Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 89,099,000, a decrease of 2.4% compared to HKD 91,244,000 in 2023[6]. - The company reported a net loss attributable to shareholders of HKD 33,765,000 for 2024, a reduction of 49.2% from a loss of HKD 66,449,000 in 2023[7]. - The company's gross profit margin improved from -33.8% in the previous year to 0.4% this year, marking a successful turnaround from loss to profit[17]. - The company reported a loss for the year of HKD 33,765,000, compared to a loss of HKD 66,449,000 in 2023, indicating a significant reduction in losses[55]. - Operating loss for the year was HKD 33,597,000, an improvement from a loss of HKD 65,931,000 in 2023[55]. - The total comprehensive loss for the year was HKD 67,102,000, which includes a loss of HKD 66,449,000 and other comprehensive expenses[149]. Revenue and Sales - The total sales volume of cowhide leather decreased by 14.1% to 5,343 thousand square feet in 2024 from 6,219 thousand square feet in 2023[6]. - Total revenue for the year was HKD 89,099,000, a decrease of 2.4% from HKD 91,244,000 in the previous year[19]. - The company achieved a significant increase in external processing revenue, which rose by 311.2% to HKD 37,762,000[19]. - The company aims to expand its self-operated business into the Southeast Asian market to increase export sales of leather and improve revenue and gross profit[11]. Cost Management and Efficiency - The company is committed to strengthening cost control and energy-saving measures to enhance operational efficiency amid a complex economic environment[12]. - The company implemented cost reduction measures, resulting in a 59.9% decrease in total procurement amounting to HKD 30,898,000[22]. - The company plans to closely monitor production costs and general administrative expenses to improve cash flow and working capital[154]. Assets and Liabilities - The net asset value of the company as of December 31, 2024, was HKD 19,061,000, a decrease from HKD 52,911,000 in 2023[14]. - Total assets decreased to HKD 97,154,000 in 2024 from HKD 135,537,000 in 2023, representing a decline of approximately 28%[56]. - Total liabilities decreased to HKD 78,093,000 in 2024 from HKD 82,626,000 in 2023, a reduction of about 5%[56]. - The company's total liabilities decreased to HKD 73,590,000 in 2024 from HKD 77,951,000 in 2023, showing a slight improvement in debt management[148]. Inventory and Production - The company's inventory as of December 31, 2024, was HKD 24,048,000, down 52.3% from HKD 50,457,000 a year earlier[23]. - The production of cowhide leather decreased by 27.9% to 3,325,000 square feet, while the production of external processing business surged by 403.3% to 18,965,000 square feet[18]. Corporate Governance - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors, ensuring a high level of independence for effective judgment[91]. - The company has appointed independent non-executive directors with extensive experience in finance and management to strengthen governance[36][37]. - The board adopted a diversity policy on August 23, 2013, recognizing the benefits of a diverse board for achieving strategic goals and sustainable development[100]. Environmental and Compliance Efforts - The company is actively investing in environmental improvement projects and enhancing communication with local government to ensure compliance with environmental regulations[50]. - The company has complied with environmental standards and obtained necessary permits for its operations during the year[128]. - The company is committed to improving production technology and waste management to address environmental compliance risks[50]. Future Plans and Strategies - The company plans to enhance its leather business transformation and upgrade its external processing business model to improve production conditions and customer service[11]. - The company will focus on developing the "cowhide dog chew" business to tap into the pet food market, with plans to modify idle factory space for mass production[11]. - The company is exploring new opportunities in the pet market by developing a new product using by-products from leather processing, aiming to enhance resource utilization[21]. Employee and Shareholder Information - The group had 261 employees as of December 31, 2024, a decrease from 288 employees in the previous year[29]. - Major shareholders include Guangdong Nanyue Group Co., Ltd. with a 52% stake and Guangdong Yuehai Holdings Group Co., Ltd. with a 19.34% stake[73]. - The company encourages shareholders to opt for electronic communication to support environmental protection initiatives[126]. Risk Management - The company faces market risks due to ongoing industry pressures, including a decline in demand for leather products and increasing environmental compliance requirements[49]. - The company monitors raw material prices closely to mitigate inventory impairment risks and improve cash flow management[51]. - The company is focused on maintaining liquidity to manage risks associated with potential defaults from downstream customers due to market demand shrinkage[52].
南粤控股(01058) - 2024 - 年度财报