Financial Performance - For the year ended December 31, 2024, the Group reported revenue of HK$664,488,000, an increase of 34.7% compared to HK$493,060,000 in 2023[18] - The Group experienced a loss for the year of HK$33,793,000, which is a significant increase from the loss of HK$8,917,000 in 2023[18] - Gross profits for the Current Year totaled HK$66.1 million, up from HK$63.0 million in 2023, indicating a growth of about 4.9%[38] - The loss for the year was HK$33.8 million, compared to a loss of HK$8.9 million in 2023, reflecting an increase in losses of approximately 279.8%[38] - Revenue increased by 34.8% to HK$664.7 million (2023: HK$493.1 million), driven by higher customer orders and sales volume[49] - Gross profit rose by 4.9% to HK$66.1 million (2023: HK$63.0 million), but gross profit margin decreased to 10.0% (2023: 12.8%) due to higher subcontracting fees[50] - Administrative and other operating expenses surged by 45.6% to HK$78.6 million (2023: HK$54.0 million), primarily due to one-off redundancy costs and increased handling fees[51] Assets and Liabilities - Total assets decreased to HK$239,559,000 in 2024 from HK$279,297,000 in 2023, representing a decline of 14.2%[20] - Total liabilities decreased to HK$91,636,000 in 2024 from HK$101,453,000 in 2023, a reduction of 9.0%[20] - Total equity decreased to HK$147,923,000 in 2024 from HK$177,844,000 in 2023, reflecting a decline of 16.8%[20] - As of December 31, 2024, the Group's cash and bank balances were HK$111.0 million, down from HK$120.2 million in 2023, a decrease of approximately 9.3%[25] - Working capital, represented by net current assets, was HK$106.2 million as of December 31, 2024, down from HK$132.6 million in 2023, a decline of about 20%[25] Strategic Focus and Market Conditions - The economic landscape in 2024 was marked by high inflation rates and complex geopolitical tensions, impacting financial markets[23] - The Group is committed to maximizing shareholder returns despite ongoing economic challenges[7] - The management is focused on exploring new market opportunities and enhancing product offerings to drive future growth[22] - The Group's strategic shift includes fulfilling orders through overseas subcontractors, primarily in Cambodia and Indonesia, due to changes in customer sourcing strategies[30] - Geopolitical risks and ongoing global tensions have disrupted the supply chain, leading to increased costs and longer lead times for the garment manufacturing and trading business[27] - The garment manufacturing industry is expected to evolve in 2025, driven by sustainability and technological advancements, presenting significant growth opportunities despite challenges[89] Corporate Governance - The Group has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 2000, indicating a long-standing presence in the market[6] - The Board is dedicated to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[95] - The Company complied with the corporate governance code, except for certain deviations noted in the annual report[98] - The roles of Chairman and Chief Executive Officer are separated, with the CEO position remaining vacant as of the report date[103] - The Company has a strong corporate governance structure to ensure effective oversight of management[105] - The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing the Group's financial reporting and making recommendations to the Board[123][124] Workforce and Employment - The Group's workforce decreased to 213 full-time employees in 2024 from 400 in 2023 due to a strategic plan to streamline operations at the Heshan Facility[81] - The Group had a total workforce of 213 employees as of December 31, 2024, with approximately 56.8% being female[182][186] - The Company intends to maintain a balanced level of workforce diversity and will continue to promote diversity through various initiatives[182][186] Risk Management and Internal Controls - The Group's risk management and internal control systems are based on the 2013 COSO Framework, focusing on managing risks rather than eliminating them[162] - The Audit Committee assessed the effectiveness of risk management and internal control systems[129] - Management developed an annual internal audit plan to evaluate the effectiveness of the Group's risk management and internal control systems, with external consultants involved in the process[170] - Regular training is provided to employees to enhance their risk awareness and management capabilities[163] Shareholder Communication and Policies - The Company maintains a corporate website to ensure timely dissemination of information to shareholders, with published information retained for at least five years[184][187] - The Board reviewed the effectiveness of the shareholders' communication policy for the year ended December 31, 2024, and deemed it effective[185] - Shareholders holding at least one-tenth of the paid-up capital can requisition a special general meeting within two months of deposit[189][192] - The Company ensures that all resolutions at general meetings are decided by poll, enhancing minority shareholders' rights[190] Investment and Capital Expenditure - Capital expenditure totaled HK$5.7 million (2023: HK$2.6 million), mainly for manufacturing equipment in Cambodia and Indonesia[68] - The Group's securities investment segment recorded a fair value gain of nil for the Current Year, compared to a fair value loss of HK$0.1 million in 2023, indicating a conservative investment strategy[46] - The management is adopting a prudent strategy for securities investment due to recent performance stagnation and market volatility[90] Board Composition and Meetings - The Board consists of a balanced composition of executive and non-executive directors, ensuring effective independent judgment[100] - The Company held seven Board meetings and two general meetings during the year ended 31 December 2024[101] - The Company has appointed independent non-executive directors in compliance with the minimum requirements of the Listing Rules[104]
恒富控股(00643) - 2024 - 年度财报