Financial Performance - The company's revenue for the fiscal year 2024 was approximately RMB 847.8 million, a decrease of 12.3% compared to RMB 967.2 million in fiscal year 2023[44]. - The net profit for fiscal year 2024 was approximately RMB 87.4 million, down 26.2% from RMB 118.4 million in fiscal year 2023, with a net profit margin of 10.3%, a decline of 1.9 percentage points from 12.2% in the previous year[44]. - The earnings attributable to equity shareholders were RMB 79.2 million, compared to RMB 108.0 million in fiscal year 2023, with basic earnings per share of RMB 10.88, down from RMB 14.80 in the previous year[44]. - The group's gross profit decreased by 14.7% to RMB 254.3 million in FY2024 from RMB 298.2 million in FY2023, with a gross profit margin of 30.0% compared to 30.8% in FY2023[93]. - The profit before tax for 2024 was RMB 120.13 million, down 27.06% from RMB 164.79 million in 2023[116]. - The total revenue for the fiscal year 2024 was RMB 847.75 million, a decrease of 12.35% from RMB 967.23 million in 2023[116]. - In FY2024, the revenue from digital marketing and promotion was approximately RMB 178.0 million, a decrease of 5.4% from RMB 188.2 million in FY2023, accounting for 21.0% of the total revenue[89]. Market Position and Strategy - The company maintained a market share of 13.8% in the high-end luxury brand experiential marketing services sector in Greater China for 2024[39]. - The global luxury goods market is expected to see a growth rate in 2024 drop to single digits, with a particularly noticeable slowdown in China[42]. - The company is adapting its marketing strategies to focus more on targeted and precise engagement with high-net-worth clients, aiming to build deeper relationships and long-term brand loyalty[43]. - The group plans to expand its customer base beyond luxury goods, targeting high-growth categories such as sportswear, beauty, and premium alcoholic beverages[49]. - The high-end market is expected to continue expanding, driven by evolving consumer preferences for quality, cultural narratives, and innovative design[48]. - The company is actively collaborating with emerging mid-to-high-end brands in China to enhance their market positioning and consumer connections[56]. Events and Client Engagement - The company successfully hosted several high-profile events in 2024, including CHANEL's 2024/25 Craft Workshop series in Hangzhou and MONCLER GENIUS "City of Genius" in Shanghai, reinforcing its leadership position in experiential marketing for luxury brands[43]. - The company has over 550 clients from globally recognized brands, including high-end fashion and automotive brands, as well as local Chinese brands[41]. - The company hosted multiple high-profile events in 2024, showcasing its capabilities in experiential marketing solutions[84]. Technology and Innovation - The group is focusing on integrating AI tools into marketing strategies to enhance operational efficiency and improve decision-making speed[51]. - The company has invested in AI tools to enhance operational efficiency, leading to improved content creation and customer engagement[54]. - AI tools have significantly accelerated decision-making processes, with one client reporting visualizations generated in under an hour[57]. - The integration of AI-driven solutions is expected to deliver impressive results to clients, ensuring seamless and engaging customer experiences[54]. - The company is actively exploring AI-driven solutions to improve operational efficiency and enhance marketing effectiveness[87]. Governance and Management - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring diverse business experience and expertise[128]. - The company has complied with the corporate governance code, maintaining a culture of open communication and effective engagement with shareholders[129]. - The company has established a robust internal control and risk management system to promote a proactive culture[126]. - The board is responsible for overseeing the company's operational and financial performance, as well as approving major investment decisions[127]. - The company has established a Nomination Committee to recommend procedures for the election of directors and assess the independence of non-executive directors[151]. Employee and Diversity Initiatives - As of December 31, 2024, the gender distribution among employees is approximately 39.8% male and 60.2% female, compared to 42.8% and 57.2% in the fiscal year 2023 respectively[156]. - The board has adopted a diversity policy, with two female members currently, indicating a commitment to gender diversity[155]. - The company plans to provide comprehensive training for female employees to enhance their skills in operations, management, accounting, finance, legal compliance, and R&D[156]. Financial Management and Dividends - The board proposed a final dividend of HKD 3.70 per share and a special final dividend of HKD 3.30 per share, totaling approximately HKD 52.1 million, pending shareholder approval[40]. - The total dividend for the fiscal year 2024 is expected to be HKD 0.090 per share, a decrease from HKD 0.1258 per share in fiscal year 2023[190]. - The company’s financial performance and operational funding needs are regularly assessed to inform dividend decisions[183]. Risk Management - The group faces economic risks from local and overseas economic developments, which could adversely affect its financial condition and operating performance[176]. - Cybersecurity risks are significant, with potential impacts from network attacks leading to high remediation costs and business losses, which could exceed the group's insurance coverage[178]. - The board has reviewed the effectiveness of the group's risk management and internal control systems, finding them reasonable and effective without any significant deficiencies[179].
艾德韦宣集团(09919) - 2024 - 年度财报