Financial Performance - The company's revenue decreased by 11% to HKD 1.7 billion due to industry challenges and changing consumer demand [15]. - Despite the revenue decline, net profit increased by 9% to HKD 9,817,000, highlighting the strength of the company's business model and cost control measures [15]. - Revenue from the sale of goods for the year ended December 31, 2024, was approximately HKD 1,717,242,000, a decrease from HKD 1,935,876,000 in 2023, representing a decline of about 11.3% [186]. - Gross profit for the year was HKD 54,028,000, compared to HKD 47,861,000 in the previous year, indicating an increase of approximately 12.8% [186]. - The pre-tax profit for the year was HKD 11,473,000, slightly up from HKD 11,007,000 in 2023, reflecting an increase of about 4.2% [186]. - Net profit for the year was HKD 9,817,000, compared to HKD 9,010,000 in 2023, marking an increase of approximately 9.0% [186]. - Basic earnings per share for the year were HKD 3.51, up from HKD 3.22 in the previous year, representing an increase of about 9.0% [186]. - The company reported other income of HKD 2,855,000, significantly higher than HKD 871,000 in 2023, indicating an increase of approximately 228.5% [186]. - Total sales and distribution expenses increased to HKD 19,433,000 from HKD 14,906,000, reflecting an increase of about 30.3% [186]. - Administrative expenses rose to HKD 25,103,000 from HKD 21,766,000, representing an increase of approximately 15.5% [186]. - Financial costs increased to HKD 484,000 from HKD 194,000, indicating a rise of about 149.5% [186]. Assets and Liabilities - The total assets of the company as of December 31, 2024, amounted to HKD 204,655,000, with total equity of HKD 170,980,000 and total liabilities of HKD 33,675,000 [17]. - Total assets decreased from HKD 212,393,000 in 2023 to HKD 179,255,000 in 2024, a decline of approximately 15.6% [188]. - Current liabilities decreased significantly from HKD 64,555,000 in 2023 to HKD 27,616,000 in 2024, a reduction of about 57.2% [188]. - The total equity attributable to the owners increased from HKD 163,316,000 in 2023 to HKD 170,980,000 in 2024, reflecting an increase of approximately 4.1% [189]. - The company’s total liabilities decreased from HKD 64,555,000 in 2023 to HKD 27,616,000 in 2024, a decline of about 57.2% [188]. Cash Flow and Investments - Cash and cash equivalents stood at HKD 81,042,000, down from HKD 110,498,000 a year earlier [18]. - The company’s operating cash flow showed a significant decrease, with cash used in operations amounting to HKD 24,793,000 in 2024 compared to cash generated of HKD 32,139,000 in 2023 [191]. - The fair value gain on equity investments increased from HKD 1,343,000 in 2023 to HKD 2,047,000 in 2024, representing a growth of about 52.5% [189]. - The company invested HKD 167,000 in property, plant, and equipment during the year, compared to HKD 138,000 in the previous year [128]. Employee and Compensation - As of December 31, 2024, the number of employees decreased to 57 from 65 in the previous year, with total employee compensation amounting to HKD 22,361,000, up from HKD 18,817,000 [22]. - The company experienced a 12% reduction in total employees during the reporting period, decreasing from 65 to 57 employees [56]. - Total training hours provided to employees increased to 197 hours in the reporting period, up from 107 hours in 2023, representing an increase of 84% [63]. - The percentage of employees receiving training reached 105% during the reporting period, compared to 43% in 2023 [63]. - Average training hours per trained employee rose to 3.5 hours, up from 1.6 hours in 2023, indicating a significant increase in training engagement [63]. Corporate Governance - The board of directors consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors [82]. - The company emphasizes the importance of a diverse board, with two out of nine members being female as of the end of 2024 [87]. - The company is committed to maintaining high corporate governance standards to protect shareholder interests and enhance corporate value [79]. - The audit committee is responsible for reviewing the company's financial controls, risk management, and internal control systems [92]. - The company has established a clear process for the nomination and appointment of directors, ensuring transparency and compliance with regulations [86]. - The company has established multiple communication channels with investors and shareholders, including annual general meetings and special meetings to facilitate direct communication with the board [109]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the group's environmental and social performance for the fiscal year 2024, with no changes in the reporting scope compared to the previous year [26]. - The group adheres to the ESG reporting guidelines and has established a governance framework to manage sustainability effectively [33]. - The company reported a total greenhouse gas emissions of 58.3 tons for the fiscal year 2024, an increase from 54.4 tons in fiscal year 2023, with a carbon density of 1.02 tons per employee compared to 0.84 tons per employee in the previous year [43]. - Energy consumption increased by 7% to 118,527 kWh in fiscal year 2024, with an energy density of 2,079 kWh per employee, up from 110,742 kWh in fiscal year 2023 [44]. - The company has committed to reducing greenhouse gas emissions by replacing conventional vehicles with electric vehicles, achieving a reduction in indirect energy emissions to 46.2 tons in fiscal year 2024 from 43.2 tons in fiscal year 2023 [42]. - The company aims to enhance its ESG policies and reporting to improve its ESG performance in the future, focusing on social operations and employment aspects [40]. Risk Management - The company has identified key climate-related risks and their potential financial impacts on its distribution business [51]. - The company is diversifying its supply chain to mitigate acute risks from extreme weather events, including typhoons and flooding in Hong Kong [52]. - The company has established an internal audit function to continuously review risk management and internal control systems [104]. Shareholder Information - The company proposed a final dividend of HKD 0.015 per share, totaling HKD 4,200,000, to be paid to shareholders on record as of July 4, 2025 [125]. - The company declared dividends of HKD 4,200,000 in 2024, down from HKD 5,600,000 in 2023, a decrease of approximately 25% [189]. - The company’s ability to declare dividends will depend on various factors, including operating performance, capital requirements, and overall financial condition [132].
新龙移动(01362) - 2024 - 年度财报