Financial Performance - The total revenue for the year ended December 31, 2024, was HKD 2,348,984,000, a decrease of 22.2% compared to HKD 3,019,120,000 in 2023[2] - The gross profit for the same period was HKD 1,134,963,000, down from HKD 1,298,063,000, reflecting a gross margin of approximately 48.3%[2] - The operating profit decreased to HKD 652,072,000 from HKD 757,257,000, representing a decline of 13.9%[2] - The net profit for the year was HKD 588,684,000, a decrease of 14.4% from HKD 687,365,000 in 2023[3] - Basic earnings per share for 2024 were HKD 28.94, down from HKD 33.82 in 2023, indicating a decline of 14.5%[3] - Profit attributable to equity holders of the company was HKD 587.5 million, down 14.4% from the previous year, with basic earnings per share at HKD 28.94 (2023: HKD 33.82)[25][22] - The company proposed a dividend of HKD 182,688,000, down from HKD 213,137,000 in the previous year, representing a decrease of 14.3%[3] - The company proposed a dividend of HKD 182.7 million for 2024, down from HKD 213.1 million in 2023, translating to HKD 0.09 per share (2023: HKD 0.105)[21] Assets and Liabilities - The total assets as of December 31, 2024, were HKD 4,174,001,000, a decrease from HKD 4,326,786,000 in 2023[5] - The total liabilities decreased to HKD 1,702,975,000 from HKD 2,180,565,000, reflecting a reduction of 21.9%[6] - The contract liabilities as of December 31, 2024, were HKD 134,229,000, significantly lower than HKD 392,756,000 in 2023[13] - Trade receivables increased to HKD 350.2 million in 2024 from HKD 315.0 million in 2023, with a notable rise in receivables within 30 days[23] - Trade payables rose to HKD 416.9 million in 2024, compared to HKD 390.5 million in 2023, with significant increases in payables within 30 days and 31 to 60 days[24] - The company held cash and cash equivalents of HKD 743.0 million as of December 31, 2024, down from HKD 1,107.5 million in 2023[32] - The company's net current assets were HKD 1,563.6 million as of December 31, 2024, compared to HKD 1,459.9 million in 2023[33] Income and Expenses - Total other income for 2024 was HKD 125.6 million, significantly up from HKD 69.1 million in 2023, driven by government grants of HKD 88.4 million[16] - Research and development costs recognized as expenses for the year amounted to HKD 447.6 million, an increase from HKD 421.4 million in 2023, primarily due to higher employee costs[17] - The net financing cost for 2024 was HKD 23.2 million, a decrease from HKD 20.8 million in 2023[18] - The company recorded a tax expense of HKD 45.1 million for 2024, a slight decrease from HKD 49.3 million in 2023[19] - Sales and marketing expenses were HKD 45.6 million, down from HKD 79.4 million in 2023, representing 1.9% of revenue compared to 2.6% the previous year[28] - Research and development costs rose to HKD 447.6 million, accounting for 19.1% of revenue, up from 14.0% in 2023[28] Market and Business Outlook - The company reported that nearly 100% of its revenue comes from the mainland China market, with over 90% of its non-current assets located in mainland China[15] - The company anticipates continued challenges in the smart card market due to increased competition and declining sales prices, but sees opportunities in the growing demand for security SE chips and main control chips[30] - The total sales volume for the integrated circuit design business decreased by 9.7% compared to the previous year, with a notable decline in SIM card and financial card chip sales due to market conditions[26] Corporate Governance - The board consists of two non-executive directors, two executive directors, and four independent non-executive directors[43] - The chairman of the board is Mr. Sun Jie, and the vice chairman and managing director is Mr. Chang Feng[43] - The company has a total of six board members, ensuring a diverse governance structure[43] - The independent non-executive directors include Mr. Chen Qichang, Mr. Qiu Hongsheng, Mr. Zou Canlin, and Ms. Huang Yaping[43] - The board composition reflects a balance between executive and non-executive oversight[43] - The company is committed to maintaining high standards of corporate governance through its board structure[43] - The presence of independent directors enhances the board's ability to make unbiased decisions[43] - The board's leadership is expected to drive strategic initiatives and company performance[43] - The governance framework aims to align the interests of shareholders and management[43] - The board is positioned to navigate future challenges and opportunities in the market[43] Employee Information - The company employed approximately 470 employees, with total employee benefits expenses amounting to HKD 352.6 million for the year[35] - The company plans to enhance its research and development efforts in security chips for mobile terminals, IoT, and vehicle networking applications[31]
中电华大科技(00085) - 2024 - 年度业绩