Financial Performance - Revenue for 2024 reached HK$1,260,799, an increase of 2.8% from HK$1,227,190 in 2023[9] - Gross profit rose to HK$247,901, reflecting a gross profit margin of 19.7%, up from 17.2% in the previous year[9] - Operating profit significantly increased to HK$98,764, compared to HK$21,370 in 2023[9] - Profit attributable to equity holders of the Company surged to HK$72,234, a substantial rise from HK$1,245 in 2023[9] - Basic and diluted earnings per share improved to 72.2 HK cents, compared to 1.2 HK cents in the prior year[9] - For FY2024, the Group recorded revenue of HK$1,260.8 million, an increase of HK$33.6 million or 2.7% compared to FY2023[38] - Gross profit for FY2024 amounted to HK$247.9 million, reflecting an increase of HK$37.3 million or 17.7%, with a gross profit margin rising from 17.2% to 19.7%[40] - Net profit attributable to equity holders for FY2024 was HK$72.2 million, a significant increase of HK$71.0 million or 5,701.9% from FY2023[44] Market and Operational Highlights - The Philippines became the largest market for the company, contributing HKD 377.2 million, or 29.9% of total revenue, compared to 18.6% in FY2023[36] - A strategic partnership was launched in Batam, Indonesia, enhancing supply chain flexibility and resilience to geopolitical risks[20] - The company plans to further expand production capacity in Batam due to low geopolitical risk and competitive labor costs[21] - Key products transitioned to mass production in early 2024, bolstering the company's reputation for quality and technological excellence[22] - The company successfully ramped up full-scale production for a major client at the Batam site in early 2024[21] - The company shipped products to over 27 countries in FY2024, with significant sales increases in the Philippines and China[36] - The Group shipped products to over 27 countries and regions in FY2024, an increase from 25 in FY2023[39] Financial Position and Liquidity - Current assets decreased to HK$805,254 from HK$822,662 in 2023, while current liabilities also fell to HK$661,363 from HK$748,322[9] - Equity attributable to equity holders of the Company increased to HK$221,139, up from HK$150,293 in 2023[9] - The return on equity for 2024 was 38.9%, a significant increase from 0.8% in 2023[9] - The company maintained a current ratio of 1.2 times, improving from 1.1 times in the previous year[9] - The net gearing ratio was not applicable as the group was in a net cash position as of December 31, 2024[10] - Total net cash as of December 31, 2024, was HK$95.6 million, compared to a net borrowing of approximately HK$18.0 million in FY2023[51] - The Group has adequate liquidity to meet its current and future working capital requirements[52] Expenses and Cost Management - Selling and distribution expenses and administrative expenses increased to HK$171.9 million, up HK$10.3 million or 6.4% from FY2023[41] - Net finance costs decreased by HK$0.3 million or 1.9% to HK$15.6 million, attributed to reduced bank borrowings from HK$292.6 million to HK$188.3 million[42] - Capital expenditures for FY2024 totaled HK$10.4 million, down from HK$13.8 million in FY2023[53] Employee and Management Information - As of December 31, 2024, the Group employed approximately 1,900 employees, an increase from 1,600 employees as of December 31, 2023, attributed to a 2.7% rise in revenue[68] - Total staff costs for FY2024 amounted to HK$257.0 million, up from HK$223.5 million in FY2023[68] - The remuneration policy for employees is based on job nature, qualifications, and experience, with discretionary bonuses awarded based on individual performance[68] - The Group provides in-house and external training programs for employees to enhance their skills[68] Corporate Governance and Compliance - The Group has complied with relevant laws and regulations that significantly impact its business and operations during the year under review[133] - The Group's audited consolidated financial statements for the year ended 31 December 2024 are presented in the report[121] - The Group's capital structure as of December 31, 2024, consisted of bank borrowings and equity attributable to equity holders, with no material changes during FY2024[66] - The Group closely monitors foreign exchange exposure, primarily related to USD and RMB, and adopts a proactive approach to minimize risks[64] Strategic Initiatives and Future Outlook - The company aims to minimize interest rate exposure by reducing bank borrowing to enhance financial performance and flexibility[31] - The company will actively seek opportunities in the rapidly evolving electric vehicle sector, leveraging its expertise in consumer electronics[30] - The Group aims to enhance its market position through strategic partnerships and product innovation[82] Shareholder Information - The Group does not recommend the payment of any final dividend for the year ended 31 December 2024, consistent with 2023 where no dividend was paid[124] - The Company has 100,000,000 issued shares at HK$0.2 each as of December 31, 2024, unchanged from the previous year[65] - The Group's share capital underwent a consolidation, resulting in a total of 100,000,000 issued shares as of the report date[152] - As of December 31, 2024, Mr. Raymond Chu holds a long position of 63,000,000 ordinary shares, representing approximately 63.0% of the company's shareholding[189] Related Party Transactions - The Group engaged in certain transactions with related parties during the financial year ended December 31, 2024, which were disclosed in note 31 of the consolidated financial statements[178] Environmental and Social Responsibility - The Group is committed to minimizing environmental impacts while safeguarding public health and safety[132] - The Group's environmental policies and performance details are provided in the "Environmental, Social and Governance Report" on pages 62 to 97 of the annual report[132] - During the reporting period, the Group made charitable donations totaling HK$514,000[143]
丽年国际(09918) - 2024 - 年度财报