Consolidated Financial Statements This section presents the company's financial performance and position, highlighting significant revenue growth, a return to profitability, and improved liquidity in FY2024 Consolidated Statement of Profit or Loss The company achieved significant revenue and gross profit growth in FY2024, turning a prior-year loss into an annual profit of HK$61.86 million Key Profit or Loss Data for FY2024 | Metric | 2024 (HK$'000) | 2023 (HK$'000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 551,049 | 372,310 | +48.0% | | Gross Profit | 270,619 | 162,553 | +66.5% | | Profit/(Loss) Before Tax | 74,747 | (19,650) | Turned Profitable | | Profit/(Loss) for the Year | 61,859 | (25,676) | Turned Profitable | | Basic Earnings/(Loss) Per Share | 3.10 HK cents | (1.28) HK cents | Turned Profitable | Consolidated Statement of Comprehensive Income Despite exchange losses from overseas operations, the company reported a total comprehensive income of HK$51.32 million in FY2024, a significant improvement from the prior year's loss Overview of Comprehensive Income for FY2024 | Metric | 2024 (HK$'000) | 2023 (HK$'000) | | :--- | :--- | :--- | | Profit/(Loss) for the Year | 61,859 | (25,676) | | Net Exchange Differences from Translating Overseas Operations | (10,541) | (14,560) | | Total Comprehensive Income/(Loss) for the Year | 51,318 | (40,236) | Consolidated Statement of Financial Position As of end-2024, total assets and net assets increased, with a significant improvement in net current assets and a substantial reduction in interest-bearing bank borrowings Key Balance Sheet Data as of End-2024 | Metric | 2024 (HK$'000) | 2023 (HK$'000) | YoY Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 211,864 | 187,668 | +12.9% | | Total Current Assets | 240,566 | 181,757 | +32.4% | | Total Assets | 452,430 | 369,425 | +22.5% | | Total Current Liabilities | 152,500 | 153,159 | -0.4% | | Total Non-current Liabilities | 53,996 | 21,234 | +154.3% | | Net Assets | 245,934 | 195,032 | +26.1% | | Cash and Cash Equivalents | 68,519 | 34,158 | +100.6% | | Interest-bearing Bank Borrowings (Current+Non-current) | 6,246 | 23,115 | -73.0% | Notes to the Financial Statements This section provides detailed explanations of the company's accounting policies, segment information, revenue breakdown, and specific financial statement line items 1. Company and Group Information The company, an investment holding entity incorporated in the Cayman Islands, primarily produces and sells printed products and was listed on the HKEX Main Board in March 2020 - The Group is principally engaged in the production and sale of printed products8 - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong on March 12, 20209 2. Accounting Policies The financial statements are prepared under HKFRSs using historical cost, with new standards adopted this year having no material impact on the Group's financial position or performance - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and the disclosure requirements of the Hong Kong Companies Ordinance10 - The Group has adopted the revised HKFRS 16, HKAS 1, and HKAS 7 for the first time in the current year, and after evaluation, these revisions had no impact on the Group's financial position or performance1415 3. Operating Segment Information The Group operates a single reportable segment of printed product manufacturing and sales, with Mainland China being the largest revenue contributor and concentration of non-current assets - The Group has only one reportable operating segment, which is the production and sale of printed products16 Revenue from External Customers by Geographical Region | Region | 2024 (HK$'000) | 2023 (HK$'000) | % of Total (2024) | | :--- | :--- | :--- | :--- | | Mainland China | 177,701 | 128,401 | 32.2% | | Hong Kong | 64,582 | 54,721 | 11.7% | | Bangladesh | 99,024 | 50,696 | 18.0% | | India | 34,072 | 17,992 | 6.2% | | Vietnam | 47,484 | 30,010 | 8.6% | | Other Countries/Regions | 128,186 | 90,490 | 23.3% | | Total Revenue | 551,049 | 372,310 | 100% | 4. Revenue, Other Income and Gains In FY2024, all HK$551 million in revenue stemmed from printed product sales, supplemented by HK$5.7 million in other income from various sources - All revenue from contracts with customers is derived from the sale of printed products, recognized at a point in time, totaling HK$551,049 thousand19 Details of Other Income and Gains | Item | 2024 (HK$'000) | 2023 (HK$'000) | | :--- | :--- | :--- | | Freight and Transportation Income | 391 | 1,212 | | Interest Income | 442 | 652 | | Sale of Scrap Materials | 1,504 | 1,567 | | Government Grants | 623 | 592 | | Others | 2,738 | 2,038 | | Total | 5,698 | 6,061 | 5. Profit/(Loss) Before Tax FY2024 profit before tax was primarily impacted by cost of sales, employee benefits, and depreciation, with no significant non-financial asset impairment unlike the prior year Key Deductions for Profit Before Tax | Item | 2024 (HK$'000) | 2023 (HK$'000) | | :--- | :--- | :--- | | Cost of Sales | 280,430 | 209,757 | | Employee Benefit Expenses | 170,969 | 153,655 | | Depreciation of Property, Plant and Equipment | 20,280 | 17,693 | | Depreciation of Right-of-Use Assets | 13,452 | 12,832 | | Impairment of Non-financial Assets | – | 8,065 | 6. Finance Costs Finance costs decreased by 25.3% to HK$2.36 million in FY2024, mainly due to lower interest on bank loans and overdrafts Details of Finance Costs | Item | 2024 (HK$'000) | 2023 (HK$'000) | | :--- | :--- | :--- | | Interest on Bank Loans and Overdrafts | 621 | 1,346 | | Interest on Lease Liabilities | 1,743 | 1,818 | | Total | 2,364 | 3,164 | 7. Income Tax Income tax expense significantly increased to HK$12.89 million in FY2024, driven by improved operating performance and higher taxable profits - Total tax expense for the year was HK$12,888 thousand, an increase of 113.9% from HK$6,026 thousand in 202325 8. Dividends The Board proposed a final dividend of 0.75 HK cents per share for FY2024, totaling HK$15 million, pending shareholder approval, with no dividend paid in 2023 - The Board recommended a final dividend of 0.75 HK cents per ordinary share, totaling HK$15 million, with no dividend paid in 202326 9. Earnings/(Loss) Per Share Basic earnings per share for FY2024 were 3.10 HK cents, a turnaround from the prior year's loss, with diluted EPS matching basic EPS - Basic earnings per share for 2024 were 3.10 HK cents, compared to a basic loss per share of 1.28 HK cents in 202327 10. Trade Receivables Trade receivables increased by 28.2% to HK$57.56 million by end-2024, with credit terms of 30-90 days and a notable increase in impairment provisions - The net book value of trade receivables increased from HK$44,910 thousand in 2023 to HK$57,560 thousand in 2024. Credit terms generally range from 30 to 90 days28 Ageing Analysis of Trade Receivables (Net of Loss Allowance) | Ageing | 2024 (HK$'000) | 2023 (HK$'000) | | :--- | :--- | :--- | | Within 1 month | 32,204 | 24,438 | | 1 to 2 months | 14,381 | 12,751 | | 2 to 3 months | 6,629 | 3,911 | | Over 3 months | 4,348 | 3,812 | | Total | 57,562 | 44,912 | 11. Trade Payables Trade payables increased by 12.1% to HK$64.23 million by end-2024, with most balances due within three months and settlement periods of 30-150 days Ageing Analysis of Trade Payables | Ageing | 2024 (HK$'000) | 2023 (HK$'000) | | :--- | :--- | :--- | | Within 1 month | 26,093 | 16,593 | | 1 to 2 months | 17,992 | 12,272 | | 2 to 3 months | 10,317 | 10,389 | | Over 3 months | 9,831 | 18,069 | | Total | 64,233 | 57,323 | Management Discussion and Analysis This section provides management's perspective on the Group's operational and financial performance, future outlook, and capital management strategies for the reporting period Business Review In 2024, the Group achieved 48.0% revenue growth and profitability through global expansion, operational efficiencies, and new growth from RFID and ESG products - Leveraging its global presence, the Group's full-year revenue increased by 48.0% year-on-year to approximately HK$551 million, gross margin rose to 49.1%, and it successfully turned losses into profits, recording a profit of approximately HK$61.86 million32 - The Group achieved significant sales growth in markets including Mainland China, Vietnam, Bangladesh, and India, with increased sales also from production bases in Central America and Southern Europe34 - Revenue contribution from RFID products significantly increased, while the Group actively procured eco-friendly materials in response to ESG trends35 - Primway, a French packaging associate company acquired in 2023, completed integration in 2024 and began contributing revenue to the Group36 Outlook For 2025, the Group plans to leverage its global presence, invest in automation, control costs, and expand RFID and ESG initiatives to enhance competitiveness and shareholder value amid economic uncertainties - Facing market uncertainties in 2025, the Group will continue to leverage its global presence, increase automation investment, and improve its management system37 - Future efforts will focus on expanding the RFID product market and integrating Environmental, Social, and Governance (ESG) principles into operations to enhance competitiveness38 Financial Review FY2024 saw significant revenue growth of 48.0% to HK$551 million, improved gross margin, increased administrative expenses, reduced finance costs, and a return to profitability with an annual profit of HK$61.9 million Summary of Financial Performance for FY2024 | Item | FY2024 (HK$ million) | FY2023 (HK$ million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 551.1 | 372.3 | +48.0% | | Gross Profit | 270.6 | 162.6 | +66.4% | | Gross Margin | 49.1% | 43.7% | +5.4pp | | Selling and Distribution Expenses | 61.2 | 59.5 | +2.9% | | Administrative Expenses | 135.6 | 121.0 | +12.1% | | Finance Costs | 2.4 | 3.2 | -25.3% | | Profit/(Loss) for the Year | 61.9 | (25.7) | Turned Profitable | Capital Structure, Liquidity and Financial Resources The Group's financial position is robust, marked by increased net assets and cash, significantly reduced bank borrowings, and improved liquidity, providing ample resources for operations - Net assets increased by 26.1% from HK$195 million at end-2023 to HK$246 million at end-202449 - Cash and cash equivalents and pledged deposits increased by 49.5% to HK$72.8 million; interest-bearing bank borrowings decreased by 73.2% to HK$6.2 million49 - The current ratio improved from 1.2x at end-2023 to 1.6x at end-202450 - The gearing ratio (bank borrowings plus lease liabilities divided by equity) slightly increased from 24.7% in 2023 to 27.5% in 202451 Other Information This section covers post-reporting period events, employee and remuneration policies, significant transactions, share repurchases, corporate governance practices, and details regarding dividends and the Annual General Meeting Post-Reporting Period Events After the reporting period, the company changed its principal share registrar and registered office address in the Cayman Islands on January 10, 2025 - Subsequent to December 31, 2024, the company changed its principal share registrar and registered office in the Cayman Islands56 Employees and Remuneration Policy As of end-FY2024, the Group had 1,424 employees, with annual employee benefit expenses (excluding directors) increasing by 11.3% to HK$171 million - As of FY2024, the Group had 1,424 employees, an increase from 1,219 in 202357 - Employee benefit expenses (excluding directors' emoluments) for FY2024 were approximately HK$171 million, an 11.3% increase from HK$153.7 million in FY202357 Significant Transactions The Group completed two significant transactions: a RMB 9.8 million UV inkjet printer purchase (discloseable) and a 15-year factory lease renewal in Boluo County (major transaction) - On December 6, 2024, the Group purchased a UV inkjet printing machine for RMB 9.8 million, which constituted a discloseable transaction5859 - On July 23, 2024, the Group entered into a 15-year lease agreement for a factory in Boluo County, which constituted a major transaction6061 Share Repurchase In FY2024, the company repurchased 10,410,000 shares for HK$416,400 on the Stock Exchange, holding them as treasury shares - In the financial year 2024, the company repurchased a total of 10,410,000 shares for a total consideration of HK$416,400, which are held as treasury shares63 Corporate Governance The company maintains high corporate governance standards, complying with Listing Rules, adopting a standard code for directors' securities transactions, and operating an audit committee, with no share option activity during the period - The company has complied with all code provisions of the Corporate Governance Code during the reporting period65 - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's final results68 - During the financial year 2024, no share options were granted, exercised, cancelled, or lapsed67 Dividends and Annual General Meeting The Board proposed a final dividend of 0.75 HK cents per share, payable July 18, 2025, subject to June 20, 2025 AGM approval, with relevant share transfer closure dates provided - The Board recommended a final dividend of 0.75 HK cents per share, subject to approval at the Annual General Meeting to be held on June 20, 202570 - To qualify for attending the Annual General Meeting, transfer documents must be lodged by 4:30 p.m. on June 16, 202571 - To qualify for the final dividend, transfer documents must be lodged by 4:30 p.m. on June 25, 202571
常达控股(01433) - 2024 - 年度业绩