Financial Performance - The total revenue for the year ended December 31, 2024, was approximately RMB 673.6 million, representing an increase of approximately 6.9% compared to RMB 630.2 million for FY2023[14]. - Gross profit for the Reporting Period amounted to approximately RMB 100.7 million, compared to approximately RMB 93.4 million for FY2023[14]. - The net profit after tax for the Reporting Period was approximately RMB 49.2 million, compared to an adjusted net profit of approximately RMB 39.9 million for FY2023, excluding non-recurring listing expenses of RMB 12 million[15]. - Revenue increased from approximately RMB630.2 million for FY2023 to approximately RMB673.6 million for FY2024, representing an increase of approximately 6.9%[34]. - The increase in revenue was primarily due to a rise in the number of projects in property cleaning services during the reporting period[37]. - Cost of services rose from approximately RMB536.7 million for FY2023 to approximately RMB572.9 million for FY2024, reflecting an increase of approximately 6.7%[35]. - Gross profit for the reporting period was approximately RMB100.7 million, compared to approximately RMB93.4 million for FY2023, with a stable gross profit margin of approximately 14.9%[36]. - Other income, gains, and losses decreased from approximately RMB6.4 million for FY2023 to approximately RMB2.4 million for FY2024, a decline of approximately 62.5%[40]. - Selling and marketing expenses decreased from approximately RMB5.1 million for FY2023 to approximately RMB4.0 million for FY2024, representing a decrease of approximately 21.6%[41]. - Income tax expenses rose from approximately RMB4.5 million for FY2023 to approximately RMB10.0 million during the Reporting Period, primarily due to deferred tax effects from fair value gains on financial assets[44][50]. - Net profit increased from approximately RMB27.9 million for FY2023 to approximately RMB49.2 million during the Reporting Period, with a net profit margin rising from 4.4% to 7.3%[45][51]. - Total employee benefit expenses increased to RMB 379.9 million in FY2024 from RMB 351.3 million in FY2023, representing an increase of approximately 8.5%[88]. Cash Flow and Capital Management - Cash and cash equivalents stood at approximately RMB 92.5 million as of December 31, 2024, indicating healthy cash flow[15]. - Cash, bank balances, and restricted bank deposits were approximately RMB92.5 million as of December 31, 2024, down from RMB150.4 million as of December 31, 2023[55][56]. - The Group issued 130,980,000 new shares at a price of HK$0.305 each, raising net proceeds of approximately HK$39.35 million for acquisitions and working capital[52][53]. - The company successfully offered 414,375,000 shares at HK$0.32 per share, raising approximately HK$73.5 million in net proceeds from the global offering[71]. - As of December 31, 2024, the unutilized net proceeds amounted to HK$50.2 million, with a full utilization expected by December 2026[74]. - The establishment of new branch offices is planned to utilize 48.9% of the total net proceeds, amounting to HK$36.0 million[74]. - Capital expenditure for the Reporting Period amounted to approximately RMB18.7 million, compared to RMB11.7 million for FY2023[59][65]. Business Expansion and Strategy - The company plans to expand its presence in both existing and new markets, leveraging its experience in cleaning and maintenance services[18]. - There is an intention to replicate the business model in other regions of the PRC with strong demand for property cleaning services[18]. - The company is exploring opportunities for potential acquisitions and investments in cleaning and maintenance service providers in the Greater Bay Area[18]. - The focus will also be on tendering for cleaning services in major infrastructures expected to be completed in the near future[18]. - Future business expansion will be supported by access to capital markets for fundraising through equity and/or debt[29]. - The company aims to explore opportunities in recycling waste materials and manufacturing environmentally friendly biodegradable materials[30]. - The investment in Best Technology (Shenzhen) Inc. (BTI) represents 19.5% of the shares held, with a carrying value of RMB101,160,000, accounting for approximately 17.7% of the total assets of the Group[80][81]. - The investment in BTI generated a fair value gain of RMB37,258,000 during the reporting period[81]. - The company aims to enhance its operational capabilities in waste management through the acquisition of BTI, which aligns with its growth strategy[82][83]. Corporate Governance and Management - The company acknowledges the support from shareholders, investors, and the community as integral to its development[19]. - The listing on the Main Board of The Stock Exchange of Hong Kong Limited on December 5, 2023, marks a significant milestone for the company[12]. - The Group's strategic planning and management are overseen by experienced executives, including Mr. Li Chenghua and Mr. Chen Liming, both of whom have over 24 years of experience in the cleaning service industry[92][98]. - The company is committed to achieving good corporate governance, focusing on creating long-term sustainable growth for shareholders and delivering long-term value to all stakeholders[137]. - The Board is responsible for overall strategic planning, management, operation, and business development of the Group[139]. - The Board meets regularly to monitor business development and financial performance of the Group[140]. - The company adopted all code provisions in the Corporate Governance Code as its own code on corporate governance practices[137]. - The company complied with the code provisions set out in part 2 of the CG Code, with the exception of code provision C.2.1[138]. - The company has a structured approach to risk management and operational plans[139]. - The management is responsible for the procurement of cleaning products and equipment of the Group[140]. - The company has a dedicated marketing director overseeing tendering and marketing activities[133]. - The administrative manager is responsible for overall supervision of operations and managing internal relationships[129]. - The procurement manager supervises and manages the procurement of cleaning products and equipment[131]. - The Board comprises two executive Directors and three independent non-executive Directors, ensuring a balanced governance structure[146]. - Four Board meetings were held during the year, with all executive Directors attending all meetings[150]. - Independent non-executive Directors provide independent views and input to support the Board's responsibilities[144]. - The Company has established mechanisms to ensure compliance with corporate governance practices and legal requirements[145]. - The Board reviews the effectiveness of risk management and internal control systems regularly[145]. - The Company emphasizes continuous professional development for Directors and senior management[145]. Director Appointments and Committees - Dr. Wang Hui appointed as independent non-executive Director on July 26, 2024, with over 25 years of experience in corporate finance and accounting[106]. - Ms. Cheung Bo Man appointed as independent non-executive Director on November 14, 2023, with over 12 years of experience in the legal industry[108]. - Ms. Yau Yin Hung appointed as independent non-executive Director on November 14, 2023, with approximately 13 years of experience in the banking industry[113]. - Mr. Xing Guojun serves as managing director of the Group, with approximately 20 years of managerial experience in the cleaning service industry[119]. - Dr. Wang is the chairperson of the audit committee and investment committee, ensuring independent judgement on key issues[106]. - Ms. Cheung is the chairperson of the remuneration committee, contributing to corporate governance[108]. - Ms. Yau is the chairperson of the nomination committee, overseeing the appointment of directors[113]. - Mr. Xing has been with the Group since November 2002, demonstrating long-term commitment and leadership[119]. - The Company has established a Nomination Committee comprising three Independent Non-Executive Directors (INEDs) to review the Board's structure and composition[174]. - The Nomination Committee is responsible for assessing the independence of INEDs and making recommendations for the appointment or re-appointment of Directors[175]. - The Remuneration Committee, comprising three INEDs, is responsible for recommending the Company's remuneration policy and structure for directors and senior management[167]. - The nomination committee held two meetings during the year ended December 31, 2024[191]. - The audit committee conducted five meetings in the year ended December 31, 2024[197]. - The investment committee met once during the year ended December 31, 2024[199]. - The audit committee is responsible for reviewing the Group's risk management and internal control systems, as well as financial reporting[193]. - The company established an audit committee comprising three independent non-executive directors[192]. - According to the Articles of Association, one-third of the directors must retire by rotation at each annual general meeting[189]. - Independent non-executive directors' terms are set for one year starting from December 5, 2023[194]. - Directors appointed to fill casual vacancies hold office until the first annual general meeting after their appointment[190]. - The Company will disclose the tenure of each existing INED if all have served more than nine years[185]. - If an INED has served more than nine years, their further appointment requires a separate resolution approved by Shareholders[184]. Employee Engagement and Development - The number of employees rose to 8,160 as of December 31, 2024, compared to 7,086 on December 31, 2023, indicating a growth of about 15.2%[88]. - The company has adopted a share option scheme to provide incentives or rewards to its staff, enhancing employee engagement and retention[88]. - Directors participated in continuous professional development activities, including training on corporate governance and directors' responsibilities[163]. - The Company ensures that one-third of all Directors retire by rotation at each annual general meeting[161]. - The Company has established a written procedure for Directors to seek external independent professional advice at reasonable costs[156]. - The Company has adopted a standard code of conduct for securities trading by Directors and related employees[170].
升辉清洁(02521) - 2024 - 年度财报