Revenue Performance - For the year ended December 31, 2024, the Group's revenue decreased by 40.2% from approximately HK$134.6 million in 2023 to approximately HK$80.5 million in 2024[12]. - Total revenue for construction and engineering services decreased by approximately 50.2% to HK$61.1 million for the year ended December 31, 2024, compared to HK$122.8 million in the previous year[23]. - The completion of major slope works projects in 2023 and 2024 significantly impacted revenue[12]. - Revenue from property-related services increased by 6.7% from approximately HK$8.4 million in 2023 to approximately HK$9.0 million in 2024[12]. - Revenue from property-related services remained stable, with approximately HK$5.0 million for the year ended 31 December 2024 compared to approximately HK$4.6 million for the year ended 31 December 2023[42]. - The Group recorded revenue of approximately HK$10.4 million from luxury product sales in 2024, up from approximately HK$3.4 million in 2023, driven by stable growth in luxury watch sales[29]. - Revenue from sales of luxury products increased by approximately HK$7.0 million or approximately 207.5%, from approximately HK$3.4 million for the year ended 31 December 2023 to approximately HK$10.4 million for the year ended 31 December 2024[43]. Profitability and Financial Performance - The Group's total gross profit for the year ended 31 December 2024 amounted to approximately HK$5.4 million, representing an increase of 50.6% compared to approximately HK$3.6 million for the year ended 31 December 2023[48]. - The gross profit margin for the year ended 31 December 2024 was approximately 6.7%, compared to approximately 2.7% for the year ended 31 December 2023[48]. - Gross profit from construction and engineering services increased by 150% to approximately HK$0.6 million for the year ended 31 December 2024, with a gross profit margin of approximately 1.0%[49]. - Gross profit from property-related services increased to approximately HK$2.8 million for the year ended 31 December 2024, with a gross profit margin of approximately 31.5%[50]. - Gross profit from sales of luxury products increased by approximately 100% to approximately HK$2.0 million for the year ended 31 December 2024, with a gross profit margin of approximately 18.8%[51]. - The net loss for the year ended December 31, 2024, was approximately HK$15.8 million, a slight improvement from a net loss of approximately HK$16.4 million for the year ended December 31, 2023, with a net loss margin of approximately 19.6%[61]. Business Strategy and Future Outlook - The Group plans to review existing operations and formulate long-term business strategies to improve profitability, particularly in site formation and ground investigation works[13]. - The Group aims to optimize and diversify business operations while exploring new business opportunities to strengthen revenue[14]. - The Group plans to continue exploring business expansion opportunities beyond construction and engineering services to enhance future development and strengthen revenue bases[35]. - The Group is adopting a cautious approach to future development, monitoring market risks and uncertainties during the economic recovery cycle[36]. - The construction and engineering services sector is expected to face challenges in the coming years[13]. Corporate Governance - The Company emphasizes high standards of corporate governance to enhance shareholder value and safeguard stakeholder interests[113]. - The Board has adopted the Corporate Governance Code provisions applicable for the year ended December 31, 2024, to ensure compliance with the Listing Rules[113]. - The Company will continue to review and enhance its corporate governance practices in line with the latest developments[113]. - The Company has adopted and complied with the Corporate Governance Code during the year ended 31 December 2024[114]. - The Board is composed of five members, including two executive Directors and three independent non-executive Directors[124]. - The Board has achieved a gender diversity target of at least 20% female Directors, currently comprising one female and four male Directors[135]. - The Company has adopted a nomination policy to ensure a balance of skills, experience, and diversity among Board members[139]. - The roles of chairman and chief executive officer are held by separate individuals, in compliance with corporate governance standards[146]. Employee and Operational Information - The Group employed 60 full-time employees as of December 31, 2024, down from 65 full-time employees in the previous year, with total staff costs amounting to approximately HK$29.0 million[81]. - The Group's cash and bank deposits denominated in US dollars amounted to approximately HK$37.8 million as of December 31, 2024, compared to approximately HK$37.1 million as of December 31, 2023[77]. - The Group has sufficient insurance coverage for claims and litigations related to employee compensation and personal injury, with no material adverse impact expected on operations or financial position[88]. - The Group continues to review its employee compensation policy to ensure competitiveness in the market[85]. - The Group has been involved in various claims and litigations but does not anticipate any significant financial impact from these issues[87]. Financial Position and Cash Flow - As of December 31, 2024, the Group had total cash and bank balances of approximately HK$121.4 million, down from approximately HK$137.2 million as of December 31, 2023[69]. - The gearing ratio as of December 31, 2024, was approximately 0.4%, a decrease from approximately 0.8% as of December 31, 2023, due to lower total indebtedness from lease liability repayments[71]. - The Group had no significant investments, material acquisitions, or disposals of subsidiaries, joint ventures, and associated companies during the year ended December 31, 2024[79]. - The Board did not recommend the payment of any final dividend for the year ended December 31, 2024, consistent with the previous year[62]. - The Company has a dividend policy that considers factors such as financial condition, capital and debt levels, and future cash requirements[145]. Board and Committee Activities - The Audit Committee is composed of three independent non-executive Directors, ensuring oversight of the Group's financial integrity[180]. - The external auditor, Grant Thornton, received HK$940,000 for audit services and HK$30,000 for non-audit services for the year ended 31 December 2024[190]. - The Directors confirmed that the consolidated financial statements for the year ended 31 December 2024 were prepared on a going concern basis and complied with relevant accounting standards[191]. - The company held four Board meetings and one general meeting during the year ended 31 December 2024[175]. - The Audit Committee held three meetings to review the Group's interim and annual financial results, internal control, and risk management systems[185].
致浩达控股(01707) - 2024 - 年度财报