Financial Performance - For the fiscal year 2024, the company's revenue from continuing operations decreased by approximately 16.9% to about HKD 44.7 million, down from approximately HKD 53.8 million in fiscal year 2023[15]. - The gross profit for fiscal year 2024 was approximately HKD 15.8 million, an increase of about HKD 1.8 million from HKD 14.0 million in fiscal year 2023, resulting in a gross margin increase from 26.0% to 35.3%[16]. - The company's loss attributable to equity shareholders for the fiscal year 2024 was approximately HKD 1.9 million, a decrease of about 62.0% compared to HKD 5.0 million in fiscal year 2023[20]. - The total employee cost for the fiscal year 2024 was approximately HKD 17.0 million, up from HKD 16.1 million in fiscal year 2023[39]. - The company reported that sales to its top five customers accounted for 56.17% of total sales for the fiscal year 2024, with the largest customer contributing 20.68%[194]. - Purchases from the top five suppliers represented 73.26% of total procurement for the fiscal year 2024, with the largest supplier accounting for 43.56%[194]. Expenses and Cost Management - Sales and distribution expenses for fiscal year 2024 were approximately HKD 3.2 million, a slight decrease from HKD 3.3 million in fiscal year 2023[17]. - Administrative expenses for fiscal year 2024 were approximately HKD 15.1 million, down by about HKD 2.9 million from HKD 18.0 million in fiscal year 2023[18]. - The audit fees for the fiscal year 2024 amounted to HKD 530,000 for audit services provided by the accounting firm[71]. Market and Strategic Outlook - The company remains cautiously optimistic about its operations, anticipating potential benefits from the macroeconomic recovery despite a challenging global economic environment[9]. - The company plans to maintain a flexible and targeted sales and marketing strategy to provide diversified and customized products and services, aiming to strengthen its market position[10]. - The company will continue to seek potential investment opportunities in mainland China, Hong Kong, and overseas to enrich its business and create new revenue sources[10]. - The metal casting business revenue decreased by approximately 16.9% due to the impact of interest rate hikes and inflation, despite an increase in average selling prices[14]. - The company’s largest market remains Germany, with customers also from mainland China and the United States[14]. Governance and Compliance - The board of directors consists of two executive directors and three independent non-executive directors, with a total of nine meetings held in the fiscal year 2024[49]. - The audit committee held three meetings in the fiscal year 2024, with all members attending the meetings, ensuring oversight of financial reporting and internal controls[57]. - The remuneration committee also held three meetings in the fiscal year 2024, reviewing the compensation policies for all directors and senior management[60]. - The company has adopted anti-corruption and whistleblowing policies to promote integrity and ethical conduct within the organization[46]. - The board has established three committees: the audit committee, remuneration committee, and nomination committee, to oversee specific aspects of the company's affairs[55]. - The company has a clear distinction between the roles of the chairman and the CEO, ensuring effective leadership and management oversight[54]. - Independent non-executive directors constitute more than one-third of the board, ensuring compliance with GEM listing rules regarding independence[53]. - The company has arranged appropriate insurance coverage for directors and senior management against legal actions arising from corporate activities[47]. - The board is committed to corporate governance and has established a framework to ensure accountability and transparency in its operations[46]. - The board has adopted a diversity policy aiming for at least one-third of board members to be female, achieving this goal as of December 31, 2024, with three female directors[65]. Risk Management - The group faces various market risks, including currency, interest rate, credit, and liquidity risks, which may impact its business and profitability[29]. - The company maintains a prudent treasury policy to manage liquidity risks and ensure sufficient cash flow[31]. - The company has implemented a three-tier risk management approach to identify, assess, and manage significant risks, with the board reviewing the effectiveness of the internal control system annually[73]. - The board confirmed that there are no significant uncertainties affecting the company's ability to continue as a going concern[69]. Sustainability and ESG Initiatives - The company is committed to integrating sustainable development principles into its strategic planning and daily operations, focusing on environmental, social, and governance (ESG) performance[91]. - The group has committed to sustainable development and will launch multiple environmental protection and social welfare initiatives during the reporting period from January 1, 2024, to December 31, 2024[99]. - The board is responsible for integrating environmental, social, and governance (ESG) principles into business operations and has established a risk management system to ensure data accuracy and reliability[100]. - The group identified key ESG issues through stakeholder engagement and importance assessments, focusing on emissions, resource usage, and climate change as high-priority areas[104]. - The group maintains effective communication channels with stakeholders, including shareholders, employees, customers, suppliers, government, and the public, to gather feedback and enhance sustainable development strategies[102]. - The group adheres to the "comply or explain" disclosure requirements of the ESG reporting guidelines, ensuring transparency and accountability in its operations[92]. - The group emphasizes the importance of stakeholder opinions in shaping and implementing sustainable development strategies, enhancing its ESG performance[98]. - The group has established a consistent approach to reporting key performance indicators, allowing for meaningful comparisons with previous reports[93]. - The group recognizes the significance of environmental and social issues for long-term growth and is committed to creating sustainable value for stakeholders[99]. - The group has conducted an annual importance assessment to identify significant ESG topics relevant to its operations, ensuring alignment with stakeholder expectations[104]. - The group is focused on enhancing its environmental and social performance through strategic planning and resource allocation based on identified ESG issues[104]. - The company aims to reduce energy consumption, greenhouse gas emissions, and water resources by 5% by 2030 based on 2024 levels[105]. - Direct greenhouse gas emissions for 2024 are projected to be 3.63 tons of CO2 equivalent, with an employee density of 0.04 tons[106]. - Total greenhouse gas emissions for 2024 are expected to reach 3,766.36 tons of CO2 equivalent, with a density of 84.20 tons per million HKD revenue[106]. - The company consumed approximately 54.82 tons of packaging materials during the reporting period[111]. - The company has implemented waste management strategies to reduce both hazardous and non-hazardous waste by 5% by 2030 based on 2024 levels[110]. - Energy consumption for 2024 is projected to be 5.31 MWh, with a density of 0.01 MWh per ton of production[108]. - Water usage for 2024 is estimated at 11,472 cubic meters, with a density of 86.26 cubic meters per employee[108]. Employee and Community Engagement - The total number of employees as of December 31, 2024, is 95, with a gender distribution of 81.1% male and 18.9% female[118]. - Employee turnover rate for females is 38.9%, while for males it is 5.2%[119]. - The average training time per employee is 25 hours, with 100% of employees trained[127]. - The number of work-related injuries decreased from 11 in 2023 to 9 in 2024[124]. - There were no work-related fatalities reported in 2024, maintaining a record from 2023[124]. - The company actively supports community development through cash donations during the reporting period[136]. - The company encourages employees to participate in volunteer activities and contribute to community sustainability[135]. Compliance and Legal Matters - The company has zero tolerance for child labor and forced labor, with no violations reported during the reporting period[128]. - The company has established a comprehensive safety protocol to ensure a safe working environment[120]. - The company strictly adheres to local labor laws and has no reported violations in the 2024 fiscal year[115]. - There were no significant violations of data privacy laws reported during the period[132]. - The company has not faced any significant penalties related to labor laws or safety regulations[123]. Shareholder and Financial Reporting - The company aims to provide high levels of disclosure and financial transparency to shareholders and investors, with regular updates through interim and annual reports[79]. - The company has no predetermined dividend payout ratio, and the board considers various factors, including financial performance and cash requirements, when determining dividend payments[81]. - The company reported no dividends for the fiscal year 2024, consistent with the previous fiscal year 2023[156]. - The company has not repurchased any shares during the fiscal year 2024[161]. - There were no stock options granted under the stock option plan since its adoption until the date of this report[174]. - The company’s financial performance for the fiscal year 2024 is detailed in the consolidated income statement and other comprehensive income section of the annual report[155]. - The company’s capital structure changes are detailed in the consolidated financial statements[158]. - The company’s available reserves for distribution as of December 31, 2024, are outlined in the consolidated financial statements[157]. Auditor and Financial Oversight - The company's auditor for the fiscal year 2024 is SFAI (HK) CPA Limited, previously known as Yongtuo Fuson CPA Limited[200]. - The auditor has been in place since July 8, 2022, filling a temporary vacancy after the resignation of another firm[200]. - The annual general meeting will see the current auditor retire, but they are qualified and willing to be reappointed[200].
吉盛集团控股(08133) - 2024 - 年度财报