Financial Performance - Revenue for the year ended December 31, 2024, was HKD 1,631.3 million, a decrease of 23.3% compared to HKD 2,125.9 million in 2023[3] - Gross profit for the same period was HKD 130.1 million, down 28.1% from HKD 181.1 million in 2023, resulting in a gross margin of 8.0%[3] - The net loss for the year was HKD 150.7 million, an improvement from a loss of HKD 181.6 million in the previous year[3] - Basic and diluted loss per share was HKD 0.1989, compared to HKD 0.2361 in 2023[5] - The group recorded an operating loss of HKD 70.4 million for fiscal year 2024, an improvement from a loss of HKD 100.4 million in fiscal year 2023[47] - The cost of sales for fiscal year 2024 decreased by 22.8% to HKD 1,501.2 million, resulting in a gross margin of 8.0%, down from 8.5% in fiscal year 2023[41] - The group recorded an impairment loss provision of HKD 61.3 million for fiscal year 2024, including HKD 32.9 million for the general construction segment and HKD 28.4 million for the maritime segment[42] Assets and Liabilities - Total assets increased by 4.9% to HKD 5,280.4 million from HKD 5,035.6 million in 2023[3] - Total liabilities increased to HKD 4,974.5 million from HKD 4,555.1 million in 2023, indicating a rise in financial obligations[8] - Total equity decreased by 36.3% to HKD 305.9 million from HKD 480.5 million in 2023[3] - As of December 31, 2024, the group had a net current asset balance of approximately HKD 218.8 million and a net debt of HKD 1,571.0 million, with a debt-to-equity ratio increasing to 616.6% from 366.0% in the previous year[52] Cash Flow and Financial Obligations - The company expects to have sufficient operating funds to meet its financial obligations for the next twelve months[13] - As of December 31, 2024, the company failed to comply with certain financial covenants on bank loans, with an outstanding principal amount of HKD 129,500,000[12] - Total bank borrowings of HKD 428,541,000 have been classified as current liabilities due to covenant breaches[12] Trade and Receivables - The company reported a significant increase in trade receivables, which rose to HKD 1,264.3 million from HKD 1,188.6 million in 2023[7] - Trade receivables increased to HKD 1,289,969 thousand in 2024 from HKD 1,073,911 thousand in 2023, with a net increase of HKD 1,175,088 thousand after provisions[25] - The aging analysis of trade receivables shows that amounts over two years increased to HKD 138,603 thousand in 2024 from HKD 64,480 thousand in 2023[27] - The net receivables from related parties increased to HKD 1,204,120 thousand in 2024 from HKD 1,173,138 thousand in 2023, reflecting improved collection efforts[25] Business Operations and Market Conditions - The maritime construction market in Hong Kong and Macau continues to slow down, leading to increased competition and pricing pressure[34] - The company expanded its business coverage to Guangdong and Hainan provinces to mitigate risks associated with customer concentration and regional economic conditions[34] - The group has successfully expanded its general construction business into southern regions, including Guangzhou, Fuzhou, and Hainan, and is focusing on photovoltaic-related projects[36] - The company achieved a favorable arbitration ruling for a completed project in Hong Kong during the fiscal year 2024[35] - The largest four projects contributing to revenue in fiscal year 2024 did not exceed 5% of total revenue, indicating a diversified project portfolio[35] - The company is pursuing compensation for costs incurred on a large project in the Philippines that was suspended due to force majeure[34] Research and Development - Research and development expenses were HKD 21.1 million, slightly down from HKD 22.6 million in the previous year[5] - Research and development expenses remained stable at HKD 21.1 million for fiscal year 2024, focused on curtain wall engineering and construction technology[43] Employee and Administrative Costs - The total employee cost for the fiscal year 2024 was approximately HKD 127.2 million, a decrease of 32.5% from HKD 188.6 million in fiscal year 2023[63] - The number of employees decreased from 660 in 2023 to 567 in 2024, with significant reductions in project management and administrative roles[62] - Other administrative expenses decreased by HKD 44.1 million to HKD 129.6 million, primarily due to reductions in employee costs, professional fees, and leasing expenses[44] Dividends and Shareholder Returns - No interim dividend was declared for the year ending December 31, 2024, consistent with 2023[23] - The company has no plans to declare a final dividend for the year ending December 31, 2024, similar to 2023[24] - The board does not recommend the payment of dividends for the fiscal year 2024[65] Compliance and Governance - The group has maintained compliance with the minimum public float requirements under the listing rules throughout fiscal year 2024[76] - The group's auditor, Lixin Dehao Certified Public Accountants, confirmed that the preliminary performance announcement aligns with the audited financial statements for the year ending December 31, 2024[81] - The annual performance announcement will be published on the Stock Exchange and the company's website, with the annual report for FY2024 to be distributed electronically by the end of April 2025[82] - The board of directors includes executive directors Jiang Hongchang (Chairman), Dong Fang (Vice Chairman), Liu Yutao, Du Jianzhi, and Zhou Hongbao, along with independent non-executive directors Zhang Zhiwen, Chen Yan, and Liu Junchun[83] Other Information - The group did not hold any significant investments during fiscal year 2024[57] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during fiscal year 2024[56] - The group has not encountered any major labor disputes and has maintained good relationships with employees[63] - The group has not faced any sanctions or penalties for environmental law violations during fiscal year 2024[67] - There were no significant events after December 31, 2024, that would have a major impact on the group[69] - The company has adopted new Hong Kong Financial Reporting Standards effective from January 1, 2024, which are not expected to have a significant impact on the financial statements[14]
瑞港建设(06816) - 2024 - 年度业绩