Financial Performance - The company recorded revenue of HKD 1,631.3 million for the fiscal year 2024, a decrease of approximately 23.3% compared to the fiscal year 2023[16]. - The maritime business segment's revenue decreased by approximately HKD 114.4 million or 65.7%, while the general construction business segment's revenue decreased by approximately HKD 380.1 million or 19.5%[16]. - In the fiscal year 2024, the cost of sales decreased by 22.8% to HKD 1,501.2 million, with a gross profit margin dropping to 8.0% from 8.5% in 2023[18]. - The group recorded an impairment loss provision of HKD 61.3 million for financial assets in fiscal year 2024, including HKD 32.9 million for the general construction segment and HKD 28.4 million for the maritime segment[19]. - The operating loss narrowed to HKD 70.4 million in fiscal year 2024 from HKD 100.4 million in 2023, despite a decline in revenue and further impairment provisions[24]. - The company reported a net loss for the year of HKD 150,711, a reduction of 17.0% from HKD 181,635 in 2023[169]. - Basic and diluted loss per share for 2024 was HKD 19.89, compared to HKD 23.61 in 2023, reflecting a decrease of 15.5%[167]. - The company reported a financial asset impairment loss of HKD 61,298 for 2024, down from HKD 86,775 in 2023, indicating a 29.4% improvement[167]. - The company recorded a loss of HKD 150,711,000 for the year ended December 31, 2024, compared to a loss of HKD 188,898,000 in the previous year, showing a reduction in losses[173]. Business Expansion and Strategy - The company has successfully expanded its business coverage to Guangdong and Hainan provinces to mitigate risks associated with customer concentration and specific regional economic conditions[10]. - The company is actively promoting photovoltaic-related projects, including the construction of related industrial facilities and energy-saving technology curtain wall projects[7]. - The company aims to enhance the synergy between general construction and curtain wall businesses, targeting project expansion in the Middle East market[7]. - The company has developed a comprehensive business expansion plan to capture opportunities from new business regions and sectors, anticipating improved performance in 2025[7]. - The company plans to explore potential projects in the UAE in early 2025[13]. - The group expanded its business into the Chinese construction industry through the acquisition of Dongjie Construction, enhancing its service range and competitiveness in general contracting[105]. - The group aims to consolidate its construction business in China through a framework agreement and ongoing bidding for five projects with Haifa Group[107]. Financial Position and Liabilities - The group's total liabilities to equity ratio increased to 616.6% as of December 31, 2024, compared to 366.0% in the previous year[31]. - Total liabilities increased to HKD 4,974,512,000 in 2024 from HKD 4,555,129,000 in 2023, reflecting a rise of approximately 9.2%[172]. - The company did not meet certain financial covenants for bank borrowings, totaling HKD 428,541,000, which have been classified as current liabilities as of December 31, 2024[181]. - The company believes it has sufficient operating funds to meet its financial obligations for the next twelve months, based on waivers granted by banks regarding unmet financial covenants[182]. Governance and Compliance - The company has adopted the corporate governance code and has complied with its provisions throughout fiscal year 2024, with a correction made regarding the separation of the roles of chairman and CEO[50]. - The board of directors held a total of 9 meetings in fiscal year 2024, with attendance rates varying among members[54]. - The board composition provides a balanced mix of skills, experience, and diverse perspectives to achieve the company's goals[56]. - The company has engaged an external independent consultant to review its internal control system for the fiscal year 2024, covering areas such as construction processes, financial management, inventory, and compliance management[70]. - The company has complied with all relevant laws and regulations in all material aspects during the fiscal year ending December 31, 2024[126]. Employee and Operational Metrics - The total employee cost for the fiscal year 2024 was approximately HKD 127.2 million, a decrease of 32.5% from HKD 188.6 million in fiscal year 2023[42]. - The number of employees decreased from 660 in 2023 to 567 in 2024, reflecting a reduction in various functional areas, particularly project management which saw a drop from 318 to 85 employees[42]. - As of December 31, 2024, the employee composition is 456 males (80.4%) and 111 females (19.6%), indicating a focus on gender diversity[66]. Risk Management - The company is exposed to general economic and market risks that could impact the competitiveness and profitability of maritime construction projects[46]. - The board believes that the risk management and internal control systems are effective and adequate, although they cannot eliminate all risks associated with achieving business objectives[70]. - The company has implemented monitoring procedures to manage credit risk associated with trade receivables[191]. Shareholder Communication and Dividends - The board of directors did not recommend the payment of dividends for the fiscal year 2024[44]. - The company emphasizes the importance of effective communication with shareholders to enhance their understanding of the group's business and performance[73]. - The board will consider distributing dividends at least twice a year, based on various factors including operational performance and financial condition[78]. Credit and Impairment Provisions - The expected credit loss provision for trade receivables, retention money, and notes receivable as of December 31, 2024, is HKD 121,009,000, an increase from HKD 104,957,000 in 2023[200]. - The expected loss ratio for trade receivables and retention money ranges from 0.07% to 36.96% as of December 31, 2024, compared to 0.09% to 23.15% in 2023[198]. - The group applies a simplified approach under HKFRS 9 to measure expected credit losses for trade receivables, retention money, and notes receivable, using lifetime loss provisions[197].
瑞港建设(06816) - 2024 - 年度财报