Financial Performance - In 2024, the Group's revenue increased by 76.9% to US$307.7 million, up from US$174.0 million in 2023[25] - Profit attributable to shareholders of the Company rose to US$11.2 million in 2024, more than tripling from US$2.6 million in 2023[26] - Basic and diluted earnings per share were both 4.4 US cents, compared to 1.0 US cent in 2023[27] - The overall gross profit margin decreased from 17.3% in 2023 to 15.9% in 2024, primarily due to the lower profit margin of the animal health product business[25] - The Group's revenue from the biochemical business increased by 76.9% to US$307.7 million in 2024, compared to US$174.0 million in 2023[31] - Revenue contribution from animal health products rose from 59% in 2023 to 72% in 2024, while contribution from CTC products decreased from 41% to 28%[31] - Overall gross profit margin decreased from 17.3% in 2023 to 15.9% in 2024 due to a higher proportion of lower-margin animal health products[32] - Shareholder profit attributable to the Group increased over threefold to US$11.2 million in 2024 from US$2.6 million in 2023, driven by strong performance in the biochemical business[28] Assets and Liabilities - The total assets of the Group increased to US$422.2 million in 2024 from US$377.4 million in 2023[16] - Net debt decreased to US$36.8 million in 2024 from US$40.6 million in 2023, with a debt-to-equity ratio of 0.14 compared to 0.16 in the previous year[39] - As of December 31, 2024, the Group's total borrowings amounted to $69.2 million, a decrease from $78.2 million as of December 31, 2023[51] - Of the total borrowings, $18.8 million (27.1%) required asset collateral, down from $21.7 million (27.7%) in the previous year[51] - The Group's cash and cash equivalents decreased to US$32.4 million in 2024 from US$37.6 million in 2023[41] Business Operations and Strategy - The Group's biochemical business is the main contributor to revenue, reflecting successful sales strategies to key customers[25] - The Group is focusing on research and development investments, particularly in emerging technologies and artificial intelligence[5] - The Group's industrial business faced challenges, with a decline in share of profits due to intense competition[26] - The Group actively participated in trade exhibitions to enhance brand influence and showcase innovative products[5] - The Group aims to uphold its "Three Benefits Principle" and prepare for high-quality development by 2025[10] - The Group emphasizes the importance of speed and quality, ensuring adaptability to new technologies and changing consumer preferences[93] - Innovation is a key driver for the Group, with a focus on fostering creativity among employees to enhance products and services[100] Corporate Governance - The Company held one annual general meeting and four Board meetings in 2024[76] - The Board consists of ten members, including four executive directors, two non-executive directors, and four independent non-executive directors[58] - All independent non-executive directors confirmed their independence in accordance with the Listing Rules[67] - The Company has adopted a Code of Conduct for Securities Transactions, ensuring compliance by all directors during 2024[69] - The Board is responsible for presenting a balanced and clear assessment of the Company's performance in annual and interim reports[84] - The financial statements are prepared in accordance with International Financial Reporting Standards, ensuring a true and fair view of the Group's financial position and performance[85] - The Company has adopted a Dividend Policy that considers operational results, financial conditions, and future development, with no dividends expected during growth stages unless special circumstances arise[90] - The Group has consistently applied appropriate accounting policies and made reasonable judgments in preparing financial statements[86] - The Directors confirm no material uncertainties that may cast significant doubt on the Company's ability to continue as a going concern[87] - Future dividend declarations will be at the Board's discretion and may not reflect historical patterns[90] - The Board's accountability includes ensuring compliance with applicable laws and regulations regarding dividend payments[90] - The Group upholds six core values in conducting its business operations[92] - The Board is committed to reviewing and potentially amending the Dividend Policy as necessary[90] Risk Management and Internal Control - The Board conducted an annual review of the effectiveness of the Group's risk management and internal control systems for 2024, finding them effective and adequate[183] - No significant control failings or weaknesses were identified in 2024, indicating the Company's ability to respond to changes in its business and external environment[183] - The Group has established a Risk Management Policy to manage risks associated with achieving business objectives, providing reasonable assurance against material misstatement or loss[180] - The Audit Committee is responsible for reviewing the effectiveness of the Group's risk management and internal control systems, with regular reports from the Internal Audit Department[181] - The Company has adequate resources, staff qualifications, training programs, and budget for accounting, internal audit, and financial reporting functions[184] - The Group is committed to continuous improvement in its risk management and internal control framework, integrating these processes into business operations[185] - An Inside Information Handling Policy is in place to ensure timely communication with stakeholders regarding inside information[185] - The Company has formulated a Whistleblowing Policy to detect and deter misconduct, approved by the Board and delegated to the Audit Committee[186] - The Anti-corruption Policy has been established in accordance with Stock Exchange requirements, also approved by the Board[190] - The Group's risk appetite statement defines the extent of risks the Group is willing to take in pursuit of its strategies and business objectives[182] Employee and Diversity Policies - The Group employed approximately 900 employees in the PRC and Hong Kong as of December 31, 2024[50] - The Group's employee remuneration policies include performance-based bonuses and other benefits such as medical insurance and training[50] - The Company plans to increase the percentage of female workforce from 27% to 30% by December 2027 to enhance gender diversity[150] - The Board aims to maintain at least the current level of female representation and has set a target to appoint at least one female Director by December 31, 2024, which was achieved on February 23, 2024[146] - The Board Diversity Policy remains effective as reviewed in 2024, focusing on various diversity considerations including gender, age, and professional experience[141] Committees and Meetings - The Audit Committee reviewed the annual results for the year ended December 31, 2023, and recommended approval of the financial information in the annual report[107] - The Audit Committee held three meetings in 2024, focusing on financial reporting, risk management, and internal control systems[107] - The Remuneration Committee held three meetings in 2024 to discuss remuneration packages for directors and senior management, including proposals for 2025[117] - The Remuneration Policy aims to attract and retain high-caliber employees, ensuring competitive compensation based on business needs and industry practices[116] - The Nomination Committee is responsible for formulating the Company's Nomination Policy and assessing the independence of independent non-executive Directors[128] - The Corporate Governance Committee held two meetings in 2024 to review compliance with the Corporate Governance Code for the year ended December 31, 2023, and for the six months ended June 30, 2024[174] - The Corporate Governance Committee reviewed major ESG initiatives taken in 2023 and the progress on ESG targets[174] - The Corporate Governance Committee also assessed compliance with the new Corporate Governance Code and revised Listing Rules effective July 1, 2025[175] Shareholder Rights - Shareholders can make inquiries to the Board by writing to the Company's principal place of business in Hong Kong[198] - Members representing not less than one-twentieth of the total voting rights can submit a written requisition for proposals at general meetings[199] - The requisition must include a resolution and a statement of not more than one thousand words regarding the proposed resolution[200]
正大企业国际(03839) - 2024 - 年度财报