Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately $107.5 million, an increase of about 6.4% compared to approximately $101.0 million for the year ended December 31, 2023[7]. - Adjusted net profit for the year ended December 31, 2024, was approximately $6.8 million, compared to approximately $0.9 million for the year ended December 31, 2023[8]. - Revenue for the fiscal year ending December 31, 2024, increased by approximately 6.4% (about $6.4 million) compared to the previous year, driven mainly by revenue growth in Europe and North America[20]. - The adjusted net profit for the fiscal year ending December 31, 2024, is approximately $6.8 million, a significant increase from $0.9 million for the fiscal year ending December 31, 2023, reflecting a growth of about 655.6%[18]. - The gross profit increased from approximately $23.3 million in 2023 to about $30.9 million in 2024, marking a growth of approximately 32.2%[25]. - The pre-tax profit for the fiscal year ending December 31, 2024, is approximately $4.2 million, a turnaround from a pre-tax loss of about $1.6 million in 2023[32]. - The group recorded a profit of approximately $2.5 million for the year ended December 31, 2024, an increase of about $4.1 million compared to a loss of approximately $1.6 million for the year ended December 31, 2023[34]. Revenue Breakdown - Revenue from North America increased by approximately 22.0% to about $42.5 million[9]. - Sales in Europe increased by approximately 32.9% to about $43.3 million[10]. - North America accounted for $42.5 million (39.6%) of total revenue in 2024, up from $34.8 million (34.5%) in 2023, representing a year-over-year increase of 22.0%[22]. - Europe generated $43.3 million (40.3%) in revenue for 2024, a 32.9% increase from $32.6 million (32.3%) in 2023[22]. Operational Developments - The company plans to expand its facilities in Cambodia to mitigate tariff impacts and meet growing demand from customers seeking sources outside of China[11]. - The new digital automation production base in Hunan, China, has commenced mass production and is achieving planned capacity[11]. - The company continues to invest in R&D, particularly in sustainable development, IoT, and other new business sectors[11]. - The "Omni Remotes" brand has been updated to "Omni Devices" to reflect the company's ambitions in new business areas[16]. Cost Management and Expenses - Selling and distribution expenses rose from approximately $6.4 million in 2023 to about $7.3 million in 2024, primarily due to increased distribution costs and professional fees[27]. - The company’s financing costs decreased by approximately $1.3 million, attributed to lower bank loan interest and reduced losses on other receivables[31]. - The impairment loss provision increased by approximately $0.3 million, mainly due to a provision of about $3.2 million for non-listed investments[29]. Cash Flow and Financial Position - As of December 31, 2024, the group's cash and cash equivalents amounted to approximately $19.4 million, indicating a strong financial position[36]. - Net cash generated from operating activities for the year ended December 31, 2024, was approximately $14.2 million, reflecting a cash inflow from operating activities before working capital changes of about $10.6 million[38]. - The net cash used in investing activities for the year ended December 31, 2024, was approximately $0.9 million, primarily related to the purchase of property, plant, and equipment[39]. - The net cash used in financing activities for the year ended December 31, 2024, was approximately $10.4 million, mainly due to repayment of interest-bearing bank loans of about $8.9 million[40]. - The group's current asset net value decreased from approximately $21.9 million as of December 31, 2023, to approximately $14.3 million as of December 31, 2024[41]. - The debt ratio as of December 31, 2024, was approximately 11.2%, down from about 25.1% as of December 31, 2023[46]. Employee and Governance - As of December 31, 2024, the group had 144 employees, with employee benefit expenses amounting to approximately $12.4 million, a slight decrease from $12.6 million in 2023[48]. - The board of directors includes Alain Perrot, who transitioned from executive to non-executive director effective April 1, 2024, and provides strategic planning advice[56]. - The company has a diverse board with members having extensive experience in finance, management, and technology sectors[70]. - The independent directors are responsible for providing oversight and independent opinions to the board, enhancing corporate governance[67]. Corporate Governance - The company has adopted a corporate governance policy that exceeds the requirements of the stock exchange's corporate governance code[171]. - The board believes that the composition of its members provides sufficient independence to safeguard shareholder interests[177]. - The company maintains a high standard of corporate governance practices throughout the year[146]. - The audit committee consists of three independent non-executive directors, with Dr. Chan Sau Kong as the chairman[191]. Future Plans and Investments - The company plans to utilize the proceeds from the initial public offering (IPO) by December 31, 2027, with a focus on operational capital and general corporate purposes[90]. - The company expects to fully utilize the unutilized IPO proceeds by December 31, 2027, to further improve overall business performance[91]. - Home Control plans to expand its product offerings and explore new technologies and partnerships to meet the evolving needs of the home automation market[169]. Risks and Compliance - The company faces various risks, including legal, economic, and political risks in different regions, which could significantly impact sales and profitability[84]. - The company continues to monitor foreign exchange risks and will take prudent measures to mitigate currency exchange risks[52]. - The company has not experienced any significant labor disputes during the reporting period[48].
HOME CONTROL(01747) - 2024 - 年度财报