Revenue Performance - For the year ended December 31, 2024, the group's revenue increased by approximately HKD 69.7 million or 48.6% to approximately HKD 213.3 million, driven by strong performance in payroll and dispatch services [9]. - Total revenue increased from approximately HKD 143,566,000 for the year ended December 31, 2023, to approximately HKD 213,297,000 for the year ended December 31, 2024, representing a growth of about 48.6% [19]. - Revenue from recruitment services in Hong Kong decreased by approximately HKD 16.3 million or 24.0% to approximately HKD 51.6 million for the year ended December 31, 2024 [9]. - Revenue from recruitment services decreased from approximately HKD 84,789,000 in 2023 to about HKD 76,675,000 in 2024, representing a decline of 9.5% [34]. - Revenue from dispatch and payroll services in Hong Kong increased by approximately HKD 77,618,000 or 138.6%, from approximately HKD 56,005,000 for the year ended December 31, 2023, to approximately HKD 133,623,000 for the year ended December 31, 2024 [21]. - Revenue from recruitment services in mainland China increased by approximately HKD 3.5 million or 21.6% to approximately HKD 20.1 million for the year ended December 31, 2024 [9]. - Singapore recruitment revenue increased significantly from approximately HKD 365,000 in 2023 to approximately HKD 4,957,000 in 2024, a growth of about HKD 4,592,000 [25]. - The company's Hong Kong recruitment revenue decreased from 47.3% of total revenue in 2023 to 24.2% in 2024, while mainland China revenue accounted for 9.5% in 2024, down from 11.5% in 2023 [33]. Cost and Expenses - The cost of dispatched employees increased by approximately HKD 71.1 million or 138.8% to approximately HKD 122.3 million, aligning with the revenue growth in payroll and dispatch services [10]. - Employee costs rose by approximately HKD 68,074,000 or 56.9%, with dispatch employee costs increasing by about HKD 71,107,000 or 138.8% [39]. - The total employee cost for the year ending December 31, 2024, was approximately HKD 187,687,000, compared to about HKD 119,613,000 in 2023, indicating a significant increase [54]. Strategic Initiatives - The company plans to continue exploring new market opportunities and deepen its influence in existing markets, having established a new office in Shanghai in 2024 [12]. - The company aims to diversify revenue sources further, enhance operational efficiency, and solidify its market position in key regions [12]. - The company is actively seeking opportunities in human resources consulting services to provide comprehensive solutions for clients [12]. - The company plans to expand its operations in mainland China and Southeast Asia, with a new office established in Shanghai in 2024 [16]. - The company is focusing on diversifying its revenue sources and adapting to changing market dynamics by offering comprehensive HR solutions beyond traditional recruitment services [17]. - The company aims to strengthen its leadership position in the HR services industry through operational efficiency and data-driven decision-making [19]. - The company plans to focus resources on industries with strong recovery potential and invest in dedicated teams in Hong Kong, mainland China, and Singapore [30]. - The company will continue to explore new market opportunities and potential investments to align with its core business and provide synergies [30]. Financial Health - Net loss narrowed to approximately HKD 2,547,000 for the year ended December 31, 2024, compared to a net loss of approximately HKD 4,157,000 for the year ended December 31, 2023 [19]. - The capital-to-debt ratio increased to 17.6% in 2024 from 7.2% in 2023, with lease liabilities rising to approximately HKD 10,232,000 [46]. - The current ratio as of December 31, 2024, was approximately 3.6 times, down from 3.9 times in 2023 [45]. - The company did not recommend a final dividend for the year ending December 31, 2024 [44]. - As of December 31, 2024, the group had bank deposits of HKD 2,400,000, down from HKD 3,000,000 in 2023, which were pledged to secure bank financing [52]. Employee and Talent Management - The company continues to invest in talent development and employee engagement, recognizing that talent is the cornerstone of its success [12]. - The group had a total of 1,132 employees as of December 31, 2024, comprising 133 internal staff and 999 dispatched employees, up from 112 internal staff and 679 dispatched employees in 2023 [54]. - The company is committed to recruiting, training, and retaining top recruitment talent as part of its long-term organic growth strategy [30]. - The company has a commitment to providing equal opportunities in recruitment, training, and promotion regardless of gender [143]. Corporate Governance and Compliance - The company emphasizes the importance of compliance with legal and regulatory requirements, with no significant violations reported for the year ending December 31, 2024 [72]. - The company has adopted a culture of accountability, with clear objectives and regular performance evaluations for all employees [123]. - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring compliance with GEM listing rules [126]. - The company has complied with the corporate governance code as stipulated in the GEM Listing Rules for the year ended December 31, 2024 [120]. - The company has established mechanisms for directors to seek independent professional advice related to their duties [129]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of environmental, social, and governance (ESG) factors, committing to sustainable development as a core operational focus [180]. - The company aims to create more job opportunities for vulnerable communities, including the disabled and elderly, while promoting employee rights and well-being [182]. - The group aims to reduce greenhouse gas emission density by 10% by 2032, based on 2022 as the baseline year [200]. - The company has identified key ESG risks, including emissions, resource consumption, and climate change impacts, and has implemented a top-down risk management framework [183]. - The company has not reported any significant non-compliance issues regarding air and greenhouse gas emissions during the reporting period [190]. Risk Management - The company faces risks related to labor shortages and increased employee costs, which could adversely affect its operations and financial performance [68]. - The audit committee reviewed the effectiveness of the group's risk management and internal control systems [147]. - The board confirmed that there are no significant internal control deficiencies identified during the review of the risk management and internal control systems [157].
高奥士国际(08042) - 2024 - 年度财报