Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately HKD 50.1 million, a decrease of about 65.7% from approximately HKD 146.2 million for the year ended December 31, 2023[10]. - The gross loss for the year ended December 31, 2024, was approximately HKD 2.0 million, compared to a gross profit of approximately HKD 34.9 million for the year ended December 31, 2023[10]. - The net loss for the year ended December 31, 2024, was approximately HKD 45.6 million, compared to a net loss of approximately HKD 23.0 million for the year ended December 31, 2023[10]. - Other income decreased by approximately 82.1% from about HKD 6.7 million for the year ended December 31, 2023, to about HKD 1.2 million for the year ending December 31, 2024, mainly due to the absence of one-time government subsidies[38]. - Administrative expenses decreased from approximately HKD 50.9 million for the year ended December 31, 2023, to about HKD 43.1 million for the year ending December 31, 2024, primarily due to reduced employee salaries[39]. - Financial costs decreased from about HKD 9.8 million for the year ended December 31, 2023, to approximately HKD 3.8 million for the year ending December 31, 2024, mainly due to a reduction in loan amounts[40]. - The group recorded a loss of approximately HKD 45,607,000 for the year ending December 31, 2024[100]. - As of December 31, 2024, the group's net current liabilities amounted to approximately HKD 134,213,000[100]. - Total bank loans and overdrafts amounted to approximately HKD 107,580,000, which are due for repayment within one year[100]. - The group's cash and bank balances were only approximately HKD 849,000 as of the same date[100]. Operational Changes - The group ceased operations at its Shenzhen factory in June 2024 and has transferred its Hong Kong factory operations to a commercial bank[12][13]. - The remaining operations of the group will continue to provide printing services, shifting from in-house production to outsourcing printing orders to Huizhou factory or other external contractors in China[13]. - The Huizhou factory has commenced operations and has started receiving subcontract orders from the group[13]. - The Shenzhen factory ceased operations in June 2024, and the Hong Kong factory has also stopped operations, with orders being redirected to the Huizhou factory and other subcontractors in mainland China[33]. - The company aims to adapt its business model through the Huizhou factory to maintain operations, despite facing risks from global economic uncertainties and industry challenges[34]. - The company plans to outsource printing orders to the Huizhou factory and other external subcontractors to reduce fixed cash flow costs and improve cash flow[34]. - The company has a long history in the printing industry since its establishment in 1992 and intends to leverage its competitive advantages to secure orders from overseas clients[34]. Risk Management - The group will face several risks in the future, including the need to regain customer orders due to weak market demand and economic uncertainties stemming from the Russia-Ukraine conflict and US-China trade disputes[16]. - The company faced significant uncertainty regarding its ability to continue as a going concern due to potential violations of loan covenants and the need to repay approximately HKD 96.062 million in current bank borrowings[44]. - The group is actively seeking financial support from banks to avoid immediate repayment due to loan covenant breaches[102]. - A financial support letter from shareholder Mr. Lin was obtained, agreeing not to demand repayment of approximately HKD 16,859,000 and to provide additional financial support[102]. Corporate Governance - The company has complied with the corporate governance code principles for the year ending December 31, 2024, with a noted deviation regarding the separation of the roles of chairman and CEO[64]. - The board held four meetings during the reporting period, with all members attending all meetings[73]. - The audit committee reviewed and recommended the approval of the audited consolidated financial statements for the reporting period[84]. - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee[81]. - Independent non-executive directors constitute at least one-third of the board, ensuring strong independent judgment[74]. - The company has a commitment to continuous professional development for all directors, with training sessions held on regulatory responsibilities[79]. - The board is responsible for overseeing the company's business strategy and performance, ensuring alignment with shareholder interests[77]. - The company approved an annual budget covering strategy, finance, and business performance[70]. Environmental, Social, and Governance (ESG) Initiatives - The group is committed to sustainable development and social responsibility, focusing on creating long-term value for stakeholders, including employees and business partners[115]. - The environmental, social, and governance (ESG) report for the fiscal year 2024 will not include data on greenhouse gas emissions or waste generation due to the closure of the Shenzhen factory[118]. - The company emphasizes the importance of stakeholder engagement to inform business strategies and address stakeholder needs and expectations[118]. - The company aims to reduce greenhouse gas emissions and hazardous waste levels as part of its green production goals, contributing to a cleaner environment[122]. - The company has engaged external qualified testing firms to monitor emissions from its main production facilities, ensuring compliance with current regulations[125]. Employee and Workforce Management - As of December 31, 2024, the group had a total of 9 employees, a significant decrease from 397 employees in 2023, with employee costs amounting to approximately HKD 39.1 million, down from HKD 59.7 million in 2023[56]. - Employee costs for FY2024 decreased by 31.17% to HKD 37.10 million from HKD 53.90 million in FY2023, primarily due to the closure of the Shenzhen factory[156]. - Social and retirement benefits payments fell by 57.21% from HKD 5.77 million to HKD 2.47 million, attributed to calculations based on basic salaries[156]. - A total of 82 employees resigned in FY2023, with no data available for FY2024 due to the factory's closure[159]. - The company has implemented health prevention measures at the Shenzhen factory, including temperature checks and sanitation protocols for all personnel entering the facility[175]. - The company reported zero injuries and accidents in fiscal year 2024, compared to 20 in fiscal year 2023[177]. Production and Resource Management - The company aims to enhance resource efficiency and production capacity through automation and effective production management[141]. - The company has implemented measures to encourage the recycling of materials and reduce waste, including the use of double-sided copying and electronic documentation[132]. - The company has established centralized mechanical equipment for compressing and bundling waste paper to improve collection efficiency and recycling rates[132]. - Total paper material purchases for FY2024 amounted to HKD 8.0 million, a significant decrease of 77.22% from HKD 35.13 million in FY2023, primarily due to the closure of the Shenzhen factory[132]. - The average output per worker decreased by 10.46% to 16,487 kg in FY2023, attributed to reduced production orders and underutilization of capacity[144]. Strategic Direction - The company is focused on international markets, indicating a strategic direction towards global expansion[199]. - The company has established a joint venture to operate a factory in Huizhou, enhancing its production capabilities[199]. - The board emphasizes the importance of environmental, social, and governance (ESG) responsibilities in its new business strategy[194].
万里印刷(08385) - 2024 - 年度业绩