Financial Performance - Revenue decreased by approximately 2.3% from about HKD 251.2 million in FY2023 to about HKD 245.5 million in FY2024[2] - Gross profit decreased by approximately 1.8% from about HKD 185.4 million in FY2023 to about HKD 182.1 million in FY2024, with a slight increase in overall gross margin from 73.8% to 74.2%[2] - Net profit and total comprehensive income decreased by 67.2% from about HKD 39.5 million in FY2023 to about HKD 13.0 million in FY2024[2] - Adjusted net profit (non-HKFRS measure) decreased by 18.6% from about HKD 39.5 million in FY2023 to about HKD 32.1 million in FY2024[2] - Operating profit decreased significantly from HKD 48.3 million in FY2023 to HKD 19.8 million in FY2024[3] - Total revenue for the fiscal year 2024 reached HKD 245,490,000, a decrease of 2.9% compared to HKD 251,224,000 in 2023[13] - Retail business revenue increased to HKD 145,641,000, up 16.3% from HKD 125,282,000 in 2023[13] - Wholesale business revenue decreased to HKD 94,157,000, down 20.1% from HKD 117,961,000 in 2023[13] - Pre-tax profit for 2024 was HKD 76,033,000, an increase from HKD 71,822,000 in 2023[18] - The profit before tax for 2024 is HKD 18,677,000, a decrease of 60.5% compared to HKD 47,282,000 in 2023[22] - The basic earnings per share for 2024 is HKD 12,965,000, down 67.2% from HKD 39,502,000 in 2023, with a weighted average number of shares of 101,095,899[23] - Net profit for the fiscal year 2024 was approximately HKD 13.0 million, a decrease of about HKD 26.5 million or 67.2% compared to the previous year[74] - Adjusted net profit for the fiscal year 2024 was approximately HKD 32.1 million, a decrease of about HKD 7.4 million or 18.6% compared to the previous year[74] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.15 per share for FY2024, subject to shareholder approval[2] - The proposed final dividend for 2024 is HKD 20,000,000, with a dividend per share of HKD 0.15, compared to no dividend in 2023[27] - The company plans to pay a final dividend of HKD 0.15 per share, totaling HKD 20,000,040, pending shareholder approval at the upcoming annual general meeting[92] Assets and Liabilities - Total assets increased from HKD 112.0 million in FY2023 to HKD 197.5 million in FY2024, while total liabilities increased from HKD 39.4 million to HKD 37.5 million[4][5] - Non-current assets increased from HKD 28.2 million in FY2023 to HKD 39.5 million in FY2024[4] - Cash and cash equivalents rose significantly from HKD 22.5 million in FY2023 to HKD 119.2 million in FY2024[4] - Trade receivables decreased to HKD 26,367,000 in 2024 from HKD 32,473,000 in 2023, reflecting a decline of 18.7%[29] - Trade payables increased to HKD 3,782,000 in 2024 from HKD 1,703,000 in 2023, representing a growth of 121.5%[32] - The company reported a loss provision of HKD 74,000 for trade receivables in 2024, with no provisions in 2023[31] - The total other receivables increased to HKD 28,619,000 in 2024 from HKD 13,898,000 in 2023, marking a rise of 105.5%[29] - The group had no outstanding bank borrowings as of December 31, 2024, resulting in a capital debt ratio of zero, compared to approximately 7.1% in 2023[79] - As of December 31, 2024, the company has no assets pledged as collateral[91] Operational Highlights - The company underwent a restructuring completed on May 13, 2024, to facilitate its listing on the Hong Kong Stock Exchange[8] - The group plans to open 10 new retail stores in FY2024 to boost retail sales[60] - The group operates eight proprietary brands, including "Herbs," "ZINO," and "Classic" as of December 31, 2024[59] - The group’s retail store count increased from 16 in FY2023 to 23 in FY2024, with plans to further increase to 33 stores[64] - The group has expanded its retail business through various channels, including self-operated retail stores and e-commerce platforms[59] - The group launched new products, including "Herbs Dampness Relief Pills" and a new brand "Herbs Pet"[61] - The total sales value of Hong Kong retail decreased by 7.3%, limiting the group's ability to fully offset the wholesale business shortfall[60] - The group recorded a significant decline in profit of 67.2% due to one-time listing expenses of approximately HKD 19.2 million and increased depreciation costs[60] Expenses and Costs - Depreciation expenses rose to HKD 20,998,000 in 2024, compared to HKD 15,094,000 in 2023, marking a 39.5% increase[19] - The company reported a total tax provision of HKD 5,712,000 for 2024, down from HKD 7,780,000 in 2023, a decrease of 26.6%[20] - Employee costs increased to HKD 76,033,000 in 2024, up from HKD 71,822,000 in 2023, reflecting a rise of 5.5%[18] - Sales cost decreased by approximately HKD 2.3 million or 3.6% to about HKD 63.4 million for the fiscal year 2024, in line with the reduction in sales[67] - Selling and distribution costs decreased by approximately HKD 0.9 million or 0.9% for the fiscal year 2024, primarily due to reduced advertising and promotional expenses[69] - Administrative and other operating expenses increased by approximately HKD 8.1 million or 26.0% due to the addition of 10 self-operated retail stores[70] - Financing costs increased by approximately HKD 166,000 or 17.1% to about HKD 1,136,000 for the fiscal year 2024, mainly due to increased lease liabilities[72] Future Outlook and Strategy - The company aims to strengthen its online presence and marketing efforts to expand its customer base, focusing on retail network expansion and enhancing e-commerce platforms by 2025[97] - The company is exploring opportunities to expand its business into mainland China by 2025, targeting the unique characteristics of each market to ensure effective responses to regulatory and competitive environments[98] - The health product market in Hong Kong continues to grow steadily, driven by increased health awareness post-COVID-19, with consumers favoring natural products and personalized nutrition[95] - The company remains cautiously optimistic about future prospects despite macroeconomic uncertainties, leveraging its strong wholesale and retail business advantages to capture growth opportunities in the health product market[96] - There are no plans for significant acquisitions or sales of subsidiaries or joint ventures in the fiscal year 2024[90] Corporate Governance - The company has adhered to all corporate governance codes as per the listing rules from the listing date until December 31, 2024, except for specific deviations noted[100] - The roles of the Chairman and CEO are not separated, with the current arrangement deemed beneficial for effective management and business development[101] - The board believes that having the same person serve as both Chairman and CEO ensures consistent internal leadership and effective strategic planning[102] - The audit committee, composed of three independent non-executive directors, has reviewed and approved the consolidated financial statements for the reporting period[108] - The company's auditor, BDO Limited, confirmed that the financial data aligns with the group's consolidated financial statements for the year ending December 31, 2024[109] Share Incentive Plan - The maximum number of shares that may be issued under the share incentive plan is 13,333,360 shares, representing 10% of the total issued shares as of the announcement date[39] - The company issued 33,333,600 new ordinary shares at a cash price of HKD 3.75 per share, raising approximately HKD 125,001,000[40] - The share issuance costs amounted to approximately HKD 11,417,000, which is considered a reduction in the share premium generated from the issuance[40] - The share incentive plan aims to attract, retain, and motivate eligible participants through rewards based on the group's performance[38] - The company is authorized to issue a total of 99,999,990 shares to shareholders at par value following the completion of the initial public offering[40] - No share rewards were granted during the reporting period as the share incentive plan became effective on December 19, 2024[36] - The performance targets for the share rewards may include financial and management objectives, determined by the board or authorized personnel[42] - The company must seek shareholder approval if the total shares issued under the incentive plan exceed 1% of the total issued shares within a twelve-month period[41] - The company has established a share reward plan with a minimum vesting period of 12 months from the grant date, with certain exceptions allowing for shorter periods[43] - No payment is required from selected participants when applying for or accepting rewards[45] - The board has the authority to determine the purchase price of rewards based on the market price of shares at the time of issuance[46] - Rewards are non-transferable and cannot be sold, assigned, or pledged by the selected participants[47] - Any rewards will automatically become invalid if the selected participant is no longer eligible or if the company undergoes liquidation[49] - The company reserves the right to terminate the share reward plan at any time, but previously granted rewards will still be valid[53] - The board can delegate management of the share reward plan to a committee or other designated individuals[51] - The company will issue shares to a trustee and transfer necessary funds to facilitate the purchase of shares for the reward plan[52] - The vesting schedule may include performance-based conditions instead of solely time-based criteria[43] - The company may reclaim any unvested rewards if the selected participant is terminated for cause or engages in misconduct[50] Miscellaneous - No significant events occurred after the reporting period and up to the date of this announcement[107] - The annual performance announcement and annual report will be published on the company's website and the Hong Kong Stock Exchange website[110]
草姬集团(02593) - 2024 - 年度业绩