Financial Performance - The company recorded revenue of approximately HKD 429.3 million for the fiscal year 2024, a decrease of about HKD 67.3 million or 13.6% compared to HKD 496.6 million for the fiscal year 2023[15]. - The company recorded a net profit of approximately HKD 43.2 million for fiscal year 2024, a decrease of about HKD 13.8 million or 24.3% compared to approximately HKD 57.0 million in fiscal year 2023[23]. - Gross profit increased by approximately HKD 7.6 million or 7.1% to about HKD 114.5 million for the fiscal year 2024, with a gross margin of 26.7% compared to 21.5% in fiscal year 2023[18]. - Total revenue for the year ended December 31, 2024, was HKD 429,312,000, a decrease of 13.5% compared to HKD 496,631,000 in 2023[138]. - Net profit for the year was HKD 43,190,000, down 24.1% from HKD 57,003,000 in the previous year[138]. - Basic and diluted earnings per share decreased to HKD 4.3 from HKD 5.7, representing a decline of 24.6%[138]. - The total comprehensive income for the year 2024 was HKD 43,140 thousand, down from HKD 56,958 thousand in 2023, representing a decline of approximately 24.5%[142]. Revenue Sources - Design and construction projects accounted for approximately HKD 404.7 million, representing 94.3% of total revenue, while maintenance and repair services generated about HKD 24.6 million, accounting for 5.7% of total revenue[15]. - The five largest customers accounted for approximately 93.2% of the total revenue, with the largest single customer contributing 62.9%[99]. - The company is strategically focusing on maintenance and repair projects to diversify its project portfolio and maintain stable revenue sources[17]. Project Management and Operations - The company successfully completed several notable projects, including the Kai Tak Sports Park and CLP Headquarters, which received high praise from developers and general contractors[8]. - The company is set to complete the façade contract for the West Kowloon commercial development project under Sun Hung Kai Properties by June 2025, further enhancing its position in the Hong Kong façade market[9]. - The company has not secured any major new projects following the completion of current projects expected by August 2025, indicating a limited project pipeline[9]. - The company is closely monitoring the recovery of the construction industry and will cautiously handle project bidding due to the current market conditions and intense competition[9]. - The construction industry continues to face significant pressure due to reduced project demand and intense competition, impacting overall revenue and future opportunities[8]. Financial Management - The board has resolved to declare an interim dividend and a special dividend for the fiscal year 2024, but has not recommended a final dividend to maintain reasonable financial reserves[9]. - The company is committed to prudent financial management while exploring strategic opportunities to enhance business growth and operational resilience[14]. - As of December 31, 2024, the company had no bank borrowings, resulting in a debt-to-equity ratio of zero[26]. - Cash and cash equivalents increased to approximately HKD 222.7 million as of December 31, 2024, up by about HKD 166.8 million from approximately HKD 55.9 million as of December 31, 2023[26]. - The company declared a special dividend of HKD 40,120 thousand for the year 2024, in addition to interim dividends totaling HKD 20,060 thousand[142]. Governance and Compliance - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence[46]. - The company has adopted the corporate governance code and has complied with its provisions during the 2024 fiscal year, except for the separation of roles between the chairman and CEO[47]. - The independent non-executive directors have complied with the relevant regulations as of the report date[50]. - The company has established a reliable supplier and subcontractor base with over 25 years of operational history, ensuring quality control[39]. - The company has a robust governance framework, with independent directors providing oversight and strategic guidance[113]. Risk Management - The company’s operations are subject to overall economic and market risks, which could significantly impact project profitability and financial performance[42]. - The risk management committee conducted a risk assessment in 2024, identifying key risks recorded in a risk register[64]. - The company believes its risk management and internal control systems are effective and adequate[65]. Cash Flow and Assets - The cash generated from operating activities for 2024 was HKD 183,254 thousand, an increase of approximately 35.2% from HKD 135,514 thousand in 2023[144]. - The net cash from investing activities in 2024 was HKD 89,388 thousand, a significant recovery from a net cash outflow of HKD 79,484 thousand in 2023[145]. - The company's total equity decreased to HKD 276,990,000 from HKD 313,567,000, a decline of 11.6%[139]. - The company's cash and cash equivalents increased significantly from HKD 55,939 thousand at the beginning of 2023 to HKD 222,715 thousand by the end of 2024, marking an increase of approximately 297.5%[145]. Accounting and Financial Reporting - The financial statements are prepared using the historical cost method, except for certain financial instruments measured at fair value[149]. - The financial statements are presented in Hong Kong dollars (HKD), which is also the functional currency of the company[151]. - The group is responsible for preparing consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[129]. - The independent auditor's report confirms that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2024[120]. - The company has established accounting policies for recognizing revenue and other income, ensuring compliance with relevant financial reporting standards[184].
信越控股(06038) - 2024 - 年度财报