Financial Performance - The group generated revenue from continuing operations of approximately HKD 225.1 million for the fiscal year ending December 31, 2024, compared to approximately HKD 237.7 million for the fiscal year 2023, representing a decrease of about 5.5%[8] - The profit from continuing operations for the year was approximately HKD 5.9 million, an increase of about 9.3% from approximately HKD 5.4 million in the fiscal year 2023[8] - Revenue from machinery sales decreased by approximately 83.0% to about HKD 2.7 million due to reduced demand for new cranes in Hong Kong and Singapore[14] - Rental income from machinery decreased by approximately 11.1% to about HKD 155.8 million, primarily due to decreased demand in the crane rental market in mainland China[14] - Service revenue increased by approximately 44.9% to about HKD 64.6 million, driven by increased demand for services in Hong Kong[14] - Revenue from the Hong Kong division increased by approximately 39.6% to about HKD 111.1 million, mainly due to an increase in the number and utilization rate of cranes[15] - Revenue from the Singapore division decreased by approximately 22.3% to about HKD 90.8 million, primarily due to a decline in machinery sales[16] - Revenue from the China division decreased by approximately 43.9% to about HKD 23.2 million, attributed to a slowdown in construction activities by real estate developers[17] Investments and Capital Expenditures - The group invested approximately HKD 104.7 million in the acquisition of property, plant, and equipment during the year, compared to approximately HKD 111.5 million in the fiscal year 2023[25] - The group's total capital commitments amounted to approximately HKD 20.7 million as of December 31, 2024, down from approximately HKD 51.6 million as of December 31, 2023[35] - The group has not made any significant investments or acquisitions during the year, nor does it have plans for major investments or capital assets as of December 31, 2024[30] Financial Position - The group's cash and cash equivalents decreased to approximately HKD 14.4 million as of December 31, 2024, down from approximately HKD 24.2 million as of December 31, 2023[28] - Total equity of the group decreased to approximately HKD 27.8 million as of December 31, 2024, compared to approximately HKD 143.2 million as of December 31, 2023[28] - The group's net current liabilities increased to approximately HKD 227.9 million as of December 31, 2024, from approximately HKD 62.9 million as of December 31, 2023[28] - The debt-to-equity ratio rose to 7.6 as of December 31, 2024, compared to 1.5 as of December 31, 2023, primarily due to the decrease in total equity[31] Market Outlook - The group plans to increase investments in Singapore and Hong Kong to capitalize on favorable market conditions, with Singapore's construction demand projected to reach SGD 47 billion to SGD 53 billion in 2025, an increase of approximately 6% to 20% from SGD 44.2 billion in 2024[38] - Hong Kong's average annual infrastructure spending is expected to increase by approximately 17% to HKD 90 billion over the next five years, compared to HKD 76 billion in the previous five years, driving demand for tower cranes and engineering services[39] Corporate Governance - The company has adopted effective corporate governance practices in compliance with the Hong Kong Stock Exchange listing rules[97] - The independent auditor for the company is Tianji Hong Kong CPA Limited, appointed since November 7, 2022[94] - The board of directors consists of six members with backgrounds in finance, law, accounting, and business[101] - The chairman of the board is Mr. Guo Yingcheng, while the CEO is Mr. Zheng Wei, ensuring a separation of roles[100] - The company has established a nomination committee to evaluate and recommend candidates for the board, ensuring compliance with governance standards[105] - The board has set up three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific areas of governance[110] Risk Management - The company adopted the COSO Enterprise Risk Management framework to assess risks and enhance risk management practices[136] - The group risk report identified primary risks and related action plans to mitigate these risks[139] - The board is responsible for evaluating the nature and extent of risks the group is willing to accept in achieving strategic objectives[135] - The company will continue to monitor the effectiveness of its risk management and internal control systems at least annually[135] Environmental, Social, and Governance (ESG) Initiatives - The company aims to enhance its environmental, social, and governance (ESG) performance by managing related risks and challenges, with a commitment to sustainable development[158] - The board of directors is responsible for overseeing climate-related disclosures and ensuring alignment with climate goals, with management tasked to execute action plans and collect necessary data[164] - The company has established a governance framework that includes climate disclosure processes, risk identification, scenario analysis, and impact assessments, with annual reviews and updates[165] - The company emphasizes the importance of stakeholder communication in shaping its ESG strategies and disclosures[161] Stakeholder Engagement - The company emphasizes the importance of stakeholder engagement and aims to create value for stakeholders as a core mission[167] - Key stakeholder concerns include investment returns, financial stability, and corporate governance, highlighted through various communication channels[169] - The company is committed to maintaining open communication channels with stakeholders to understand their concerns and expectations[167] Environmental Performance - In 2024, the company successfully reduced vehicle usage, leading to a significant decrease in greenhouse gas emissions and energy consumption related to gasoline and diesel[166] - The total carbon emissions for 2024 amounted to 180.32 metric tons of CO2 equivalent, a decrease of 21.20% from 228.83 metric tons in 2023, with scope 1 emissions down by 56.32%[181] - The company has committed to adhering to higher environmental standards than those mandated by law, focusing on reducing resource consumption and emissions[180] - The company is actively pursuing innovative solutions to minimize environmental impact through the use of low-carbon and green technology[180]
佳兆业资本(00936) - 2024 - 年度财报