Financial Performance - The total revenue for the fiscal year ending December 31, 2024, was approximately HKD 219 million, a decrease of about 26.5% compared to HKD 298 million in the previous year[9]. - The company recorded a loss attributable to equity holders of approximately HKD 40.2 million, compared to a profit of approximately HKD 5.9 million in the previous year[9]. - Revenue from the cold storage and related services business decreased by approximately 21.8%[9]. - Revenue from the food and beverage trading and sales business in mainland China decreased by approximately 42.6%[9]. - As of December 31, 2024, the company's basic and diluted loss per share was HKD (13.87), a significant decline from HKD 2.02 in 2023[28]. - The total liabilities to total assets ratio increased to 1.04 in 2024 from 0.93 in 2023, indicating a deterioration in financial leverage[28]. - The company's cash and bank balances decreased to approximately HKD 59.8 million in 2024 from HKD 62 million in 2023, primarily due to reduced cash generated from operations[29]. - The asset-liability ratio dropped to -43.7% in 2024 from 197.4% in 2023, reflecting a significant decrease in total equity from approximately HKD 17.7 million to a total deficit of about HKD 22.9 million[29]. - The group reported a net loss of approximately HKD 40,228,000 for the year ending December 31, 2024, with current liabilities netting approximately HKD 88,556,000 and total liabilities netting approximately HKD 22,875,000, indicating significant uncertainty regarding the group's ability to continue as a going concern[146]. Operational Strategy - The company plans to enhance the operational efficiency of its cold storage facilities and effectively manage costs to optimize revenue[8]. - The company has implemented internal business restructuring to focus on a product mix targeting the mass market with moderate profit margins[7]. - The company aims to diversify its customer base to maintain and attract demand for storage and logistics services[12]. - The company has decided not to renew the agreement for its Tsing Yi warehouse and will transfer all customers to the Kwai Hoi Street warehouse, which is expected to save significant costs[11]. - The company is focusing on improving the operational efficiency of temperature-controlled warehouse areas to meet market demand from grocery distributors, supermarkets, and restaurants[12]. - The company is actively seeking new opportunities in the frozen warehouse and logistics sector and aims to enhance its core business through value-added services[22]. - The company has implemented strict cost control measures to manage its business and operational risks, ensuring a balance between safety and profitability[17]. - The company aims to optimize human resources as part of its ongoing efforts to improve operational efficiency[22]. Market Outlook - The company expresses cautious optimism regarding economic recovery in mainland China, Hong Kong, and globally[8]. - The company anticipates a gradual recovery in its frozen warehouse and logistics business in Hong Kong and food and beverage distribution in mainland China due to government economic stimulus measures[21]. - The profitability of the food and beverage distribution business in mainland China is expected to recover due to the development of diversified wholesale channels and an enriched product portfolio[24]. Customer and Supplier Relations - The group reported that the top five customers accounted for approximately 38% of total revenue, with the largest customer contributing about 16%[52]. - The group’s top five suppliers represented around 62% of total procurement, with the largest supplier accounting for approximately 39%[52]. Corporate Governance - The company maintains a high level of corporate governance practices[87]. - The board consists of three committees: Audit Committee, Nomination Committee, and Remuneration Committee, which assist in monitoring management functions[93]. - The board includes three independent non-executive directors, exceeding one-third of the total board members, ensuring independence in decision-making[95]. - The independent opinion policy was adopted to ensure the board receives independent advice and information[96]. - The board is responsible for approving and monitoring business plans, assessing group performance, and overseeing management[104]. - The company has established risk management policies to enhance its ability to prevent risks and ensure stable operations[92]. - The board will continue to monitor corporate governance practices to ensure appropriate regulation of daily business activities and decision-making processes[92]. Shareholder Communication - The company emphasizes two-way communication with shareholders and investors, welcoming inquiries and suggestions through designated channels[159]. - The company has adopted a shareholder communication policy to ensure timely, clear, and comprehensive information is provided to shareholders[163]. - The board will review the implementation and effectiveness of the shareholder communication policy annually[173]. - The company ensures that all sensitive information is disclosed in accordance with listing rules to maintain transparency[162]. ESG and Sustainability - The company plans to enhance its sustainable development performance and integrate sustainability further into its core strategy[189]. - The board is responsible for the ESG strategy direction, ensuring it reflects the company's values and core business issues[191]. - The company aims to actively participate in ESG-related programs starting from the next fiscal year to continuously improve its ESG performance[193]. - The group has implemented the ISO 9001:2015 quality management system during the reporting period[195]. - The group participates in the HKQAA ESG Connect program to disclose its ESG measures and connect with stakeholders[195]. - The importance matrix identifies key ESG aspects, including energy, water, and occupational health and safety[200]. - The group is committed to creating a comfortable and healthy work environment for employees[196]. Risk Management - The audit committee has met twice to review risk management and internal control systems, ensuring the reliability of financial reporting[142]. - The audit committee has maintained appropriate relationships with external auditors to ensure the objectivity and reliability of the financial reporting system[142]. - The company has established a whistleblowing policy to encourage reporting of misconduct, with no reports received during the review period[154]. - An independent internal control consultant has been appointed to assess the adequacy of the risk management and internal control systems across subsidiaries[155].
大同集团(00544) - 2024 - 年度财报