Financial Performance - The Group recorded total revenue of MOP 92.1 million for the year ended 31 December 2024, with a gross profit of MOP 7.2 million and a gross profit margin of 7.8%, an increase of 2.0 percentage points year-on-year [11]. - The Group recorded total revenue of MOP 92.1 million for the Year, a year-on-year decrease of 28.2% from MOP 128.3 million in 2023, primarily due to fewer contracts secured [21][28]. - The Group's net loss reduced to MOP 2.5 million in 2024 from MOP 3.8 million in 2023, indicating improved cost management and operational efficiency [21]. - The gross profit for the Year was MOP 7.2 million, representing a slight decrease of 2.2% compared to MOP 7.4 million in 2023, with a gross profit margin increase of 2 percentage points year-on-year [31][32]. - Other income increased by MOP 1.3 million to MOP 5.1 million (2023: MOP 3.8 million), mainly due to higher interest rates on fixed deposits [34]. - Administrative expenses decreased by MOP 0.9 million to MOP 14.0 million (2023: MOP 14.9 million), benefiting from cost savings in rental and professional fees [36]. - The Group recorded a loss of MOP 2.5 million for the year, an improvement from a loss of MOP 3.8 million in 2023, primarily due to the combined effects of various factors [38]. - As of December 31, 2024, the Group had cash and bank balances of MOP 141.6 million and net current assets of approximately MOP 177.6 million [23]. - As of December 31, 2024, the Group had net current assets of MOP 177.6 million (2023: MOP 179.6 million) and a current ratio of 8.5 times (2023: 5.3 times) [46]. - The Group's bank balances totaled MOP 141.6 million as of December 31, 2024 (2023: MOP 141.8 million), primarily denominated in MOP and HK$ [46]. - The gearing ratio as of December 31, 2024, was 6.1% (2023: 6.2%), indicating a stable capital structure [47]. Market Outlook - Looking ahead, the Group is cautiously optimistic about the economic prospects for Macau, with a forecasted GDP growth rate of 7.7% for 2025 [14]. - The Group is optimistic about Macau's economic recovery, which is expected to create opportunities for large-scale projects in the E&M sector [63][64]. - The Macau Government's efforts to diversify the economy and pursue public administration reforms are expected to create new opportunities for the Group [14]. - The competitive landscape in the E&M engineering industry is intensifying, necessitating a focus on securing contracts for public and private projects [10]. - The slow recovery and longer tendering process in the E&M industrial market in Macau significantly affected the Group's revenue, particularly from the entertainment and resorts sector [29]. Strategic Initiatives - The Group plans to capitalize on public housing projects and new government initiatives to diversify its business interests abroad [14]. - The Group aims to adopt the latest construction solutions to maintain its position as a leading E&M engineering services contractor in Macau and overseas [14]. - The Group implemented strategic measures to streamline operations, enhancing cost efficiency and project execution [21][32]. - The Group secured several projects, including a CCTV installation for a casino in Sri Lanka, demonstrating its ability to capture new business opportunities [11]. - The Group managed 25 projects in 2024, with 19 from the private sector and 6 from the public sector, actively submitting tenders to maintain revenue growth [22][25]. - The Group secured 16 projects expected to contribute revenue in 2025, alongside numerous tender invitations from government departments and local businesses [64]. - A significant CCTV-related project for a casino in Sri Lanka was secured, with a contract sum of MOP 26.5 million, marking a successful overseas business venture [22]. Corporate Governance and ESG - The Group is committed to sound corporate governance practices and aims to integrate ESG considerations into corporate decision-making processes [82]. - The ESG Report received formal confirmation and approval from the Board on March 20, 2025 [80]. - The Board of Directors oversees all material ESG and climate-related matters, conducting regular reviews of progress towards established strategies [86]. - The Group systematically incorporated ESG-related risk factors into its enterprise risk management framework, with no material ESG risks identified for the Reporting Period [94]. - The ESG Committee held two formal meetings during the Reporting Period to review ESG-related initiatives and strategic action plans [92]. - The Group's sustainability governance framework is designed to ensure effective implementation of sustainability initiatives across all operational divisions [88]. - The Group's ESG Report emphasizes the importance of stakeholder engagement and materiality assessment conducted during the year to identify key issues for disclosure [79]. - The Group identified 21 relevant ESG issues through comprehensive analysis and benchmarking [110]. - The materiality matrix indicates that issues in the upper right quadrant have the highest materiality and are the primary focus areas [111]. Occupational Health and Safety - The Group is committed to creating a professional work environment, emphasizing occupational health and safety as a fundamental operational imperative [121]. - The Group achieved zero work-related injuries during the Reporting Period and maintained a consistent record of zero work-related fatalities over the past three consecutive reporting years [126][128]. - The Group emphasizes the importance of occupational health and safety, requiring all site personnel to possess the Occupational Health and Safety Card prior to commencing site activities [125][127]. - Significant investments are made in professional training and career advancement opportunities to enhance employee development [116]. - The Group has implemented the "Work Site Safety Reference" to provide comprehensive guidelines on safety protocols [123]. - An "Accident Handling Guide" has been established to facilitate prompt responses to health and safety incidents [123]. - Continuous improvement of occupational health and safety standards aims for the complete elimination of work-related injuries [121]. - The materiality assessment findings were thoroughly reviewed and validated by the ESG Committee and the Board of Directors [113]. Employee Engagement and Development - Comprehensive employment policies are established, providing clear guidance on remuneration, dismissal, recruitment, promotion, working hours, holidays, equal opportunities, diversity, anti-discrimination, labor standards, and employee benefits [132]. - The Group offers a competitive remuneration package, including fair base salaries, performance-based incentives, and various employee benefits such as educational subsidies and comprehensive medical coverage [133]. - The Group implements equal opportunity and diversity principles, ensuring all employment decisions are based solely on objective, performance-related criteria [134][138]. - Employee engagement is promoted through regular departmental meetings, dialogue sessions, and various team-building activities [141]. - The Group encourages reporting of potential violations of employment policies, with robust protections against retaliation for whistleblowers [142]. Environmental Impact - The Group is implementing a comprehensive strategy to reduce its carbon footprint and enhance resource efficiency [181]. - The Group aims to establish directional and forward-looking environmental targets, including emissions reductions and waste minimization [180]. - Total GHG emissions for the Group amounted to 36.21 tonneCO2e, with an intensity of 0.033 tonneCO2e/sqm and 0.696 tonneCO2e/employee [186]. - Scope 1 emissions decreased by 12.8% from 4.03 tonneCO2e in 2023 to 3.51 tonneCO2e in 2024 [187]. - Scope 2 emissions increased by 4.76% from 31.21 tonneCO2e in 2023 to 32.70 tonneCO2e in 2024 [187]. - The Group adheres to the "4Rs" waste management principles: Reduce, Reuse, Recycle, and Replace [193]. - The Group prioritizes resource efficiency optimization and aims to minimize resource consumption and mitigate environmental impacts [198]. - The Group has implemented a multi-faceted approach to reduce its environmental footprint, including emissions reduction and waste management strategies [175].
濠江机电(01408) - 2024 - 年度财报