Financial Performance - The company reported revenue of approximately HKD 519.7 million for the fiscal year 2024, a decrease from HKD 961.3 million in 2023, primarily due to a decline in sales volume [6]. - The gross profit for the year was HKD 29.7 million, compared to a gross loss of HKD 35.6 million in the previous year, resulting in a gross margin of 5.7% [9]. - The company achieved a profit attributable to owners of approximately HKD 1.3 million, a significant turnaround from a loss of HKD 52.7 million in the prior year [12]. - Total assets decreased to HKD 407.3 million from HKD 478.1 million, while total liabilities significantly reduced to HKD 21.7 million from HKD 94.0 million [6]. - The company anticipates continued volatility in ICs and NAND flash wafer prices, impacting future revenue stability [8]. - Other losses included an additional provision of approximately HKD 60.4 million for loss contracts due to unexpected costs exceeding anticipated economic benefits [11]. - The company maintained a net asset value of HKD 385.6 million, slightly up from HKD 384.1 million in the previous year [6]. - The group anticipates growth opportunities in the electronic components industry driven by advanced technologies such as third-generation semiconductor materials, 5G, AI, and automotive electronics [13]. Asset and Liability Management - As of December 31, 2024, the current ratio is approximately 18.1 times, significantly up from 4.8 times in 2023 [14]. - Total assets as of December 31, 2024, are approximately HKD 407.3 million, down from HKD 478.1 million in 2023 [14]. - The group’s capital debt ratio is approximately 5.3% as of December 31, 2024, compared to 19.7% in 2023 [14]. - Inventory held as of December 31, 2024, is approximately HKD 188.8 million, a decrease from HKD 329.8 million in 2023 [15]. - Prepayments for inventory purchases amount to approximately HKD 70.6 million as of December 31, 2024, down from HKD 102.0 million in 2023 [16]. - Trade receivables as of December 31, 2024, are approximately HKD 98.7 million, with an expected credit loss provision of about HKD 0.3 million [18]. - Cash and cash equivalents are approximately HKD 23.3 million as of December 31, 2024, an increase from HKD 19.5 million in 2023 [19]. - The group has no borrowings as of December 31, 2024 [20]. Corporate Governance - The company has established a robust internal control system to ensure compliance and accountability, adhering to the corporate governance code as per the listing rules [40]. - The board consists of eight members, including three non-executive directors, two executive directors, and three independent non-executive directors, ensuring a balanced power structure [43]. - The company emphasizes a diverse board composition, considering various factors such as gender, age, ethnicity, and professional experience, to enhance governance effectiveness [48]. - The company has implemented an anti-corruption policy and reporting mechanism to promote ethical behavior and compliance among employees [41]. - The board has mechanisms in place to ensure independent viewpoints are considered, including encouraging active participation from independent non-executive directors [47]. - The company is currently seeking a suitable candidate for the CEO position, which has been vacant since July 18, 2019 [46]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with the standards set forth in the listing rules [42]. - The board conducts annual reviews of its diversity policy and its effectiveness in achieving measurable goals [48]. Employee Relations and Compensation - The total salary and related costs for the 16 employees as of December 31, 2024, amount to approximately HKD 6.6 million [30]. - The company has established an annual review system to assess employee performance, which forms the basis for salary increases, bonuses, and promotions [30]. - The board believes in maintaining a good relationship with employees [30]. - The company has adopted a share option scheme to reward directors and eligible employees based on individual performance [30]. - The company has maintained a zero-tolerance policy towards any form of discrimination and has not reported any incidents of workplace discrimination or harassment this year [190]. - The company offers competitive and fair compensation and benefits to attract high-quality talent, with regular salary reviews to recognize employee contributions [190]. Risk Management - The company has established a risk management and internal control system to minimize procurement price risks and protect assets [80]. - The board believes the risk management and internal control systems are adequate and effective as of December 31, 2024 [82]. - The main risks faced by the company include credit risk, currency risk, and liquidity risk [160]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental responsibility by managing its operational impact and improving resource efficiency [153]. - The company has established an Environmental, Social, and Governance (ESG) working group to assess and manage ESG-related risks [166]. - The ESG report emphasizes the importance of stakeholder engagement and has conducted a materiality assessment to identify key concerns [167][171]. - The company has implemented an environmental strategy focused on "saving, reusing, and recycling" to enhance energy efficiency and reduce carbon emissions [179]. - The company has established a collection area for recyclable materials, including paper, plastic, and metal, to support waste recycling efforts [175]. - The company is committed to complying with all relevant environmental laws and regulations applicable to its operations [172]. - The company has not recorded any significant non-compliance issues with applicable environmental protection laws and regulations as of December 31, 2024 [186]. Shareholder Relations - The board is committed to effective communication with shareholders to enhance investor relations and ensure timely disclosure of information [88]. - Shareholders holding at least 10% of the paid-up capital can request the board to convene a special general meeting [89]. - The company has updated its articles of association to comply with the latest regulatory requirements regarding paperless listing systems [93]. - The company reported total distributable reserves of approximately HKD 262,991,000 as of December 31, 2024, compared to HKD 233,372,000 in 2023, reflecting an increase of about 12.5% [107]. Compliance and Legal Matters - The company has adhered to relevant laws and regulations that significantly impact its business operations [151]. - The company has implemented appropriate internal controls and quality control measures to ensure compliance with the Sale of Goods Ordinance [156]. - The group complies with all applicable laws and regulations related to product responsibility, with no known violations during the year [199]. - The group has adopted high-standard security and confidentiality measures to protect stakeholders' personal data [200].
前海健康(00911) - 2024 - 年度财报