Financial Performance - Revenue for the fiscal year 2024 was HKD 81,212,000, a decrease of 8.3% from HKD 89,075,000 in 2023[6]. - The net loss for the fiscal year 2024 was HKD 25,650,000, improved from a loss of HKD 35,253,000 in 2023, representing a reduction of 27.3%[6]. - The net asset value decreased significantly to HKD 1,039,000 from HKD 27,584,000 in the previous year, indicating a decline of 96.2%[10]. - Cash and bank balances were reported at HKD 5,848,000, down from HKD 6,121,000 in 2023, a decrease of 4.5%[10]. - Overall revenue decreased by approximately 8.9% from about HKD 89,100,000 to about HKD 81,200,000[18]. - Loss attributable to owners decreased by approximately 27.2% from about HKD 35,300,000 to about HKD 25,700,000[18]. - The group's gross profit slightly increased by about 2.0% from approximately HKD 5,100,000 to about HKD 5,200,000, with the overall gross profit margin rising from about 5.7% to approximately 6.4%[27]. - The group's financial expenses increased by approximately HKD 1,400,000 from about HKD 500,000 to approximately HKD 1,900,000, mainly due to increased interest on loans from a director[29]. - The debt-to-asset ratio rose to approximately 3,655.6% as of December 31, 2024, compared to about 53.3% in 2023, primarily due to an increase in loans from a director and operating losses[33]. Revenue Sources - Revenue from China increased by approximately 27.1% from about HKD 19,200,000 to about HKD 24,400,000[17]. - Revenue from Singapore rose by approximately 11.5% from about HKD 48,000,000 to about HKD 53,500,000[17]. - Telecommunications business revenue decreased by approximately 9.0% from about HKD 86,700,000 to about HKD 78,900,000[19]. - GPS service revenue increased by approximately 27.1% from about HKD 19,200,000 to about HKD 24,400,000[19]. - IT services revenue decreased by approximately 50.0% from about HKD 1,000,000 to about HKD 500,000[20]. - Revenue from the wine e-commerce platform Winestry was approximately HKD 500,000, with over 540 stock-keeping units available[21]. Strategic Initiatives - The company is diversifying its telecommunications revenue base by expanding GPS services in China, which is expected to stabilize revenue streams[12]. - A new IT service related to software development for corporate clients is anticipated to start generating revenue in Q1 2025[13]. - The company aims to enhance service quality and operational efficiency to achieve sustainable growth and long-term profitability[13]. - The company plans to expand its existing IT business in China, focusing on software development and application services to meet the growing demand for IT services[25]. Market Conditions - The telecommunications market in Hong Kong and Singapore remains highly competitive, impacting the company's performance[16]. - The overall economic environment remains challenging, with rising unemployment and inflation pressures affecting business operations[16]. - IMF forecasts global GDP growth of approximately 3.3% for 2025, with various regional growth predictions reflecting economic uncertainties[24]. Corporate Governance - The company has not appointed a CEO since the resignation of Ms. Li Bing on November 9, 2020, and Mr. Zhang has been serving as both Chairman and Acting CEO since March 2, 2021[46]. - Mr. Zhang's dual role is believed to provide strong leadership and enhance the effectiveness and efficiency of business decision-making and strategy execution[46]. - The company is committed to maintaining high levels of corporate governance and prioritizing shareholder interests[46]. - The board will continue to review the current management structure and will nominate suitable candidates for the roles of Chairman and CEO when identified[46]. - The company aims to enhance long-term shareholder value through effective governance practices[46]. - The board believes that the current structure aligns with the best interests of the company and its shareholders at this stage[46]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, ensuring compliance among all directors[47]. - The company has a commitment to transparency and has taken steps to address any compliance issues promptly[47]. Board Composition and Meetings - The board consists of two executive directors and three independent non-executive directors, with a focus on diversity and skill balance[52]. - As of December 31, 2024, the board includes five directors, one of whom is female, aligning with diversity regulations[54]. - The board held six meetings during the year, ensuring informed decision-making through adequate information provision[57]. - The Audit Committee held two meetings this year, reviewing the financial performance for the year ending December 31, 2023, and the interim results for the six months ending June 30, 2024[66]. - The Remuneration Committee conducted three meetings this year, approving the remuneration budget for the board of directors[69]. - The Nomination Committee held two meetings this year, assessing the independence of independent non-executive directors and reviewing the board's structure and composition[72]. Risk Management and Internal Controls - The board is responsible for maintaining the internal control system and risk management, ensuring reasonable assurance against material misstatements or losses[101]. - The internal control system aims to achieve operational efficiency, reliable financial reporting, and compliance with applicable laws and regulations[102]. - The risk management system includes identifying risks, assessing their likelihood and impact, and managing responses to ensure effective communication with the board[103]. - No significant risks were identified during the annual risk assessment, except for previously disclosed non-compliance with listing rules[101]. - The board believes that the risk management and internal control system is effective and sufficient, and will continue to review its effectiveness regularly[106]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an ESG policy to ensure compliance with applicable laws and to integrate ESG considerations into business decision-making[111]. - The ESG report covers the group's performance in environmental and social aspects across major operations in Hong Kong, Singapore, and China[108]. - The board is committed to high standards of ESG performance and regularly reviews progress towards achieving ESG-related goals[111]. - The company reported a total greenhouse gas emissions of 22.76 tons of CO2 equivalent for the year, an increase of 17.6% compared to 19.35 tons in the previous year[126][128]. - The company has successfully implemented all applicable mandatory measures for the Hong Kong Green Organization Certification and reported related achievements[118]. - The company has maintained its commitment to reducing waste, achieving the "Waste Reduction Certificate - Excellence Level" for ten consecutive years[115]. - The group has implemented various energy efficiency measures to reduce electricity consumption, including encouraging employees to turn off lights and equipment when not in use[150]. Employee Relations and Compliance - The company has maintained compliance with all relevant employment and labor laws, with no significant non-compliance issues reported this year[164]. - Employee benefits include competitive salaries, medical and dental allowances, and paid maternity leave, aimed at attracting and retaining talent[162]. - The company has implemented a two-way communication policy, allowing employees to express concerns and communicate with management through various channels[161]. - The company has not reported any health and safety compliance issues in the past three years, ensuring a safe working environment[177]. - The company conducts objective assessments of employee performance to inform promotions and salary adjustments, ensuring fairness in employment practices[162]. - The company has established a fair recruitment and promotion policy, strictly prohibiting discrimination and harassment in the workplace[162].
长城天下(00524) - 2024 - 年度财报