Financial Performance - For the year 2024, the Group's revenue increased to approximately HK$660.5 million, representing an increase of approximately 42.9% compared to 2023[19] - Profit attributable to equity holders for the year increased to approximately HK$16.9 million, a significant recovery from a loss of HK$5.0 million in 2023[19] - Revenue from the Apparel Supply Chain Servicing Business was approximately HK$660.5 million in 2024, up from HK$462.3 million in 2023[20] - The increase in revenue for 2024 was primarily driven by increased sales from existing customers[20] - Gross profit rose by 107.1% to approximately HK$81.4 million, with a gross profit margin of 12.3%, up from 8.5% in 2023[37] - Net profit for 2024 was approximately HK$16.9 million, a significant turnaround from a net loss of HK$5.0 million in 2023, driven by increased sales orders and reduced finance costs[41] Operational Efficiency - The Group plans to enhance product innovation and creativity to explore new opportunities with existing and potential customers[22] - Production management will focus on simplifying processes to improve operational efficiency and reduce product delivery time[22] - The Group aims to consolidate fabrication with customers to achieve better material prices through mass procurement, enhancing cost competitiveness[24] - The Group's strategy includes simplifying its organizational structure to reduce costs[24] - The Group plans to continue implementing cost-saving measures to enhance profitability[37] Financial Position - The Group's total assets increased by 8.5% to HK$283.3 million as of December 31, 2024, compared to HK$261.0 million in 2023[29] - Bank borrowings decreased by 67.8% to HK$21.2 million, down from HK$65.9 million in 2023[29] - Net current assets increased by 41.2% to HK$83.0 million, compared to HK$58.8 million in 2023[29] - The current ratio improved to 1.4 in 2024, up from 1.3 in 2023[29] - Trade receivable turnover days decreased to 40 days in 2024, down from 47 days in 2023[29] Expenses and Costs - Sales and marketing expenses reduced to approximately HK$1.2 million in 2024, compared to HK$1.5 million in 2023[38] - Administrative expenses increased to approximately HK$49.0 million (2023: HK$40.3 million), primarily due to employee benefits rising from approximately HK$16.0 million in 2023 to approximately HK$27.2 million in 2024[49] - Other losses amounted to approximately HK$6.1 million in 2024, compared to other gains of HK$0.5 million in 2023, mainly due to losses on the disposal of a subsidiary[50] - Finance income decreased by 24.3% to approximately HK$2.4 million (2023: HK$3.2 million) due to a reduction in interest income from short-term deposits[51] - Finance costs decreased by 44.6% to approximately HK$4.0 million (2023: HK$7.1 million), primarily due to the repayment of bank borrowings[52] Corporate Governance - The company has complied with the Corporate Governance Code provisions during the year 2024, with the exception of the separation of roles between the chairman and the chief executive officer[118] - The Board currently consists of six directors, including two executive directors and four independent non-executive directors[122] - The company has adopted a code of conduct for securities transactions that meets or exceeds the standards set out in the Model Code[119] - The company is committed to ongoing enhancements of corporate governance principles and practices to balance the interests of shareholders, customers, and employees[117] - The Board is responsible for overseeing the Company's affairs, including adopting long-term strategies and supervising senior management[132] Risk Management - The Board is responsible for maintaining effective risk management and internal control systems to safeguard shareholder interests[181] - The Group's risk management process includes identification, assessment, evaluation, and treatment of risks[182] - The Audit Committee conducted an annual review of the effectiveness of the Group's risk management and internal control system for the year ended 31 December 2024, finding it effective and adequate[185] Environmental, Social, and Governance (ESG) - The Company focuses on integrating environmental, social, and governance (ESG) principles into its business strategy, prioritizing sustainable practices in its supply chain services and property development plans[198] - The Company aims to create long-term value for stakeholders while making positive contributions to the environment and society through its ESG initiatives[198] Shareholder Rights - Shareholders holding not less than one tenth of the paid-up capital have the right to requisition an extraordinary general meeting[188] - The notice period for proposals at general meetings varies, requiring at least 14 days for ordinary resolutions and 21 days for special resolutions[192]
迅捷环球控股(00540) - 2024 - 年度财报