Financial Performance - Revenue from the footwear and apparel business decreased by approximately 60.6% from HKD 28.7 million in 2023 to HKD 11.3 million in 2024[10]. - Loss from continuing operations increased from approximately HKD 5.3 million in 2023 to approximately HKD 10.5 million in 2024[10]. - The company recorded revenue of approximately HKD 11.3 million for the year 2024, a decrease of about 60.6% compared to HKD 28.7 million in 2023[20]. - The company recorded no revenue from the loan brokerage and credit assessment segment in 2024, following its sale in April 2023, which had generated approximately HKD 2,000 in 2023[10]. - The company has terminated its loan brokerage and credit assessment services, resulting in a 100% decrease in revenue from this segment, which was approximately HKD 2,000 in 2023[22]. - The net loss for the year was approximately HKD 10.5 million in 2024, compared to a profit of approximately HKD 1.5 million in 2023[31]. Cost and Expenses - The cost of goods sold was approximately HKD 7.7 million in 2024, down from HKD 21.2 million in 2023[23]. - Employee benefit expenses decreased from approximately HKD 6.0 million in 2023 to approximately HKD 5.4 million in 2024[26]. - Other operating expenses increased from approximately HKD 5.6 million in 2023 to approximately HKD 8.4 million in 2024[27]. - Other losses for 2024 amounted to approximately HKD 0.3 million, compared to other income of approximately HKD 0.3 million in 2023[24]. - Financing costs decreased by 70.7% from approximately HKD 1.26 million in 2023 to approximately HKD 370,000 in 2024[28]. Taxation and Financial Position - The income tax credit for 2024 increased to approximately HKD 42,000, compared to a tax expense of HKD 32,000 in 2023[29]. - As of December 31, 2024, the total borrowings of the group amounted to approximately HKD 1.7 million, a decrease from HKD 7.3 million in 2023[32]. - The debt-to-asset ratio as of December 31, 2024, was 7.1%, down from 23.8% in 2023[32]. - The group maintained sufficient working capital with bank balances and cash of approximately HKD 5.0 million as of December 31, 2024, compared to HKD 1.5 million in 2023[32]. - The current ratio as of December 31, 2024, was approximately 3.0 times, an increase from 2.1 times in 2023[32]. Business Outlook and Strategy - The company anticipates a cautious optimistic outlook for business in 2025, supported by government initiatives to promote local consumption and an expected increase in visitor numbers[11]. - The company plans to expand its retail presence by opening more stores in Hong Kong, starting with one new store in early 2025[11]. - Strategic partnerships with established sales partners are being explored to enhance distribution channels and access leading e-commerce platforms[11]. - The company aims to leverage social media and e-commerce trends to expand sales coverage and enhance brand visibility in both physical and digital sales channels[11]. - The company plans to continue exploring suitable business opportunities and seek collaborations with more local and overseas enterprises[17]. Shareholder and Corporate Governance - The board does not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[69]. - The company has complied with all relevant laws and regulations applicable to its business operations[59]. - The company has maintained good relationships with customers and suppliers, with no complaints or debt disputes reported as of December 31, 2024[62]. - The company has established a communication policy with shareholders to enhance engagement and transparency, adopted on May 11, 2016[172]. - The company encourages shareholders to submit inquiries and suggestions directly to the board, enhancing shareholder engagement[174]. Risk Management - The company has established a risk management committee to monitor and assess the risks associated with sanctions, ensuring compliance with international regulations[117]. - The company is actively monitoring interest rate risks associated with floating rate bank balances and will consider hedging if necessary[57]. - The company has implemented monitoring procedures to prevent unauthorized access to insider information[169]. - The company has a whistleblowing and anti-corruption policy in place to address employee concerns and complaints, details of which are available on its website[180]. Inventory Management - The group reported a total inventory value of approximately HKD 13,163,000 as of December 31, 2024[199]. - During the year, the group made a provision of approximately HKD 1,292,000 for obsolete and slow-moving inventory[199]. - The group has undergone a review of inventory to identify obsolete and slow-moving items, ensuring necessary provisions are made[199]. - The management's assessment of the net realizable value of inventory is considered a key audit matter due to the judgment involved[199]. - The group has implemented controls to estimate the net realizable value of inventory and conducts regular reviews of inventory obsolescence[200]. Board Composition and Diversity - The company has made comprehensive efforts to enhance board diversity by seeking suitable female director candidates, with an expectation to appoint a female director by March 31, 2025, to comply with GEM Listing Rule 17.104[128]. - The board of directors is currently composed of a single gender, and efforts are being made to enhance gender diversity by appointing a new director of a different gender by March 31, 2025[155]. - The company has adopted a policy for board member diversity, focusing on various aspects such as gender, age, educational background, and professional experience[155]. - The nomination committee is actively seeking qualified candidates to fulfill the board's diversity policy and enhance gender representation[155]. Audit and Compliance - The independent auditor's report confirmed that the consolidated financial statements reflect a true and fair view of the group's financial position as of December 31, 2024[194]. - The independent auditor has maintained independence and fulfilled ethical responsibilities throughout the audit process[195]. - The audit committee reviewed the interim results for the six months ending June 30, 2024, and the annual results for the year ending December 31, 2024, ensuring compliance with applicable accounting standards[145]. Share Option Scheme - The company adopted a share option scheme on May 11, 2016, to reward eligible participants for their contributions[101]. - The maximum number of shares that can be issued under the share option scheme is capped at 10% of the issued shares, equating to 15,168,384 shares based on the current issued share count of 151,683,840[109]. - A total of 14,400,000 stock options were granted under the stock option plan on January 6, 2023, with an exercise price of HKD 0.022 per share prior to the share consolidation[113]. - The share consolidation took effect on March 21, 2023, consolidating every 20 existing shares into 1 share with a par value of HKD 0.20[113].
积木集团(08187) - 2024 - 年度财报