Financial Performance - The company recorded revenue of approximately HKD 185,400,000 for the fiscal year ending December 31, 2024, a slight decrease of 0.3% compared to HKD 185,900,000 in the previous year[5]. - The company reported a loss attributable to shareholders of approximately HKD 46,400,000 for the fiscal year, compared to a profit of HKD 7,500,000 in the previous year[5]. - Basic loss per share for the fiscal year was HKD 0.92, compared to basic earnings per share of HKD 0.15 in the previous year[5]. - Total revenue for the year was approximately HKD 185,400,000, a slight decrease of about HKD 500,000 or 0.3% from HKD 185,900,000 in the previous fiscal year, primarily due to a decline in average selling prices[18]. - Gross profit for the year was HKD 81,900,000, an increase of approximately HKD 800,000 or 1.0% compared to HKD 81,100,000 in the previous year, driven by an increase in gross profit from the health business[19]. - Gross margin increased to 44.2% from 43.6% in the previous year, reflecting improved production and management efficiency[19]. - The board does not recommend the payment of a final dividend for the fiscal year[14]. - The company reported a retained earnings deficit of HKD 762.8 million, with only HKD 24.9 million in contributed surplus available for distribution[194]. Business Segments - The dental business has maintained stable revenue growth despite challenges, with significant growth in the implant business following the completion of acquisitions and integration[6]. - Revenue from dental business for the year ended December 31, 2024, was approximately HKD 179,000,000, a decrease of about HKD 400,000 or 0.2% compared to HKD 179,400,000 for the year ended December 31, 2023[15]. - The sports rehabilitation outpatient business achieved significant growth, with a compound annual growth rate of 38.3% over the past three years[9]. - The company aims to enhance its brand influence and expand local market share through strengthened insurance partnerships in the sports rehabilitation sector[9]. - The company plans to expand its dental product offerings and sales networks both domestically and internationally, including the U.S. market[7]. Investments and Expansion - The company is investing in a dental implant production facility in Chengdu, expected to commence operations in 2025[6]. - The company plans to invest in a new implant production facility in Chengdu, expected to commence production in 2025[16]. - The group aims to enhance shareholder value by expanding its dental and health businesses, leveraging advanced technology and high-quality medical resources[40]. - The group plans to expand its sales network both domestically and internationally, particularly in the U.S., and develop high-end dental products[41]. Corporate Governance - The board of directors emphasizes the importance of effective corporate governance for maintaining and enhancing shareholder value and investor confidence[55]. - The company has complied with the corporate governance code, except for the absence of an internal audit function, which is reviewed annually[55]. - The board consists of executive directors including the chairman and CEO, and independent non-executive directors, ensuring a balance of skills and experience[60]. - The company has established a nomination committee to review the appointment of new directors and related matters[66]. - The chairman is responsible for setting the overall corporate development direction and business strategy[63]. - The CEO is responsible for the daily management and execution of approved strategies[64]. - The company has a policy for the diversity of board members during the nomination process[62]. - Independent non-executive directors confirm their independence annually according to the listing rules[61]. Risk Management and Internal Controls - The group has established a risk management committee to identify, assess, and manage significant risks, including the evaluation of development projects[91]. - The internal control review indicated that the internal control system is effective and sufficient, with no unresolved major concerns identified by the board[93]. - The board will review the group's performance at least semi-annually to determine the appropriateness of declaring dividends[97]. - An independent international consulting firm has been engaged to conduct an internal control review, covering all significant monitoring areas including financial, operational, and compliance controls[92]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the group's performance in these areas, with over 90% of total revenue generated from its largest subsidiaries[108]. - The board has approved the ESG report, which will transition to a new reporting code starting January 1, 2025[109]. - The group aims to manage its environmental and social impacts actively while fulfilling its responsibilities to enhance sustainability and transparency[113]. - The group is committed to corporate social responsibility, including energy-saving measures and providing a safe and healthy work environment[114]. - The group has identified 21 key ESG issues based on their importance to stakeholders and business operations[121]. Employee Relations and Training - The company has established a fair treatment policy to promote equality among employees regardless of various protected statuses[143]. - The company encourages employee feedback through established upward communication channels, ensuring transparency in handling opinions and complaints[144]. - The company conducted employee training programs, with 78.9% of male employees and 73.2% of female employees receiving training in 2024[153]. - As of December 31, 2024, the company has 861 employees with an overall employee turnover rate of approximately 67.7%[146]. - The turnover rate for male employees is 79.3% in 2024, down from 89.5% in 2023, while female employees have a turnover rate of 56.6%, down from 63.6%[146]. Product Quality and Safety - The company received a total of 124 product complaints during the reporting period, resulting in a complaint rate of 0.026%[161]. - The company has implemented a series of quality control measures to ensure product safety and compliance with standards throughout the production process[162]. - There were no product recalls due to health and safety reasons during the reporting period[162]. - The company has a dedicated quality control department that conducts inspections throughout the production process and before the shipment of finished products[162]. Leadership Changes - Mr. Wu Tianyu will resign as an executive director at the conclusion of the 2024 Annual General Meeting, effective June 14, 2024[197]. - Mr. Zhang Huagang will also resign as an executive director at the conclusion of the 2024 Annual General Meeting[197]. - Four new executive directors have been appointed, effective October 22, 2024[197].
佳兆业健康(00876) - 2024 - 年度财报