Financial Performance - The company recorded total revenue of HKD 51,872,000 for the year ended December 31, 2024, a decrease of 43.0% compared to the previous year[8]. - Net loss increased to HKD 173,249,000, primarily due to fair value losses on forestry assets in New Zealand and impairment of forestry concessions in Suriname[8]. - Revenue from the New Zealand segment decreased by 39.8% to HKD 39,220,000, attributed to a significant reduction in sales volume as a major plantation asset entered a regrowth phase[17]. - The average export sales price based on offshore pricing decreased by 14.9%, while sales volume dropped by 39.4% in the New Zealand segment[17]. - The Suriname segment's revenue decreased by 50.9% to HKD 12,652,000, with a 49.0% drop in sales of logs and wood products due to the termination of operations in the western region[18]. - The group's gross loss decreased by 35.2% to HKD 58,612,000, with the New Zealand segment reporting a gross profit of HKD 4,477,000, up from HKD 1,314,000 in 2023, while the Suriname segment's gross loss reduced to HKD 63,089,000 from HKD 91,757,000[19]. - The group's loss before interest, tax, depreciation, and amortization increased from HKD 110,168,000 in 2023 to HKD 147,247,000 in 2024, with significant losses reported in both New Zealand and Suriname segments[31]. - The attributable loss to the company's owners increased from HKD 93,075,000 in 2023 to HKD 139,238,000 in 2024[33]. - Total assets decreased to HKD 609,514,000 in 2024 from HKD 799,301,000 in 2023, a decline of 24%[154]. - Total liabilities slightly increased to HKD (519,296,000) in 2024 from HKD (512,247,000) in 2023[154]. - The annual loss for 2024 was HKD (173,249,000), compared to a loss of HKD (139,674,000) in 2023, representing a 24% increase in losses[154]. Operational Changes - The company plans to explore funding options, including converting non-current assets into working capital to address financial pressures[11]. - The company aims to focus on acquiring short-term logging rights to secure a more stable revenue source in the future[11]. - The company is actively implementing cost-cutting measures and reassessing the feasibility of loss-making businesses to improve financial sustainability[40]. - The company has not engaged in any significant business acquisitions or disposals during the year ended December 31, 2024[43]. - The company has a strategic focus on transforming its Suriname operations to profitability and expanding its business in New Zealand[59]. Governance and Management - The company has appointed Mr. Li Guoheng and Ms. Sun Songxin as non-executive directors, enhancing its board with experienced professionals in strategic investment and marketing[52][53]. - Mr. Huang Wenzong serves as the chairman of both the audit and remuneration committees, bringing over 30 years of experience in auditing, taxation, and corporate governance[54][55]. - The board emphasizes high corporate governance standards, adhering to the applicable corporate governance code provisions throughout the year, with a noted exception regarding the rotation of directors[61]. - The management team includes Mr. Lai Guohong, who oversees overseas operations, and Mr. Chen Junhao, the financial director, both bringing extensive industry experience[59]. - The board regularly reviews and enhances corporate governance practices in response to global trends and business environments[61]. - The company has maintained transparency and disclosure to strengthen stakeholder confidence and protect their interests[61]. - The independent non-executive directors contribute diverse backgrounds and expertise, enhancing the board's effectiveness in governance and oversight[54][56][57]. - The company is committed to high standards of corporate governance, which is crucial for the stability and continuity of its management team[61]. Environmental and Social Responsibility - The company integrates sustainable development principles into its core business strategy, focusing on protecting forests and creating long-term economic value for shareholders[68]. - The management closely monitors greenhouse gas emissions and energy consumption, ensuring compliance with environmental regulations[70]. - The company prohibits child labor and forced labor in its recruitment process, ensuring a safe working environment with personal protective equipment for all workers[70]. - The company actively participates in community engagement, supporting underprivileged communities and promoting green living initiatives[70]. - The company emphasizes environmental responsibility and has implemented measures to reduce operational impact on the environment[146]. Financial Management - The group's capital debt ratio increased to 72.9% as of December 31, 2024, compared to 53.4% in 2023, indicating a rise in leverage[35]. - The group’s capital expenditure for the year ended December 31, 2024, was approximately HKD 1,187,000, compared to HKD 1,150,000 in 2023[42]. - The company has a financing agreement with Silver Mount Group Limited, providing a revolving loan facility of up to HKD 215,000,000[174]. - As of December 31, 2024, a total of HKD 394,077,000 has been drawn from the financing, with related interest accrued amounting to HKD 22,588,000 for the year[177]. - The sixth supplemental financing agreement was signed on July 14, 2023, extending the repayment date to August 4, 2026[177]. Risk Management - The company faces various risks including interest rate risk, foreign currency risk, credit risk, and liquidity risk, which could impact its financial performance[145]. - The board is responsible for maintaining a sound and effective risk management and internal control system, with a clear management structure in place[118]. - The internal control framework is based on the COSO framework, covering five key areas: control environment, risk assessment, control activities, information and communication, and monitoring activities[120]. - The company has integrated risk management functions into its business operations, with department heads identifying potential risks during daily operations[121]. - The company's risk management and internal control systems are deemed effective for the year, with sufficient qualified personnel in the accounting and financial reporting team[123]. Shareholder Communication and Dividends - The company has adopted a shareholder communication policy to maintain ongoing dialogue with shareholders and the investment community[136]. - The company did not recommend any dividend payment for the current year, consistent with the previous year where no dividend was declared[151]. - The company maintains a sustainable dividend policy aimed at balancing shareholder expectations and prudent capital management[140]. - The board considers various factors when deciding on dividends, including financial performance, liquidity, and regulatory restrictions[141]. - The board is committed to reviewing the dividend policy regularly and retains the discretion to update or modify it as necessary[140].
绿心集团(00094) - 2024 - 年度财报