Financial Performance - The group's revenue for the year ended December 31, 2024, was HKD 1,553,244,000, representing a 7.2% increase from HKD 1,449,340,000 in 2023[16][25] - The loss attributable to shareholders for the year was HKD 13,673,000, a significant improvement from a loss of HKD 72,431,000 in 2023[16][23] - Basic loss per share for the year was HKD 0.0216, compared to HKD 0.1147 in the previous year[16] - The cost of materials and consumables used to generate revenue decreased by 5.3%, with the percentage of these costs relative to revenue dropping to 38.7% from 43.8% in 2023[25] - The fair value of investment properties decreased by HKD 3,000,000 compared to the same period last year, and other income, gains, and losses decreased by HKD 11,387,000[27] - The tax credit decreased by HKD 34,499,000 mainly due to a reduction in deductible losses, resulting in a loss of HKD 13,673,000 for the year ended December 31, 2024, a decrease of 81.1% from HKD 72,431,000 in 2023[27] - As of December 31, 2024, the total equity of the group was HKD 1,673,543,000, down from HKD 1,798,762,000 as of December 31, 2023[28] - The group's bank deposits and cash amounted to HKD 546,648,000 as of December 31, 2024, compared to HKD 428,758,000 as of December 31, 2023, with no borrowings reported[28] Strategic Focus and Market Outlook - The group plans to adjust marketing strategies to explore greater opportunities in China and other overseas markets to mitigate risks and enhance market coverage[17] - The demand for high-end electronic technology products and environmentally friendly appliances is expected to continue improving, driven by government initiatives to stimulate consumption[19] - The group will focus on research and development of plastic and die-casting production technologies to enhance overall processing capabilities and product quality[19] - The group aims to maintain a competitive edge by continuously reducing costs and improving efficiency[19] - The geopolitical tensions and economic uncertainties are anticipated to pose challenges for business prospects in 2025[17] - The group will celebrate its 50th anniversary in 2025, committing to innovation and steady growth in a changing business environment[19] Corporate Governance - The board of directors consists of six executive directors and three independent non-executive directors, ensuring a balance of governance and independence[36] - The company has complied with all provisions of the Corporate Governance Code as set out in the Listing Rules during the fiscal year ended December 31, 2024[32] - The board held four regular meetings during the fiscal year, with all directors attending the annual general meeting[39] - The company has established specific committees, including audit, nomination, and remuneration committees, to oversee various matters throughout the year[48] - The nomination committee's responsibilities include reviewing the board's structure, assessing the independence of non-executive directors, and evaluating retirement policies[50] - The board's diversity policy emphasizes the importance of various factors such as gender, age, cultural background, and professional experience in board composition[54] - The company aims to maintain the current level of female representation on the board and gradually increase it through qualified candidate selection[57] - The nomination committee held four meetings in the fiscal year ending December 31, 2024, with full attendance from all members[49] Risk Management and Internal Controls - The Audit Committee reviewed the consolidated financial statements for the year ending December 31, 2023, and recommended their approval to the board[67] - The Audit Committee met four times in the fiscal year ending December 31, 2024, to review quarterly performance and internal audit results[66] - The company plans to reappoint Deloitte as the external auditor for the fiscal year 2025, subject to shareholder approval[69] - The Audit Committee evaluated the effectiveness of the group's risk management and internal control systems[70] - The risk management and internal control systems are reviewed annually by a special committee, ensuring effectiveness in managing significant risks, including ESG-related risks[72] - The internal audit department regularly reports to the board and audit committee on the effectiveness of internal controls and identifies any significant weaknesses[74] - The group has established policies to ensure assets are safeguarded and complies with relevant regulations, maintaining reliable financial records[72] - The board is responsible for preparing financial statements that fairly reflect the group's financial position, with no known significant uncertainties affecting the group's ability to continue as a going concern[71] Environmental, Social, and Governance (ESG) Initiatives - The ESG report outlines the company's policies, strategies, governance direction, and performance in fulfilling environmental and social responsibilities for the fiscal year ending December 31, 2024[100] - The company is committed to sustainable development and has established a rigorous ESG governance framework to oversee related matters[108] - The company has implemented policies to reduce emissions and conserve energy, aiming to minimize environmental impact[124] - The company engages with stakeholders regularly to understand their expectations and prioritize ESG aspects in reporting[115] - The importance matrix indicates that environmental aspects such as greenhouse gas emissions and energy consumption are of high importance to the business[121] - The company has established strategic goals and indicators for ESG over the next three to five years to focus on achieving its ESG vision[114] - The company has identified and prioritized ESG projects based on their significance to the business through internal discussions among senior management[119] - The company emphasizes ethical and responsible business practices, urging employees to maintain integrity and accountability[108] Employee and Workforce Management - The group employed approximately 3,000 employees as of December 31, 2024, with a competitive compensation system in place[31] - The total number of employees in the China factory increased to 2,832 in 2024, up from 2,761 in 2023, representing a growth of approximately 2.6%[144] - The employee turnover rate rose to 16% in 2024, compared to 12% in 2023, indicating a significant increase in employee attrition[145] - In the reporting year, employees at the China factory received a total of 49,010 hours of training, an increase from 34,360 hours in 2023[150] - The average training hours per employee for 2024 is 17 hours (99% participation), up from 12 hours (99% participation) in 2023[151] - Female employees received an average of 21 hours of training in 2024, compared to 14 hours in 2023[151] - The company promotes diversity at all employee levels, ensuring equal training and career development opportunities[60] Community Engagement and Corporate Culture - The company emphasizes community investment and prioritizes hiring from local communities to alleviate unemployment pressures[164] - The company has established a corporate culture that emphasizes integrity and anti-corruption training for employees[162] - The company is committed to minimizing its operational impact on the environment and supports the sustainable use of natural resources[137] Shareholder Information - The company declared an interim dividend of HKD 0.05 per share, totaling HKD 31,584,000, and proposed a final dividend of HKD 0.06 per share and a special final dividend of HKD 0.12 per share, amounting to HKD 37,901,000 and HKD 75,802,000 respectively[169] - The company has a retained earnings reserve available for distribution to shareholders amounting to HKD 246,356,000 as of December 31, 2024[176] - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting within two months of their request[88] - The company will take appropriate actions upon receiving valid requests from shareholders for resolutions to be proposed at the general meeting[89]
龙记集团(00255) - 2024 - 年度财报