Financial Performance - The company recorded a revenue of approximately HKD 114,896,000 for the year ended December 31, 2024, representing a decrease of about 7.7% compared to the previous year[6]. - The net profit attributable to shareholders for the year was approximately HKD 7,035,000, down from HKD 13,558,000 in 2023[6]. - The company recorded a profit of HKD 7,035,000 for the year ending December 31, 2024, down from HKD 13,558,000 for the previous year, representing a decline of approximately 48.2%[26]. - Revenue for 2024 was HKD 114,896,000, a decrease of 7.3% compared to HKD 124,423,000 in 2023[196]. - Gross profit for 2024 was HKD 38,527,000, down 15.7% from HKD 45,724,000 in 2023[196]. - Net profit for the year was HKD 7,035,000, a decline of 48.2% from HKD 13,558,000 in 2023[196]. - Basic and diluted earnings per share for 2024 were HKD 0.88, compared to HKD 1.69 in 2023, reflecting a decrease of 48%[196]. Revenue Sources - Revenue from the tobacco flavoring and blending machinery contracts was HKD 108,722,000, accounting for 94.6% of total revenue, compared to HKD 102,897,000 or 82.7% in the previous year[26]. - The average contract value for completed tobacco flavoring machinery contracts was HKD 4,727,000, down from HKD 6,431,000 in the previous year[28]. Expenses and Costs - Operating expenses decreased by HKD 597,000 or 2.2% to HKD 26,191,000 compared to HKD 26,788,000 in the previous year[29]. - Selling and distribution expenses decreased significantly by HKD 3,758,000 to HKD 6,452,000, attributed to a focus on a limited number of major clients[30]. - Administrative expenses increased by HKD 3,161,000 or 19.1% to HKD 19,739,000, mainly due to higher travel, welfare, and security expenses[30]. - Research and development expenses slightly decreased by HKD 67,000 or 1.4% to HKD 4,605,000[30]. Assets and Liabilities - The group's cash and cash equivalents reached HKD 96,630,000 as of December 31, 2024, compared to HKD 86,100,000 in 2023, primarily denominated in RMB and HKD[35]. - The net current assets of the group increased to HKD 106,521,000 as of December 31, 2024, from HKD 98,984,000 in 2023[35]. - The group maintained a zero debt ratio as of December 31, 2024, consistent with the previous year[35]. - Total assets less current liabilities increased to HKD 129,838,000 in 2024 from HKD 125,066,000 in 2023, representing a growth of 2.2%[198]. - Current assets net worth rose to HKD 106,521,000 in 2024, up from HKD 98,984,000 in 2023, an increase of 7.8%[198]. - Trade and other receivables increased to HKD 49,380,000 in 2024 from HKD 38,780,000 in 2023, a growth of 27.5%[198]. - Cash and cash equivalents decreased to HKD 59,532,000 in 2024 from HKD 86,100,000 in 2023, a decline of 30.8%[198]. Corporate Governance - The company has adopted all the corporate governance code provisions except for the separation of the roles of Chairman and CEO, as stated in code provision C.2.1[88]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[90]. - All independent non-executive directors have confirmed their independence and possess appropriate professional accounting qualifications or relevant financial management experience[99]. - The company has no established corporate governance committee, with the board authorized to perform governance functions[97]. - The roles of Chairman and CEO are held by the same individual, Liu Li, ensuring clarity in leadership[100]. - The company will present a resolution for the re-election of directors at the annual general meeting, including Liu Li and other newly appointed directors[104]. Environmental and Social Responsibility - The company is focused on sustainable development, aiming to create long-term value for shareholders and stakeholders[135]. - The environmental, social, and governance report is prepared in accordance with the Hong Kong Stock Exchange's guidelines for the fiscal year ending December 31, 2024[136]. - In the fiscal year 2024, the company emitted 388.14 tons of CO2 equivalent greenhouse gases, a decrease of 22.1% from 498.87 tons in fiscal year 2023[145]. - The total water consumption was approximately 23,557 tons in fiscal year 2024, a significant decrease of 49.7% from 46,748 tons in fiscal year 2023[147]. - The company strictly adheres to labor laws and regulations, with no reported violations during the reporting period[152]. - The company has committed to corporate social responsibility and community investment initiatives moving forward[175]. Employee and Workforce Information - Employee costs totaled approximately HKD 19,798,000 for the year ended December 31, 2024, slightly down from HKD 19,981,000 in 2023[37]. - The average employee count in fiscal year 2024 was 132, with a gender distribution of 20% female and 80% male[155]. - Employee turnover rates for fiscal year 2024 and 2023 were 9.09% and 5.56% respectively[161]. - The injury rate per 100 employees was 0% in fiscal year 2024, compared to 0.68% in fiscal year 2023[165]. - The employee training participation rate for females increased to 33.3% in fiscal year 2024 from 29% in fiscal year 2023[167]. Audit and Financial Reporting - The company confirmed that the consolidated financial statements for the year ending December 31, 2024, were prepared in accordance with relevant laws and listing rules[118]. - The auditors aim to obtain reasonable assurance that the financial statements are free from material misstatement[189]. - The audit report does not cover other information included in the annual report, which is the responsibility of the company's directors[183]. - The audit partner responsible for issuing the independent auditor's report is Ye Tianxing[193].
仁恒实业控股(03628) - 2024 - 年度财报