Financial Performance - Revenue for the year ended December 31, 2024, was HK$1,605.4 million, a decrease of 3.5% from HK$1,663.1 million in 2023[12] - The OEM Business revenue decreased by 6.8% to HK$930.0 million, while the Fashion Retail Business revenue decreased by 4.3% to HK$579.0 million[12] - The Property Investment Business saw a significant increase in revenue, rising by 59.9% to HK$96.4 million[12] - The operating loss for 2024 was HK$434.6 million, compared to an operating loss of HK$276.1 million in 2023[12] - Fair value losses on investment properties amounted to HK$113.4 million, up from HK$16.0 million in the previous year[12] - Equity attributable to the Company's equity holders decreased to HK$1,559.8 million from HK$1,990.1 million, representing a decline of 21.6%[12] - The equity per share decreased from HK$0.95 in 2023 to HK$0.75 in 2024[12] - The gross profit for FY2024 was HK$290.4 million, down 8.5% from HK$317.4 million in FY2023[56] - The loss attributable to equity holders for FY2024 was HK$481.4 million, with a net asset value per share of HK$0.75 as of December 31, 2024[56] Revenue Breakdown - Revenue from the OEM business decreased by 6.8% to HK$930.0 million in FY2024, down from HK$998.1 million in FY2023[57] - Domestic retail sales in the PRC amounted to HK$579.0 million in FY2024, reflecting a year-on-year decrease of 4.3%[54] - The retail business revenue in FY2024 amounted to HK$579.0 million, a decrease of 4.3% from HK$604.7 million in FY2023[64] - The major brand Finity contributed HK$206.9 million to retail revenue in FY2024, down 9.6% from HK$228.9 million in FY2023[64] - Revenue from concessionary counters was HK$149.8 million in FY2024, accounting for 21.0% of total retail revenue, compared to HK$189.6 million in FY2023[69] - E-commerce sales increased to HK$303.7 million in FY2024 from HK$296.7 million in FY2023, while self-operated stores and franchisee sales were HK$15.7 million and HK$109.8 million, respectively[69] - Revenue from the property investment business rose to HK$96.4 million in FY2024, representing a significant increase of 59.9% from HK$60.3 million in FY2023[71] Market Challenges and Strategies - The company aims to optimize its brand matrix and improve product quality to strengthen its position in the domestic market[40] - The company is enhancing its product design and innovation capabilities to gain international recognition and compete effectively in the global market[41] - The company acknowledges challenges such as fierce market competition and rising costs but remains committed to achieving greater success in the future[42] - The domestic retail segment faced pressure due to weak overall consumption, impacting gross profit margins[54] - The Group plans to enhance its Cambodian production base and invest in cross-border e-commerce to tap into global markets in 2025[77] Financial Position and Capital Management - As of December 31, 2024, cash and cash equivalents decreased by 54.4% to HK$140.5 million from HK$308.3 million as of December 31, 2023[72] - The Group's bank borrowings increased to HK$599.5 million as of December 31, 2024, compared to HK$383.3 million as of December 31, 2023[72] - The debt to equity ratio as of December 31, 2024, was 38.1%, up from 19.1% as of December 31, 2023[72] - Approximately 28.1% of revenue was denominated in USD and 71.9% in RMB during FY2024[96] - As of December 31, 2024, approximately 16.9% of cash and bank balances were in USD, 80.6% in RMB, and 2.1% in HK$[97] - Approximately 77.3% of bank borrowings were denominated in RMB and 22.7% in HK$[97] - The Group plans to monitor foreign currency risk closely due to ongoing currency fluctuations between RMB and USD[98] - Capital commitments contracted but not incurred as of December 31, 2024, amounted to HK$26.0 million, mainly related to the construction of the China Ting International Fashion Base[87] Human Resources and Management - The Group employs 5,050 full-time employees as of December 31, 2024[90] - Employee costs for FY2024 were HK$392.1 million, an increase of 3.6% compared to HK$378.3 million in FY2023[90] - The Group's management team is committed to maintaining high standards in product quality control and production efficiency[124] - The Group's leadership is well-versed in both local and international markets, positioning it for future growth and expansion[119] Corporate Governance - The Board is committed to high standards of corporate governance, ensuring all business activities are properly regulated to safeguard shareholders' interests[137][141] - The Group has complied with the Corporate Governance Code during the year ended December 31, 2024[137][141] - The Board's key responsibilities include providing leadership and supervision to enhance shareholders' long-term value[138][142] - The Group has established risk management and internal control systems to ensure corporate value and culture alignment[140][142] - The Board consists of four executive Directors and four independent non-executive Directors, including three brothers[149] - The Board has implemented a mechanism to ensure independent views are available, with satisfactory results from the annual review conducted for the year ended 31 December 2024[159] - The Board adopted a diversity policy, with current composition showing 6 male and 1 female Director, and 7 Directors over the age of 60[168] - The Company has established good corporate governance practices, including the establishment of various Board Committees[196] Director and Committee Information - The Remuneration Committee consists of three members and is responsible for reviewing remuneration packages and ensuring the recruitment and retention of high-quality personnel[196] - One Remuneration Committee meeting was held in 2024 to review and recommend adjustments to directors' fees and executive remuneration packages for the year ending December 31, 2024[198] - The Company has adopted a code for the remuneration of executive Directors and senior management, which requires shareholder approval for directors' fees[197] - The independent non-executive Directors have confirmed their independence in accordance with Listing Rules[190] - The Company has arranged appropriate insurance to protect Directors against liabilities arising from company affairs[191]
华鼎控股(03398) - 2024 - 年度财报