Financial Performance - The group's revenue and net profit levels were maintained for the year ending December 31, 2024, despite a challenging economic environment[7]. - The company's revenue increased from approximately HKD 331,200,000 for the year ended December 31, 2023, to approximately HKD 351,400,000 for the year ended December 31, 2024, representing a growth of about 6.1%[20]. - Other net income rose from HKD 1,800,000 for the year ended December 31, 2023, to HKD 3,900,000 for the year ended December 31, 2024, primarily due to increased market and promotional support income[21]. - The net profit after tax for the year ended December 31, 2024, was approximately HKD 18,400,000, a decrease of about 8.0% compared to the previous year, attributed to adverse market conditions in Macau and increased employee costs[26]. - The company reported a net profit for the year of HKD 18,571,000, a decline of 7.4% from HKD 20,045,000 in 2023[157]. - Basic and diluted earnings per share for 2024 were both HKD 3.78, down from HKD 3.99 in 2023[157]. Market Conditions - The local GDP growth rate in Hong Kong for 2024 is estimated to be 2.5%, while private consumption expenditure is expected to decline by 0.6%[7]. - The retail sales value index in Hong Kong decreased by 7.3% compared to 2023, indicating a slow recovery in the retail market[15]. - Macau's retail sales value decreased by 15.5% year-on-year, reflecting a poor local retail market situation[15]. - The business environment for 2025 is expected to be filled with challenges and opportunities, with potential market opportunities arising from weaker competitors exiting the market[10]. Operational Strategy - The company plans to further expand its market planning and sales division in the coming years to maximize the synergy of its logistics backbone and distribution network[8]. - The company aims to optimize service quality and IT systems while implementing stricter cost control measures to improve cost efficiency[10]. - The company continues to operate as a fourth-party logistics (4PL) service provider, achieving natural growth in both Hong Kong and Macau markets[8]. - The company plans to expand its distribution network and brand partnerships through the adoption of fourth-party logistics (4PL) services[17]. - The company has begun offering cold chain services to an existing customer, enhancing its overall logistics solutions[18]. - The company is focusing on inventory management and operational cash flow monitoring to reduce business risks[19]. Employee and Governance - Employee benefits expenses increased to approximately HKD 65,700,000 for the year ended December 31, 2024, up from HKD 63,700,000 for the year ended December 31, 2023, mainly due to salary increases[22]. - The group employed 183 full-time employees as of December 31, 2024, a decrease from 206 employees in 2023[38]. - The company has established a governance structure that includes an audit committee, remuneration committee, and nomination committee to ensure proper regulation of its operations and decision-making processes[47]. - The board consists of experienced individuals, including three independent non-executive directors, ensuring a balance of power and responsibilities[48]. - The company has a strong focus on corporate governance, integrating core elements to balance the interests of shareholders, customers, and employees[47]. Financial Position - The company has a current asset net value of approximately HKD 54,600,000 as of December 31, 2024, down from HKD 83,500,000 in the previous year[27]. - The company's debt-to-asset ratio as of December 31, 2024, was 0.01, unchanged from the previous year[28]. - As of December 31, 2024, the group had bank borrowings of approximately HKD 1,000,000, down from HKD 2,000,000 in 2023[35]. - The group recognized new right-of-use assets and lease liabilities of HKD 69,000,000 due to the renewal of lease agreements[37]. - The group has a total bank financing facility of HKD 25,000,000, with HKD 15,000,000 guaranteed by the group[35]. Dividends - The board declared an interim dividend of HKD 0.01 per share, totaling approximately HKD 5,018,000, payable on September 30, 2024[31]. - A special dividend of HKD 0.02 per share was declared, amounting to approximately HKD 10,037,000, to be paid on January 2, 2025[31]. - The proposed final dividend of HKD 0.02 per share, totaling approximately HKD 10,037,000, is subject to shareholder approval at the upcoming annual general meeting[31]. - The company declared dividends totaling HKD 15,054,000 for the year, compared to HKD 10,037,000 in the previous year[161]. Risk Management and Compliance - The company has established a risk management framework to assess and manage risks faced by the group[53]. - The board is committed to ensuring effective internal controls and risk management structures are in place[62]. - The company has implemented procedures for handling and disclosing inside information, ensuring compliance with listing rules[81]. - The company has complied with all relevant laws and regulations, including the Cayman Islands Companies Law and listing rules[131]. Audit and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024[140]. - The audit identified revenue recognition in the supply chain management services as a key audit matter due to its significance as a key performance indicator[144]. - The group is responsible for preparing consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and ensuring internal controls to prevent material misstatements[149]. - The auditor's responsibility includes obtaining reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[151].
环宇物流(亚洲)(06083) - 2024 - 年度财报