Financial Performance - The group's total revenue increased from approximately HKD 304.7 million in the comparable year to about HKD 307.6 million in the current year[4]. - EBITDA for the current year was approximately HKD 45.6 million, compared to a loss of about HKD 16.5 million in the comparable year, indicating a turnaround to profit[4]. - The annual loss attributable to the company's owners decreased by approximately 30.5% to about HKD 143.1 million, down from HKD 205.9 million in 2023[4]. - Gross profit for the current year was HKD 281.2 million, compared to HKD 275.6 million in the previous year, reflecting a slight increase[5]. - Total comprehensive loss for the year amounted to HKD 205.5 million, compared to HKD 257.6 million in the previous year[6]. - The company reported a basic loss per share of HKD 4.81, compared to HKD 6.92 in the previous year[5]. - The group recorded a loss attributable to shareholders of approximately HKD 143.1 million, a reduction of about 30.5% or HKD 62.8 million compared to a loss of HKD 205.9 million in the comparable year[70]. Dividends and Shareholder Returns - The board recommended a final dividend of HKD 0.005 per ordinary share, unchanged from 2023[4]. - The company declared a final dividend of HKD 0.005 per ordinary share for the fiscal year ending December 31, 2024, consistent with the previous year[56]. - The annual general meeting is scheduled for June 20, 2025, during which shareholders will vote on the proposed dividend[96]. Assets and Liabilities - Non-current assets totaled HKD 3.14 billion, down from HKD 3.33 billion in 2023[7]. - Current assets decreased from HKD 1.55 billion in 2023 to HKD 1.27 billion in the current year[7]. - Current liabilities decreased from HKD 1,259,086,000 in 2023 to HKD 1,162,630,000 in 2024, a reduction of approximately 7.7%[8]. - Total non-current liabilities decreased from HKD 1,083,056,000 in 2023 to HKD 934,370,000 in 2024, representing a decline of about 13.8%[8]. - Net assets decreased from HKD 2,539,298,000 in 2023 to HKD 2,318,961,000 in 2024, reflecting a decline of about 8.7%[8]. - The company's equity attributable to owners decreased from HKD 2,531,009,000 in 2023 to HKD 2,313,016,000 in 2024, a reduction of approximately 8.6%[8]. Revenue Segmentation - Total revenue from external customers reached HKD 307,561,000, with retail contributing HKD 242,076,000[32]. - The company reported a total segment loss of HKD 65,376,000, with the retail segment loss at HKD 21,770,000[32]. - Franchise sales generated total revenue of HKD 1,074,392,000, with commission income from franchise sales amounting to HKD 178,794,000[33]. - Segment income from brand promotion was HKD 53,089,000, while financial services contributed HKD 17,915,000[32]. - The company reported a total of HKD 68,803,000 in revenue from other sources outside HKFRS 15, primarily from rental income and interest income[36]. Operational Efficiency - The company's operating expenses decreased to HKD 1,101,000 in 2024 from HKD 3,469,000 in 2023[54]. - Distribution and selling expenses decreased from approximately HKD 78.4 million in the comparable year to about HKD 61.1 million, a reduction of approximately 22.1% due to strict control over advertising and promotional expenses[76]. - Administrative expenses decreased from approximately HKD 148.1 million in the comparable year to about HKD 133.8 million, a reduction of approximately 9.6% due to cost control measures implemented during the year[77]. Market and Economic Conditions - The macroeconomic environment faced challenges, including a restructuring of the real estate market and weak consumer demand, impacting economic growth[66]. - The company maintained a diversified business layout and actively sought changes to ensure stable business development despite external challenges[66]. Future Outlook and Strategic Initiatives - The company remains cautiously optimistic about future development, supported by proactive government policies aimed at enhancing domestic demand and market confidence[99]. - In retail, the company aims to leverage the government's consumption stimulus policies to activate market potential and enhance customer experience through data analytics and AI[100]. - The brand business will focus on optimizing resources in key markets and enhancing product competitiveness and customer experience[101]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the annual performance[103]. - The financial statements have been reviewed by the company's auditor, but no audit assurance has been provided[104]. - The company has adhered to the corporate governance code and has confirmed compliance with the standards for securities trading by directors[110]. Acquisitions and Investments - The company has agreed to acquire 15% of the shares of New Ito Group for a price of $600,000, equivalent to approximately HKD 4,680,000[106]. - Following the acquisition, the company will hold 100% ownership of New Ito, enhancing operational management efficiency[107]. - The acquisition is expected to provide more business opportunities and broaden revenue sources for the company in the long term[108].
新沣集团(01223) - 2024 - 年度业绩