Jewellery Business Performance - The Jewellery Business was significantly impacted by geopolitical tensions, declining economic growth expectations, and record high gold prices, leading to weakened customer sentiment [25]. - The Group decided to contract the sales of the Jewellery Business in the PRC market and focus on overseas market development going forward [25]. - The Group is in the process of divesting certain interests in the Jewellery Business in the PRC [25]. - The Group's overall performance reflects the challenges posed by the macroeconomic environment, particularly in the PRC market [25]. - The Group's strategic shift towards overseas markets indicates a response to the contraction in the domestic market [25]. - The Jewellery Business segment is expected to continue facing challenges due to geopolitical tensions, declining economic growth expectations, and record-high gold prices, leading to reduced customer confidence [27]. - The Group is focusing on overseas market development for its Jewellery Business, actively participating in jewellery shows and exhibitions to attract new customers [28]. - The revenue from the Jewellery Business decreased by approximately HK$53.6 million, while the Property Business revenue decreased by approximately HK$25.7 million [49]. - Revenue from the Jewellery Business decreased from approximately HK$286.4 million for the year ended 31 December 2023 to approximately HK$232.8 million for the year ended 31 December 2024, representing a decrease of approximately HK$53.6 million or 18.7% [61]. - The gross profit from the Jewellery Business decreased from approximately HK$80.5 million for the year ended 31 December 2023 to approximately HK$63.8 million for the year ended 31 December 2024, representing a decrease of approximately HK$16.7 million or 20.7% [64]. Property Business Performance - The Property Business involves investment and development of properties for the Perfect Group Jewellery Industry Park located in Foshan, Guangdong Province, PRC [22]. - The overall industrial property market in the PRC remains subdued, with lower sales of properties and car parks compared to the corresponding period in 2024 [34]. - The Group completed the disposal of Foshan Huaguanhui Property Management for approximately RMB3.7 million (equivalent to approximately HK$4.0 million) on 1 April 2024, ceasing its consolidation into the Group's financial statements [32]. - The revenue from the Property Business decreased from approximately HK$59.3 million for the year ended 31 December 2023 to approximately HK$33.5 million for the year ended 31 December 2024, representing a significant decrease of approximately HK$25.8 million or 43.4% [66]. - Rental income for the year ended 31 December 2024 was approximately HK$11.7 million, representing a decrease of approximately HK$2.4 million or 17.2% [69]. - Property management fee income for the year ended 31 December 2024 was approximately HK$7.7 million, representing a decrease of approximately HK$3.2 million or 29.6% [70]. - The number of units of properties delivered to customers decreased from 17 in 2023 to 9 in 2024, with the saleable gross floor area sold and delivered decreasing from approximately 7,313 square metres to approximately 2,978 square metres [68]. - The gross profit recognised for the Property Business for the year ended 31 December 2024 was approximately HK$14.9 million, with a gross profit margin of approximately 44.5% [71]. Photovoltaic Power Generation and Energy Storage Business - The Photovoltaic Power Generation and Energy Storage Business includes sales of electricity generated from photovoltaic systems and provision of energy storage services [22]. - The photovoltaic power generation business generated approximately 9.8 million units of electricity during the year ended 31 December 2024, an increase from 3.6 million units in 2023 [38]. - The Group generated approximately 9,800,000 kWh of electricity in the year ended December 31, 2024, compared to 3,600,000 kWh in the previous year [40]. - The revenue from the Photovoltaic Power Generation and Energy Storage Business increased from approximately HK$3.0 million for the year ended 31 December 2023 to approximately HK$7.2 million for the year ended 31 December 2024, representing an increase of approximately 135.5% [75]. - The gross profit from the Photovoltaic Power Generation and Energy Storage Business increased by approximately HK$2.1 million or 124.1% compared to the previous year [59]. - The Group's energy storage business is driven by significant market demand and favorable government policies, with new energy storage included in the government work report for the first time in 2024 [42]. - The Group aims to expand its energy storage business by developing, building, and operating independent energy storage power stations [42]. - As of December 31, 2024, the Group completed 14 grid-connected projects in China with a total capacity of approximately 12,586 kW, up from 5,882 kW as of December 31, 2023 [40]. Financial Performance - Revenue decreased from approximately HK$348.7 million for the year ended December 31, 2023, to approximately HK$273.5 million for the year ended December 31, 2024, representing a decrease of approximately HK$75.2 million or 21.6% [48]. - The overall gross profit decreased from approximately HK$102.2 million for the year ended 31 December 2023 to approximately HK$82.5 million for the year ended 31 December 2024, representing a decrease of approximately HK$19.7 million or 19.2% [59]. - Profit after taxation decreased from approximately HK$34.2 million for the year ended 31 December 2023 to approximately HK$9.9 million for the year ended 31 December 2024, representing a decrease of approximately HK$24.3 million or 71.1% [95]. - Current assets decreased from approximately HK$734.3 million as at 31 December 2023 to approximately HK$647.5 million as at 31 December 2024, representing a decrease of approximately HK$86.8 million or 11.8% [97]. - Non-current assets increased to approximately HK$119.2 million as at 31 December 2024 from approximately HK$93.4 million as at 31 December 2023, primarily due to the installation of photovoltaic and energy storage equipment [96]. - Current liabilities decreased from approximately HK$162.5 million as at 31 December 2023 to approximately HK$143.1 million as at 31 December 2024, representing a decrease of approximately HK$19.4 million or 11.9% [101]. - The gross profit margin increased slightly from approximately 29.3% for the year ended 31 December 2023 to approximately 30.2% for the year ended 31 December 2024, representing an increase of approximately 0.9 percentage point or 3.1% [60]. - Other income rose from approximately HK$5.3 million for the year ended 31 December 2023 to approximately HK$6.5 million for the year ended 31 December 2024, an increase of approximately 22.6% [77]. Management and Governance - The Group's management team includes individuals with significant industry experience, enhancing its strategic decision-making capabilities [162]. - The appointment of independent directors aims to strengthen corporate governance and oversight within the Group [169]. - The Group is focused on expanding its market presence and enhancing its operational efficiency through experienced leadership [168]. - The management team is committed to achieving the Group's business development and strategic goals [163]. - The Group's risk management committee is actively involved in overseeing the company's risk exposure and mitigation strategies [162]. - The Group has implemented targeted training and development programs to enhance employee skills and knowledge in response to industry developments [143]. Employee and Corporate Information - The total number of employees decreased to 133 as of December 31, 2024, from 159 as of December 31, 2023 [135][138]. - Total salaries and related costs for the year ended December 31, 2024, were approximately HK$28.6 million, a decrease from approximately HK$30.7 million for the year ended December 31, 2023 [135][138]. - Ms. Tang Kam Man has been appointed as the Chief Financial Officer and Company Secretary effective from 8 November 2023, bringing over 14 years of experience in auditing and accounting [185][186]. - Mr. Kan has over 30 years of experience in the fine jewellery industry and has been the CEO since August 2015 [161]. - Ms. Shek has been managing the Group's sales operations and has over 30 years of experience in the fine jewellery industry [165]. - Mr. Wong has over 40 years of experience in accounting, finance, audit, tax, and corporate finance across various international markets [181]. Risk Management - The Group faces potential risks from major customers ceasing business relationships, which could materially affect profitability and financial position [152]. - Credit risk is managed through a dedicated team responsible for credit limits and monitoring to recover overdue debts [154]. - The Company has taken out insurance to enhance the recoverability of trade debtors in the Jewellery Business [155]. - The Group does not currently have an interest rate hedging policy but may consider it if significant interest rate risks arise [153]. - The Group's financial condition may be affected by changes in Hong Kong and PRC tax laws, particularly regarding cross-border processing business [152]. Dividend and Shareholder Information - The Group did not declare any interim dividend for the year ended 31 December 2024, and proposes a final dividend of HK$0.01 per share, totaling HK$13,362,450 [191][195]. - The Board intends to balance dividend distribution, cash flow, and reserves to create long-term value for shareholders, with no assurance of specific dividend amounts for any period [141]. - The final dividend is subject to approval by Shareholders at the annual general meeting scheduled for 2 June 2025 [196]. - The total shares in issue as of the date of the report is used to calculate the proposed final dividend [191].
保发集团(03326) - 2024 - 年度财报