Financial Performance - The company reported a significant increase in revenue, reaching $500 million, representing a 25% year-over-year growth[5]. - The Group recorded revenue of HK$2,774.7 million for the year ended 31 December 2024, an increase of 2.4% compared to 2023[40]. - For the year ended December 31, 2024, the Group recorded revenue of HK$2,644.8 million from the manufacture and sales of suspension products, an increase from HK$2,509.0 million in 2023, primarily due to an increase in orders from the plants in Poland and the Czech Republic[56][61]. - The Group reported a loss of HK$128.0 million for the Current Year, maintaining a stable financial position with HK$134.1 million in cash and cash equivalents and no bank loans as of 31 December 2024[41]. - The loss attributable to owners of the Company was approximately HK$128.0 million, compared to HK$55.3 million in 2023[84][87]. - The net income tax expense for the year ended 31 December 2024 was HK$10.2 million, a decrease from a net income tax credit of HK$32.2 million in 2023[78][82]. - The Group's operating activities generated a net cash inflow of HK$99.6 million for the year ended 31 December 2024, compared to HK$70.7 million in 2023[86][88]. - The Group maintained cash and cash equivalents of HK$134.1 million as of 31 December 2024, slightly down from HK$136.0 million as of 31 December 2023[86][88]. - The Group did not have any bank borrowings as of 31 December 2024 and 2023, resulting in a gearing ratio of 0%[90][91]. Market and Strategic Initiatives - The company provided guidance for the next fiscal year, projecting revenue growth of 20% to $600 million[5]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2025[5]. - A strategic acquisition of a local competitor was completed, valued at $100 million, aimed at enhancing product offerings[5]. - The Group aims to strengthen cooperation with European automobile manufacturers to maintain and increase sales revenue, while also managing supply-chain risks and cost control[45][47]. - The Group is cautiously optimistic about future development and aims to create more value for shareholders[46][48]. Research and Development - Research and development expenses increased by 30%, totaling $30 million, to support innovation in new technologies[5]. - Research and development expenses rose by 42.6% to HK$392.9 million in 2024, compared to HK$275.5 million in 2023, due to increased activities for new automobile braking products[65][69]. - The company emphasizes continuous investment in research and development to maintain its leadership position in the automotive parts industry[117]. Corporate Governance - The Company is committed to maintaining high corporate governance standards to safeguard shareholder interests and enhance accountability and transparency[122][127]. - The Board consists of six Directors, including three Executive Directors and three Independent Non-executive Directors, ensuring a balanced composition for effective decision-making[126][130]. - The Company has complied with the Corporate Governance Code during the financial year ended December 31, 2024, ensuring adherence to best practices[125][129]. - The Company adopted a Board Diversity Policy on January 27, 2014, which was reviewed during the year to ensure its continued effectiveness[161]. - The Company must appoint at least one female Director by December 31, 2024, in compliance with new Listing Rules effective January 1, 2022[164]. - The Company has received confirmations of independence from all Independent Non-executive Directors, ensuring their independence as per Rule 3.13 of the Listing Rules[184]. Employee and Workforce Management - As of December 31, 2024, the Group had approximately 2,200 employees, with total employee costs amounting to HK$572.2 million, an increase from HK$520.8 million in 2023, reflecting a year-over-year growth of approximately 9.9%[120][121]. - The remuneration packages for employees are reviewed annually based on market conditions and individual performance, ensuring competitive compensation[120][121]. - The Group has defined benefit pension plans covering substantially all qualified employees in Poland, France, and Germany, alongside a mandatory provident fund scheme for employees in Hong Kong[120][121]. Sustainability and Environmental Goals - The company aims to reduce carbon emissions by 25% by 2026 as part of its sustainability strategy[5]. - Despite pricing pressure from customers, the company aims to maintain a reasonable gross profit margin and sustainable business development[118]. Board Meetings and Director Responsibilities - The Board meets regularly, holding at least four meetings a year, with provisions for additional meetings as required[140][141]. - The Board held five physical meetings during the financial year ended December 31, 2024, to review and approve the interim and final results of the Group[149]. - The Company aims to provide sufficient information to the Board to enable informed decision-making regarding financial and other matters[154]. - Procedures are in place for Directors to seek independent professional advice at the Company's expense when necessary[157]. Economic and Geopolitical Factors - The geopolitical situation, including the ongoing Russian-Ukrainian war and tariff threats, creates considerable uncertainty for the global political and economic landscape[111]. - The International Monetary Fund forecasts a GDP growth of 1.0% for the eurozone in 2025, indicating stable economic development in Europe[112]. - The European automotive industry is expected to rebound as demand continues to rise in the post-pandemic stage[42].
京西国际(02339) - 2024 - 年度财报