Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 382,090,000, a decrease of 6.1% from HKD 406,859,000 in 2023[2] - The company reported a net loss of HKD 35,439,000 for the year, a significant improvement of 66.6% compared to a net loss of HKD 106,081,000 in 2023[4] - Gross profit for the year was HKD 205,142,000, down 5.3% from HKD 216,629,000 in the previous year[4] - The company reported a basic and diluted loss per share of HKD 8.97, compared to HKD 26.85 in the previous year[4] - The company reported a pre-tax loss of HKD 29,144,000 for the year ended December 31, 2024, compared to a loss of HKD 102,312,000 in 2023, representing a 71.5% improvement year-over-year[41] - The company reported a significant decrease in trade payables aged within one month, from HKD 52,514,000 in 2023 to HKD 20,498,000 in 2024, a drop of approximately 61%[60] - The company experienced a net foreign exchange gain of HKD 872,000 in 2024, compared to a gain of HKD 406,000 in 2023[5] Revenue Breakdown - Revenue from Chinese concentrated traditional Chinese medicine formula granules dropped by 51.3% to HKD 24,763,000, compared to HKD 50,807,000 in the previous year[2] - Revenue from Hong Kong concentrated traditional Chinese medicine formula granules remained relatively stable, decreasing slightly by 0.4% to HKD 207,591,000[2] - Sales of concentrated Chinese medicine granules amounted to HKD 273,300,000, down from HKD 298,634,000, representing a decline of 8.5%[32] - The sales revenue of concentrated Chinese medicine granules in China for the year ended December 31, 2024, was HKD 24.8 million, a decrease of HKD 26.0 million or 51.3% compared to HKD 50.8 million in the previous year[72] - The direct sales revenue of concentrated Chinese medicine granules in Hong Kong for the year ended December 31, 2024, was HKD 207.6 million, a slight decrease of HKD 0.8 million or 0.4% from HKD 208.4 million in the previous year[73] - The total sales revenue of Chinese medicine health products for the year ended December 31, 2024, was HKD 84.3 million, an increase of HKD 2.3 million or 2.8% compared to HKD 82.0 million in the previous year[74] - The revenue from the company's clinics increased to HKD 56.3 million for the year ended December 31, 2024, up HKD 2.6 million or 4.8% from HKD 53.7 million in the previous year[76] Cost and Expenses - Cash flow from operating activities improved to HKD 50,162,000, compared to HKD 19,596,000 in 2023[8] - The cost of goods sold decreased to HKD 170,020,000 in 2024 from HKD 185,881,000 in 2023, a reduction of 8.5%[5] - Research and development expenses were HKD 11,168,000 in 2024, down from HKD 16,770,000 in 2023, reflecting a decrease of 33.5%[5] - Sales and distribution expenses for the year ended December 31, 2024, were HKD 64.9 million, a decrease of HKD 26.8 million or 29.2% from HKD 91.7 million in the previous year, primarily due to effective marketing cost control[81] - Administrative expenses totaled HKD 159.5 million for the year ended December 31, 2024, down HKD 12.0 million or 7.0% from HKD 171.5 million in the previous year, mainly driven by reductions in employee costs and R&D expenses[82] - Other expenses significantly dropped to HKD 1.8 million, a decrease of HKD 20.6 million or 91.8% from HKD 22.5 million, mainly due to reduced fair value losses on biological assets[84] Assets and Liabilities - Non-current assets decreased to HKD 447,284,000 from HKD 494,395,000 in the previous year[6] - Total liabilities decreased from HKD 571,089,000 in 2023 to HKD 491,067,000 in 2024[6] - The company's equity decreased to HKD 111,198,000 from HKD 153,236,000 in the previous year[7] - Trade receivables decreased from HKD 132,273,000 in 2023 to HKD 103,260,000 in 2024, a reduction of approximately 22%[48] - The total impairment loss for trade receivables and notes decreased from HKD 133,266,000 in 2023 to HKD 107,795,000 in 2024, representing a decline of about 19%[48] - The aging analysis of trade receivables shows that amounts overdue for more than one year increased from HKD 4,803,000 in 2023 to HKD 6,014,000 in 2024, an increase of approximately 25%[49] - The total amount of bank loans secured decreased from HKD 145,792,000 in 2023 to HKD 107,436,000 in 2024, a decrease of about 26%[61] Cash Flow and Financing - The net cash flow from operating activities was HKD 103.985 million, an increase from HKD 79.608 million in the previous year[10] - The net cash flow used in investing activities was HKD 11.711 million, an improvement from HKD 18.203 million in the previous year[10] - The company has outstanding short-term bank and borrowings totaling HKD 154.0 million, with some loans in breach of covenants[13] - The company successfully obtained new bank loans of HKD 38.0 million after the reporting date[14] - The company plans to negotiate with banks to extend repayment terms for certain loans totaling HKD 24.3 million[14] - The company anticipates having sufficient operating funds to meet its financial obligations in the foreseeable future[14] Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring compliance with all applicable provisions[108] - The roles of Chairman and CEO have not been separated as of December 31, 2024, due to the nature of the business and the expertise of Mr. Chen[109] - The Audit Committee consists of three independent non-executive directors, ensuring adequate oversight of financial reporting and internal controls[110] - The Audit Committee has reviewed the financial performance for the year ending December 31, 2024, confirming compliance with relevant accounting standards and timely disclosures[111] Future Outlook - The company is actively restructuring its product portfolio and tightening overall cost control measures to achieve profitability and positive cash flow[13] - The company plans to further expand its clinic network in the Greater Bay Area and strengthen cross-border sales initiatives in the coming year[70] - The company aims to enhance its international market presence in Canada, the United States, Japan, Australia, and South Korea, leveraging existing production facilities to drive growth and shareholder value[71]
培力农本方(01498) - 2024 - 年度业绩