Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 4,528.3 million, a decrease of 24.3% from HKD 5,981.9 million in 2023[22]. - Gross profit for 2024 was HKD 1,171.1 million, down 29.5% from HKD 1,662.7 million in 2023, resulting in a gross margin of 25.9%, a decline of 1.9 percentage points[22]. - The operating loss for 2024 was HKD 509.2 million, compared to an operating profit of HKD 108.6 million in 2023, indicating a significant decrease in operational performance[22]. - Net loss attributable to shareholders for 2024 was HKD 564.2 million, a substantial drop from a profit of HKD 6.7 million in 2023, reflecting a net profit margin of -12.5%[22]. - Total assets decreased by 17.7% to HKD 7,439.6 million in 2024 from HKD 9,039.5 million in 2023[23]. - The company reported an average return on equity of -18.8% in 2024, down from 0.2% in 2023, indicating a decline in profitability[23]. - Revenue from China Mobile Group decreased by 32.8% to HKD 747,056,000, accounting for 16.5% of total revenue[46]. - Revenue from China Unicom Group decreased by 76.1% to HKD 178,750,000, representing 3.9% of total revenue[46]. - Revenue from China Telecom Group increased by 9.2% to HKD 440,063,000, making up 9.7% of total revenue[47]. - International revenue decreased by 7.9% to HKD 2,208,117,000, but still accounted for 48.8% of total revenue[47]. - Revenue from base station antennas and subsystems decreased by 25.3% to HKD 1,912,775,000, accounting for 42.2% of total revenue[49]. - Revenue from network systems decreased by 21.7% to HKD 874,837,000, representing 19.3% of total revenue[49]. - Revenue from services decreased by 42.9% to HKD 935,042,000, making up 20.7% of total revenue[49]. - Other income and gains decreased by 25.7% to HKD 129,351,000, accounting for 2.9% of total revenue[51]. - The company will not declare a final dividend for the year, consistent with the previous year[59]. Innovation and Product Development - The company launched the ComFlex MAX low-power product, achieving significant order growth in multiple international markets[26]. - The company introduced the Green Antenna 2.0, receiving high recognition from domestic operators and winning the first centralized procurement project for green base station antennas in China[27]. - The newly launched green antenna FPTP2.0 improved energy conversion efficiency by over 20%[42]. - The company introduced the industry's first passive IoT system prototype and networking solution, leading innovation in 5G-A technology[32][42]. - The group launched the industry-leading high-frequency, high-power indoor distribution coverage series products, enabling low-cost and efficient simultaneous upgrades of multi-operator network signals[63]. - The group is actively exploring new business opportunities in the 5G sector, including the launch of a full range of mobile robots and unmanned forklift products, with applications in key industries such as 3C, pharmaceuticals, automotive, and textiles[68]. - The group has established a comprehensive smart computing platform, FLeX5, integrating 5G networks, IoT, MEP, and AI, providing tailored solutions for various industries, including smart mining and smart warehousing[64]. Corporate Governance - The board consists of seven directors, with four being executive directors and three independent non-executive directors, ensuring a balance of skills and experience relevant to the company's operations[115]. - The company has adopted the standards for securities trading by directors as outlined in the Hong Kong Listing Rules, confirming compliance from January 1, 2024, to the date of the report[114]. - The audit committee reviews the effectiveness of the internal control system annually, concluding that the risk management and internal control systems are effective and adequate[113]. - The company emphasizes high standards of corporate governance to ensure transparency and accountability, which is crucial for protecting shareholder interests[112]. - The company has established a robust governance framework, with all members of the nomination, remuneration, and audit committees being independent non-executive directors to ensure independence in decision-making[112]. - The company has been recognized for its commitment to corporate governance principles and has adhered to the relevant codes and guidelines since January 1, 2024[112]. - The company’s senior management team has significant industry experience, with members holding various professional qualifications and leadership roles in industry associations[109]. - The company has a clear division of responsibilities between the chairman and the CEO[121]. - The independent non-executive directors are appointed for a fixed term of no more than three years[122]. - The board aims to maintain a minimum female representation of 27% and increase it to approximately 33% by 2033[134]. - The company has set measurable goals for board diversity and will review these annually to ensure effectiveness[132]. Employee and Safety Management - The total number of employees is 4,349, with 3,069 males and 1,280 females, leading to a female representation of about 29%[133]. - The employee turnover rate for those under 30 years old is 4.87%, while for those aged 31-40 it is 7.30%[190]. - The company has achieved zero work-related fatalities in the past three years, including the reporting period[194]. - A total of 1,115 employees received fire safety training, significantly improving their safety awareness[194]. - The company conducted 49 health and safety training sessions in 2024, enhancing overall employee safety awareness[197]. - The organization has established a long-term incentive framework to enhance employee satisfaction with compensation[184]. - The employee benefits package includes competitive salaries, insurance contributions, and statutory leave entitlements[184]. - The group has established a comprehensive safety management system, including procedures for safety and environmental protection, with 100% of responsible persons signing safety responsibility agreements[198]. - The group emphasizes long-term career development for employees, providing dual career paths and linking compensation and promotions to experience, ability, and performance[199]. - In 2024, the training participation rate for male and female employees across all levels reached 100%[199]. Environmental and Social Responsibility - The company aims to integrate sustainable development and social responsibility into its corporate culture[165]. - The company achieved EcoVadis silver rating in the 2024 corporate social responsibility assessment, reflecting its commitment to sustainable development[174]. - The company has implemented an ISO14001 environmental management system to ensure compliance with environmental regulations and control emissions[175]. - The company has maintained zero fines for air emissions and ensures that all production areas comply with environmental impact assessments[175]. - The company categorizes waste into hazardous and non-hazardous types, ensuring 100% compliance in the disposal of non-hazardous waste[176]. - The company actively engages with stakeholders through various communication channels to enhance transparency and confidence in its sustainable development efforts[171]. - The company focuses on reducing environmental impacts throughout the product lifecycle and integrates green, low-carbon development concepts into all operational processes[170]. - The company has not reported any significant violations of laws regarding emissions and waste disposal during the reporting period[174]. - The company emphasizes the importance of energy conservation and environmental protection in its operational management strategies[170]. - The company collaborates with partners, customers, and suppliers to seek sustainable green and low-carbon business environments[170]. - Greenhouse gas emissions increased by 150.34% to 1,892 thousand tons in 2024 from 756 thousand tons in 2023[177]. - Energy consumption decreased by 19% year-on-year, while water consumption decreased by 14% year-on-year[179]. - The company achieved a total of 2.03 million kWh of green electricity generation in 2024, resulting in a cost reduction of approximately 1.84 million HKD[179]. - Non-hazardous waste increased by 52.64% to 722 tons in 2024 from 473 tons in 2023[177]. - The company aims to halve total greenhouse gas emissions by 2030 in accordance with SBTi standards[178]. - The company implemented a distributed photovoltaic power generation project, enhancing renewable energy usage[179]. - The company is focusing on reducing energy consumption through technological innovations and improving product efficiency[178]. - The company is actively responding to climate change issues and enhancing its carbon emission management capabilities[183].
京信通信(02342) - 2024 - 年度财报