Financial Performance - Total revenue for the fiscal year ended December 31, 2024, was HKD 287,213,000, a decrease of 12% compared to HKD 326,713,000 in 2023[9] - The company reported a pre-tax profit of HKD 20,680,000 for 2024, compared to HKD 19,021,000 in 2023, reflecting a growth of 8.7%[9] - Total revenue decreased by approximately HKD 39.5 million or 12.1% from HKD 326.7 million in 2023 to HKD 287.2 million in 2024, primarily due to weakened customer demand amid economic downturn[22] - Gross profit increased by approximately HKD 5.7 million or 11.3%, from HKD 50.7 million in 2023 to HKD 56.4 million in 2024, with gross margin rising from 15.5% to 19.6%[22] - The company recorded a profit of approximately HKD 17.5 million for the year ending December 31, 2024, compared to HKD 17.2 million in 2023[25] Sales and Revenue Composition - The sales of transformers accounted for approximately 41.5% of total sales, down from 44.8% in the previous year[14] - Sales of electronic components accounted for approximately 57.4% of total sales, up from 53.5% in the previous year[14] - The sales of electronic health products were reported as zero for 2024, down from HKD 2,687,000 in 2023[17] - Sales from major customers, such as Customer A and Customer B, increased to HKD 52.5 million and decreased to HKD 108.5 million respectively, highlighting shifts in customer revenue contributions[21] - The company's top five customers accounted for approximately 70.3% of revenue for the year ended December 31, 2024, down from 79.0% in 2023[149] Assets and Liabilities - The total assets as of December 31, 2024, were HKD 217,654,000, a slight increase from HKD 210,474,000 in 2023[10] - The net asset value of the group as of December 31, 2024, was approximately HKD 84.7 million, down from HKD 98.1 million in 2023[29] - The current ratio of the group was approximately 1.33, with current assets of HKD 177.7 million and current liabilities of HKD 132.9 million as of December 31, 2024[29] - The debt-to-equity ratio decreased to approximately 0.17 in 2024 from 0.26 in 2023, primarily due to a reduction in bank loans during the review period[30] Corporate Governance - The company has adhered to the corporate governance code as stipulated in the GEM listing rules for the year ending December 31, 2024[57] - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[62] - The independent non-executive directors have confirmed their understanding of their responsibilities under the GEM listing rules[62] - The company emphasizes the importance of corporate culture as a foundation for long-term business development and economic success[58] - The company maintains high standards of corporate governance, as detailed in the corporate governance report[198] Risk Management - The company has established a risk management and internal control system, which is regularly assessed for effectiveness[74] - The board is responsible for establishing and maintaining an effective risk management and internal control system[104] - The company aims to instill a strong risk awareness culture among all employees to enhance the effectiveness of the risk management system[104] - Significant risks and internal control weaknesses identified during the year have been reported to the audit committee for further action[117] - The company has adopted a whistleblowing policy to encourage employees and stakeholders to report suspected misconduct confidentially[110] Employee and Management - Employee headcount increased to approximately 585 as of December 31, 2024, compared to about 458 in 2023, with total employee costs around HKD 46.8 million[38] - The gender ratio of the employee team, including senior management, is 54% male to 46% female, indicating a balanced gender diversity[99] - The company has implemented a comprehensive plan to identify and train female employees for potential promotion to senior management or board positions[98] - The salary range for senior management for the year 2024 includes 2 individuals earning between 0 to 1,000,000 HKD, compared to 3 individuals in 2023[78] Capital Expenditure and Investments - Capital expenditure for the year ended December 31, 2024, was approximately HKD 6.1 million, a significant decrease from HKD 26.5 million in 2023[32] - The capital expenditure primarily related to the purchase of two non-residential properties and leasehold improvements[32] - The group plans to invest up to 30% of its cash in short-term, low-risk Hong Kong-listed securities, subject to certain conditions[42] - The group had outstanding capital commitments of approximately HKD 641,000 as of December 31, 2024[37] Dividends - The company declared a special interim dividend of HKD 0.15 per ordinary share, totaling HKD 30,000,000 for the six months ended June 30, 2024[136] - The board does not intend to declare a final dividend for the year ending December 31, 2024[136] - The company has adopted a dividend policy to maintain sufficient cash reserves for operational needs and future business growth[137] - The company has not set a predetermined dividend payout ratio, allowing the board discretion in declaring dividends[138] Shareholder Information - The company has multiple communication channels with shareholders and investors, including quarterly and annual reports, and annual general meetings[119] - The company has established multiple communication channels with shareholders to enhance investor relations[125] - The company has received independence confirmations from its independent non-executive directors, affirming their status as independent individuals[182] - The company has not redeemed any of its own shares during the fiscal year ending December 31, 2024[194]
侨洋国际控股(08070) - 2024 - 年度财报