Financial Performance - Revenue increased by approximately HK$28.2 million or 7.6%, from approximately HK$370.2 million for the year ended 31 December 2023 to approximately HK$398.5 million for the year ended 31 December 2024[16] - The Group recorded a gross profit of approximately HK$71.4 million for the year ended 31 December 2024, compared to approximately HK$71.1 million in 2023[16] - Profit attributable to owners of the Company was approximately HK$31.5 million for the year ended 31 December 2024, up from approximately HK$25.2 million in 2023[16] - Basic earnings per share remained stable at approximately HK1.7 cents for the year ended 31 December 2024, consistent with 2023[16] - Profit for the year increased by approximately HK$6.3 million or 25.0%, from approximately HK$25.2 million for the year ended 31 December 2023 to approximately HK$31.5 million for the year ended 31 December 2024[49] - Net profit margin increased from approximately 6.8% for the year ended 31 December 2023 to approximately 7.9% for the year ended 31 December 2024[49] Revenue and Project Management - The Group's emphasis on large-scale infrastructure projects ensured a consistent revenue stream, resilient to economic fluctuations[19] - The Group's revenue increased by approximately HK$28.2 million or 7.6%, from approximately HK$370.2 million for the year ended 31 December 2023 to approximately HK$398.5 million for the year ended 31 December 2024, mainly due to higher works performed on sizeable projects[25] - As of 31 December 2024, the Group had 22 projects on hand with a backlog value of approximately HK$322.1 million, down from approximately HK$550.5 million as of 31 December 2023[26] - The Group is focusing on the collectability of trade receivables and the number of contracts in tendering to ensure steady revenue and cash flow streams[27] Cost and Expenses - The cost of services increased by approximately HK$27.9 million or 9.3%, from approximately HK$299.1 million for the year ended 31 December 2023 to approximately HK$327.1 million for the year ended 31 December 2024[35] - Gross profit remained stable at approximately HK$71.4 million for the year ended 31 December 2024, with a slight decrease in gross profit margin from approximately 19.2% to 17.9% due to lower margins on new projects[36] - Administrative expenses increased by approximately HK$7.4 million or 38.7%, from approximately HK$19.1 million for the year ended 31 December 2023 to approximately HK$26.5 million for the year ended 31 December 2024[43] Investments and Financial Management - The Group continued to invest in factory and machinery to enhance productivity and efficiency despite economic challenges[19] - The Group maintained a net current assets balance of approximately HK$218.9 million as of 31 December 2024, up from approximately HK$117.7 million in 2023[50] - Cash and cash equivalents increased to approximately HK$100.0 million as of 31 December 2024, compared to approximately HK$8.7 million in 2023[50] - Bank borrowings decreased to approximately HK$5.9 million as of 31 December 2024, down from approximately HK$9.9 million in 2023[52] - Gearing ratio decreased from approximately 9.5% as of 31 December 2023 to approximately 5.0% as of 31 December 2024[53] - Capital expenditures for the year ended 31 December 2024 were approximately HK$17.0 million, significantly up from approximately HK$1.4 million in 2023[59] Dividends - The Board resolved not to recommend the payment of a final dividend for the year ended 31 December 2024[16] - The Group declared an interim dividend of approximately HK$26.6 million in January 2024, with HK$10.0 million settled in cash and HK$16.6 million offset against amounts due from Directors and related companies[91] - No final dividend was recommended for the year ended December 31, 2024, following a previous declaration of HK$20 million in dividends for the year ended December 31, 2023[92] Corporate Governance and Leadership - The Group has a strong leadership team with extensive experience in their respective fields, enhancing its operational capabilities[113] - The Group's board includes controlling shareholders, ensuring alignment in strategic decision-making[111] - The Company has complied with the Corporate Governance Code and recommended best practices since the Listing Date[141] - The Board consists of eight Directors, including three executive Directors and three independent non-executive Directors[150] - The Company has established Board committees to delegate various duties and responsibilities[149] Workforce and Diversity - As of December 31, 2024, the Group employed 137 individuals, a decrease from 148 in 2023, with remuneration packages including salary and bonuses[77] - The Group has 137 employees as of December 31, 2024, with 15 females, representing approximately 10.9%[180] - The Group's target is to maintain the proportion of female employees at no less than 10% over the next three years[180] Risk Management - The Group did not experience any material difficulties or impacts on its operations or liquidity due to currency exchange fluctuations during the year ended December 31, 2024[72] - The Group did not use any financial instruments for hedging purposes during the year ended December 31, 2024, and will monitor exchange rate risks closely[73] Strategic Outlook - The Group remains cautiously optimistic about the structural steelwork industry in Hong Kong despite current economic challenges[30] - The Group aims to expand its market share by competing for structural steelwork projects[143] - The Group plans to increase its production capacity of structural steel[143] - The Group is committed to prudent financial management to ensure optimal finance costs and capital sufficiency[143] - The workforce is expected to be expanded as part of the Group's growth strategy[143]
泓基集团(02535) - 2024 - 年度财报