Financial Performance - The consolidated loss for the year increased by approximately 25% compared to the same period in 2023, primarily due to the downturn in the property market in China [6]. - The company reported a loss from continuing operations of HKD 80,095,000 for the year ended December 31, 2024, compared to a loss of HKD 64,262,000 in 2023, representing a 24.5% increase in losses year-over-year [57]. - The company reported a significant focus on investment holding, with subsidiaries engaged in manufacturing and trading of prestressed high-strength concrete piles, ready-mixed concrete, autoclaved aerated concrete products, and ecological permeable concrete products [38]. - The company reported a total comprehensive loss of HKD 63,698,000 for the year ended December 31, 2024, compared to a loss of HKD 47,824,000 in the previous year, reflecting an increase in losses of approximately 33% [158]. - The company reported a net loss of HKD 80,095,000 for 2024, compared to a net loss of HKD 64,262,000 in 2023, indicating a deterioration in financial performance [152]. Revenue and Growth - Revenue from external customers in the construction materials business was HKD 256,385,000, representing a growth of about 4% from HKD 246,531,000 in the previous year [10]. - Revenue for the year ended December 31, 2024, was HKD 256,385,000, an increase of 3.4% from HKD 246,531,000 in 2023 [152]. - Gross profit for 2024 was HKD 43,832,000, up from HKD 37,556,000 in 2023, reflecting a gross margin improvement [152]. Assets and Liabilities - Total assets decreased to HKD 281,117,000 in 2024 from HKD 330,938,000 in 2023, reflecting a decline of approximately 15% [58]. - The company's total liabilities increased to HKD 202,375,000 in 2024, up from HKD 195,264,000 in 2023, indicating a rise of about 5.7% [58]. - The net asset value dropped to HKD 78,742,000 in 2024, down from HKD 135,674,000 in 2023, a decrease of approximately 42% [58]. - Current liabilities exceeded current assets by approximately HKD 33,863,000 as of December 31, 2024 [167]. Cash Flow and Financing - The group reported a net cash outflow from operating activities of about HKD 13,062,000 for the year ending December 31, 2024 [165]. - Cash and cash equivalents decreased by HKD 16,687,000 in 2024, compared to an increase of HKD 21,704,000 in 2023, indicating a shift in liquidity position [160]. - The company issued new shares raising HKD 3,592,000 and convertible notes raising HKD 30,000,000 during the year, enhancing its capital structure [160]. - The group plans to implement rigorous cost control measures to enhance operational efficiency and improve future cash flow [169]. Shareholder and Equity Information - As of December 31, 2024, the equity attributable to owners of the company was HKD 62,007,000, a decrease of approximately 33% compared to the previous year [13]. - The company’s total equity attributable to owners decreased to HKD 62,007,000 as of December 31, 2024, down from HKD 91,961,000 at the beginning of the year, indicating a decline in shareholder value [158]. - The board does not recommend a final dividend for the fiscal year [44]. Risk Management and Compliance - The company is exposed to foreign exchange risks due to its assets and liabilities being primarily denominated in Renminbi and Hong Kong dollars, with management actively monitoring these risks [23]. - The company has complied with relevant laws and regulations in its operations in China and Hong Kong, with no significant violations reported [61]. - The company has adopted a zero-tolerance policy towards bribery and corruption, ensuring all business dealings are conducted with integrity and professionalism [112]. Corporate Governance - The board consists of one executive director, one non-executive director, and three independent non-executive directors as of December 31, 2024 [92]. - The audit committee has reviewed the financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting standards and regulations [80]. - All independent non-executive directors have confirmed their independence according to the listing rules, possessing appropriate professional qualifications or financial management expertise [94]. Internal Controls and Audit - The internal control and risk management systems are designed to manage risks rather than eliminate them, ensuring the reliability of financial reporting and compliance with laws [105]. - The audit committee has reviewed the effectiveness of the risk management and internal control systems, concluding they are sufficient and effective [109]. - The company plans to enhance its internal controls and audit procedures to address risks of material misstatement in financial reporting [149]. Future Outlook - The company anticipates that infrastructure investment will continue to be a pillar for economic recovery in China, benefiting its business operations [6]. - The company anticipates positive impacts on the construction materials industry in Guangdong Province, benefiting from local GDP growth and trade volume increases [27]. - The company aims for local GDP growth of around 5% and plans to focus on green energy, commercial aerospace, and other strategic areas [28].
新威国际(00058) - 2024 - 年度财报