Financial Performance - Revenue for 2024 decreased by 9% to HK$48,042,000 compared to HK$53,037,000 in 2023[10] - Loss attributable to owners increased by 8% to HK$31,086,000 in 2024 from HK$28,736,000 in 2023[10] - Basic and diluted loss per share for 2024 was HK(9.53) cents, an increase of 8% from HK(8.81) cents in 2023[10] - Total equity decreased by 13% to HK$220,653,000 in 2024 from HK$252,474,000 in 2023[10] - Total assets as of December 31, 2024, were HK$379,831,000, down from HK$417,747,000 in 2023[20] - The Group's net loss increased by 10% to approximately HK$31,846,000, impacted by a decrease in gross profit of approximately HK$6,647,000 and a decrease in other income of HK$3,413,000 compared to the previous year[27][31] - Revenue for the year decreased approximately 9% to HK$48,042,000, primarily due to a 19% decrease in hair styling revenue and a 7% decrease in hospitality services income[28][31] - Gross profit decreased approximately 31% to HK$15,064,000, mainly due to declines in the aforementioned business segments[28][31] - Other income decreased by 76% to HK$1,078,000, attributed to reduced bank interest income and an exchange loss of HK$13,000 compared to a gain of HK$992,000 in the previous year[29][32] - Finance costs decreased by HK$3,432,000 due to partial repayment of bank loans and lower interest rates initiated by the US Federal Reserve[30][32] Business Segments - The Group's core businesses in Hong Kong and Macau experienced GDP growth rates of 2.5% and 8.8% respectively in 2024[22] - The tourism sector recovery was supported by the Central Government's Individual Visit Scheme, although local retail markets remained weak[22] - The hair styling business turnover dropped by approximately 19% to HK$12,864,000, with service income decreasing by 19% due to the resignation of a high-earning stylist[44] - Despite the revenue decline, the hair styling segment reported a profit of HK$12,000, a significant improvement from a loss of HK$1,275,000 the previous year[44] - Turnover for the hospitality segment decreased by 7% to HK$29,246,000, resulting in a segment loss of HK$3,276,000 compared to a profit of HK$3,540,000 last year[56] Market Conditions - Interest rates remained high throughout 2024, with the US Federal Reserve pausing its rate cutting cycle at 4.25%-4.5%[23] - China's GDP grew by 5% year-on-year in 2024, supported by stimulus policies despite external demand challenges[21] - The retail sector showed signs of recovery in early 2024, but faced a downturn due to decreased domestic spending and changing consumption patterns among tourists[37] - The residential property prices in Macau are expected to decline further this year due to abundant supply and subdued demand, while the rental market is anticipated to maintain an upward momentum[43] - The Group anticipates inbound tourism and overnight visitors to increase due to the opening of the city's third runway and strong growth from emerging markets[59] Investment and Assets - As of December 31, 2024, the Group's net asset value was approximately HK$220,653,000, with total assets of approximately HK$379,831,000 and total liabilities of approximately HK$159,178,000[33][38] - The fair value loss on investment properties amounted to HK$5,000,000, contributing to a segment loss of HK$14,779,000 for the year[35][39] - Total rental income from investment properties in Hong Kong and Macau increased by approximately 14% to HK$3,174,000, mainly due to the leasing of a previously vacant retail shop in Macau[34][39] - Rental income from Macau properties increased by approximately 39% to HK$2,217,000, primarily due to contributions from a retail shop that had been vacant for almost a year, despite a 49% drop in rental rates compared to pre-pandemic levels[42] Corporate Governance and Compliance - The Company is committed to compliance with listing regulations and maintaining transparency in financial reporting[199] - The Group has complied with all relevant laws and regulations impacting its operations during the year[112][117] - All independent non-executive directors confirmed their independence in accordance with the Listing Rules[171] - The Company emphasizes the importance of corporate governance and adherence to regulatory requirements in its operations[199] Future Outlook and Strategy - The Group plans to explore new business opportunities to widen revenue streams from both existing and potential customers in the hair styling segment[48] - The Group plans to adjust marketing strategies to target fast-growing emerging source markets and maintain stringent cost control[60] - The Group anticipates that global economic conditions observed in 2024 will continue into 2025, influenced by inflation, interest rate policies, and geopolitical tensions[96] - The Group will adopt a cautious operational approach to navigate prevailing headwinds and monitor market trends closely[100] Social Responsibility - The Group is committed to corporate social responsibility, engaging in community care and environmental protection initiatives[101] - The Group has received multiple awards for social responsibility, including "Caring Company" for 17 consecutive years and "Good MPF Employer" for 10 consecutive years[104][106]
世纪建业(00079) - 2024 - 年度财报