Financial Performance - The group's revenue for the fiscal year 2024 increased by 8.3% to HKD 328,578,000, compared to HKD 303,527,000 in 2023[9]. - The profit for the year was HKD 25,804,000, up from HKD 15,746,000 in 2023, resulting in earnings per share of HKD 0.13, compared to HKD 0.079 in the previous year[9]. - The group achieved a revaluation surplus of HKD 7,939,000, leading to a total comprehensive income of HKD 26,052,000 for the year, compared to HKD 11,323,000 in 2023[12]. - The company reported a total comprehensive income of HKD 26,052,000 for 2024, compared to HKD 11,323,000 in 2023, showing a significant increase[133]. - The company's net profit for the year ended December 31, 2024, was HKD 25,804,000, an increase from HKD 15,746,000 in 2023, representing a growth of 63.5%[137]. - The net profit attributable to shareholders for 2024 was HKD 25,804,000, a 63.9% increase from HKD 15,746,000 in 2023[130]. - Gross profit for 2024 was HKD 94,409,000, up from HKD 86,426,000 in 2023, reflecting a gross margin improvement[130]. - Operating profit increased significantly to HKD 29,604,000 in 2024, compared to HKD 18,301,000 in 2023, marking a growth of 62.1%[130]. - The company's gross margin was maintained at approximately 28%, despite fluctuations in material costs and competitive pressures in the cable manufacturing industry[17]. - The gross profit margin for the company improved to 28.7% in 2024 from 28.5% in 2023, attributed to proactive measures and the strength of the US dollar[32]. Sales and Market Performance - Sales in North America grew by 11.45%, while sales in China and Japan saw moderate increases of 2.2% and 3.6%, respectively[12]. - The group delivered 72% of its sales to major U.S. customers, an increase from 70% in 2023, despite ongoing inflation concerns[13]. - The company's revenue from power cords accounted for 53% of total sales, while harnesses made up 45%, and cables, wires, and plastic resins contributed the remaining 2%[16]. - Sales from the Vietnam factory increased to 67% of total revenue, up from 59% in 2023, due to the relocation of production from China[16]. - The Americas, China, and Japan accounted for approximately 72%, 12%, and 8% of total sales, respectively, compared to 70%, 12%, and 9% in 2023[38]. - The company's top five customers accounted for approximately 82% of total revenue in 2024, up from 79% in 2023, indicating a high dependency on a limited number of clients[23]. Dividends and Shareholder Returns - The group plans to distribute a final dividend of HKD 0.03 per share, totaling HKD 0.05 for the fiscal year 2024, compared to no dividends in 2023[10]. - The company declared an interim dividend of HKD 0.02 per share and proposed a final dividend of HKD 0.03 per share for the fiscal year[83][84]. - The company paid dividends totaling HKD 3,926,000 in 2024, down from HKD 5,969,000 in 2023, a decrease of 34.3%[138]. Operational and Strategic Initiatives - The company is focused on expanding its market presence in regions such as North America, Europe, and Southeast Asia[7]. - The company is actively developing and launching new cable and power line products to sustain revenue momentum in a rapidly changing business environment[24]. - The company emphasizes continuous innovation and improvement in product design and operational processes to meet customer demands[26]. - The company plans to maintain zero debt and retain cash to ensure competitiveness and flexibility amid economic uncertainties[26]. - The company aims to maintain high-quality production standards and customer-centric values to enhance its global reputation[6]. Financial Position and Assets - Total assets increased to HKD 495,982,000 from HKD 454,852,000, reflecting a growth of 9.0%[78]. - Cash and cash equivalents increased by 35.3% to approximately HKD 52,765,000 as of December 31, 2024, compared to HKD 39,008,000 in 2023[35]. - The carrying value of investment properties as of December 31, 2024, is HKD 83.4 million, with a revaluation loss of HKD 8.1 million recognized in the consolidated income statement[119]. - The carrying amount of the group's properties, plants, and equipment is HKD 123.9 million, with land and buildings valued at HKD 103.2 million as of December 31, 2024[120]. - Total equity attributable to shareholders increased to HKD 431,650,000 in 2024, compared to HKD 409,524,000 in 2023, reflecting a growth of 5.4%[135]. Risk Management and Governance - The geopolitical and trade tensions are expected to continue impacting the business environment into 2025, creating significant uncertainty[20]. - The company has implemented appropriate measures to manage foreign exchange risks and will use hedging arrangements if necessary[40]. - The audit committee is responsible for overseeing the financial reporting process of the group[125]. - The company has established a governance framework with four committees: audit, remuneration, nomination, and monitoring, each with specific responsibilities[49]. - The risk management framework is overseen by the board and includes a risk mitigation plan to manage identified risks to acceptable levels[59]. Internal Controls and Audit - The audit committee reviewed the adequacy and effectiveness of the internal control and risk management systems, providing recommendations to the board[51]. - The board has established a robust internal control system to prevent unauthorized use or sale of assets and ensure accurate financial reporting[58]. - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of December 31, 2024, in accordance with Hong Kong Financial Reporting Standards[116]. - The audit identified the valuation of investment properties as a key audit matter due to its significance to the consolidated financial statements and the inherent subjectivity involved in the valuation process[119]. - The company has outsourced internal audit services to enhance the effectiveness of its internal control reviews[51]. Accounting Policies and Standards - The company has adopted new accounting standards, which may impact future financial reporting and disclosures[142]. - The revised Hong Kong Financial Reporting Standard No. 7 introduces new disclosure requirements to enhance transparency regarding supplier financing arrangements[149]. - The accounting policy change regarding long service payment provisions is due to the upcoming repeal of the employer's statutory right to offset mandatory contributions against long service payments, effective from May 1, 2025[153]. - The group is currently assessing the potential impact of future amendments to the Hong Kong Financial Reporting Standards, but cannot reasonably estimate their effects on the consolidated financial statements at this time[155].
恒都集团(00725) - 2024 - 年度财报