Financial Performance - The group's revenue decreased by approximately 25.4% to about HKD 21.5 million from approximately HKD 28.9 million in the previous year[7]. - Gross profit fell to approximately HKD 6.8 million, a decrease of about 19.7% from last year's HKD 8.4 million[7]. - The group recorded a loss attributable to owners of approximately HKD 3.3 million, compared to a loss of HKD 5.7 million in the previous year[8]. - Revenue from office property projects decreased by HKD 4.9 million, while revenue from elderly care projects increased by HKD 2.2 million[38]. - The gross profit margin for office property projects decreased from approximately 29.3% last year to about 26.6% this year[41]. - The gross profit margin for elderly care projects increased significantly from approximately 4.7% last year to about 54.8% this year[41]. - The company completed several office property and elderly care projects during the year, indicating a cautious recovery in the market[34]. - Sales and distribution expenses slightly increased to HKD 1.3 million this year from HKD 1.2 million last year, primarily due to increased employee costs[44]. - Administrative expenses decreased from approximately HKD 14.1 million last year to about HKD 11.1 million this year, mainly due to a reduction in employee costs[45]. - The group recognized a provision for trade receivables and contract assets loss of HKD 0.4 million for the year ended December 31, 2024, compared to an impairment loss of HKD 0.9 million in 2023[49]. - As of December 31, 2024, the group had net current assets of approximately HKD 60.1 million, down from HKD 62.0 million in 2023, with cash and cash equivalents of about HKD 9.0 million[50]. - The current ratio increased to approximately 19.4 times as of December 31, 2024, compared to 15.7 times in 2023, primarily due to an increase in trade and other receivables[50]. - The group maintained a strong liquidity position with no outstanding borrowings as of December 31, 2024, due to no significant debt financing needs during the year[50]. - The group had unutilized bank financing of HKD 2.0 million as of December 31, 2024, consistent with the previous year[50]. - The company’s available distributable reserves as of December 31, 2024, are approximately HKD 54.6 million, up from HKD 36.0 million in 2023[78]. Market Outlook - The company anticipates a recovery in demand for office property renovations as market sentiment improves[9]. - The aging population in Hong Kong is expected to drive the demand for more healthcare centers, medical clinics, and laboratories[9]. - The company remains cautiously optimistic about the external economic environment and market developments[9]. - New contracts awarded have not yet reached pre-pandemic levels, but the company believes it has weathered the most challenging period[9]. Management and Governance - The company has a strong management team with diverse backgrounds in finance, project management, and design, enhancing its operational capabilities[21]. - The company is committed to maintaining high standards of financial management and corporate governance, as evidenced by the qualifications of its board members[31]. - The board includes members with extensive experience in both local and international markets, contributing to strategic decision-making[28]. - The company has a strong governance structure with independent non-executive directors overseeing key committees such as the Audit and Remuneration Committees[27]. - The company has established a clear framework for corporate governance functions, which was reviewed and executed during the year[159]. - The board consists of six members, including three executive directors and three independent non-executive directors[127]. - The company has complied with all corporate governance code provisions, except for a deviation from provision C.2.1[126]. - The company has established a procedure for directors to seek independent professional advice at the company's expense[147]. - The company has implemented a system for continuous professional development for all directors, including participation in seminars and reading relevant materials[147]. Risk Management - The company has established a risk management team that includes operational staff and the company secretary to execute risk identification and monitoring procedures[167]. - The risk management procedures have been reviewed this year, and the board considers them effective and sufficient[168]. - The internal control system is reviewed at least annually, and an independent external consultant has been appointed to assess its effectiveness[165]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with the GEM listing rules[162]. - The board is committed to maintaining an effective internal control system to protect shareholders' interests and the group's assets[166]. Shareholder Relations - The company encourages two-way communication with institutional and private investors, enhancing investor relations[173]. - The annual general meeting was held on June 7, 2024, providing a platform for direct communication between the board and shareholders[174]. - The board has confirmed the effectiveness of the shareholder communication policy during the review this year[175]. Environmental, Social, and Governance (ESG) - The company emphasizes its commitment to integrating Environmental, Social, and Governance (ESG) principles into all aspects of its operations[182]. - The board is responsible for assessing and determining the company's ESG-related risks and ensuring effective risk management and internal control systems are in place[186]. - The company aims to minimize its environmental footprint by prioritizing sustainable material procurement, energy-saving solutions, and waste reduction practices[182]. - The ESG report is prepared in accordance with the Hong Kong Stock Exchange's guidelines, ensuring compliance with all relevant regulations[187]. - Stakeholder engagement is actively pursued to identify and address ESG issues, with various communication channels established for different stakeholder groups[192]. - The group strictly adhered to applicable environmental laws and regulations during the reporting period, ensuring compliance with the Environmental Impact Assessment Ordinance and Waste Disposal Ordinance[200]. - The project team actively collaborates with subcontractors to meet environmental protection requirements in interior renovation projects[200]. - Regular inspections are conducted to monitor subcontractors' environmental performance and ensure compliance with environmental regulations[200]. - The group identified 22 key environmental, social, and governance (ESG) issues that are most important to its business and stakeholders[195].
K W NELSON GP(08411) - 2024 - 年度财报