Financial Performance - The Group recorded consolidated revenue of approximately HK$105.5 million for the Reporting Year, representing a decrease of approximately 31.8% compared to approximately HK$154.7 million for the year ended 31 December 2023[41]. - The Group's gross profit decreased by approximately 29.0% to approximately HK$9.3 million for the Reporting Year[44]. - The loss attributable to equity holders of the Company was approximately HK$33.5 million, compared to a loss of approximately HK$15.2 million for the Corresponding Year[44]. - Gross profit decreased by 29.0% from HK$13.1 million in 2023 to approximately HK$9.3 million in 2024, while the gross profit margin slightly increased from 8.5% to 8.8% due to effective cost control[57]. - Operating expenses increased by 63.5% over last year, rising from HK$29.9 million in 2023 to approximately HK$48.9 million in 2024[57]. - Basic loss per share was 7.9 HK cents for the Reporting Year, an increase of 119.4% from 3.6 HK cents in 2023[58]. - The Group's total assets decreased from HK$348,600,000 in 2023 to HK$297,556,000 in 2024, representing a decline of approximately 14.6%[94]. - The net assets per share fell from HK$0.365 in 2023 to HK$0.298 in 2024, a decrease of about 18.5%[94]. - The current ratio slightly decreased from 2.1 in 2023 to 2.0 in 2024, indicating a minor reduction in liquidity[94]. - The Group's cash and cash equivalents decreased from HK$147,255,000 in 2023 to HK$103,681,000 in 2024, a reduction of approximately 29.6%[94]. Business Strategy and Operations - The anticipated completion of approximately 60,000 housing units over the next five years is expected to revitalize demand for building construction and fitting out works[45]. - The Group aims to focus on delivering high-quality work to complete existing projects while actively tendering for new projects to sustain workload[45]. - The Group recognizes that challenges will persist in the near term, particularly in Hong Kong's commercial and residential markets, which are expected to continue to see high vacancy rates and sluggish growth[45]. - The Group will leverage its solid foundation, expertise, and committed management team to navigate the dynamic landscape and drive business growth[45]. - The Group's indoor decoration and special projects business will focus on delivering quality engineering for existing projects while actively bidding for new projects to maintain workload[47]. - The Chief Executive's policy report anticipates over 60,000 residential units to be completed and ready for delivery in the next five years, which is expected to stimulate demand for building construction and renovation projects[47]. - The company plans to adopt a more proactive and cautious approach in tendering next year, leveraging the gradual recovery of the Hong Kong economy[73]. - The company aims to maintain a strategic focus on the luxury residential sector, with five existing projects in this market[76]. - The company plans to adopt a proactive approach to complete existing projects while cautiously tendering for new projects to maintain reasonable margins[76]. - The Group aims to provide comprehensive and innovative solutions in both interiors and special projects business in Hong Kong and property and facility management business in China, focusing on long-term profitability and asset growth[172]. Challenges and Risks - Key risk factors for the coming year include slow growth of China's economy, US and global trade protectionism, and continued inflation in material, labor, and energy costs[45]. - The construction and renovation sector faced numerous headwinds in 2024, including rising costs of raw materials, labor shortages, and stringent regulatory demands[41]. - Despite facing challenges such as strained US-China relations and sluggish consumer demand, the company remains optimistic about exploring new business development opportunities[82]. Corporate Governance - The Company has maintained high standards of corporate governance, ensuring independence, accountability, transparency, and fairness to protect shareholder value[171]. - The Company complies with the Corporate Governance Code and has adhered to all code provisions throughout the reporting year[173]. - The Independent Non-executive Directors represent more than one-third of the Board, contributing to objective decision-making in the interests of the Company and its shareholders[187]. - The roles of the Chairman and Chief Executive are separated, as stipulated by Code provision C.2.1 of the Corporate Governance Code[195]. - The Board consists of six Directors, including two Executive Directors, one Non-executive Director, and three Independent Non-executive Directors, ensuring a diverse skill set[179]. - The Board has delegated certain responsibilities to various committees, including the Audit Committee, Remuneration Committee, and Investment Committee, while senior management handles day-to-day operations[194]. Management and Personnel - The Group employed a total of 316 staff as of December 31, 2024, an increase from 312 staff in 2023[100]. - The management expects to meet future financial requirements through a combination of shareholders' equity and banking facilities[90]. - The management is committed to enhancing customer satisfaction and improving services to align with sustainable development goals[88]. - The company has appointed Mr. Gary Tse as Acting Managing Director for the interiors and special projects business, responsible for strategic planning and overall operations[159]. - Mr. Tse has 20 years of experience in design, construction, supervision, and project management across various regions including Hong Kong and the Middle East[160]. Future Outlook - The Group aims to leverage its strengths and core competencies to transform challenges into opportunities and provide long-term value to shareholders[47]. - The company is well-positioned to undertake more sizable projects in the coming year, leveraging its strong financial position and historical track record[83]. - The Group plans to utilize excess cash for purchasing surety bonds and covering upfront costs to increase tender success rates for larger projects[90]. - The Group's business is primarily conducted in Hong Kong, with minimal foreign currency exposure due to the majority of assets and liabilities being denominated in Hong Kong Dollars[96].
昇柏控股(02340) - 2024 - 年度财报