Financial Performance - Total revenue increased by 48% year-on-year to HK$551.1 million in 2024[12] - Profit before tax and impairment of non-financial assets was HK$74.7 million, compared to a loss of HK$11.6 million in 2023[9] - Gross profit margin improved to 49.1% year-on-year, reflecting effective cost control measures[13] - Profit attributable to owners of the Company was approximately HK$61,859,000 in 2024, compared to a loss of approximately HK$25,676,000 in 2023[29] - Gross profit for FY2024 was approximately HK$270.6 million, with a gross profit margin of 49.1%, compared to a gross profit of approximately HK$162.6 million and a margin of 43.7% in FY2023[45] - The Group recorded an operating profit of approximately HK$61.9 million for FY2024, a turnaround from an operating loss of approximately HK$25.7 million in FY2023[61] - The Group's revenue increased by approximately HK$178.8 million or 48.0%, from approximately HK$372.3 million for FY2023 to approximately HK$551.1 million for FY2024[47] Assets and Liabilities - Total assets as of December 31, 2024, were HK$452.4 million, up from HK$369.4 million in 2023[9] - Total liabilities increased to HK$206.5 million in 2024, compared to HK$174.4 million in 2023[9] - Equity attributable to owners of the Company rose to HK$245.9 million from HK$195.0 million in 2023[9] - Cash and cash equivalents increased by 49.5%, from approximately HK$48.7 million as of December 31, 2023, to approximately HK$72.8 million as of December 31, 2024[64] - Interest-bearing bank borrowings decreased by 73.2%, from approximately HK$23.1 million as of December 31, 2023, to approximately HK$6.2 million as of December 31, 2024[65] - The current ratio improved to approximately 1.6 times as of December 31, 2024, compared to approximately 1.2 times as of December 31, 2023[68] - The gearing ratio increased to approximately 27.5% as of December 31, 2024, from approximately 24.7% as of December 31, 2023[69] Market and Economic Environment - The global economic environment remains challenging, with uneven recovery across major markets impacting consumer confidence[11] - The global apparel market is expected to grow from US$708.8 billion in 2024 to US$766.6 billion in 2025, representing a growth rate of 8.2%[18] - Global economic growth is forecasted to remain at 2.8% in 2025, the same as in 2024, indicating a slow recovery[20] - The United Nations forecasts global economic growth of 2.8% in 2025, with challenges such as geopolitical conflicts and high debt levels expected to create market uncertainty[38] Operational Developments - The Group's production bases are located in five major garment exporting countries, enhancing its market responsiveness[12] - Primway S.A.R.L, acquired in 2023, has begun to realize synergies and boost the Group's European business in 2024[16] - The Group operates in over 40 markets worldwide, consolidating its sales network and partnerships[16] - The Group's production bases in major garment exporting countries have seen a steady increase in order volumes[29] - The Group aims to enhance production efficiency through increased investment in automation equipment[29] - The proportion of revenue from RFID products has significantly increased, reflecting the growing application of RFID technology in the retail sector[34] - The Group plans to expand the market for RFID products and enhance competitiveness by incorporating sustainability into its operations and sourcing environmentally friendly materials[42] Corporate Governance - The company is committed to maintaining high standards of corporate governance and has complied with all provisions of the Corporate Governance Code during the reporting period[103] - The Board is responsible for formulating the Group's strategy and overseeing management, ensuring sound internal control and risk management systems are in place[114] - The Company promotes a culture of openness and encourages Directors to voice differing views during meetings[115] - The Company emphasizes the importance of internal control and risk management to safeguard assets and shareholder interests[130] - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance during the Reporting Period[129] Employee and Workforce - The Group's employee benefit expense for FY2024 was approximately HK$171.0 million, an increase from approximately HK$153.7 million in FY2023, reflecting a growth of about 11.5%[79] - As of FY2024, the total number of employees increased to 1,424, up from 1,219 in FY2023, representing a growth of approximately 16.8%[78] - As of the date of the annual report, the workforce gender ratio is 54.6% male (778 employees) and 45.4% female (646 employees)[181] - The company emphasizes the importance of gender diversity across all levels and plans to improve this balance in the future[182] Shareholder Communication - The company recognizes the importance of communication with shareholders and has adopted a Shareholders Communication Policy[186] - The AGM provides an opportunity for shareholders to communicate with the Board, with key members present to address questions[187] - Votes at general meetings are conducted by poll, with detailed procedures explained to shareholders[188] - Shareholders holding at least one-tenth of the paid-up capital can requisition an extraordinary general meeting (EGM)[191] Future Outlook - The Group's capital expenditure will be reduced in 2025 following the peak investment period[23] - The integration of Primway S.A.R.L. is expected to provide new momentum for the Group's European business in 2025[19] - The Group aims to strengthen its business resilience and explore new opportunities while consolidating existing markets[43]
常达控股(01433) - 2024 - 年度财报