Financial Performance - Revenue for FY2024 decreased by 13.2% to HK$1,007,545,000 compared to HK$1,160,211,000 in FY2023[31]. - Gross profit fell by 18.4% to HK$187,485,000 from HK$229,790,000 year-on-year[31]. - Profit before income tax dropped significantly by 87.2% to HK$7,347,000 from HK$57,445,000 in the previous year[31]. - Profit for the year decreased by 81.8% to HK$8,558,000 compared to HK$47,149,000 in FY2023[31]. - Basic and diluted earnings per share fell by 81.7% to 0.86 HK cents from 4.71 HK cents[31]. - Proposed final dividend of 1.2 HK cents per share, subject to shareholder approval at the AGM on 27 May 2025[31][32]. - The decline in revenue was primarily driven by weakened demand for smart vending systems and switch-mode power supplies, with smart vending systems revenue dropping by 21.4% to HK$320.5 million and switch-mode power supplies revenue decreasing by 47.2% to HK$156.9 million[107]. - Profit attributable to owners of the Company declined to approximately HK$8.6 million in FY2024, down from approximately HK$47.1 million in FY2023[104]. Market Presence and Strategy - The Group reported a strong global presence with production facilities in the PRC, Thailand, and Ireland, enhancing its manufacturing capabilities[8]. - The Group's long-term strategy includes expanding its market presence and enhancing product offerings to drive value creation for stakeholders[12]. - The PRC (including Hong Kong) represented 89.1% of total sales in FY2024, slightly up from 87.9% in FY2023[36]. - The Group has strategically expanded into the new energy sector, developing its self-owned "Deltrix" brand and positioning Kazakhstan as a key regional hub for this business[48][50]. - Expansion plans include entering the Uzbekistan market to establish smart charging stations and develop electric driverless heavy-duty truck manufacturing facilities[54]. - The Group is also entering the Hong Kong and Southeast Asian markets, initially focusing on Thailand and Indonesia, leveraging expertise in new energy solutions[55]. New Energy Initiatives - The Group established three model EV charging stations in Almaty, Kazakhstan, featuring Deltrix-branded chargers and energy storage systems, contributing to the new energy business expansion[11]. - A strategic initiative, "Greater Asia New Energy Business Circle," aims to integrate EV charging infrastructure and energy storage across multiple regions, emphasizing sustainability and technological innovation[12]. - The Group's commitment to sustainability aligns with global initiatives and the PRC's "Belt and Road" strategy, positioning it as a key player in the new energy sector[11]. - The Group is enhancing its charging infrastructure by deploying smart charging stations that integrate solar power and energy storage systems, creating a comprehensive ecosystem[53][57]. - The development of the "Greater Asia New Energy Business Circle" aims to integrate EV charging infrastructure, energy storage, digital advertising, and intelligent service solutions across multiple regions[56]. Management and Personnel Changes - Mr. Huang Siqi was appointed as the executive director and chairman of the board, bringing extensive experience in corporate management, business strategy, and finance[64]. - Mr. Tai Leung Lam has over 45 years of experience in the electronics industry, focusing on the establishment and management of production plants[66]. - Ms. Liu Yun, with nearly 20 years of experience in financial and capital markets, was appointed as an executive director effective October 28, 2024[68]. - Mr. Lo Ka Kei Jun has over 20 years of experience in international marketing and business development in the electronics industry[73]. - Mr. Kwan Tak Sum Stanley, a founder of the Group, has over 30 years of experience in the electronics industry, particularly in plastic injection molding and electronic assembly services[75]. - Mr. Kan Pak Cheong appointed as independent non-executive Director effective May 28, 2024, brings over 35 years of experience in real estate finance and investment[78]. - Mr. Wong Kwok Kuen appointed as independent non-executive Director effective August 28, 2024, has 28 years of banking experience and 15 years in investment and asset management[83]. - Mr. Yip Wa Ming appointed as independent non-executive Director effective October 28, 2024, has over 26 years of experience in financial advisory services[84]. - Mr. Kwan Chan Kwong resigned as Chief Executive Officer effective July 2, 2024, and appointed as a consultant[87]. - Ms. Zhang Jingjing joined as general manager of business development in August 2023 and appointed as Chief Executive Officer effective July 2, 2024[92]. Operational Highlights - The Group's total revenue from all product categories in FY2024 was HK$1,007.5 million, reflecting a significant shift in market demand[108]. - New manufacturing facilities in the PRC and Thailand became operational in FY2023 and FY2024, respectively, with a UK factory set to commence operations in the first half of 2025[103]. - Electro-mechanical products revenue increased by 5.0% to HK$330.6 million, while smart chargers revenue rose by 42.6% to HK$192.5 million in FY2024[108]. - The Group's initiatives in the new energy sector align with the PRC's "Belt and Road" initiative, enhancing market presence in Central Asia[99]. Financial Position and Risks - The Group's current ratio decreased from 2.9 as of December 31, 2023, to 2.2 as of December 31, 2024, indicating a decline in liquidity[139]. - The Group maintained a positive net cash position as of December 31, 2024, with net debt classified as not applicable due to cash and cash equivalents exceeding borrowings[139]. - Credit risk concentration was significant, with 45.6% of total trade receivables due from the largest customer and 84.2% from the five largest customers as of December 31, 2024[155]. - The Group's liquidity risk is managed through maintaining sufficient bank balances, committed credit lines, and access to interest-bearing borrowings[160]. - The Group's interest rate risk primarily arises from borrowings at floating rates, with no interest rate hedging strategy adopted[150]. Employee and Share Option Scheme - The Group's total employee benefit expenses for FY2024 amounted to approximately HK$183.1 million, a decrease from approximately HK$192.6 million in 2023[183]. - As of December 31, 2024, the Group had 1,310 employees, down from 1,560 in 2023[183]. - The total number of shares available for issue under the Share Option Scheme as of December 31, 2024, was 70,000,000 shares, representing 7% of the issued share capital[192]. - The Share Option Scheme aims to motivate eligible persons to enhance their performance and to attract and retain significant contributors to the Group's success[190].
致丰工业电子(01710) - 2024 - 年度财报