Business Performance - The company maintained a stable business growth and solid profitability despite a complex operating environment, with a focus on strategic deployment and competitive advantages [13]. - For the fiscal year ending December 31, 2024, the company's revenue increased to HKD 5,450,000,000, up from HKD 5,352,500,000 in 2023, reflecting a growth driven by plush toy sales and increased orders for plastic model kits [22]. - Gross profit for the year was HKD 1,253,900,000, with a gross margin of 23.0%, down from 25.1% in the previous year [22]. - Net profit attributable to shareholders was HKD 738,500,000, resulting in a net profit margin of 13.6%, compared to 15.5% in 2023 [22]. - The plush toy segment generated revenue of HKD 2,765,500,000, accounting for 50.7% of total revenue, with growth primarily driven by the Asian market [24]. - The plastic model segment saw revenue rise to HKD 2,311,200,000, representing 42.4% of total revenue, benefiting from strong demand in North America and Japan [25]. - The waterproof cover segment reported revenue of HKD 373,300,000, which is 6.9% of total revenue, impacted by reduced orders in the U.S. market [28]. - North America remains the largest regional market, contributing 42.3% of total revenue, followed by Japan at 24.6% and mainland China at 18.8% [29]. Production and Efficiency - The company improved production efficiency and cost control by accelerating automation and investing in advanced production technologies, which helped streamline processes and reduce labor dependency [15]. - The company is expanding its production capabilities to Indonesia, in addition to existing bases in China and Vietnam, to enhance flexibility and respond to international clients seeking cost-effective solutions [18]. - The company plans to enhance production efficiency and capacity by increasing automation levels across production lines and is establishing a new production base in Indonesia, expected to be operational by mid-2025 [32]. Customer Relations and Market Strategy - In 2024, the company plans to enhance customer relationships through active collaboration and flexible production arrangements, resulting in multiple large orders and extended partnerships [14]. - The company aims to capture emerging opportunities in the entertainment industry, such as immersive retail models and virtual gaming experiences, as part of its growth strategy [18]. Financial Management and Dividends - The company plans to distribute a final dividend, reflecting confidence in its ability to create value for shareholders [13]. - The board proposed a final dividend of HKD 0.40 per share, up from HKD 0.35 per share in 2023, reflecting the company's commitment to rewarding shareholders [23]. - The total distributable reserves available for shareholders as of December 31, 2024, amounted to HKD 1,188,775,000, an increase from HKD 1,120,854,000 in 2023 [74]. Sustainability and ESG Commitment - The company is committed to sustainable development by integrating ESG principles into its business strategy, including the use of recycled materials and investment in automated production lines [17]. - The company is committed to environmental sustainability and corporate social responsibility, integrating these principles into daily operations [45]. - The company has implemented sufficient environmental controls to minimize operational impacts, focusing on reducing resource usage, particularly energy and water [176]. - The company has received multiple certifications for social compliance standards, including ICTI Care Program and Disney International Labor Standards, addressing various environmental, social, and governance issues [175]. Governance and Compliance - The board consists of four executive directors and three independent non-executive directors, ensuring a diverse governance structure [107]. - The independent non-executive directors have confirmed their independence according to the listing rules [99]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors for the year ending December 31, 2024 [100]. - The audit committee reviewed the accounting policies and discussed risk management and internal control systems, focusing on the annual performance for the year ending December 31, 2024 [102]. Risk Management - The risk management framework is guided by a "three lines of defense" model, ensuring effective risk control considerations by the board [149]. - The audit committee believes that the internal control work of the risk management working group is adequate given the group's operational scale and complexity [151]. Shareholder Communication - The company has established multiple channels for communication with shareholders, including annual general meetings and special meetings [159]. - The board of directors regularly reviews the shareholder communication policy to ensure its effectiveness [158]. - The company emphasizes the importance of effective and timely communication with shareholders and investors [163].
德林国际(01126) - 2024 - 年度财报