Financial Performance - The Group recorded a revenue of HK$1,805,382,000 for 2024, a decrease of 1.4% from HK$1,830,186,000 in 2023[7]. - Gross profit for the year was HK$476,703,000, down 16.0% from HK$567,574,000 in 2023[7]. - Profit for the year decreased to HK$56,010,000, compared to HK$162,209,000 in 2023, primarily due to challenges with the new ERP system[7]. - Basic earnings per share fell to HK0.60 cents from HK1.74 cents in 2023, representing a decline of 65.5%[9]. - The return on equity for 2024 was 1.9%, down from 5.4% in 2023[9]. - Administrative expenses for the year were recorded at HK$296,300,000, a decrease from HK$311,185,000 in 2023, indicating improved cost management[38]. - The Group recorded a share of loss from an associate of HK$4,370,000 in 2024, compared to HK$4,112,000 in 2023, alongside a gain of HK$10,097,000 from deemed disposal of partial interest in an associate[37]. - The Group's total equity as of December 31, 2024, was HK$2,979,137,000, slightly down from HK$2,995,461,000 in 2023, with interest-bearing debts including lease liabilities of HK$288,591,000[44]. Operational Developments - The USA subsidiary's order deliveries in the second half of 2024 exceeded those of the same period last year, indicating recovery in production capacity[8]. - The Group successfully implemented a new ERP system in the USA subsidiary, which initially faced challenges but ultimately improved operational performance[18]. - The Group developed an expanded global supply chain network to enhance quality, optimize lead times, and improve cost efficiency amidst geopolitical challenges[26]. - The Group has established an expanded global supply chain network to mitigate geopolitical risks and enhance operational resilience[28]. - The Group is focused on expanding Prime and Titan engine production as part of its 2025 strategic initiatives to meet growing demand while maintaining high industry standards[66]. - The Group has implemented a World-Class Manufacturing (WCM) system to drive optimization, innovation, and efficiency[65]. Product Development - The Group's helicopter-specific CD-170R engine model certification application was submitted to EASA, with approval expected by June 2025, expanding product lines[25]. - The Group submitted a certification application for the CD-170R engine model to the European Union Aviation Safety Agency (EASA), expected to be approved by June 2025, marking a significant milestone in expanding the product line for the general aviation sector[27]. - The General Aviation market saw total aircraft deliveries valued at US$31.2 billion in 2024, a 13.3% increase over 2023, with piston airplane shipments up 4.2%[16]. - The Group is expanding new general aviation product segments and markets, holding several Supplemental Type Certificates (STCs) for retrofitting aircraft with FADEC-controlled Jet-A engines[61]. - The Group continues to offer a range of fuel-injected Prime IO-370 engine models, delivering 180 to 195 horsepower, and is committed to developing innovative technologies to enhance engine reliability[64]. Corporate Governance - The company emphasizes transparency, accountability, and responsibility to its shareholders as part of its corporate governance practices[93]. - The company complied with all code provisions of the "Corporate Governance Code" for the year ended December 31, 2024[94]. - The company has adopted the "Model Code for Securities Transactions by Directors of Listed Issuers" to regulate directors' securities transactions[95]. - The Company has established a written guideline for securities transactions by relevant employees, with no incidences of non-compliance noted[101]. - The Company has a commitment to maintaining good standards of corporate governance practices[93]. - The Board consists of five executive Directors, one non-executive Director, and three independent non-executive Directors, all serving the full year ended December 31, 2024[103]. - The Company has adopted a board diversity policy, currently comprising one female and eight male Directors, aiming to improve gender diversity over time[110]. - The Company has established procedures for safeguarding assets and maintaining proper accounting records[172]. - The Company has developed and reviewed its corporate governance policies and practices during the year[118]. Board and Management - Mr. Huang Yongfeng has been appointed as the chairman of the company since April 1, 2022, and has extensive experience in financial management and mergers and acquisitions[72]. - Ms. Jiao Yan has served as the board secretary and general counsel of AVIC Innovation, bringing legal expertise to the executive team[74]. - Mr. Yu Xiaodong has been the Chief Executive Officer since April 1, 2022, with a strong background in international trade and human resources management[76]. - Mr. Zhang Zhibiao was appointed as an executive Director on April 3, 2023, and has over 25 years of experience in management and aviation business[78]. - Mr. Li Peiyin, appointed as an executive Director on April 1, 2022, has over 11 years of experience in corporate financial management and is currently the head of the finance department[80]. - The Company has established a clear division of responsibilities between the Chairman and the Chief Executive Officer[137]. - The Company has received annual confirmations of independence from all independent non-executive Directors, ensuring compliance with Listing Rules[138]. - The Company has entered into service agreements with certain Directors for a term of three years, while others have no specified length of service[139]. Risk Management and Compliance - The Board is responsible for monitoring the Company's compliance with legal and regulatory requirements[117]. - The internal audit section evaluated the effectiveness of the Group's risk management and internal control systems, with no material deficiencies identified during the year ended December 31, 2024[173]. - The Audit Committee reviews the adequacy and effectiveness of the Group's risk management and internal control systems[173]. - The Company has implemented a Corporate Disclosure Policy to handle and disseminate inside information[176]. - The Board confirms that systems are in place to identify, control, and report on significant risks involved in achieving the Company's strategic objectives[173]. Shareholder Engagement - The company emphasizes fair disclosure and transparent reporting to shareholders[194]. - Shareholders can propose resolutions at meetings if they represent at least 5% of voting rights or 100 shareholders[188]. - A requisition for a special meeting must be submitted at least six weeks prior if it requires a resolution notice[189]. - The company has established a communication policy to ensure effective engagement with shareholders[195]. - Shareholders can send inquiries to the Board through the Company Secretary at specified contact details[193]. - The company is committed to timely dissemination of information through various formal channels[198]. - Procedures for proposing a director for election are available on the company's website[192]. - The company regularly reviews its shareholders' communication policy for effectiveness[199].
大陆航空科技控股(00232) - 2024 - 年度财报