Company Performance and Strategy - The company reported a strong performance with a focus on customer experience and innovation, emphasizing its commitment to sustainable development [4]. - The company has received numerous awards for brand management, product design, and e-commerce platforms, highlighting its market leadership and commitment to quality [6]. - Despite the challenges, the company managed to reduce losses by nearly 50% compared to the previous year, reflecting effective management strategies [17]. - The company is focused on providing high-value solutions and after-sales services to meet evolving consumer demands, positioning itself for sustainable growth [20]. - The company remains cautiously optimistic about the economic outlook for the coming year, focusing on strict cost control and enhancing resilience and flexibility to seize market share expansion opportunities [25]. Retail Segment Performance - The retail segment, Pricerite, has successfully integrated online and offline resources, enhancing the omnichannel retail model and improving customer shopping experiences [5]. - The retail sector in Hong Kong faced a significant challenge, with retail sales dropping by 7.3% compared to last year, and furniture retail sales decreasing by 14.4% [17]. - The retail segment has been recognized with multiple awards, including the "Hong Kong Brand Development Council's Ten-Year Achievement Award" and "Outstanding Service Award" from the Hong Kong Retail Management Association [6]. - The retail sector faced significant challenges, with total retail sales in Hong Kong expected to decline by approximately 7.3% in value and 9.0% in volume for 2024, despite a 31.0% year-on-year increase in visitor numbers to about 44.5 million [28]. - The company expanded its "Lengthen and Shorten" furniture modification service, which is the most comprehensive among local retailers [47]. Financial Services and Investment Management - The financial services segment, Times Financial, has established wealth management centers in Hong Kong, Shanghai, Shenzhen, and Qingdao, with plans for further expansion in key economic regions [10]. - Times Financial has been a pioneer in fintech, launching the advanced mobile trading app Alpha i to enhance user experience and service quality [11]. - The company holds multiple licenses from the Securities and Futures Commission, including Type 1, 2, 4, and 9 licenses, ensuring comprehensive financial and wealth management services [9]. - The company aims to combine traditional finance with new financial assets to provide a comprehensive wealth management service [11]. - The company’s investment management business achieved revenue of HKD 6.9 million and a net profit of HKD 10.4 million for the year ending December 31, 2024, compared to revenue of HKD 4.7 million and a net profit of HKD 3.8 million in 2023, reflecting a strong performance amid market volatility [31]. Economic and Market Conditions - In 2024, Hong Kong's GDP growth rate is expected to slow down to 2.5%, down from 3.2% in 2023, with private consumption declining by 0.6% year-on-year [16]. - The company is closely monitoring trade barriers and tariff restrictions that may impact logistics, ensuring agility in response to challenges [21]. - The ongoing "home economy" trend is driving demand for furniture and home products as consumers prioritize enhancing their living environments over luxury purchases [20]. - The government plans to deliver 190,000 new residential units over the next five years, which is expected to create growth opportunities for the furniture and home improvement industry [20]. - The company is enhancing its business layout in the Greater Bay Area by improving logistics and procurement facilities, aiming to shorten delivery times and increase efficiency [18]. Environmental, Social, and Governance (ESG) Initiatives - The company actively engages in environmental protection initiatives, receiving recognition for its contributions to sustainability [7]. - The company is committed to sustainable development and has implemented various environmental, social, and governance initiatives during the fiscal year ending December 31, 2024 [168]. - The total greenhouse gas emissions decreased by approximately 11% during the reporting period, primarily due to the closure of three retail stores, which reduced electricity consumption [180]. - The company aims to reduce total greenhouse gas emissions intensity by 25% by 2025 compared to the baseline year of 2021 [180]. - The company has implemented energy-saving measures to address the primary source of greenhouse gas emissions, which comes from purchased electricity [180]. Corporate Governance and Board Structure - The company has adopted various policies to ensure compliance with the corporate governance code, fully adhering to the code provisions for the year ending December 31, 2024, with some exceptions noted [94]. - The board consists of five executive directors and three independent non-executive directors, ensuring over one-third of the board members are independent [99]. - The independent non-executive directors are required to confirm their independence annually and disclose any potential conflicts of interest [102]. - The board has established a risk management and internal control system to identify, assess, manage, and report significant risks, including strategic, operational, compliance, reporting, information technology, and environmental, social, and governance risks [145]. - The company emphasizes the importance of stakeholder engagement in assessing and prioritizing significant environmental, social, and governance issues [169].
时富投资(01049) - 2024 - 年度财报