Financial Performance - The total revenue for the fiscal year ending December 31, 2024, increased by 141.8% to approximately HKD 468.5 million, up from HKD 193.8 million in the previous year[8]. - The company recorded a gross profit of approximately HKD 17.3 million, compared to a gross loss of HKD 7.2 million in the previous year[15]. - The net profit attributable to the company's owners for the year was approximately HKD 9.9 million, a significant recovery from a net loss of HKD 59.3 million in the previous year[15]. - Other income for the year was approximately HKD 3.8 million, representing an increase of 836.1% from HKD 0.4 million in the previous year[16]. - The company confirmed a net impairment reversal of approximately HKD 2.3 million, compared to an impairment loss of HKD 35.9 million in the previous year[18]. - The company recognized a profit of approximately HKD 1.3 million from its share of profits from two joint ventures in Hong Kong, compared to no profit in the previous year[17]. - The company reported a profit attributable to owners of approximately HKD 9.9 million, a significant recovery from a loss of HKD 59.3 million in the previous year[26]. - As of December 31, 2024, the company's cash and bank deposits decreased by approximately HKD 26.0 million to about HKD 32.6 million[27]. - The current ratio improved to 1.03 times from 0.98 times in the previous year, indicating better short-term financial health[29]. Business Strategy and Growth - The company has a contract reserve amounting to approximately HKD 435.6 million, which is expected to support its financial performance in the coming years[13]. - The company plans to explore various business and investment opportunities to enhance long-term growth potential, including potential asset sales and acquisitions[13]. - The company aims to leverage its expertise in real estate development and project management to expand its revenue sources[13]. Operational Efficiency - Administrative expenses decreased by approximately HKD 2.2 million or 13.6% to about HKD 14.3 million due to cost control measures implemented during the year[23]. - Financing costs increased by approximately 189.6% to about HKD 0.5 million due to higher interest on bank borrowings[24]. - Accounts receivable and contract assets from the top five customers amounted to approximately HKD 13.4 million, representing 36% of total receivables, a decrease from 55% in the previous year[22]. - The company recognized a net reversal of impairment of approximately HKD 3.1 million for trade receivables and contract assets, compared to an impairment loss of HKD 4.6 million in the previous year[22]. Corporate Governance - The board of directors consists of four members, including one executive director and three independent non-executive directors[43]. - The company has adopted a code of conduct for securities trading by directors, with no violations reported for the year ending December 31, 2024[42]. - The board held six meetings during the year, with all directors attending at least 2/2 or 6/6 meetings[54]. - The company has a diversity policy for board members, considering factors such as gender, age, and ethnicity[48]. - The nomination committee reviews the diversity policy annually to ensure its effectiveness[51]. - The chairman and CEO roles are separated to ensure clear division of responsibilities, with the current chairman also serving as CEO[45]. - The company has maintained compliance with all applicable corporate governance codes for the year ending December 31, 2024[46]. - The board's independent non-executive directors have been invited to join various committees, enhancing governance oversight[46]. - The company has arranged appropriate insurance to protect directors against legal actions arising from corporate activities[47]. - The board believes that a diverse membership enhances the quality of its performance and decision-making[49]. - The board is responsible for corporate governance functions, including policy formulation and compliance with legal regulations[57]. - Independent non-executive directors are appointed for a term of three years and must be re-elected according to the company's articles of association[59]. - The audit committee consists of three independent non-executive directors, ensuring compliance with accounting standards and financial reporting regulations[67]. - The audit committee held three meetings during the year ending December 31, 2024, to review the audited annual results[69]. - All directors are encouraged to participate in continuous professional development to enhance their knowledge and skills[60]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee[66]. - The audit committee monitors the independence and effectiveness of external auditors[68]. - The company received annual independence confirmations from independent non-executive directors, affirming their independence[59]. - The board ensures that all necessary information is provided in a timely manner for informed decision-making[57]. - The company has a structured training program for newly appointed directors to familiarize them with governance policies and practices[60]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the group's overall environmental and social performance for the fiscal year ending December 31, 2024[97]. - The group emphasizes stakeholder engagement to create long-term value, involving employees, customers, investors, suppliers, and the community through various communication channels[98]. - The importance assessment identified key ESG issues, including emissions, resource consumption, waste management, employee welfare, and occupational health and safety[101]. - The group has implemented strict monitoring to ensure compliance with environmental regulations, reporting no significant non-compliance incidents related to emissions[104]. - The group is committed to using environmentally friendly practices, including the use of ultra-low sulfur diesel and approved non-road mobile machinery[105]. - The board of directors is responsible for managing ESG-related risks and continuously developing and evaluating the group's ESG policies[103]. - The group aims to balance operational needs with environmental protection to achieve sustainable development[106]. - The group encourages stakeholder feedback on its ESG policies and performance, providing contact information for suggestions[102]. - The group recognizes the importance of adhering to environmental laws and regulations while promoting efficient use of clean energy and reducing waste[110]. - Total greenhouse gas emissions increased to 451 tons of CO2 equivalent in 2024, up 147.8% from 182 tons in 2023[112]. - Direct emissions (Scope 1) rose to 18 tons of CO2 equivalent in 2024 from 5 tons in 2023[111]. - Indirect emissions (Scope 2) increased to 403 tons of CO2 equivalent in 2024 from 159 tons in 2023[111]. - Total waste generated increased to 1,866 tons in 2024 from 869 tons in 2023, with construction waste from landfills rising to 720 tons[116]. - Total electricity consumption surged to 402,695 kWh in 2024, compared to 158,885 kWh in 2023, reflecting a significant operational peak[121]. - Total water consumption increased to 7,388 cubic meters in 2024 from 1,603 cubic meters in 2023[121]. - The company implemented waste management measures to ensure all construction waste is managed and disposed of in an environmentally friendly manner[114]. - The company has not generated any hazardous waste during the reporting period[115]. - The environmental management system has been certified to comply with ISO 14001 standards[124]. - The company continues to monitor and reduce energy consumption to mitigate greenhouse gas emissions[125]. Employee Management - As of December 31, 2024, the total number of employees is 75, with 88% male and 12% female[130]. - The overall employee turnover rate is 25%, with male turnover at 23% and female turnover at 44%[131]. - The average training hours per employee are 37 for males and 28 for females, with a total of 258 hours for male general staff and 28 hours for female general staff[140]. - The company has implemented a competitive compensation and benefits system, adjusting salaries based on performance and qualifications[128]. - The company has adopted a mandatory provident fund plan, contributing 5% of all salary levels for retirement[128]. - The company has established an occupational safety management system compliant with ISO 45001 standards[136]. - There were 162 work-related lost days due to injuries in 2024, a decrease from 505 days in 2023[137]. - The company provides paid annual leave and public holidays in addition to statutory holidays[128]. - The company emphasizes equal opportunities in recruitment, adhering to anti-discrimination principles[128]. - The company conducts regular safety audits to ensure compliance with safety management regulations[133]. Supply Chain and Community Engagement - The number of major suppliers/subcontractors decreased from 148 in 2023 to 117 in 2024, with a significant reduction in Hong Kong from 147 to 93[144]. - The group has not identified any non-compliance cases related to child labor or forced labor as of December 31, 2024[141]. - The group has not received any major complaints regarding service quality or safety during the reporting period[145]. - The group maintains a zero-tolerance policy towards corruption and fraud, with no complaints received from government agencies regarding non-compliance with anti-corruption laws[147]. - The group actively participates in community welfare initiatives, including the Public Estate Basketball Programme, to support youth engagement[148]. - The group evaluates suppliers annually to ensure compliance with quality standards, including professional qualifications and financial status[142]. - The group has established policies to ensure service quality and safety, complying with relevant laws and regulations in Hong Kong[145]. - The group has not identified any non-compliance cases related to product responsibility as of December 31, 2024[146]. - The group emphasizes the importance of protecting intellectual property rights and conducts internal reviews of contracts with clients and suppliers[145]. - The group encourages employee participation in community welfare to better understand stakeholder needs and expectations[148]. Risk Management - The company has implemented policies to identify and mitigate significant climate-related issues affecting its operations[152]. - Employee turnover rates are categorized by gender, employment type, age group, and region, providing insights into workforce dynamics[154]. - The company reported a specific number of work-related fatalities and injury rates over the past three years, highlighting health and safety performance[155]. - Training programs are in place, with a percentage of employees trained categorized by gender and employee type, indicating commitment to employee development[156]. - The company has measures to prevent child and forced labor, ensuring compliance with relevant laws and regulations[155]. - The percentage of products recalled due to health and safety reasons is tracked, reflecting product responsibility[156]. - The company has established anti-corruption policies and reported the number of corruption lawsuits filed against it during the reporting period[158]. - Community investment focuses on areas such as education, health, and environmental issues, demonstrating corporate social responsibility[158]. - The company has a structured approach to managing supply chain risks, including environmental and social factors[155]. Leadership and Board Composition - The executive director has extensive experience in business development and strategic planning, contributing to the company's leadership[159]. - The company is primarily engaged in investment holding activities, with significant operations detailed in the consolidated financial statements[174]. - The board presented the report and audited consolidated financial statements for the year ending December 31, 2024[172]. - The company emphasizes risk management practices to effectively mitigate operational and financial risks[176]. - The company is committed to environmental sustainability, implementing measures to minimize its operational impact on the environment[177]. - The company values its employees as valuable assets and aims to attract and retain suitable personnel through competitive compensation packages[178]. - The company has a strong focus on compliance with relevant laws and regulations that significantly impact its business operations[175]. - The company has not had any directors serve on other listed companies in the past three years, indicating a focused leadership team[162][165][168]. - The company has a diverse board with members possessing extensive experience in real estate, finance, and legal sectors[161][163][166][167]. Shareholder Information - The company does not recommend the payment of any final dividend for the year ending December 31, 2024 (2023: none)[180]. - Revenue from the largest customer accounted for 31.0%, while the top five customers collectively contributed 95.5% of total revenue for the year ending December 31, 2024[195]. - The largest supplier accounted for 17.2% of service costs, with the top five suppliers together representing 57.4% of total service costs for the year ending December 31, 2024[195]. - The company has no distributable reserves available for distribution to shareholders as of December 31, 2024[192]. - The company has not purchased, sold, or redeemed any of its securities during the year ending December 31, 2024[191]. - The company will hold its annual general meeting on May 30, 2025, with a suspension of share transfer registration from May 27 to May 30, 2025[181]. - The company has adopted a share option scheme to recognize and reward contributions from directors and employees, with no options granted or agreed to be granted since its adoption[185]. - The maximum number of shares that can be issued under the share option scheme is capped at 10% of the total issued shares, which amounts to 13,320,000 shares[187]. - The company’s board of directors includes both executive and independent non-executive members, with recent changes in appointments[196]. - The company will regularly review and reassess its dividend policy and its effectiveness[179]. - Each executive and independent non-executive director has entered into service contracts with the company for an initial term of three years, which will be renewed unless terminated with at least three months' written notice[198]. - There are no significant transactions, arrangements, or contracts involving the company's directors or their related entities with substantial interests during the fiscal year ending December 31, 2024[199]. - The company's articles of association provide that each director is entitled to indemnification for losses or liabilities incurred in connection with their duties during their term[200].
丰展控股(01826) - 2024 - 年度财报