Financial Performance - The Group recorded a profit attributable to owners of the Company of approximately HK$80.6 million for the year ended 31 December 2024, compared to a loss of approximately HK$163.9 million in 2023[16]. - Basic earnings per share was approximately HK5.1 cents, a significant improvement from the basic loss per share of approximately HK10.5 cents in 2023[16]. - The Group recorded revenue from continuing operations of approximately HK$725.5 million in 2024, representing an increase of 1.2% compared to HK$716.7 million in 2023[29]. - Gross profit from continuing operations increased by 39.1% to approximately HK$176.8 million in 2024, up from HK$127.1 million in 2023[30]. - Other income from continuing operations decreased by 18.6% to approximately HK$18.8 million in 2024, down from HK$23.1 million in 2023[31]. - Selling and distribution expenses decreased by 22.6% to approximately HK$13.7 million in 2024, compared to HK$17.7 million in 2023[37]. - Administrative expenses increased by 7.7% to approximately HK$75.7 million in 2024, up from HK$70.3 million in 2023[38]. - Finance costs from continuing operations decreased slightly by 2.4% to approximately HK$4.1 million in 2024, down from HK$4.2 million in 2023[42]. - The turnaround from loss to profit was primarily due to a decrease in impairment loss on interest in an associate by approximately HK$66.4 million and a decrease in impairment loss on goodwill by approximately HK$92.7 million[51]. - Return on equity increased from -7.2% in 2023 to 3.8% in 2024, and return on total assets increased from -5.5% to 3.0%[58]. Dividends - The Board proposed a final dividend of HK2.0 cents per share for the year ended 31 December 2024, while no final dividend was recommended for 2023[16]. - The proposed final dividend is subject to shareholder approval at the upcoming annual general meeting and will be payable on or about June 30, 2025[137]. - The register of members will be closed from June 2, 2025, to June 6, 2025, for determining entitlement to attend and vote at the annual general meeting[138]. - The Board recommended a final dividend of HK2 cents per share for the year ended December 31, 2024, while no final dividend was recommended for the year ended December 31, 2023[137]. - The register of members will be closed from June 13, 2025, to June 17, 2025, for the proposed final dividend[142]. Operational Strategy - The Group focused resources on Bengbu Jinhuangshan Rotogravure Printing Co., Ltd. to achieve centralized management and production, improving cost control and production efficiency[15]. - The centralized production strategy is expected to reduce the administrative burden related to environmental protection compliance across different subsidiaries[15]. - The Group aims to optimize its asset portfolio and focus on core businesses while exploring acquisitions and disposals to achieve sustainable growth[23]. - The Group plans to continue expanding into other packaging markets and increase participation in tenders to maximize income from investment properties[21]. - The Group's corporate mission includes improving financial performance and broadening revenue streams within acceptable risk levels[22]. Compliance and Governance - The Group has maintained compliance with all relevant rules and regulations in the PRC that significantly impact its operations[12]. - The Group's success relies on strong relationships with key stakeholders, including state-owned cigarette manufacturers[12]. - The Group's performance is closely tied to the regulatory environment and support from stakeholders such as shareholders and local communities[12]. - The Company has complied with the disclosure requirements of Chapter 14A of the Listing Rules regarding related party transactions, specifically the purchase of printing and packing machineries[136]. - The Company has adopted the Corporate Governance Code and generally complied with it during the year ended December 31, 2024[181]. Financial Position - As of 31 December 2024, the Group had net current assets of approximately HK$655.4 million, an increase from approximately HK$577.7 million in 2023[59]. - The Group's outstanding bank borrowings as of 31 December 2024 were approximately HK$207.2 million, up from approximately HK$131.6 million in 2023[60]. - The Group's net cash position improved to approximately HK$424.2 million in 2024 from approximately HK$236.1 million in 2023[60]. - The Group's current ratio improved to 2.3 times in 2024 from 2.2 times in 2023, while the quick ratio improved to 2.2 times from 2.0 times[57]. - The Group's reserves available for distribution as of December 31, 2024, amounted to approximately HK$6,188.9 million[100]. Employee and Remuneration - The total remuneration cost incurred by the Group for the year ended December 31, 2024, was approximately HK$69.8 million, down from approximately HK$84.8 million in 2023, with a reduction in the number of employees from 582 to 454[77]. - The Group's retirement benefit scheme costs charged to the consolidated statement for the year ended December 31, 2024, were approximately HK$4.2 million, a decrease from HK$5.0 million in 2023[120]. Investments and Acquisitions - The Group completed the disposal of a 70% equity interest in Jiangsu HY Link for a cash consideration of RMB51.1 million, with the transaction finalized in the second half of 2024[74]. - An acquisition of approximately 86.67% of a 17-storey commercial building in Hong Kong is planned for a total cash consideration of HK$388 million, expected to complete on or before July 31, 2025[78]. - The Group has not held any significant investments representing more than 5% of total assets nor made any material acquisitions or disposals during the year ended December 31, 2024[73]. Risk Management - The Group maintained a healthy liquidity position throughout 2024, with ongoing credit assessments to reduce exposure to credit risk[68]. - The Group's treasury policy emphasizes prudent financial management to ensure liquidity can meet funding requirements[68]. Environmental and Social Responsibility - Further details on environmental and social responsibility will be published in a separate report available on the Company's and Hong Kong Stock Exchange's websites[12]. - The Board has overall responsibility for the Company's ESG strategy and conducts regular reviews of ESG-related matters[177]. - The Group did not make any charitable donations during the year, consistent with 2023[113].
力图控股(01008) - 2024 - 年度财报