Financial Performance - Revenue for the fiscal year ending December 31, 2024, decreased to approximately HKD 99.3 million from about HKD 165.0 million for the fiscal year ending December 31, 2023, representing a decline of approximately 40%[4] - Gross profit margin fell from approximately 52.8% in 2023 to about 8.7% in 2024, with gross profit decreasing from HKD 87.1 million to HKD 8.6 million[4] - The loss attributable to the company's owners for the fiscal year 2024 was approximately HKD 47.9 million, compared to a profit of about HKD 18.9 million in 2023[4] - Basic and diluted loss per share for 2024 was approximately HKD 0.1331, down from earnings of HKD 0.0530 per share in 2023[4] - The company reported a loss before tax of HKD 48,289,000 for 2024, compared to a profit of HKD 17,483,000 in 2023[21] - For the year ended December 31, 2024, the company reported a loss attributable to owners of HKD 47,938,000, compared to a profit of HKD 18,871,000 for 2023, resulting in a basic and diluted loss per share for 2024[25] - The company recorded a loss of approximately HKD 47.9 million in FY2024, compared to a profit of approximately HKD 18.9 million in FY2023[54] Assets and Liabilities - Non-current assets decreased from HKD 154.7 million in 2023 to HKD 87.4 million in 2024, primarily due to a reduction in goodwill and intangible assets[6] - Current assets decreased from HKD 501.3 million in 2023 to HKD 465.6 million in 2024, with inventory decreasing from HKD 324.8 million to HKD 288.1 million[6] - Total assets decreased to HKD 553,001,000 in 2024 from HKD 656,004,000 in 2023, reflecting a decline of approximately 15.7%[17] - Total liabilities increased from HKD 393.2 million in 2023 to HKD 409.9 million in 2024, with current liabilities remaining stable[6] - Total liabilities were HKD 451,096,000 in 2024, down from HKD 488,212,000 in 2023, indicating a reduction of about 7.6%[17] - The company's net asset value decreased from HKD 167.8 million in 2023 to HKD 101.9 million in 2024, reflecting a significant decline in reserves[7] Revenue Breakdown - Smartwatch segment revenue was HKD 38,008,000, down from HKD 111,983,000 in the previous year, representing a decline of 66%[21] - Revenue from external customers in China was HKD 81,884,000 in 2024, a decrease of 37.9% from HKD 131,849,000 in 2023[19] - Revenue from the Chinese market decreased by approximately 37.9% to about HKD 81.9 million, accounting for approximately 82.5% of total revenue in fiscal year 2024[40] - Revenue from the Hong Kong and Macau markets increased by approximately 100.5% to about HKD 11.2 million, accounting for approximately 11.3% of total revenue in fiscal year 2024[41] - Revenue from other markets, primarily in Europe, increased by approximately 62.7% to about HKD 3.4 million, accounting for approximately 3.4% of total revenue in fiscal year 2024[42] Expenses and Costs - The total cost of goods sold increased to HKD 90,656,000 in 2024 from HKD 77,932,000 in 2023, reflecting a rise of approximately 16.5%[21] - Sales cost increased by approximately 16.3% from about HKD 77.9 million in FY2023 to about HKD 90.7 million in FY2024[48] - Distribution expenses decreased by approximately 52.8% from about HKD 56.2 million in FY2023 to about HKD 26.5 million in FY2024[51] - Administrative expenses increased by approximately 19.0% from about HKD 50.4 million in FY2023 to about HKD 60.0 million in FY2024[52] Trade Receivables and Payables - The total trade receivables as of December 31, 2024, amounted to HKD 152,023,000, an increase of 8.9% from HKD 139,540,000 in 2023[26] - The impairment loss provision for trade receivables increased to HKD 17,058,000 in 2024 from HKD 14,115,000 in 2023, reflecting a rise in credit risk[28] - The company’s trade receivables aging analysis showed that receivables over 270 days increased significantly to HKD 78,867,000 in 2024 from HKD 39,590,000 in 2023[27] - Trade payables increased to HKD 49,225,000 in 2024 from HKD 37,231,000 in 2023, reflecting a growing obligation[34] Corporate Governance and Future Outlook - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[84] - The company has established a review committee to ensure compliance with the Hong Kong Stock Exchange's listing rules regarding independent non-executive director numbers[81] - The company plans to innovate traditional watch designs and improve inventory turnover to adapt to market changes[71] - The outlook for the watch industry in 2025 is expected to be challenging due to economic uncertainties and competition from smartwatches[70] - The company anticipates that the audited profit after tax for the year ending December 31, 2025, will also be less than HKD 30 million[33] Dividends - The board of directors has resolved not to recommend the payment of a final dividend for the fiscal year 2024, consistent with the previous year[4] - The company did not declare any dividends for the years ended December 31, 2024, and 2023[24] - The company will not recommend a final dividend for the fiscal year 2024, consistent with the previous year[87] Employee and Operational Changes - The total number of full-time employees increased by approximately 24.9% from 434 in FY2023 to 542 in FY2024, with total employee costs rising to about HKD 60.4 million[66] - The company emphasizes strict performance evaluations across sales departments, focusing on invoicing, collections, and profit metrics[83]
依波路(01856) - 2024 - 年度业绩