Financial Performance - Total revenue for the year ending December 31, 2024, increased by approximately 31.8% to HKD 214.7 million, compared to HKD 162.9 million for the year ending December 31, 2023[2] - The net loss attributable to the company for the year ending December 31, 2024, was approximately HKD 35.0 million, an improvement from a net loss of approximately HKD 37.8 million for the year ending December 31, 2023[2] - Basic loss per share for the year ending December 31, 2024, was HKD 5.46, compared to HKD 5.91 for the year ending December 31, 2023[2] - Gross profit for the year ending December 31, 2024, was HKD 33.4 million, up from HKD 21.7 million for the previous year[4] - The company reported a loss before tax of HKD 36.3 million for the year ending December 31, 2024, compared to a loss of HKD 43.3 million for the previous year[4] - The total pre-tax loss for the group was HKD 36,349,000, compared to a loss of HKD 43,268,000 in 2023, showing a reduction in losses[18] Revenue Breakdown - The sales of elastic denim fabric amounted to HKD 185,840,000, up from HKD 139,950,000 in the previous year, indicating a growth of 32.8%[20] - Revenue from property renovation services was HKD 11,425,000, with no revenue reported in the previous year[20] - The geographical revenue breakdown shows that revenue from Malaysia was HKD 54,564,000, up from HKD 42,128,000 in 2023, reflecting a growth of 29.4%[19] - Revenue from mainland China increased to HKD 53,788,000 from HKD 26,936,000, marking a significant growth of 99.5%[19] - The total revenue from customer contracts for the year was HKD 214,670,000, compared to HKD 162,884,000 in the previous year, indicating overall growth[20] Expenses and Costs - Other income for the year ending December 31, 2024, was HKD 3.2 million, compared to HKD 3.8 million for the year ending December 31, 2023[4] - Administrative expenses for the year ending December 31, 2024, were HKD 46.1 million, slightly higher than HKD 44.8 million for the previous year[4] - Research and development expenses for the year ending December 31, 2024, were HKD 7.5 million, compared to HKD 8.1 million for the year ending December 31, 2023[4] - Total employee benefits expenses for the year ended December 31, 2024, were HKD 52,253,000, compared to HKD 47,173,000 for the year ended December 31, 2023, representing an increase of about 10.4%[23] - The depreciation expense for property, plant, and equipment was HKD 8,693,000 for the year ended December 31, 2024, compared to HKD 9,613,000 for the year ended December 31, 2023, indicating a decrease of approximately 9.6%[23] Assets and Liabilities - Non-current assets totaled HKD 143.537 billion as of December 31, 2024, compared to HKD 152.572 billion in 2023, representing a decrease of approximately 5.4%[5] - Current assets amounted to HKD 188.168 billion, slightly down from HKD 190.611 billion in the previous year, indicating a decrease of about 1.3%[5] - Total liabilities for current liabilities were HKD 77.935 billion, a significant increase from HKD 58.583 billion, reflecting an increase of approximately 33%[5] - The net value of current assets was HKD 110.233 billion, compared to HKD 132.028 billion in 2023, showing a decline of around 16.5%[5] - The total asset value after deducting current liabilities was HKD 253.770 billion, down from HKD 284.600 billion, indicating a decrease of about 10.8%[5] Equity and Capital Structure - The company reported a total equity of HKD 275.672 billion, an increase from HKD 240.722 billion, representing a growth of approximately 14.5%[6] - The debt-to-equity ratio increased from 11.76% in 2023 to 15.95% in the current year, primarily due to obtaining lower interest loans from a bank in mainland China[37] - The group’s capital-to-debt ratio increased to 16.0% from 11.8% in 2023, reflecting a higher proportion of debt relative to equity[51] Strategic Initiatives - The company aims to improve its financial performance and reduce losses in the upcoming fiscal year[3] - The company continues to explore new product development and market expansion strategies to enhance revenue growth[3] - The company plans to explore market expansion opportunities and potential mergers and acquisitions to enhance its competitive position[8] - The group is actively expanding its customer base and solidifying market position, with stable orders from major brand owners in the U.S. and significant growth from smaller quality brands[38] - The group plans to develop sustainable functional denim products using certified recycled materials and organic cotton yarns to maintain competitiveness and align with market trends[46] Compliance and Governance - The consolidated financial statements are prepared based on the Hong Kong Financial Reporting Standards and presented in Hong Kong dollars (HKD) with all values rounded to the nearest thousand[9] - The functional currency of the company is US dollars (USD) as the group's sales activities are primarily denominated in USD[9] - The group has adopted revised Hong Kong Financial Reporting Standards for the current financial year, which do not impact the financial position or performance[14] - The company confirms compliance with the corporate governance code as of December 31, 2024[60] - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements for the year ended December 31, 2024[62] Future Outlook - Management remains cautiously optimistic about performance in the new fiscal year, anticipating significant growth in the U.S. market starting in 2025[42] - The group plans to further expand production capacity in Vietnam, establishing a comprehensive vertical production line to meet the needs of brand owners adopting the "China Plus One" strategy[43] - A new production line was established in collaboration with a Vietnamese contractor, enhancing operational flexibility and meeting diverse customer needs[39]
兴纺控股(01968) - 2024 - 年度业绩