Financial Performance - Revenue from customer contracts for the year ended December 31, 2024, was HKD 753,555,000, a decrease of 7.3% from HKD 812,918,000 in 2023[4]. - The operating loss for the year was HKD 74,447,000 compared to an operating profit of HKD 76,318,000 in the previous year[4]. - The net loss attributable to equity holders of the company for the year was HKD 103,882,000, compared to a profit of HKD 51,175,000 in 2023[4]. - Total revenue from customer contracts for the year ending December 31, 2024, was HKD 753,555,000, a decrease from HKD 812,918,000 in 2023, representing a decline of approximately 7.3%[16]. - The company reported a basic and diluted loss per share of HKD 0.0432 compared to earnings per share of HKD 0.0214 in the previous year[4]. - The company reported a net loss attributable to equity holders of HKD 103,882 thousand in 2024, compared to a profit of HKD 51,175 thousand in 2023[26]. - The company incurred a net loss of HKD 99,996,000 for the fiscal year, compared to a profit of HKD 53,488,000 in the previous year, indicating a significant decline in profitability[49]. Assets and Liabilities - Total assets decreased to HKD 911,023,000 in 2024 from HKD 1,056,457,000 in 2023, reflecting a decline of approximately 13.8%[6]. - Current liabilities decreased to HKD 481,928,000 in 2024 from HKD 519,906,000 in 2023, a reduction of about 7.3%[6]. - The total equity of the company decreased to HKD 397,251,000 in 2024 from HKD 502,972,000 in 2023, a decrease of approximately 21%[7]. - The total liabilities increased to HKD 513,772,000 in 2024 from HKD 553,485,000 in 2023, showing a reduction of approximately 7.2%[16]. - Total non-current assets, excluding financial instruments and deferred tax assets, decreased from HKD 488,102 thousand in 2023 to HKD 396,260 thousand in 2024, representing a decline of approximately 18.8%[19]. - The total assets of the group as of December 31, 2024, were HKD 911,023,000, down from HKD 1,056,457,000 in 2023[69]. - The group's total liabilities amounted to HKD 513,772,000 as of December 31, 2024, compared to HKD 553,485,000 in 2023[69]. Cash Flow and Expenditures - The company's cash and cash equivalents decreased to HKD 163,857,000 in 2024 from HKD 198,111,000 in 2023, a decline of 17.2%[6]. - Capital expenditure for the year ending December 31, 2024, was HKD 76,121,000, compared to HKD 28,061,000 in 2023, indicating a significant increase in investment[16]. - Cash and cash equivalents decreased by HKD 34,254,000, primarily due to net cash generated from operating activities of HKD 103,637,000, offset by net cash outflows from investing and financing activities of HKD 137,891,000[50]. Segment Performance - Revenue from the security, insurance, and infrastructure segment was HKD 500,018,000 in 2024, down from HKD 572,533,000 in 2023, a decline of about 12.6%[16]. - The healthcare segment reported a revenue of HKD 16,423,000 in 2024, a decrease from HKD 18,628,000 in 2023, representing a decline of approximately 11.8%[16]. - The security division's revenue decreased by 4% to HKD 493,704,000 from HKD 515,503,000 in 2023, contributing approximately 66% of the company's total revenue[55]. - The infrastructure division recorded revenue of HKD 500,018,000, down from HKD 572,533,000 in 2023, with an operating profit of HKD 9,944,000 after impairment provisions[57]. - The insurance division reported a loss of HKD 818,000 compared to a profit of HKD 4,209,000 in 2023, with a pending sale of a 40% stake in a joint venture valued at HKD 51,480,000[56]. - The logistics division's revenue increased to HKD 225,587,000 from HKD 200,299,000 in 2023, but it incurred an operating loss of HKD 7,087,000[60]. - The healthcare division's revenue decreased to HKD 16,423,000 from HKD 18,628,000 in 2023, resulting in an operating loss of HKD 24,799,000[61]. Impairments and Provisions - The impairment provision for goodwill and other intangible assets was HKD 52,248,000 in 2024, up from HKD 40,544,000 in 2023[4]. - The company recognized a goodwill impairment of HKD 51,691 thousand in 2024, compared to HKD 26,174 thousand in 2023, indicating a significant increase in impairment charges[26]. - The company incurred other expenses totaling HKD 71,720 thousand in 2024, up from HKD 47,127 thousand in 2023, reflecting an increase of approximately 52.2%[23]. - The company’s financial and contract assets impairment provisions amounted to HKD 8,194,000, down from HKD 23,288,000 in the previous year[49]. - The group recorded a further impairment provision of HKD 8,194,000 for financial and contract assets as of December 31, 2024, compared to HKD 23,288,000 in 2023[62]. Shareholder Information - Average number of issued ordinary shares increased from 2,386,698,234 in 2023 to 2,403,385,881 in 2024[26]. - The net asset value per share, after deducting non-controlling interests, was HKD 0.11 as of December 31, 2024, down from HKD 0.16 in 2023[69]. - The board has proposed not to declare any dividends for the year ending December 31, 2024, consistent with the previous year[85]. - No repurchase of listed securities occurred during the year ending December 31, 2024, and the company did not hold any treasury shares[86]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the separation of roles between the chairman and CEO, following the resignation of the CEO on April 25, 2024[87]. - All directors have adhered to the standard code of conduct for securities trading during the year ending December 31, 2024[88]. - The financial statements for the year ending December 31, 2024, have been reviewed by the audit committee and are consistent with the audited financial reports[89]. - The audit committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[91]. Legal and Regulatory Matters - There are ongoing legal claims amounting to approximately $5.8 million (equivalent to HKD 45.5 million) related to a purchase agreement with Aircraft Engine Leasing Finance Inc., which the company believes are unfounded[77]. - A separate claim from a customer of the company's subsidiary in Shanghai amounts to RMB 28.7 million (equivalent to HKD 31.8 million), with a counterclaim of RMB 11.4 million (equivalent to HKD 12.7 million) being pursued[79]. - The company has made a provision of HKD 1.6 million for the potential claim from the Shanghai customer, based on legal advice regarding liability limits[80]. - The company has made an additional provision of HKD 3.356 million based on updated legal assessments regarding the Shanghai claims[81]. - The company has been placed on the U.S. export control list due to allegations of providing training to Chinese military pilots, which the board firmly denies[84]. Future Outlook and Strategy - The company expects that the adoption of new accounting standards will not have a significant impact on its financial position or operating performance[11]. - The company has no significant investments or acquisitions as of December 31, 2024, and is actively seeking new investment opportunities to expand its revenue base and improve profitability[74][76]. - The company has no specific future plans for significant capital investments or expenditures as of December 31, 2024, but continues to explore opportunities for growth[76]. - The company plans to close two underperforming cash-generating units and consolidate some of their operations into other units, leading to a full impairment of related goodwill[28]. - The group plans to streamline its existing fleet capacity in the aviation sector and expand service offerings by 2025[65].
先丰服务集团(00500) - 2024 - 年度业绩