Business Expansion and Operations - The company has expanded its interior decoration engineering business to Macau, China, and Singapore since 2005, 2017, and 2021 respectively[3]. - The company has undertaken multiple large-scale interior decoration projects across Hong Kong, Macau, Singapore, and China, ensuring timely completion within budget[3]. - The company is involved in the manufacturing of interior decoration materials in China and engages in procurement and distribution in international markets[3]. - The company has established a strong presence in the interior decoration sector, being one of the leading contractors in the region[3]. - The company completed 46 interior decoration projects with a total contract value of HKD 4,488.9 million, showcasing strong client confidence in the company's ability to maintain high-quality project standards[18]. - The interior decoration business generated revenue of HKD 5,992.4 million, an increase of HKD 542.1 million or 9.9% year-on-year[36]. - The total contract value of completed interior decoration projects was HKD 4,488.9 million, with HKD 1,414.7 million recognized as revenue during the year[36]. - The group completed a total of 46 interior decoration projects, including 15 in Hong Kong, 4 in Macau, 1 in Singapore, and 26 in China[36]. Financial Performance - The company's revenue for the year was HKD 5,996.8 million, an increase from HKD 5,461.3 million in the previous year, representing an increase of approximately 9.8%[17]. - The net profit for the year was HKD 320.8 million, slightly down from HKD 330.3 million in the previous year, indicating a decrease of about 4.5%[17]. - Basic and diluted earnings per share were HKD 0.1486, compared to HKD 0.1530 in the previous year, reflecting a decrease of approximately 2.9%[17]. - The gross profit rose by HKD 104.0 million or 14.9% to HKD 800.2 million, with a gross profit margin increasing to 13.3% from 12.7% in the previous year[42]. - The gross profit from the interior decoration business increased by HKD 114.1 million or 16.4% to HKD 810.9 million, with a gross profit margin of 13.5%[37]. - The group reported a net profit of HKD 320.8 million, a decrease of HKD 9.5 million or 2.9% from HKD 330.3 million in the previous year[44]. Corporate Governance - The company emphasizes corporate governance and compliance with the relevant regulations and codes[4]. - The company has a diversified board of directors with recent changes, including the appointment of new independent non-executive directors in 2024[5]. - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2024[84]. - The company continues to integrate effective corporate governance elements into its management structure and internal procedures[79]. - The company has maintained high levels of corporate governance and has established policies and procedures to comply with the principles of the corporate governance code[81]. - The company has established mechanisms to ensure the board receives independent views and opinions, including consultations with external professional advisors[90]. - The company has adopted a standard code of conduct for securities trading, confirming compliance throughout the year[83]. - The board has delegated daily operations to the executive directors and management, while retaining approval rights for major strategic decisions[88]. Economic Outlook and Market Conditions - Hong Kong's GDP is expected to grow by 2.5% in 2024, with a nominal value of completed construction projects reaching HKD 77.8 billion, a year-on-year increase of 9.4%[31]. - Macau's GDP is projected at MOP 403.3 billion for 2024, with a real growth of 8.8%, and gaming revenue expected to reach MOP 226.8 billion, a year-on-year increase of 23.9%[32]. - Singapore's GDP is anticipated to grow by 4.4% in 2024, with the construction industry showing a growth of 4.5% driven by major infrastructure projects[33]. - In China, the real estate development investment is projected to decline by 10.6% to CNY 10,028 billion in 2024, with residential property investment down by 10.5%[33]. - The Hong Kong government plans to lift residential property sales restrictions starting February 28, 2024, to stabilize the real estate market[22]. - Macau's government is implementing multiple policies to enhance tourism, including expanding the "Individual Visit" scheme to 59 cities in China[22]. - The company remains optimistic about the positive impact of Singapore's economic outlook on the interior decoration industry[24]. - The company will closely monitor national policies and market developments in China to adjust its business strategies accordingly[25]. Risk Management and Compliance - The company has established a comprehensive risk management framework to address key environmental, social, and governance factors, including energy consumption and environmental pollution[146]. - The risk management team conducts annual assessments of risks impacting business objectives, scoring and prioritizing them based on likelihood and impact[125]. - The company has a policy in place to ensure timely public disclosure of inside information, maintaining confidentiality until such disclosure is appropriate[127]. - The company has established an audit committee to review financial statements and provide recommendations regarding the appointment and dismissal of external auditors[99]. - The audit committee has reviewed the risk management and internal control systems, as well as the financial reporting system[101]. - The board monitors compliance with legal and regulatory requirements, ensuring adherence to governance policies[124]. Employee and Community Engagement - The company emphasizes employee development through on-the-job training, external training, and onboarding training[199]. - The company has established a comprehensive training mechanism tailored to employees' entry time and job nature[199]. - The company actively engages in community service and charitable activities, enhancing its social responsibility profile[152]. - The company focuses on maintaining strong labor relations and promoting mental health through various employee engagement activities[157]. - The company has implemented measures to ensure fair handling of personal data, requiring customer consent for data collection[157]. - The company has established a zero-tolerance policy towards misconduct, reinforcing its commitment to ethical business practices[160]. Sustainability and Environmental Responsibility - The company has obtained ISO 45001 certification for occupational health and safety, demonstrating its commitment to providing a safe working environment[157]. - The company has established a dedicated environmental and safety management committee to assist management in addressing related challenges[147]. - The company has identified 34 key environmental, social, and governance (ESG) issues relevant to its operations through stakeholder engagement[152]. - The importance assessment matrix ranked issues based on their impact on business activities and stakeholder concerns, guiding the company's sustainability efforts[157]. - The company has set sustainability goals and action plans for 2024, which have been achieved and reviewed by management[145].
承达集团(01568) - 2024 - 年度财报