Financial Performance - The audited revenue for the fiscal year ending December 31, 2024, was HKD 28.918 billion, a decrease of 11.6% compared to the previous year[16]. - The audited net profit for the same period was HKD 2.808 billion, representing an 18.0% decline year-on-year[16]. - Shareholders' profit attributable to the company was HKD 2.808 billion, down 18.0% compared to the previous year, primarily due to a significant reduction in revenue from property handovers[45]. - The total net profit for the group was HKD 1.081 billion, a decrease of 12.3% year-on-year, while toll revenue increased slightly by 0.2% to HKD 2.029 billion[49]. - The company reported a total operating revenue of HKD 12.44 billion, an increase of 56.4% compared to the previous year[71]. - The net loss for the year was RMB 291 million, a shift from profit in the previous year[70]. - The profit attributable to the company's owners was HKD 2,807,653, down 18.0% from HKD 3,423,695 in the previous year[86]. - The basic earnings per share decreased to HKD 2.582, a decline of 18.0% from HKD 3.149 in 2023[86]. Sector Performance - The infrastructure and environmental business generated a profit of HKD 2.629 billion, an increase of 13.3%, primarily due to a gain of HKD 863 million from the sale of equity related to the Hangzhou Bay Bridge[17]. - The health sector contributed a profit of HKD 54.23 million, with the pharmaceutical group achieving revenue of RMB 274.693 billion, a year-on-year increase of 5.47%[17]. - The real estate sector faced significant challenges, reporting a loss of HKD 236 million, a shift from profit due to reduced revenue from property handovers[18]. - The consumer goods sector contributed a profit of HKD 643 million, reflecting a substantial increase of 71.8% year-on-year[18]. - The tobacco segment recorded a revenue of HKD 2.182 billion, representing a year-on-year growth of 20.2%, with net profit increasing by 86.0% to HKD 560 million[81]. Dividend and Shareholder Returns - The total proposed dividend for the year is HKD 0.94 per share, maintaining the same level as the previous year, with a payout ratio of 36.4%[17]. - The company maintained a dividend payout ratio of 36.4%, up from 30% in the previous year, with total dividends per share remaining at HKD 0.94[98]. Strategic Focus and Market Position - The company is focusing on expanding its market share in water treatment and resource utilization, aiming to solidify its leading position in China's water and environmental industry[17]. - The company continues to implement its strategy centered around the Yangtze River Delta economic region, despite market fluctuations[18]. - The company plans to continue expanding its core businesses while actively exploring new business opportunities and international markets[25]. - The company aims to enhance operational efficiency and quality through the integration of new information technologies in water management, with a benchmark sewage treatment project set to commence commercial operations in January 2025[22]. Government and Policy Impact - The environmental sector is expected to benefit from ongoing government policies promoting carbon reduction and green transformation, providing significant development opportunities[22]. - The company anticipates ongoing support from the government for green infrastructure and sustainable development, which will expand industry growth opportunities[32]. - The Chinese economy is projected to grow by 5% in 2024, with favorable policies for the environmental industry expected to improve cash flow and create significant development opportunities[55]. Corporate Governance and Management - The board is committed to enhancing corporate governance to improve management efficiency and operational effectiveness[111]. - The company has established a board diversity policy to ensure a balance of skills, experience, and perspectives among board members[117]. - The company has implemented a procedure for directors to seek independent professional advice to assist in fulfilling their responsibilities[123]. - The company has a remuneration committee that reviews and sets the remuneration of directors based on market standards[126]. - The company has established a code of conduct for securities trading, which all directors and relevant employees confirmed compliance with in 2024[128]. Operational Efficiency and Risk Management - The company aims to enhance product delivery capabilities and quality service assurance while optimizing organizational structure and operational systems for future growth[84]. - The company maintains a risk management and internal control system, with internal audits conducted on a rolling three-year basis[153]. - The company has implemented significant risk management measures[70]. Employee and Leadership - The company has a total of 19,561 employees as of December 31, 2024, with a gender ratio of 58:42, indicating a reasonable balance in gender diversity[117]. - The company emphasizes the importance of experienced leadership in driving strategic initiatives and operational efficiency[176][180][181]. Investment and Financial Position - The total asset value of the company reached HKD 168.5 billion as of December 31, 2024[39]. - The total borrowings amount to approximately HKD 59.49 billion, with 65.6% being unsecured credit facilities, a decrease from 77.5% in the previous year[102]. - The group holds bank deposits and cash equivalents totaling HKD 28.51 billion, an increase from HKD 27.79 billion the previous year[106].
上海实业控股(00363) - 2024 - 年度财报