Financial Performance - Revenue for FY2024 decreased by 20.3% to HK$114,644,000 from HK$143,779,000 in FY2023[12] - Gross profit for FY2024 was HK$26,269,000, down 56.7% from HK$60,789,000 in FY2023[12] - Profit before taxation for FY2024 was HK$8,313,000, a decline of 70.4% compared to HK$28,103,000 in FY2023[12] - Total comprehensive income for FY2024 was HK$3,770,000, significantly lower than HK$20,095,000 in FY2023, marking an 81.2% decrease[12] - Net profit attributable to equity holders for the year was approximately HK$6.3 million, representing a decrease of approximately 71.5% from HK$22.0 million in 2023[28] - Basic and diluted earnings per share were both approximately HK0.8 cents, down from HK2.8 cents in 2023[28] - The Group's revenue decreased by 20.3% to HK$114.6 million for the Reporting Period, compared to HK$143.8 million for FY2023[78] Revenue Breakdown - The Group's slewing ring revenue from ODM decreased by 58.3% to HK$23,629,000 in FY2024 from HK$56,718,000 in FY2023[15] - Revenue from slewing rings decreased by approximately HK$43.2 million, from HK$70.3 million in FY2023 to HK$27.1 million in the Reporting Period, representing a decrease of 61.5%[85] - Revenue from mechanical parts and components decreased by approximately HK$7.3 million, from HK$23.6 million in FY2023 to HK$16.3 million in the Reporting Period, a decline of 30.9%[93] - Revenue from sales of machineries amounted to approximately HK$46.9 million in the Reporting Period, a decrease of approximately HK$3.0 million or 6.0% from HK$49.9 million in FY2023[99] - Revenue from mineral sales amounted to approximately HK$24.4 million during the Reporting Period, compared to nil in FY2023, representing 21.3% of total revenue[109] Market and Economic Conditions - The economic recovery in certain countries is expected to be slow, with global growth anticipated to be less than moderate before gradually recovering in the second half of 2024[33] - Economic development in China is impacted by factors such as defaults by property developers and a slump in the property market, affecting the expected economic rebound[33] - The persistent decline in market demand from Hong Kong and ASEAN regions negatively impacted revenue due to economic downturns and uncertainties[52] - The economic recovery in Hong Kong and the PRC is expected to be below expectations in 2024 due to various challenges, including property market issues[47] Strategic Initiatives - The Group has expanded its product offerings to include minerals and related products in early 2024[20] - The Group plans to expand its product coverage to include minerals and related products, responding to customer inquiries for a wider scope of offerings[53] - The Group has established a supply network for minerals excavated from mines, aiming to enhance business and profitability by selling directly to mine owners[53] - The Group's sourcing business, including minerals, is anticipated to continue growing as it captures market opportunities[40] - The Group aims to enhance production capacity by acquiring and replacing machinery and equipment at its production facilities in Dongguan, PRC[187] Corporate Governance and Management - The Company successfully transferred its listing from GEM to the Main Board of the Stock Exchange in 2023, enhancing its corporate profile and recognition among investors and customers[178] - Mr. Chen Longbin was appointed as an executive director on March 12, 2019, after initially joining the group in November 2005[200] - The company aims to enhance its human resources management under Mr. Chen Longbin's leadership[200] - The group is committed to strategic growth and operational efficiency in its business segments[200] Financial Position and Cash Flow - As of December 31, 2024, the Group's cash and cash equivalents increased by approximately 24.3% to HK$74.6 million, compared to HK$60.0 million as of December 31, 2023[132][135] - The current ratio as of December 31, 2024, was 4.8 times, down from 8.2 times as of December 31, 2023[136][140] - Bank borrowings increased to approximately HK$9.9 million as of December 31, 2024, compared to HK$8.1 million as of December 31, 2023, resulting in a gearing ratio of 9.3%[136][140] - The Group's total current assets were approximately HK$145.1 million as of December 31, 2024, compared to HK$140.0 million as of December 31, 2023[136][140] Operational Developments - The Group has increased its workforce in the sales department to strengthen sales support and hired a consultant for web design and promotion strategies[151] - The Group has collaborated with service providers to develop new automation equipment and enhance existing equipment, including the installation of robotic arms and acquisition of an automatic packaging machine[154] - The ERP system development is underway, with modules in use since late 2024, and testing will continue in 2025[154] Dividends and Shareholder Returns - The Board does not recommend the payment of a final dividend for the year 2024 due to the challenges faced[29] - No interim dividend was paid during the year, and the Board does not recommend the payment of a final dividend for the Reporting Period[177]
永联丰控股(09882) - 2024 - 年度财报