Financial Performance - Total revenue for the fiscal year 2024 was HKD 876.0 million, a decrease of 26.9% compared to HKD 1,198.6 million in 2023[5] - The company's net profit attributable to equity holders dropped by 98.9% to HKD 3.2 million, with a profit margin of 0.4% compared to 24.8% in the previous year[5] - EBITDA for the fiscal year 2024 was HKD 41.9 million, down 88.4% from HKD 360.8 million in 2023, resulting in an EBITDA margin of 4.8%[5] - Adjusted net profit for the fiscal year was HKD 46.4 million, a decrease of 59.5% from HKD 114.8 million in 2023[5] - The group's gross profit decreased by 27.5% to HKD 232.7 million for the fiscal year, with a gross margin decline of 0.2 percentage points to 26.6% due to rising commodity costs[31] - Other income and net other gains for the fiscal year were HKD 4.8 million, a significant drop from HKD 209.0 million in the previous fiscal year, primarily due to the one-time gain from the sale of 51% equity in CWA[32] - Profit attributable to equity holders of the company was HKD 6.0 million, down from HKD 297.3 million in the previous fiscal year, mainly due to the absence of one-time gains from the sale of CWA and increased share-based payment expenses[33] Revenue Breakdown - Retail revenue increased by 63.4% year-on-year to HKD 176.4 million, while distribution sales in Hong Kong grew by 3.3% to HKD 533.0 million[7] - Southeast Asia distribution sales reached HKD 77.3 million, a significant increase of 63.5% year-on-year, with Singapore contributing HKD 65.6 million, up 56.9%[8] - Revenue from Hong Kong increased by 13.7% to HKD 709.4 million in fiscal year 2024, compared to HKD 623.7 million in fiscal year 2023, despite a slight growth in distribution business[30] - Revenue from Singapore, Malaysia, and other regions surged by 59.8% to HKD 77.3 million in fiscal year 2024, up from HKD 48.3 million in fiscal year 2023[30] - Macau's revenue decreased by 20.7% to HKD 89.3 million in fiscal year 2024, down from HKD 112.7 million in fiscal year 2023, attributed to changes in consumer spending patterns[30] Strategic Initiatives - The company plans to maintain market share in Hong Kong and Macau while controlling costs and enhancing profit margins through strategic partnerships and product diversification[9] - The company aims to develop proprietary and collaborative brands to enhance profitability and meet market trends[9] - The company anticipates significant growth in distribution sales in Thailand, with revenue expected to multiply by the end of the fiscal year 2025[10] - The company plans to leverage the updated free trade agreement with ASEAN, which expanded covered product categories from over 200 to nearly 600, to enhance competitiveness in Southeast Asia[14] - The company aims to continue expanding its market share and product offerings in the Asia-Pacific region, focusing on health and wellness products[10] Dividend Policy - The board decided not to declare a final dividend for the fiscal year due to the uncertain operating environment[7] - The board has decided not to declare any final dividend for the 2024 financial year, compared to a dividend of HKD 0.035 per share for the 2023 financial year[65] - The board will continue to review the dividend policy, which has been in effect since April 15, 2020, allowing for the declaration of interim or special dividends[91] - The company has adopted a dividend policy that requires consideration of various factors, including financial performance and cash flow[95] Corporate Governance - The board consists of eight members, including one executive director, four non-executive directors, and three independent non-executive directors[193] - The board held five meetings during the fiscal year to review financial and operational performance and discuss future strategies[196] - The company has adhered to all corporate governance code provisions during the fiscal year, except for deviation from provision C.2.1[191] - The company emphasizes high ethical standards and believes that acting with integrity and transparency will maximize long-term shareholder returns[188] - The company has established a corporate governance committee responsible for formulating and reviewing governance policies and practices[190] Shareholder Information - The company has a significant shareholder, Tycoon Empire, holding 432,616,326 shares, representing 54.08% of the total shares[133] - Major shareholder Wei Siqi also holds 432,616,326 shares, equivalent to 54.08%[137] - China Resources Pharmaceutical Retail holds 151,895,000 shares, accounting for 18.99% of the total shares[137] - Jacobson Group Treasury Limited owns 56,590,000 shares, which is 7.07% of the total shares[137] - The company has not entered into any significant contracts with its controlling shareholders during the fiscal year[132] Employee Information - The number of employees increased to 260 as of December 31, 2024, compared to 130 in the previous year[64] - Total employee costs for the financial year amounted to approximately HKD 89 million, up from HKD 65.9 million in the previous financial year[64] Risk Management - The group closely monitors foreign exchange risks and may consider hedging significant foreign exchange risks when necessary[41] - The company faces risks related to consumer preferences and spending patterns, which could significantly impact its business and financial performance[67] Related Party Transactions - The total amount of related party transactions disclosed did not exceed the set annual cap, except for the previously mentioned excess[128] - The company has not engaged in any other related party transactions during the fiscal year, aside from those disclosed[125] Acquisitions and Investments - The group completed the acquisition of 12% equity in 康寧行 for a total consideration of HKD 9.1 million on May 31, 2023, increasing ownership to 61%[44] - On March 28, 2024, the group further acquired an additional 9% equity in 康寧行 for HKD 6.8 million, raising total ownership to 70%[45] - The company plans to acquire the remaining 51% of CWA Group for a cash settlement of HKD 106.0 million due to a triggered put option[177] Compliance and Legal - The company has established compliance and risk management policies, ensuring adherence to significant legal and regulatory requirements[173] - The company has committed to environmental protection and has complied with all relevant environmental laws during the fiscal year[172]
满贯集团(03390) - 2024 - 年度财报