Financial Performance - The total shipment value for the year increased by 4.5% to approximately USD 136.7 million from approximately USD 130.8 million in the previous year[9]. - Segment revenue rose by approximately 9.1% to USD 19.2 million from USD 17.6 million due to increased trade volume resulting from a change in sales mix[9]. - The Group's revenue fell by approximately 5.8%, from approximately USD 44.4 million last year to approximately USD 41.8 million[21]. - The culture and entertainment segment's revenue declined by approximately 15.6% to approximately US$22.6 million, impacted by competition from physical stores and promotional restrictions on Douyin[23][42]. - Gross profit increased by approximately 2.6% to approximately US$17.5 million, attributed to improved gross margins in the culture and entertainment business despite overall revenue decline[24][29]. - Operating expenses decreased by approximately 2.3% to approximately US$15.5 million, primarily due to savings in selling and marketing expenses[25][29]. - The profit for the year rose by approximately 34.2% to approximately US$2.7 million, reflecting improved operational efficiency[26][30]. - The online entertainment revenue dropped approximately 44.8% to approximately US$12.9 million, influenced by increased competition from claw machines and physical stores[45][47]. - Sales of goods surged approximately 182.6% to approximately US$9.7 million, driven by the launch of new self-developed blind box series[46][47]. Strategic Initiatives - The Group plans to explore new offshore markets and collaborate with Chinese suppliers with overseas production lines to alleviate tariff pressures[13]. - The Group will focus on expanding claw machine game varieties and enhancing user satisfaction to attract a broader user base[14]. - The Group aims to increase online traffic through diversified collaborations, advertising, and new media promotions[14]. - The Group will seek new growth opportunities by expanding into Southeast Asian markets due to declining demand in the domestic market[14]. - The Group plans to introduce more design teams and product personnel to create innovative and collectible product lines[14]. - The Group will explore suitable merger, acquisition, or investment opportunities to further expand its business footprint[14]. - The Group will implement lean management and process optimization to reduce costs and enhance efficiency, improving overall profitability[17]. Financial Position - As of December 31, 2024, the Group had cash and cash equivalents of approximately US$21.1 million, an increase from approximately US$20.1 million in 2023[49]. - The Group's current ratio improved to approximately 2.1, indicating better liquidity management compared to approximately 1.8 in 2023[50]. - The Group's net asset value increased to approximately $15.9 million in 2024, compared to $13.3 million in 2023[56]. - Total staff costs for the year ended December 31, 2024, were approximately $11.8 million, up from $11.0 million in 2023, with a reduction in headcount from 261 to 245 employees[58][61]. - The Group's current ratio improved to approximately 2.1 in 2024, compared to 1.8 in 2023, while the debt-to-equity ratio was zero, indicating no significant debt[54]. Governance and Compliance - Daohe Global Group Limited has adopted the Corporate Governance Code as its governance framework, ensuring compliance with applicable provisions throughout the year ended December 31, 2024[97]. - The Company emphasizes effective board management, sound internal controls, and transparency to all shareholders, aligning with the principles of the Corporate Governance Code[98]. - All directors confirmed compliance with the Model Code for Securities Transactions throughout the year ended December 31, 2024[100]. - No incidents of non-compliance with the Employees Written Guidelines were noted during the year ended December 31, 2024[101]. - The Company has established a robust governance structure to enhance accountability and independence within its operations[98]. - Daohe Global Group Limited has maintained adherence to all applicable code provisions of the Corporate Governance Code, with minor deviations discussed in the report[99]. - The governance principles focus on the interests of shareholders and the overall effectiveness of the board[98]. - The Company has implemented written guidelines for securities transactions by employees likely to possess unpublished inside information[101]. Board Composition and Diversity - As of December 31, 2024, the Board consists of six Directors, including two executive Directors and four independent non-executive Directors, complying with Listing Rules 3.10 and 3.10A throughout the year[105]. - The Company has achieved gender diversity in its workforce, with a ratio of 45% male and 55% female employees, including senior management[122]. - A female independent non-executive Director, Ms. LUO Juan, was appointed on December 30, 2024, to enhance Board diversity[122]. - The Nomination Committee is responsible for reviewing and assessing the diversity of the Board annually[123]. - The Company has established a Board Diversity Policy to maintain an effective Board and enhance corporate governance standards[116]. - The Company has adopted a Director Nomination Policy to ensure an appropriate mix of skills, knowledge, experience, and diversity on the Board[124]. Risk Management and Internal Controls - The Audit Committee reviewed the adequacy and effectiveness of the Company's internal audit function and risk management system[193]. - The Audit Committee approved the risk assessment report and reviewed the 2024 Internal Audit Plan[187]. - The Company has arrangements for employees to raise concerns about improprieties in financial reporting, included in the Employee Handbook since 1 April 2012[184]. Management and Operations - The CEO, Mr. WONG Hing Lin, Dennis, managed the Group's day-to-day business operations during the year[147]. - The Executive Committee consists of all executive Directors and is responsible for day-to-day management and operation functions of the Group[177]. - The Company has five committees: Executive Committee, Audit Committee, Remuneration Committee, Nomination Committee, and ESG Committee[171]. - The Board met regularly to review and approve financial and operating performance for the year ended December 31, 2024[136]. - Attendance at Board meetings was high, with all Executive Directors attending 100% of meetings[143].
道和环球(00915) - 2024 - 年度财报