Financial Performance - For the fiscal year 2024, the company's revenue was approximately HKD 143.77 million, a decrease of 7.5% compared to HKD 155.39 million in fiscal year 2023[15]. - The loss attributable to the company's owners for fiscal year 2024 was approximately HKD 110.77 million, an increase of 169.0% from a loss of HKD 41.18 million in fiscal year 2023[15]. - The cigarette packaging business generated revenue of approximately HKD 132.64 million in fiscal year 2024, down 14.4% from approximately HKD 154.88 million in fiscal year 2023[16]. - The gross profit for FY2024 was approximately HKD 7,380,000, down from HKD 33,300,000 in FY2023, reflecting a significant decline[18]. - The gross margin for FY2024 was 5.1%, a decrease of 16.3 percentage points from 21.4% in FY2023, primarily due to lower sales in the cigarette packaging business[19]. - The net impairment loss on financial and contract assets rose to approximately HKD 79,610,000 in FY2024, an increase of about 345.5% from HKD 17,860,000 in FY2023[22]. - The net asset value of the group decreased to HKD 197,610,000 as of December 31, 2024, down from HKD 315,200,000 as of December 31, 2023[31]. - The company did not recommend a final dividend for FY2024, consistent with the previous fiscal year[27]. Operational Highlights - The environmental governance business saw a slight improvement in revenue, but the overall gross loss expanded to HKD 28.99 million due to additional costs from maintaining existing projects and obtaining new contracts[10]. - The company confirmed impairment losses of HKD 79.61 million due to high credit risk from financially strained clients in the environmental governance sector[11]. - The company plans to adopt a cautious strategy in future decision-making to navigate the challenging market environment and seek new growth opportunities[12]. - The company aims to maintain strong relationships with local governments to enhance opportunities for future projects amid financial constraints[11]. - The company is committed to creating long-term value and ensuring business continuity and competitiveness under various market conditions[12]. Employee and Workforce Management - The group employed 258 full-time employees as of December 31, 2024, down from 288 employees as of December 31, 2023[40]. - The total employee compensation for fiscal year 2024 was HKD 36,400,000, compared to HKD 37,990,000 in fiscal year 2023[40]. - Employee turnover at Shantou Xinda for the year is 12, up from 8 in 2023, indicating an increase in turnover rate[163]. - Total full-time employees at Hongdong Governance as of December 31, 2024, is 37, down from 60 in 2023, reflecting a reduction in workforce[162]. - Employee turnover at Hongdong Governance for the year is 23, compared to 11 in 2023, showing a significant increase in turnover[163]. - The company emphasizes equal pay for equal work and has established a series of assessment procedures for employee performance evaluation[1]. - The company provides various employee benefits, including social insurance and performance-based bonuses[161]. - The company is committed to creating a fair work environment and opposes any form of discrimination[1]. Corporate Governance - The board of directors believes effective governance is essential for maintaining competitiveness and healthy growth[50]. - The company has adopted and applied the principles of the corporate governance code[50]. - The board held only two regular meetings this year to review and discuss the company's annual and interim performance[51]. - The company appointed a female director to enhance gender diversity on the board[51]. - The chairman and CEO roles are held by the same individual, which the board believes does not imbalance power and authority[50]. - The company has a commitment to providing high-quality products and services to its customers[49]. - The company has a strong focus on strategic planning and management of key performance indicators[47]. - The company has a dedicated team with extensive experience in financial management and corporate governance[48]. - The company is committed to regular reviews of its governance practices to ensure compliance with applicable codes[50]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a diverse range of business and professional expertise[54]. Environmental Management - In 2024, Shantou Xinda's carbon dioxide emissions totaled 2,961.51 tons, a decrease of approximately 6.1% compared to 2023[117]. - The total carbon dioxide emissions for Hongdong Governance in 2024 were 134.43 tons, reflecting a 23.86% reduction from the previous year[117]. - Shantou Xinda's volatile organic compounds (VOCs) emissions were recorded at 11.8 micrograms per cubic meter in 2024, well below the Guangdong provincial standard limit of 120 micrograms per cubic meter[113]. - The company has implemented a waste gas collection and treatment system to ensure compliance with environmental standards[112]. - The company aims to maintain stable business operations while targeting a 1% reduction in carbon dioxide emissions for 2025[118]. - The company has committed to regular maintenance of wastewater treatment facilities to ensure compliance with discharge standards[108]. - The company has developed an emergency response plan for environmental incidents, which has been reviewed by experts and filed with relevant government departments[112]. - The company emphasizes energy-saving practices across all departments and positions, fostering a culture of resource conservation[143]. Training and Development - The company provided training for a total of 422 employee instances in the current year, with a total training duration of 30 hours, compared to 665 instances and 76 hours in the previous year[172]. - The percentage of trained employees by category shows that 3.08% of senior management received an average of 2.46 hours of training, while 33.41% of middle management received an average of 2.01 hours[173]. - The company conducted various training sessions throughout the year, including safety training for 70 employees in May and fire drills for 117 employees in July[172]. - The company encourages employees to participate in training and self-learning to enhance their professional skills and quality awareness[170]. Quality Management - The company has implemented a comprehensive quality management system certified by GB/T19001-2008 and ISO9001:2008, ensuring product quality through rigorous internal controls and regular inspections[187]. - The company has a robust product traceability system, allowing any product to be traced back through every stage of the production process[187]. - The company is enhancing its online monitoring systems to better control product quality during the production process[187]. - There were no product recalls due to safety and health reasons in the current year[190]. - The company received no complaints regarding products and services in the current year[190]. Community Engagement - The company actively engages in community activities and encourages employees to participate in volunteer and charity events[197].
华禧控股(01689) - 2024 - 年度财报