Financial Performance - The Group achieved sales revenue of HK$2,349.0 million for the year 2024, representing a decrease of 22.2% compared to the previous year[13]. - Profit attributable to shareholders was HK$587.5 million, a decrease of 14.4% year-on-year, with basic earnings per share at HK28.94 cents[13][28]. - For the year ended December 31, 2024, the Group's revenue amounted to HK$2,349.0 million, representing a decrease of 22.2% compared to the previous year[31][35][37]. - The profit attributable to equity holders was HK$587.5 million, a decline of 14.4% year-on-year, with basic earnings per share at HK$28.94 compared to HK$33.82 in 2023[31]. - The total sales volume decreased by 9.7% year-on-year, influenced by sluggish market demand and inventory depletion among customers[34][36]. Dividend Recommendations - The Board recommends a dividend of HK9.0 cents per share for the year ended 31 December 2024, down from HK10.5 cents in 2023[15][18]. - The Board recommends a dividend of HK9.0 cents per share for the year ended 31 December 2024, totaling HK$182,688,000, a decrease from HK$213,137,000 in 2023[199]. Research and Development - The Group plans to enhance investment in research and development of security chips for mobile terminals, Internet of Things, and Internet of Vehicles[17][19]. - Research and development costs increased to HK$447.6 million, accounting for 19.1% of revenue, up from 14.0% in 2023, focusing on security SE chips and microcontroller unit chip products[42][44]. - The Group obtained 19 new patents, registered 1 new software copyright, and 3 new integrated circuits layout designs during the year[29]. Market Conditions - The global macroeconomic environment remains weak, with smart card demand expected to continue in a downward cycle, increasing competition and downward pressure on prices[16]. - The Group aims to dynamically adjust production and sales strategies to better meet customer needs amid changing market trends[16]. - The range of application for security SE chips and security microcontroller unit chips is expected to expand, presenting new market opportunities[16]. - The Group will closely monitor domestic and international market trends to identify potential market expansion opportunities[16]. Corporate Governance - The Company has complied with all applicable code provisions in the Corporate Governance Code throughout the year, except for one provision related to meeting attendance[63][67]. - The Group is committed to achieving high corporate governance standards, focusing on accountability, transparency, and fairness[62][66]. - The Board has ensured the adequacy of resources, staff qualifications, training programs, and budget for accounting, internal audit, and financial reporting functions[144]. - The Board consists of 87% male and 13% female members, with one female director currently serving[81]. - The Group has a Board Diversity Policy to ensure diversity among board members, currently having one female director[76]. Board Composition and Meetings - The Board comprised two executive directors, two non-executive directors, and four independent non-executive directors as of December 31, 2024, with separate roles for the chairman and the chief executive[70][73]. - The Board holds meetings at least 4 times a year, with management providing regular updates on the Group's performance and financial position[87]. - The attendance record of directors at meetings held in 2024 is documented in the annual report[88]. - The company reported a total of 7 board meetings attended by executive directors, with Chang Feng attending all 7 meetings[181]. - Non-executive director Chan Kay Cheung attended all 8 board meetings, demonstrating strong engagement[185]. Risk Management and Internal Controls - The audit committee is tasked with overseeing the Group's financial, risk management, and internal control systems, reporting to the Board on their effectiveness annually[134]. - The management is responsible for the design and implementation of risk management and internal control systems, while the audit committee oversees their effectiveness[136]. - The Group's risk management and internal control systems were reported as effective and adequate throughout the year ended December 31, 2024[142]. - The audit department is responsible for analyzing and assessing the adequacy and effectiveness of the Group's risk management and internal control systems, reporting directly to the audit committee[121]. Shareholder Communication - The Company maintains ongoing communication with shareholders through various channels, including the annual general meeting where management addresses shareholder inquiries[158]. - The Company's Shareholders' Communication Policy is available on its website, ensuring timely access to corporate information[162]. - Procedures for shareholders to convene a special general meeting require at least 10% of the paid-up capital[145]. - Shareholders holding at least 5% of the paid-up capital can request the Company to give notice of any resolution intended to be moved at a general meeting[151]. Employee and Management Policies - Employee benefit expenses for the year amounted to HK$352.6 million, with approximately 33.3% of the 470 employees being female[58][61]. - The Group emphasizes a strict recruitment policy and performance appraisal scheme, with remuneration policies aligned with industry practices and regularly reviewed[59]. - The company is focused on strategic appointments to strengthen its management and operational capabilities[176].
中电华大科技(00085) - 2024 - 年度财报