Financial Performance - Total revenue for 2024 was HKD 236.8 million, a decrease of 8.6% from HKD 259.2 million in 2023[17]. - Reported profit decreased by 25.1% to HKD 78.6 million, primarily due to unrealized fair value losses on investment properties amounting to HKD 26 million[17]. - Underlying recurring profit fell by 13.0% to HKD 103.6 million, reflecting challenges in the healthcare business segment[17]. - The healthcare segment's sales revenue decline significantly impacted overall performance, despite strong growth in the treasury investment segment[16]. - Shareholders' equity decreased by 4.3% to HKD 731.9 million, with net asset value per share dropping by 4.5% to HKD 2.35[14]. - The overall comprehensive income attributable to owners for 2024 was approximately HKD 33.7 million, down from HKD 105.6 million in 2023[29]. - Revenue in China decreased by 17.2% to HKD 167.8 million, reflecting a shift in consumer behavior post-border reopening[33]. - Southeast Asia revenue increased by 7.3% to HKD 36.6 million, driven by strong sales growth in the Philippines[34]. - North America recorded double-digit percentage sales growth, primarily due to increased capacity from new machinery purchased last year[35]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.038 per share and a special final dividend of HKD 0.067 per share[16]. - The company proposed a final dividend of HKD 3.8 per share and a special final dividend of HKD 6.7 per share, totaling an annual dividend of HKD 20.0 per share, subject to shareholder approval at the upcoming annual general meeting[127]. - The company has established a dividend policy that allows for dividends to be declared based on operating performance, financial condition, and capital needs, with no preset payout ratio[94]. - The company's reserves available for distribution to shareholders as of December 31, 2024, amounted to HKD 128,689,000, an increase from HKD 112,169,000 in 2023, representing a growth of approximately 14.5%[149]. Business Strategy and Market Challenges - The company faced challenges from geopolitical tensions, high interest rates, and changing consumer behavior, affecting business operations[17]. - The company maintains a diversified business model to navigate market challenges and focus on sustainable long-term growth[17]. - The company aims to expand existing markets and explore new opportunities within the healthcare industry[12]. - The company plans to focus on enhancing e-commerce growth and digital marketing strategies in response to evolving consumer purchasing habits in China[22]. - The rental market in Hong Kong is expected to remain challenging, especially for office and retail properties, with ongoing fluctuations in demand[22]. - The company aims to maintain a prudent asset management strategy to improve occupancy rates and stabilize rental income[22]. Investment Properties and Financial Investments - The investment property segment recorded a higher unrealized fair value loss compared to the previous year, impacting overall profitability[17]. - Property investment segment revenue fell by 5.2% to HKD 9.1 million, reflecting pressure from the rental market, particularly in Hong Kong[26]. - Financial investment segment revenue increased significantly by 134.7% to HKD 10.3 million, benefiting from a higher interest rate environment[26]. - The total valuation of investment properties as of December 31, 2024, is HKD 227,000,000, a decrease of 11.1% from HKD 255,300,000 in 2023[47]. - The unrealized fair value loss on investment properties for 2024 is HKD 26,000,000, compared to HKD 15,400,000 in 2023[47]. Corporate Governance and Board Structure - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of power and expertise[65]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange rules, ensuring transparency and accountability[64]. - The company has mechanisms in place to ensure the board receives independent opinions and data, allowing for informed decision-making[67]. - The chairman and CEO roles are held by the same individual, but responsibilities are shared with executive directors to maintain a balance of power[64]. - The board will regularly review and monitor its structure to ensure it does not undermine the balance of power within the company[64]. - The company has a clear nomination policy for independent non-executive directors, ensuring compliance with relevant regulations[67]. - The board of directors is responsible for the management and direction of the company, including major acquisitions, capital investments, and dividend policies[68]. Risk Management and Compliance - The group has implemented a robust risk management and internal control system, with the audit committee assisting the board in fulfilling its responsibilities[102]. - The board is responsible for assessing and identifying the nature and extent of risks faced by the group, continuously reviewing and monitoring risk management policies[103]. - A risk assessment report is submitted to the audit committee and the board, covering the group's main risks and corresponding action plans to mitigate these risks[106]. - The company has adopted a whistleblowing policy to promote compliance, ethical behavior, and good corporate governance within the group[107]. - The board has implemented an anti-corruption policy to uphold the highest standards of integrity and ethical conduct in business operations[108]. - The internal audit function is outsourced to a professional firm to assist the board in reviewing the internal control system[110]. Employee and Community Engagement - The total number of employees as of December 31, 2024, is 106, an increase from 102 in 2023[54]. - The company provided around 757 hours of training to employees, including external training related to environmental, social, and governance issues[140]. - The company has expanded its community investment efforts, including fundraising activities and collaborations with charitable organizations[143]. - The company made charitable donations totaling approximately HKD 577,000 during the year, in addition to donating over 23,000 products and providing other items valued at around HKD 18,000[129]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of environmental, social, and governance (ESG) factors in enhancing long-term business value[68]. - The company has set specific and quantifiable goals for greenhouse gas emissions, waste disposal, energy consumption, and water usage in 2023[132]. - The company offset a total of 200 tons of carbon dioxide equivalent, which accounted for 53.1% of its total greenhouse gas emissions, through the purchase and recovery of certified emission reductions[136]. - The company is actively exploring the feasibility of reducing plastic packaging and using biodegradable plastics for selected products[135]. - The company has implemented guidelines for waste management to ensure compliance with relevant laws and minimize environmental impact[135]. - The company has not faced any significant impacts on its operations or financial performance due to non-compliance with relevant environmental laws and regulations during the year[136]. - The company is committed to enhancing its resilience to climate change by identifying related challenges and developing strategies to mitigate and adapt to its impacts[137]. - The company will publish an environmental, social, and governance report alongside its annual report, available on its website[114]. Auditor and Financial Reporting - The independent auditor, Fook Wai Ma Chai & Co., has audited the consolidated financial statements for the year ending December 31, 2024[182]. - The company is responsible for preparing financial statements that are free from material misstatement due to fraud or error, and for maintaining adequate internal controls[191]. - The auditors aim to obtain reasonable assurance that the financial statements are free from material misstatement, which may arise from fraud or error[195]. - The auditors assess the appropriateness of accounting policies and the reasonableness of accounting estimates made by the directors[197]. - The fair value measurement disclosures for investment properties and leased land and buildings are considered critical audit matters due to the significant estimates and judgments involved[188].
白花油(00239) - 2024 - 年度财报