Financial Performance - The company reported a turnaround from a loss of approximately HKD 25.9 million for the six months ended June 30, 2024, to a profit of approximately HKD 8.6 million for the fiscal year 2024, indicating strong business performance in the second half of the year[2]. - Revenue for the fiscal year 2024 decreased by approximately 13.2% to about HKD 1,007.5 million compared to the fiscal year 2023[2]. - Gross profit for the fiscal year 2024 decreased by approximately 18.4% to about HKD 187.5 million, with a gross margin decline of 1.2 percentage points to 18.6%[2]. - The company recorded a profit before tax of approximately HKD 7.3 million for the fiscal year 2024, down from approximately HKD 57.4 million in the fiscal year 2023[2]. - The profit attributable to the company's owners for the fiscal year 2024 was approximately HKD 8.6 million, compared to a profit of approximately HKD 47.1 million in the fiscal year 2023[2]. - Basic earnings per share for 2024 decreased to 0.86 HK cents from 4.71 HK cents in 2023, reflecting a decline in profit attributable to shareholders from 47,149,000 HKD to 8,558,000 HKD[23]. Assets and Liabilities - Total assets less current liabilities increased to HKD 560.8 million in fiscal year 2024 from HKD 509.9 million in fiscal year 2023[4]. - Non-current assets increased to HKD 243.6 million in fiscal year 2024 from HKD 179.9 million in fiscal year 2023[4]. - Cash and cash equivalents rose to HKD 141.1 million in fiscal year 2024 from HKD 60.9 million in fiscal year 2023[4]. - Trade receivables increased to 251,380,000 HKD in 2024 from 201,358,000 HKD in 2023, with net trade receivables at 249,090,000 HKD after accounting for impairment losses[26]. - Trade payables rose significantly to 174,487,000 HKD in 2024 from 102,959,000 HKD in 2023, indicating increased purchasing activity[28]. - Contract liabilities increased to 20,534,000 HKD in 2024 from 16,865,000 HKD in 2023, reflecting higher advance payments received from customers[29]. - The company's total borrowings amounted to 21,250,000 HKD in 2024, slightly up from 20,657,000 HKD in 2023, with a significant portion classified as current liabilities due to repayment terms[35]. Revenue Sources and Trends - Major customers contributing over 10% of total revenue included Customer A with HKD 320,481,000 (down 20.6% from HKD 403,793,000), Customer B with HKD 187,719,000 (up 42.4% from HKD 131,899,000), and Customer D with HKD 102,898,000 (down 45.0% from HKD 187,232,000)[15]. - Revenue from Europe was HKD 885,793,000, accounting for the majority of total revenue, down 14.3% from HKD 1,034,228,000 in 2023[16]. - The sales of smart vending systems and switch power supplies saw significant declines, with smart vending systems dropping by 21.4% and switch power supplies by 47.2%[44]. - Revenue from Europe and North America accounted for approximately 94.4% of total revenue in fiscal year 2024, with sales in Europe and North America decreasing by 14.4% and 22.2% respectively[47]. Expenses and Financial Management - The cost of goods sold was HKD 711,408,000, a decrease of 11.8% from HKD 806,564,000 in the previous year[18]. - The group's administrative expenses increased by approximately 10.0% to about HKD 165,200,000 in fiscal year 2024, primarily due to rising salaries and depreciation costs[53]. - The net financial expenses decreased to HKD 6,043,000 from HKD 9,837,000, reflecting a reduction in financial costs[19]. - Financial income rose approximately 274.8% from about HKD 1,300,000 in FY2023 to approximately HKD 5,000,000 in FY2024, driven by an increase in fixed deposits in banks[55]. - Financial expenses decreased by approximately 1.2% from about HKD 11,200,000 in FY2023 to approximately HKD 11,000,000 in FY2024, mainly due to reduced bank fees and interest expenses[56]. Corporate Governance and Leadership - The CEO has resigned, indicating potential changes in leadership and strategy moving forward[2]. - The board has proposed a final dividend of HKD 0.012 per share for the year ending December 31, 2024, pending shareholder approval[87]. - The company has complied with all corporate governance code provisions during the fiscal year 2024[92]. - The audit committee has reviewed the preliminary results announcement and financial statements for the year ended December 31, 2024, and found the internal control systems effective and adequate[94]. - The independent auditor has confirmed that the financial figures in the preliminary announcement align with the group's financial statements for the year[95]. Strategic Initiatives and Future Plans - The company plans to terminate the existing share option scheme and adopt a new share option scheme[2]. - The group strategically diversified into the renewable energy sector, including the establishment of three model electric vehicle charging stations in Kazakhstan[42]. - The group aims to leverage its technical expertise and operational efficiency to drive sustainable growth and enhance shareholder value despite the challenges faced[43]. - The company is actively expanding its new energy business in Kazakhstan, establishing electric vehicle charging stations at approximately 140 Sinooil gas stations[85]. - The company plans to expand its new energy business into Uzbekistan, focusing on building smart charging stations and producing electric autonomous heavy trucks[86]. - The company is enhancing its sales and marketing efforts to capitalize on strong demand driven by health awareness, digital transformation, and the global shift towards new energy[85]. - The group plans to allocate additional resources to enhance its sales and marketing strategies to capture emerging trends in Europe, the US, China, and other Asian markets[78].
致丰工业电子(01710) - 2024 - 年度业绩