Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue increased to HKD 104,991,000, up from HKD 94,709,000 in 2023, representing a growth of approximately 10.7%[14] - The company reported a pre-tax loss of HKD 9,514,000 for 2024, compared to a loss of HKD 2,546,000 in 2023, indicating a significant decline in profitability[14] - Total assets decreased to HKD 44,872,000 in 2024 from HKD 58,753,000 in 2023, reflecting a reduction of approximately 23.6%[15] - The total equity of the company fell to HKD 23,990,000 in 2024, down from HKD 33,672,000 in 2023, a decrease of about 28.8%[15] - The net current assets decreased to HKD 13,526,000 in 2024 from HKD 24,286,000 in 2023, a decline of approximately 44.3%[15] - The group's revenue increased from approximately HKD 94.7 million for the year ended December 31, 2023, to approximately HKD 105.0 million for the year ended December 31, 2024, representing an increase of about HKD 10.3 million[21] - The group's cost of sales rose from approximately HKD 81.4 million to approximately HKD 91.9 million, an increase of about HKD 10.5 million, primarily due to higher sales from hotel room distribution and car rental services[22] - The group's gross profit remained stable at approximately HKD 13.3 million for the year ended December 31, 2023, and approximately HKD 13.1 million for the year ended December 31, 2024, with a gross profit margin of about 12.5% for the latter year[23] - Administrative expenses increased from approximately HKD 14.5 million to approximately HKD 18.9 million, mainly due to rising salary expenses[25] - Other operating expenses rose from approximately HKD 0.9 million to approximately HKD 2.2 million, primarily due to increased sponsorship costs[26] - The annual loss increased significantly from approximately HKD 2.5 million for the year ended December 31, 2023, to approximately HKD 9.5 million for the year ended December 31, 2024, attributed to higher salary expenses and impairment losses[33] Business Operations and Strategy - The company is optimistic about the tourism market in Macau and Asia, driven by a significant increase in visitors, particularly from China, following the easing of COVID-19 restrictions[9][17] - The company plans to strengthen its existing business operations to provide stable returns and growth prospects for shareholders[10] - The company has expanded its operations into Hong Kong, obtaining a travel agency license from the Travel Industry Authority in March 2023[18] - The company operates in three main segments: tourism services, car rental services, and event management, with a focus on Macau, China, and Hong Kong[9][18] - The group plans to strategically seek partnerships with more hotel operators and travel agencies in Macau to expand its market share and service offerings[19] - The group is considering expanding its tourism business into mainland China and diversifying its revenue sources through event ticket sales and related services[19] - The group has completed four performances of the "Australian Thunder Show" in Macau, Taiwan, and South Korea, and organized various concerts and events in Macau[20] - The company has purchased 19 new vehicles for point-to-point cross-border transport services and car rental services in Macau[38] - The company is currently seeking suitable hotel operators for collaboration, which has been delayed due to the need for more time[38] - The company plans to expand its tourism business into mainland China and Hong Kong, actively looking for opportunities in these markets[38] Risk Management and Governance - The company emphasizes the importance of understanding the risks associated with investing in GEM-listed companies, which typically have higher investment risks[4] - The company has no significant changes in its capital structure as of December 31, 2024[43] - The company has not proposed a final dividend for the year ended December 31, 2024, consistent with the previous year[50] - The company has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended December 31, 2024[52] - The company has pledged bank deposits of approximately HKD 2.7 million as collateral for general banking facilities as of December 31, 2024, unchanged from the previous year[45] - The company has a total of approximately HKD 1.6 million in bank borrowings as of December 31, 2024, with a fair value of approximately HKD 1.8 million for the pledged properties[48] - The board believes that the risk management and internal control systems are adequate and effective as of December 31, 2024[138] - The audit committee has reviewed the adequacy of resources and the qualifications of employees involved in accounting and financial reporting functions[138] - The board conducts annual reviews of the risk management and internal control systems to minimize risks faced by the group[137] - The company has engaged independent external consultants for an internal control review, which is expected to be completed by March 26, 2025[137] Corporate Governance - The company has adopted a corporate governance code in compliance with GEM listing rules, maintaining high levels of transparency and accountability[89] - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of the company for effective management[90] - All directors confirmed compliance with the trading standards set forth in the company's code of conduct for securities transactions during the fiscal year ending December 31, 2024[91] - The company has established service agreements for executive directors with an initial term of three years, automatically renewing unless terminated with prior notice[98] - Independent non-executive directors have a fixed term of one year from the listing date, also subject to automatic renewal unless terminated with prior notice[98] - The board is responsible for overall management and strategic direction, ensuring decisions are made in the best interest of the company[94] - The company has received annual independence confirmations from all independent non-executive directors, affirming their compliance with independence guidelines[95] - The board regularly reviews its functions and responsibilities to maintain high standards of corporate governance[94] - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[93] - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, ensuring adequate resources for their responsibilities[101] Human Resources - The employee costs for the year ending December 31, 2024, amounted to approximately HKD 19.5 million, an increase from HKD 12.8 million in the previous year[70] - The group had a total of 84 employees as of December 31, 2024, down from 88 employees in the previous year[70] - The board believes that the quality of employees is crucial for maintaining business growth and improving profitability[70] - The company emphasizes continuous professional development for directors, ensuring they are aware of governance and regulatory updates[131] - The company has a gender composition of approximately 65.5% male and 34.5% female among its 84 employees[128] Environmental, Social, and Governance (ESG) - The company has presented its sixth Environmental, Social, and Governance (ESG) report covering the period from January 1, 2024, to December 31, 2024[161] - The ESG report is prepared in accordance with the GEM Listing Rules and follows principles of materiality, quantification, balance, and consistency[161] - The company emphasizes the importance of sustainable development as a key driver for creating long-term value for stakeholders[166] - The board is committed to enhancing corporate image and reducing ESG risks through focused resource management and compliance with relevant laws and regulations[164] - The company has adopted the Hong Kong Stock Exchange's ESG Reporting Guidelines to enhance its sustainability efforts in environmental protection and employee welfare[166] - The company aims to provide substantial returns to investors while ensuring a healthy and safe working environment for employees[167] - The company has implemented a "Green Environmental Policy and Procedures" to balance business returns with environmental protection[182] - The company has committed to using only high-quality fuel and environmentally friendly vehicles to minimize emissions[193] - The company has implemented energy-saving measures, including replacing traditional lighting with LED lights[193] - The company has not reported any non-compliance issues regarding waste disposal or emissions in the 2024 reporting period[190]
瀛海集团(08668) - 2024 - 年度财报