Financial Performance - The Group's revenue decreased by approximately HK$26.0 million, from approximately HK$166.8 million in Year 2023 to approximately HK$140.8 million in Year 2024, representing a decline of about 15.6%[10][17]. - The net profit for Year 2024 was approximately HK$1.7 million, compared to approximately HK$7.0 million in Year 2023, indicating a significant decrease in profitability[10][18]. - Revenue from sales in Hong Kong, Macau, and Mainland China for Year 2024 amounted to approximately HK$133.0 million, HK$6.3 million, and HK$1.5 million, respectively[17]. - The Group's cost of sales amounted to approximately HK$104.2 million for the Year 2024, representing a decrease of approximately 16.6% from approximately HK$124.9 million for the Year 2023[23][27]. - The Group's gross profit decreased by approximately HK$5.3 million, or approximately 12.6%, from approximately HK$41.9 million for the Year 2023 to approximately HK$36.6 million for the Year 2024, while the overall gross profit margin increased from approximately 25.1% to approximately 26.0%[24][28]. - The Group's selling and distribution expenses decreased by approximately HK$1.0 million, or approximately 17.5%, from approximately HK$5.7 million for the Year 2023 to approximately HK$4.7 million for the Year 2024[30][35]. - The Group's administrative and other expenses increased by approximately HK$1.3 million, or approximately 4.2%, from approximately HK$30.6 million for the Year 2023 to approximately HK$31.9 million for the Year 2024[31][36]. - The Group recorded a net profit for the year attributable to the owners of the Company of approximately HK$1.7 million for the Year 2024, compared to approximately HK$7.0 million for the Year 2023[34][39]. Market Conditions - The decline in sales orders was primarily due to reduced construction activity and economic uncertainties affecting the real estate and infrastructure sectors[18]. - The overall market sentiment remains weak, with fierce competition in the construction industry impacting short-term performance[19]. - The Group remains optimistic about long-term prospects despite short-term uncertainties in the low-voltage electrical power distribution and control devices industry[19][21]. - The Group is committed to closely monitoring market conditions and proactively responding to new business inquiries to maintain competitiveness[12]. - Management is enhancing capabilities to adapt to environmental changes and market dynamics, ensuring timely adjustments to business strategies[9]. - The Group's management emphasizes the importance of resource allocation to ensure stable development amidst macroeconomic fluctuations[9]. Employee and Staffing - As of December 31, 2024, the Group had 221 full-time employees, a decrease from 229 employees in 2023, indicating a reduction of approximately 3.5%[66]. - The Group's total staff costs for the Year 2024 were approximately HK$39.4 million, an increase from approximately HK$38.4 million in 2023, reflecting a growth of about 2.6%[66]. - The remuneration of senior management for the Year 2024 is categorized, with 2 individuals earning between HK$Nil to HK$1,000,000[174]. Corporate Governance - The Company has complied with all mandatory disclosure requirements and applicable code provisions of the Corporate Governance Code for the Year 2024[100]. - The Board is committed to enhancing corporate governance standards to meet rising expectations and regulatory requirements[101]. - The Board ensures a balanced composition with a strong independent element to effectively exercise independent judgment[114]. - Independent non-executive Directors are appointed to Board committees to ensure independent views are available[116]. - The Nomination Committee assesses the independence of independent non-executive Directors annually to ensure their ability to exercise independent judgment[116]. - The Company has adopted the Model Code for Securities Transactions by Directors to govern securities transactions[102]. - The Company has received written annual confirmation of independence from each independent non-executive Director, ensuring they are independent of management[128]. - The Board is responsible for leadership and control of the Company, overseeing strategic decisions and performance[137]. - The Board regularly reviews the contributions required from each Director to fulfill their responsibilities[143]. - The Company has a board diversity policy that emphasizes a balance of skills, experience, and perspectives among Board members[182]. Risk Management - The Group's risk management system is led by Directors, who consider macro and microeconomic conditions before making business decisions, aiming to embed risk awareness into the corporate culture[60]. - The Group has minimal exposure to foreign currency risk, as most transactions are conducted in the functional currencies of the relevant group entities, leading to no current foreign currency hedging policy[56]. - The Group's projects are awarded on a non-recurring basis through tendering, which poses a risk to financial performance if the success rate for obtaining new projects declines[59]. Use of Proceeds - The net proceeds from the Company's listing on May 11, 2018, were approximately HK$75.0 million, which was HK$14.7 million lower than the estimated net proceeds of HK$89.7 million disclosed in the Prospectus[67]. - As of December 31, 2024, approximately HK$17.9 million of the net proceeds remained unutilized and is expected to be applied according to the planned use disclosed in the prospectus[72]. - The company has decided to extend the expected timeline for utilizing the unutilized net proceeds over the next two financial years to finalize strategic procurement plans and optimize cost efficiencies[75]. - The allocation of net proceeds includes HK$37.4 million for the acquisition of a factory in Mainland China and HK$21.2 million for the purchase of machinery and equipment[71]. - General working capital utilized amounted to HK$15.6 million, with a remaining balance of HK$4.5 million as of December 31, 2024[71]. - The company has no current intention to change the planned use of the net proceeds as disclosed in the prospectus[76]. Board Composition and Experience - The Board comprises six Directors, including two executive Directors, one non-executive Director, and three independent non-executive Directors as of December 31, 2024[113]. - The Group's executive directors, including Mr. Leung and Mr. Yuen, have over 30 years of experience in the low-voltage electrical power distribution and control devices industry[82][84]. - The Group was founded on August 25, 1992, by Mr. Yuen and Mr. Leung, indicating a long-standing presence in the industry[80][84]. - The Group's leadership team is well-equipped to navigate market challenges and drive future growth through their extensive industry experience[80][82]. - The Company targets to review gender diversity in the Board and senior workforce in line with business development[186]. - The Board's diversity includes various age groups and professional experiences, enhancing decision-making capabilities[188]. Audit and Compliance - The Audit Committee reviewed the Company's annual results for the Year 2024 and confirmed compliance with applicable accounting standards and adequate disclosure[152]. - The Audit Committee convened 3 meetings during the Year 2024 to oversee financial and internal control aspects, risk management, and audit plans[152]. - The Audit Committee conducts an annual assessment of the effectiveness of the Group's internal controls and financial controls system[148]. - The Audit Committee reviewed the independence of external auditors, Cheng & Cheng Limited, ensuring objectivity in their reporting[199].
全达电器集团控股(01750) - 2024 - 年度财报