Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 147,289,000, an increase of 3.5% compared to HKD 142,298,000 in 2023[2]. - Gross profit for the year was HKD 40,757,000, significantly up from HKD 21,595,000 in the previous year, representing an increase of 88.6%[2]. - The net loss for the year was HKD 41,410,000, a reduction of 29% from a net loss of HKD 58,267,000 in 2023[2][3]. - The basic and diluted loss per share improved to HKD 1.47 from HKD 1.88 in the previous year, reflecting a decrease of 21.8%[3]. - The company reported a total comprehensive loss of HKD 24,692,000 for the year, down from HKD 48,929,000 in 2023, indicating a 49.6% improvement[3]. - The total loss before tax for the fiscal year ending December 31, 2024, was 41,410 thousand HKD, which is an increase from a loss of 58,267 thousand HKD in the previous year, indicating an improvement in financial performance[16]. - Loss before tax decreased by approximately HKD 16,900,000 to about HKD 41,400,000 in 2024, down from HKD 58,300,000 in 2023[35]. - The net loss for the division decreased to approximately 28,100,000 HKD in 2024 from about 57,900,000 HKD in 2023, attributed to increased gross profit and reduced fair value losses on biological assets[46]. Assets and Liabilities - Total assets decreased to HKD 65,775,000 from HKD 86,071,000, a decline of 23.5% year-over-year[4]. - Total assets as of December 31, 2024, amounted to 65,775 thousand HKD, a decrease from 86,071 thousand HKD in the previous year, reflecting a reduction in asset base[19]. - The total liabilities as of December 31, 2024, were 1,192,528 thousand HKD, slightly up from 1,188,132 thousand HKD in the previous year, indicating a stable liability position[19]. - The company had issued 2,191,180,000 ordinary shares with a par value of HKD 0.1 each, and the attributable capital deficit was approximately HKD 908,600,000, compared to HKD 890,300,000 in 2023[50]. - Total borrowings as of December 31, 2024, amounted to approximately HKD 1,174,800,000, an increase from HKD 1,148,400,000 in 2023, with non-controlling interest payables at approximately HKD 631,300,000[51]. - Current liabilities remained relatively stable at HKD 1,168,501,000 compared to HKD 1,163,890,000 in 2023[4]. Operational Highlights - The ethanol business segment reported a loss of 1,794 thousand HKD for the fiscal year ending December 31, 2024, compared to a profit of 1,053 thousand HKD in the previous year, showing a significant decline in performance[16]. - The company incurred impairment losses on property, plant, and equipment amounting to 1,896 thousand HKD in 2024, compared to 1,179 thousand HKD in 2023, indicating increased asset write-downs[23]. - The expected credit loss on trade receivables for the fiscal year ending December 31, 2024, was a loss of 2,652 thousand HKD, a significant increase from a gain of 303 thousand HKD in the previous year[23]. - The company invested approximately HKD 4,231,000 in property, plant, and equipment during the year, compared to HKD 2,252,000 in 2023[28]. - The company experienced an increase in administrative expenses by approximately HKD 7,600,000, primarily due to professional fees related to corporate actions and rising labor costs[35]. Market and Pricing - Revenue increased by approximately 5,000,000 Jamaican dollars to about 2,900,000,000 Jamaican dollars (approximately 147,300,000 HKD) in 2024, compared to about 2,800,000,000 Jamaican dollars (approximately 142,300,000 HKD) in 2023, driven by a 6.3% increase in average prices of raw sugar and a 23.9% increase in molasses prices[39]. - Average prices for raw sugar and molasses per ton in 2024 were approximately 228,400 Jamaican dollars (approximately 11,400 HKD) and 34,900 Jamaican dollars (approximately 1,700 HKD), respectively, reflecting increases of about 6.3% and 23.9% from 2023[40]. - Sales volume for raw sugar and molasses decreased by approximately 2.5% and 3.6%, respectively, due to a reduction in production, with 176,200 tons of sugarcane processed in 2024, producing about 11,100 tons of raw sugar and 9,100 tons of molasses[41]. - The production of raw sugar and molasses decreased by approximately 200 tons (about 1.9%) and 1,900 tons (about 17.3%), respectively, due to a reduction of about 12,800 tons (about 6.8%) in sugarcane input[41]. - Average production costs for raw sugar and molasses per ton decreased by approximately 7% and 12.1%, respectively, with costs of about 166,700 Jamaican dollars (approximately 8,300 HKD) and 23,600 Jamaican dollars (approximately 1,200 HKD) in 2024[45]. Future Outlook and Strategy - The company plans to purchase two new harvesters to improve harvesting efficiency and reduce reliance on high-cost manual labor in response to expected increases in labor costs and decreases in sugarcane supply[64]. - The company plans to continue suspending the construction of its ethanol plant until a suitable alternative business plan is determined, expected to last until 2025[68]. - The company is focusing on improving factory and agricultural machinery maintenance to reduce equipment failures during the sugar cane crushing season[65]. - The company has implemented measures to enhance the quality and quantity of sugar cane, including weed control and timely recruitment of harvesting workers[65]. - The global supply of edible sugar is expected to increase in 2025, with an allowance for 1,000,000 tons of raw sugar exports from India, although Jamaican sugar prices are anticipated to adjust minimally due to high import tariffs[64]. Governance and Compliance - The company has adopted a code of conduct for directors' securities trading, which complies with the standards set out in the listing rules[77]. - The company has complied with the corporate governance code, with the exception of certain deviations regarding the separation of roles between the chairman and the CEO[69]. - The group did not purchase, sell, or redeem any of its listed securities during the year[78]. - The company did not engage in any significant acquisitions or disposals of subsidiaries or associates during the review period[57]. Cash Flow and Liquidity - Cash and cash equivalents decreased by approximately HKD 7,700,000 to about HKD 29,700,000 as of December 31, 2024, primarily due to net cash inflow from operating activities of approximately HKD 10,500,000[53]. - The company has received a commitment from its major shareholder to provide ongoing financial support, ensuring liquidity through at least December 31, 2025[7]. - The financial statements were prepared on a going concern basis despite significant doubts regarding the company's ability to continue operations[6].
华联国际(00969) - 2024 - 年度业绩