Financial Performance - For the fiscal year ending December 31, 2024, the group's revenue was HKD 372,746,000, a decrease of approximately 12.8% compared to HKD 427,308,000 in the previous year[8]. - The cement business generated revenue of HKD 154,190,000, down about 21.1% year-on-year, while property investment revenue was HKD 145,982,000, a decrease of 4.6%[8]. - The group recorded a net profit after tax of HKD 18,604,000 for 2024, compared to a net loss of HKD 98,650,000 in 2023, marking a significant turnaround[8]. - The basic earnings per share for 2024 was HKD 0.038, compared to a loss per share of HKD 0.195 in 2023[8]. - The hotel business contributed HKD 61,798,000 in revenue for the year 2024, a slight decrease of approximately 1.4% compared to HKD 62,652,000 in 2023[17]. Cement Business Performance - The cement plant's sales volume was approximately 388,700 tons, a decrease of about 16.5% from 465,600 tons in the previous year[11]. - The cement business incurred a net loss after tax of approximately HKD 44,913,000, a reduction of about 72.0% compared to a loss of HKD 160,415,000 in the previous year[11]. - The group faced challenges in the cement industry due to oversupply and low domestic demand, with total cement supply in Vietnam reaching approximately 122 million tons against a domestic consumption of only about 60 million tons[10]. Investment and Development Plans - The group plans to open a new hotel, Le Carré Hue, in Vietnam in the second quarter of 2025, anticipating steady growth in hotel performance due to the recovery of the tourism sector in Hong Kong[6]. - The group plans to complete the construction and interior decoration of the "Hue Square" project in Vietnam by Q1 2025, with the hotel section preparing for opening[19]. Environmental and Sustainability Initiatives - The group has set a target to reduce greenhouse gas emissions by 2% by the end of 2025, with hazardous waste reduced to 0.03 kg per ton of clinker and non-hazardous waste to 0.18 kg per ton of clinker[47]. - The company recognizes the importance of complying with environmental laws and has established an ISO department in its Vietnam plant to ensure adherence to environmental policies[59]. - The cement plant is committed to reducing methane emissions by at least 30% by 2030 and achieving net-zero emissions by 2050[96]. - The company aims to minimize its environmental footprint and supports local community initiatives[57]. Employee and Labor Practices - The total employee costs (excluding directors' remuneration) for the year ended December 31, 2024, were approximately HKD 56,129,000, down from HKD 61,357,000 in the previous year[31]. - The group employed approximately 820 people as of December 31, 2024, with about 86% of employees located in Vietnam[31]. - As of December 31, 2024, the employee turnover rate is 19%, with 50% of the turnover occurring among frontline staff[100]. - The company has signed collective labor agreements with unions to ensure fair working conditions for employees[98]. Corporate Governance - The company emphasizes its commitment to high corporate governance standards and compliance with the Hong Kong Stock Exchange's corporate governance code[128]. - The board of directors consists of eight members, including both executive and independent non-executive directors[130]. - The company has established measures to prevent child labor and forced labor in its recruitment practices[125]. - The board has established a nomination committee to review the board's structure and composition annually, ensuring alignment with the company's strategy[149]. Community Engagement - The group is committed to community investment, including support for Médecins Sans Frontières (MSF) and recycling initiatives in Hong Kong[118]. - The group actively participates in community events, such as the "iRun" marathon, promoting inclusivity for individuals with disabilities[119]. Risk Management - The group faced foreign exchange risk due to the depreciation of the Vietnamese Dong against the Hong Kong Dollar by approximately 5.25% as of December 31, 2024, compared to December 31, 2023, resulting in a foreign exchange loss of HKD 2,747,000 during the year[28]. - The company has implemented measures to diversify suppliers and develop contingency plans to mitigate supply chain risks related to climate events[97].
陆氏集团(越南)(00366) - 2024 - 年度财报