Company Operations - Fountain Set Group operates 8 production facilities across China, Sri Lanka, and Indonesia, employing nearly 5,500 staff globally[3]. - The company has a strong global marketing presence with offices in 3 countries[3]. - The company has established trading offices in major cities including Hong Kong, Shanghai, and Ho Chi Minh City to support its sales operations[17]. - The company is committed to expanding its market reach through innovative product development and strategic partnerships[3]. - Future growth strategies may include further market expansion and potential acquisitions to enhance operational efficiency[3]. Financial Performance - Revenue for 2024 was HK$4,426.6 million, a slight decrease from HK$4,440.2 million in 2023, representing a decline of 0.3%[19]. - Profit attributable to owners of the Company dropped to HK$14.3 million in 2024 from HK$50.9 million in 2023, reflecting a decrease of 72.1%[19]. - Profit margin decreased to 0.3% in 2024 compared to 1.1% in 2023[19]. - Basic and diluted earnings per share fell to 1.2 HK cents in 2024 from 4.2 HK cents in 2023, a decline of 71.4%[19]. - Proposed final dividend per share decreased to 1.16 HK cents in 2024 from 3.00 HK cents in 2023, with a dividend payout ratio of 100%[19]. - Total assets decreased to HK$4,614.6 million in 2024 from HK$4,900.8 million in 2023, a decline of 5.8%[19]. - Net current assets decreased to HK$2,123.3 million in 2024 from HK$2,203.5 million in 2023, a decline of 3.6%[19]. - Capital expenditure increased significantly to HK$174.7 million in 2024 from HK$87.9 million in 2023, an increase of 98.4%[19]. - Return on equity decreased to 1.0% in 2024 from 2.0% in 2023[19]. - The Group achieved a core business profit of HK$14 million in 2024, recovering from a core business loss of approximately HK$208 million in 2023, excluding a one-off disposal gain of HK$259 million[72]. - The gross profit margin improved significantly from 7.3% in 2023 to 12.0% in 2024[72]. - The Group's profitability improved significantly in 2024 due to increased order volume from strategic clients and optimized production processes, leading to a noticeable decrease in unit production costs[118]. Sustainability and Certifications - The company received the Global Recycled Standard 4.0 (GRS 4.0) certification from Intertek Testing Services NA, Inc. and Tianxiang Testing Services Co., Ltd.[42]. - The company achieved the Organic Content Standard (OCS 3.0) certification from ECOCERT GREENLIFE S.A.S.[43]. - The company was awarded the Global Organic Textile Standard (GOTS 6.0) certification by ECOCERT GREENLIFE S.A.S.[44]. - The company holds multiple Oeko-Tex Standard 100 certificates issued by TESTEX AG, Swiss Textile Testing Institute, indicating compliance with safety and environmental standards[44]. - The company has received the Low-carbon Manufacturing Plan (Golden Label) certification from the World Wide Fund for Nature[53]. - The company is a certified partner in the Higg Index Facility Environmental Module, demonstrating commitment to sustainability practices[56]. - The company has been recognized as a Water-saving Benchmark Enterprise in Guangdong Province, highlighting its efficiency in water usage[53]. - The establishment of the "Sustainability Development and Enhancement Committee" in 2016 has driven the Group's sustainability objectives and goals[83]. - The 2024 ESG report will be exclusively uploaded on the official websites, reflecting the Group's commitment to sustainability and responsible practices[82]. - Continuous investment in advanced technology is planned to maintain high environmental standards[91]. - The project aims to phase out 28 remaining coal-fired heaters to significantly reduce harmful emissions, contributing to cleaner air[88]. - The adoption of natural gas as a cleaner alternative is expected to minimize carbon footprints and improve ecological conditions[90]. - The company emphasizes the importance of educational initiatives for staff to raise awareness and competence regarding environmental protection[93]. Market Dynamics and Challenges - The textile and apparel industry faced challenges such as sluggish global economic growth and escalating geopolitical risks, impacting overall demand and supply chain integration[117]. - Consumer demand in the apparel industry has shifted towards personalization, functionality, and value for money, with a preference for smaller batches and diverse product varieties[120]. - The textile and apparel industry faces challenges including supply chain restructuring and increased uncertainty in international trade dynamics[200]. - The Group is focusing on international investment projects to expand production capacity and mitigate geographical risks, aiming to optimize supply chain efficiency and reduce costs[198]. - The Group is committed to achieving strategic development goals aligned with China's 14th Five-Year Plan, emphasizing the need for transformation and upgrading in a competitive landscape[199]. Corporate Governance and Leadership - The founder and honorary chairman, Mr. HA Chung Fong, remains a substantial shareholder of the company[4]. - The leadership of the Board of Directors and all staff members were acknowledged for their contributions to the Group's recovery and improved performance[72]. - The Group maintained a consistently low debt ratio and robust cash flow, ensuring operational stability amidst market volatility[80]. - The Group is actively negotiating land resumption deals to adjust production capacity and stabilize operations in light of new market dynamics[125]. Employee and Workforce Management - The Group had approximately 5,500 full-time employees as of December 31, 2024, down from 5,800 in 2023, indicating a reduction in workforce[188].
福田实业(00420) - 2024 - 年度财报