Financial Performance - For the fiscal year ending December 31, 2024, the group's revenue was approximately HKD 139.6 million, a decrease of about 21.8% compared to HKD 178.5 million for the fiscal year ending December 31, 2023[3]. - The company reported a loss attributable to shareholders of approximately HKD 48.7 million for the fiscal year ending December 31, 2024, compared to a profit of approximately HKD 8.0 million for the fiscal year ending December 31, 2023[3]. - The group's gross profit was approximately HKD 83.6 million, a decrease of about 27.0% from HKD 114.6 million in the previous year, with a gross profit margin dropping to approximately 59.9% from 64.2%[59]. - The group reported a net loss of HKD 48,680,000 for the year ending December 31, 2024[14]. - The basic loss per share for the fiscal year ending December 31, 2024, was HKD (3.94), compared to earnings of HKD 0.72 per share in 2023[5]. - The group incurred a pre-tax loss of HKD 45,349,000 for the year ending December 31, 2024, compared to a pre-tax profit of HKD 7,545,000 in the previous year[23][24]. Assets and Liabilities - Total assets decreased to HKD 87.6 million in 2024 from HKD 108.0 million in 2023, reflecting a decline of approximately 19%[6]. - Non-current liabilities decreased to HKD 37.7 million in 2024 from HKD 55.1 million in 2023, a reduction of about 31.5%[7]. - Current liabilities increased slightly to HKD 114.3 million in 2024 from HKD 110.6 million in 2023, indicating a rise of approximately 3.1%[7]. - The total equity attributable to shareholders decreased to HKD (64.4 million) in 2024 from HKD (57.7 million) in 2023, indicating a worsening financial position[6]. - As of December 31, 2024, total liabilities amounted to HKD 152,042,000, including trade payables of HKD 9,170,000 and lease liabilities of HKD 20,141,000[15]. - The company's current liabilities net amount to HKD 74,601,000, indicating potential liquidity concerns[14]. Cash Flow and Financing - The company's cash and cash equivalents decreased to HKD 10.6 million in 2024 from HKD 16.9 million in 2023, a decline of about 37%[6]. - Cash and cash equivalents were approximately HKD 10,571,000, raising significant doubts about the company's ability to continue as a going concern[15]. - The group plans to secure additional financing of RMB 96,000,000 from a related company controlled by the major shareholder to support operational cash flow[19]. - The group is considering various financing options with financial institutions to ensure sufficient operational funds in the foreseeable future[19]. - The company plans to conduct fundraising activities, including rights issues and placement of new shares, to raise new capital[115]. Operational Challenges and Strategies - The company reported a net loss of HKD 48.7 million for the year, reflecting significant operational challenges[4]. - The group has implemented cost control measures, including the potential for staff reductions and salary cost optimization, to improve operational performance and cash flow[19]. - The company is evaluating the impact of the new accounting standards but has not yet determined their effect on the consolidated financial statements[13]. - The company has not disclosed any new product developments or market expansion strategies in the current report[9]. - The company faces various challenges, including the impact of the US-China trade war and geopolitical tensions on consumer spending in Hong Kong and China[84]. Market and Business Development - The company operates primarily in Hong Kong and China, focusing on providing food and beverage services[9]. - The company opened its first franchise coffee shop under the "Cat Poop Coffee" brand in Wenzhou, Zhejiang Province in December 2024[49]. - The company plans to invest more in online marketing to promote existing businesses and increase market share[86]. - The company will continue to implement its multi-brand strategy for steady development and cautious expansion in Hong Kong, while gradually expanding into the Chinese market[86]. - The Chinese coffee market is projected to experience significant growth, driven by urbanization and an expanding middle class[51]. Employee and Operational Costs - Employee benefits expenses increased to HKD 62.4 million in 2024 from HKD 51.9 million in 2023, an increase of approximately 20%[4]. - The company has approximately 378 employees as of December 31, 2024, down from 430 in 2023[81]. - Other operating expenses were approximately HKD 33.8 million, a decrease of about 14.6% from HKD 39.5 million in the previous year[62]. - The company has recognized a provision of HKD 15,818,000 for legal claims related to rental and management fees, an increase from HKD 13,372,000 in 2023[47]. Corporate Governance and Compliance - The company has confirmed that all directors have complied with the standard code of conduct for securities trading throughout the year[93]. - The board has decided not to recommend any final dividend for the year 2023, resulting in a dividend of zero[83]. - The company has no plans to buy, sell, or redeem any listed securities during the year[94]. - The board of directors will consider separating the roles of Chairman and CEO at an appropriate time based on the overall situation of the group[91].
利宝阁集团(01869) - 2024 - 年度业绩