ANALOGUE HLDGS(HK:01977)2025-04-23 08:30Financial Performance - The company reported a revenue of HKD 6,450.1 million for the fiscal year 2024, an increase from HKD 6,132.9 million in 2023, representing a growth of approximately 5.2%[28]. - Gross profit for the fiscal year 2024 was HKD 1,002.3 million, up from HKD 833.3 million in 2023, resulting in a gross margin of 15.5%[4][28]. - The profit attributable to the company's owners decreased to HKD 135.3 million in 2024 from HKD 251.5 million in 2023, reflecting a decline of about 46.3%[28]. - The cash and bank balance as of December 31, 2024, was HKD 1.0359 billion, compared to HKD 906.4 million in fiscal year 2023, enabling the company to undertake more projects and seize new market opportunities[60]. - The group recorded a net loss of HKD 28.9 million for the fiscal year 2024, compared to a net income of HKD 128.4 million in fiscal year 2023, primarily due to impairment losses and lack of one-time gains recognized in the previous year[88]. - The group's adjusted profit attributable to the company's owners for fiscal year 2024 was approximately HKD 206 million, reflecting a 10.2% increase compared to the adjusted profit for fiscal year 2023[79]. Strategic Initiatives - The company is focusing on three strategic pillars: "New Technology," "New Markets," and "New Business Models" to strengthen its industry-leading position[50]. - The company is actively developing new technologies, including AI, IoT, and digital solutions for energy optimization, as part of its strategy to become a leader in emerging industries[61]. - The company is committed to investing in the Hong Kong market, leveraging its unique advantages to explore significant market opportunities[54]. - The company aims to drive diversified business development while optimizing core operations in response to market trends[54]. - The company is exploring potential investments and collaborations to enter new markets in East Asia, Southeast Asia, Central Asia, the Middle East, and other regions[109]. Technology and Innovation - The establishment of the "MiMEP Design and Construction Center" and "MiMEP R&D Center" in Zhuhai aims to enhance the company's leadership in MiMEP technology[14]. - The company has achieved over 50% application of MiMEP, DfMA, and BIM technologies in its building services engineering projects[21]. - The AlgoWater technology has saved 47% in chemical usage for water and wastewater treatment facilities, showcasing the company's commitment to innovation in environmental engineering[23]. - The application of MiMEP in a commercial development project reached 85%, marking the highest level for commercial buildings[74]. - The company is developing a direct liquid cooling technology solution for AI data centers to meet increasing data computation demands[75]. Operational Efficiency - The newly established headquarters enhances operational efficiency and collaboration among business units, supporting the development of innovative construction technologies[60]. - The company maintains a strong operational cash level and has successfully implemented multiple high-value projects, ensuring stable core operational performance[50]. - The company has trained over 1,100 engineering talents through its graduate trainee and technician apprentice programs over the past 40 years[53]. - The group has been involved in various significant projects, including the design, construction, testing, and commissioning of wastewater treatment plants[132]. - The environmental engineering division is responsible for project management and execution, including design, procurement, construction, installation, testing, and maintenance[158]. Corporate Governance - The company has adopted the Corporate Governance Code as a benchmark for its governance practices and has complied with all applicable code provisions during the reporting year[165][166]. - The company ensures that at least one-third of the board consists of independent non-executive directors, in compliance with listing rules[173]. - The company has implemented mechanisms to ensure the board receives independent views and opinions, including the appointment of independent non-executive directors to various committees[173]. - The company’s governance practices include annual assessments of the independence of all independent non-executive directors[173]. - The company has established a process for the appointment of new directors, which includes a thorough review by the nomination committee before recommendations are made to the board[179]. Human Resources and Development - The group employed 3,149 staff as of December 31, 2024, an increase from 3,010 in the previous year, highlighting a focus on talent development[103]. - A total of 569 internal training sessions were conducted in 2024, accumulating over 38,500 training hours, emphasizing the group's commitment to employee development[104]. - The company has received multiple awards at the "Excellence in Human Resource Management Awards 2023/24," including a silver award for the Trainee Management Program, showcasing its recognition in HR practices[106]. - The company is committed to maintaining a diverse workforce and providing a friendly working environment for female employees and minority groups[111]. - The company aims to improve gender diversity at the board level, with a target to appoint at least one female director by December 31, 2024, and has already appointed two new female directors in 2023[181]. Market Position and Growth - The company has seen robust revenue growth in its international business through its brand Anlev, promoting quality products and services globally[51]. - The company is expanding its elevator and escalator business in the UK and the US, with its US joint venture turning from loss to profit and expanding its market coverage beyond New York[108]. - The environmental engineering segment's order value increased to HKD 1.514 billion as of December 31, 2024, more than doubling from HKD 730 million as of December 31, 2023, with significant contracts won for climate adaptation and environmental infrastructure[65]. - The company is actively pursuing new business opportunities in mechanical lifting, automated transport, and storage systems[158]. - The company is focused on continuous improvement and innovation to enhance its core advantages and operational performance[108].