Economic Overview - In FY2024, the global economic landscape showed moderate growth, driven by resilient consumer demand and strategic fiscal policies, despite geopolitical uncertainties from the 2024 United States presidential election[15]. - The major markets, including the US and Europe, are expected to see modest economic growth in 2025 despite various risks[27]. Company Performance - Overall revenue increased by approximately 16.5% to approximately HK$1,210.9 million for FY2024[25]. - Profit attributable to equity holders increased by approximately 61.2% from approximately HK$80.1 million in FY2023 to approximately HK$128.9 million in FY2024[25]. - The Group's revenue increased from approximately HK$1,039.2 million for FY2023 to approximately HK$1,210.9 million for FY2024, representing an increase of approximately 16.5%[45]. - Adjusted profit attributable to equity holders of the Company rose by approximately 61.2% from approximately HK$80.1 million for FY2023 to approximately HK$129.1 million for FY2024[45]. - The Group's net profit margin improved from approximately 7.5% for FY2023 to approximately 10.5% for FY2024[45]. Sales and Revenue Breakdown - OEM sales rose by approximately 16.4% from approximately HK$845.8 million in FY2023 to approximately HK$984.8 million in FY2024, driven by increased demand for tabletop games and greeting cards[25]. - Web sales amounted to approximately HK$226.1 million for FY2024, representing an increase of approximately 16.9%[25]. - Revenue from OEM sales increased from approximately HK$845.8 million for FY2023 to approximately HK$984.8 million for FY2024, representing an increase of approximately 16.4%[56]. - Revenue from web sales amounted to approximately HK$226.1 million for FY2024, which represented an increase of approximately 16.9% compared to approximately HK$193.4 million for FY2023[57]. Manufacturing and Operational Developments - The full-scale operation of the newly developed Vietnam plant contributed additional production capacity, allowing the company to absorb orders from major OEM customers seeking alternative manufacturing locations[16]. - The company focused on optimizing manufacturing solutions for trading cards publishers and brands, particularly in product development and production know-how, to thrive in the high-end trading cards manufacturing market[16]. - The Vietnam plant commenced full-scale operations during the reporting period and is set to become a crucial production hub for the Group[48]. - The Group plans to strengthen its OEM solutions by innovating in product structural design and utilizing new materials[49]. - The Group aims to enhance production capacity, particularly at the newly developed Vietnam plant, to address geopolitical risks and improve efficiency[31]. Financial Management - Selling and distribution expenses increased by approximately 3.1% from approximately HK$101.6 million for FY2023 to approximately HK$104.7 million for FY2024[69]. - Administrative expenses increased by approximately 11.1%, from approximately HK$182.7 million for FY2023 to approximately HK$202.8 million for FY2024, primarily due to increased staff costs[70][74]. - Income tax expense rose by approximately 36.8%, from approximately HK$16.0 million for FY2023 to approximately HK$21.8 million for FY2024, with an effective tax rate decrease from approximately 16.9% to approximately 14.6%[76][79]. - Net cash generated from operating activities was approximately HK$204.1 million for FY2024, compared to approximately HK$112.1 million for FY2023[88]. - Total borrowings, supplier finance arrangements, and lease liabilities amounted to approximately HK$70.7 million as of 31 December 2024, up from approximately HK$50.8 million as of 31 December 2023[87]. Corporate Governance and Leadership - The Company has complied with the Corporate Governance Code during FY2024, except for the deviation from code provision C.2.1 regarding the separation of roles between the chairman and chief executive officer[166]. - The executive team has been in place since at least April 2018, indicating stability in leadership and strategic direction[119][120][123]. - The Company has established a risk management committee to oversee potential risks and ensure strategic alignment with business objectives[123]. - The Board oversees the Group's businesses, strategic decisions, and performance, ensuring effective governance and sound internal control systems[170]. - The Board consists of nine Directors, including six executive Directors and three independent non-executive Directors[178]. Strategic Initiatives - Continuous efforts will be made to implement smart operations and develop a smart operation network across the entire Group[31]. - The development of QPMN remains a key growth strategy for the Group's web sales business in the long run[49]. - The Group aims to explore market potential for products such as trading card games, board games, and tarot decks to expand revenue streams[49]. - The company successfully launched 7 crowdfunding projects on Kickstarter, significantly increasing brand exposure[22]. Executive Team Experience - The company has over 35 years of experience in the printing industry, with key executives being co-founders since its establishment in 1985[116][117]. - The executive team includes Ms. Liu Shuk Yu Sanny, responsible for strategic planning and overseeing overseas sales, with over 35 years of industry experience[119][122]. - Mr. Chan Wang Tao Thomas oversees business development and sales, bringing over 30 years of experience in the paper-based items manufacturing and printing industry[120][125]. - Mr. Mak Chin Pang is responsible for administrative and legal compliance, accounting, and corporate finance, with over 20 years of experience in these areas[123][125].
隽思集团(01412) - 2024 - 年度财报