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% compared to HKD 146.2 million for the year ended December 31, 2023[7]. - 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[7]. - 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[7]. - Revenue decreased by approximately 65.7% from about HKD 146.2 million for the year ended December 31, 2023, to about HKD 50.1 million for the year ended December 31, 2024, primarily due to a reduction in sales orders[29]. - Net loss for the year ended December 31, 2024, was approximately HKD 45.6 million, compared to a net loss of about HKD 23.0 million for the year ended December 31, 2023, mainly due to decreased customer orders[39]. - Gross loss of approximately HKD 2.0 million was recorded for the year ended December 31, 2024, with a gross margin of -3.9%, compared to a gross profit of about HKD 34.9 million and a gross margin of 23.9% for the previous year[34]. - 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 ended December 31, 2024, primarily due to the absence of one-time government subsidies[35]. Operational Changes - The group ceased operations at its Shenzhen factory in June 2024 and has also stopped operations at its Hong Kong factory, transferring operations to a commercial bank[10]. - The group plans to outsource printing orders to the Huizhou factory and other subcontractors in mainland China following the cessation of its own factory operations[10]. - The company closed its Shenzhen factory in June 2024 due to a significant decrease in customer orders and low profit margins[115]. - The Hong Kong office's production facilities were also closed in December 2024[115]. - The company entered into a joint venture agreement to invest in a printing factory in Huizhou, Guangdong, holding a 28% stake in the joint venture[116]. - The Huizhou factory will cover an area of 9,640 square meters and is planned to be equipped with five printing machines, binding machines, folding machines, and sewing machines[116]. Business Strategy and Future Outlook - The group aims to adapt to a new business model through the Huizhou factory to maintain operations, despite facing challenges such as global economic uncertainty and technological advancements in publishing[11]. - The group believes that outsourcing will significantly reduce fixed cash flow costs, thereby improving cash flow[11]. - The company has set a future revenue guidance of HKD 1.5 billion for the next fiscal year, indicating a projected growth of 25%[18]. - The company is exploring potential acquisitions in the Southeast Asian market to diversify its service offerings[21]. - A new product line focused on eco-friendly printing solutions is expected to launch in Q2 2024, targeting a 10% market share within the first year[22]. - The company has implemented a new strategy to enhance customer engagement through digital platforms, aiming for a 15% increase in customer retention rates[23]. Financial Health and Risks - The group will continue to face risks in regaining customer orders due to weak market demand and geopolitical tensions, including the Russia-Ukraine conflict and US-China trade disputes[13]. - The company recorded a loss of approximately HKD 45,607,000 for the year ending December 31, 2024, with net current liabilities of about HKD 134,213,000[41]. - Total bank loans and overdrafts amounted to approximately HKD 107,580,000, which are due for repayment within one year, while cash and bank balances were only about HKD 849,000[41]. - The company is facing significant uncertainty regarding its ability to continue as a going concern due to its financial situation[42]. - The company plans to implement cost control measures to improve cash flow and is exploring alternative financing options to meet existing financial obligations[99]. - The group is actively negotiating with banks to seek continued support and avoid immediate repayment due to loan covenant breaches[99]. Corporate Governance and Compliance - The board does not recommend the payment of a final dividend for the year ended December 31, 2024[7]. - The company has complied with the corporate governance code principles for the year ending December 31, 2024, except for a deviation regarding the separation of roles between the chairman and CEO[61]. - The board held four meetings during the reporting period, with full attendance from all directors[70]. - The audit committee held four meetings during the reporting period, with all members attending all meetings, and reviewed the audited consolidated financial statements for the reporting period[81]. - The company has established a robust internal control and risk management system aimed at managing risks rather than eliminating them[92]. - The company has not received any reports of fraud or corruption activities in the fiscal years 2024 and 2023, reflecting its commitment to fair business practices[189]. Environmental and Social Responsibility - The company emphasizes environmental protection and compliance with relevant environmental regulations, including the Environmental Protection Law of the People's Republic of China[117][118]. - The company aims to create long-term value for stakeholders through sustainable development and social responsibility initiatives[112]. - The company’s environmental, social, and governance report covers the fiscal year 2024, with comparative data from the fiscal year 2023[112]. - The company aims to reduce greenhouse gas emissions and hazardous waste levels to create a cleaner environment and mitigate severe weather sources[122]. - The company encourages double-sided copying and electronic documentation to reduce paper usage in office settings[129]. - The company is committed to responsible corporate citizenship and aims to support local community economic and social vitality[190]. Employee Management and Safety - The employee count at the end of FY2024 decreased to 9 from 397 in FY2023, representing a reduction of 97.73%[149]. - Employee costs in FY2024 totaled HKD 39.56 million, down 39.16% from HKD 59.66 million in FY2023, primarily due to the closure of the Shenzhen factory[153]. - The company reported zero work-related injuries and zero lost workdays in the 2024 fiscal year, compared to 20 reported injuries and 185 lost workdays in the previous year[174]. - The company has established a health prevention program at the Shenzhen factory, including temperature checks and sanitation measures for all personnel entering the facility[172]. - The company has implemented health and safety training programs to promote workplace safety awareness[175]. - The company is committed to respecting labor rights and human rights, ensuring voluntary employment conditions and prohibiting forced labor[164].
万里印刷(08385) - 2024 - 年度财报