Financial Performance - For the fiscal year ending December 31, 2023, the company's total revenue was approximately HKD 3,445,784,000, a decrease of 17% compared to the previous year[29]. - The profit attributable to shareholders for the year was approximately HKD 158,098,000, an increase of 14% from the previous year[30]. - The company's revenue for the year was approximately HKD 2,354,428,000, a decrease of 21% compared to the previous year[38]. - The interest and tax pre-profit was approximately HKD 151,721,000, down 8% year-on-year[38]. - Revenue for the year ended December 31, 2024, was HKD 3,445,784, a decrease of 16.8% compared to HKD 4,145,653 in 2023[185]. - Gross profit increased to HKD 649,069, up 3.8% from HKD 625,238 in the previous year[185]. - Net profit for the year was HKD 180,433, representing a 12.1% increase from HKD 160,892 in 2023[185]. - Basic earnings per share rose to HKD 27.53, compared to HKD 24.19 in the prior year, reflecting a growth of 9.7%[185]. Segment Performance - The construction materials segment accounted for 72% of total revenue in 2023, while metal products accounted for 28%[26]. - The metal products business generated revenue of approximately HKD 1,090,361,000, a decrease of about 7% year-on-year, but the profit before interest and tax increased by 45%[35]. - The construction materials delivery volume decreased, but the gross profit margin increased, indicating satisfactory performance despite challenges[39]. Operational Challenges - The company faced operational pressures in its core businesses, particularly in the Hong Kong construction materials sector, due to a challenging macroeconomic environment[30]. - The company is actively exploring maintenance and export markets to mitigate the impact of declining demand in the domestic market[35]. Assets and Liabilities - Total assets as of December 31, 2023, were HKD 2,919,328,000, while total liabilities were HKD 1,532,201,000[7]. - The company's net asset value increased to HKD 1,387,127,000 as of December 31, 2023[7]. - The current ratio as of December 31, 2024, was 2.04:1, an improvement from 1.67:1 the previous year[40]. - The total borrowings as of December 31, 2024, were approximately HKD 536,733,000, significantly reduced from HKD 906,133,000 the previous year[40]. - The net asset liability ratio as of December 31, 2024, was -0.04:1, compared to 0.18:1 the previous year, indicating a stronger financial position[41]. Corporate Governance - The company has maintained full compliance with the corporate governance code throughout the fiscal year ending December 31, 2024[52]. - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced governance structure[54]. - The company has implemented a code of conduct for directors' securities trading, confirming adherence to the standards set forth in the listing rules[53]. - All directors have participated in ongoing professional development to enhance their knowledge and skills relevant to their roles[56]. - The company has arranged for directors and senior management to have liability insurance[55]. - The board is committed to maintaining good corporate governance practices in compliance with the Hong Kong Stock Exchange's regulations[51]. Risk Management - The company emphasizes effective risk management as an integral part of its business strategy, with regular evaluations of potential risks and internal controls[76]. - The internal audit function regularly reviews the effectiveness of the risk management and internal control systems[77]. - The company has established guidelines for handling inside information, ensuring compliance with securities regulations[78]. Environmental, Social, and Governance (ESG) - The company is dedicated to environmental, social, and governance (ESG) efforts, actively contributing to community and environmental initiatives[85]. - The total direct and indirect carbon emissions for the fiscal year 2024 amounted to 1,748 tons of CO2 equivalent, a reduction of approximately 5.80% compared to 2023[96]. - The emissions per production unit for direct and indirect carbon emissions (Scope 1 and 2) totaled 0.0041 tons of CO2 equivalent, a decrease of about 4.65% from 2023[96]. - The company has implemented various energy efficiency measures contributing to the reduction in carbon emissions[96]. - The company has established a sustainability committee led by the board to oversee environmental, social, and governance (ESG) initiatives[87]. - The sustainability framework is integrated into daily operations and is a key focus area for the company[89]. Employee and Labor Practices - The company has a total of 1,483 employees as of December 31, 2024, with compensation based on performance and industry standards[42]. - The employee turnover rate improved to 14% in 2024, down from 20% in 2023[105]. - A total of 1,292 employees (87%) received training during the reporting period, with an average training time of 47 hours per employee, totaling approximately 60,000 hours of training[114]. - The company has a strong commitment to labor rights, with no reported incidents of child or forced labor during the reporting period[119]. Community Engagement - The group has committed to extending its educational support program for underprivileged students in Tianjin for another five years[133]. - The volunteer team has expanded, reflecting the group's commitment to community engagement and support[131]. - The group made charitable donations totaling approximately HKD 227,000 during the year[164]. Financial Commitments and Dividends - The company reported a mid-term dividend of HKD 0.025 per share, totaling approximately HKD 14,360,000[144]. - The proposed final dividend is HKD 0.04 per share, amounting to around HKD 22,975,000, subject to shareholder approval[144]. - The total capital expenditure for property, plant, and equipment during the year was approximately HKD 126,149,000[145]. - As of December 31, 2024, the company's distributable reserves amounted to HKD 445,560,000, an increase from HKD 380,086,000 in the previous year[147]. Audit and Compliance - Deloitte has audited the company's consolidated financial statements and will be proposed for reappointment at the upcoming annual general meeting[167]. - The audit report indicates that the overall financial statements are free from material misstatement due to fraud or error[179]. - The audit procedures included evaluating the appropriateness of accounting policies and the reasonableness of accounting estimates and disclosures[180].
高力集团(01118) - 2024 - 年度财报