0.6954, compared to HKD 0.6048 in 2023, with no recommendation for a final dividend due to funding needs for lithium-ion battery business development[42] - A special shareholders' meeting on December 13, 2024, approved a share consolidation, capital reduction, and split, effective December 17, 2024[53][54] - The share consolidation will merge every ten existing shares of HKD 0.1 into one share of HKD 1.0, followed by a capital reduction to HKD 0.1 per share[56] - The company has not engaged in any purchase, sale, or redemption of its listed securities as of December 31, 2024[57]
天臣控股(01201) - 2024 - 年度业绩