Financial Performance - The company's revenue for the year ended December 31, 2024, decreased by 72.4% to RMB 76,736,000 from RMB 278,286,000 for the previous year, primarily due to a reduction in the volume of property completions and deliveries [14]. - Gross profit fell by 81.3% to RMB 6,936,000, with a gross margin decline from 13.3% to 9.0%, attributed to a decrease in average property selling prices [14]. - For the year ended December 31, 2024, the company recorded a net loss attributable to owners of RMB 40,590,000, compared to a net profit of RMB 4,507,000 for the year ended December 31, 2023, primarily due to a decrease in revenue, gross profit, and fair value of investment properties, along with increased tax expenses [16]. - The total comprehensive loss for the year ended December 31, 2024, was RMB 41,408,000, compared to a comprehensive income of RMB 7,810,000 in 2023 [140]. - The company reported a net loss of RMB 41,310,000 for the year ended December 31, 2024, compared to a profit of RMB 7,590,000 in 2023 [140]. Expenses and Costs - Sales expenses decreased by 57.8% to RMB 3,513,000, while administrative expenses reduced by 12.1% to RMB 13,349,000, due to additional cost control measures implemented by the company [15]. - The income tax expense increased by 186.1% to RMB 24,098,000, primarily due to insufficient provisions for land value-added tax in the previous year [15]. - The company incurred a financing cost of RMB 7,000 for the year ended December 31, 2024, slightly down from RMB 8,000 in 2023 [140]. Assets and Liabilities - As of December 31, 2024, the total assets of the group amounted to RMB 1,094,032,000, with cash and cash equivalents of RMB 116,590,000, total equity of RMB 762,830,000, and total liabilities of RMB 331,202,000 [17]. - The current ratio as of December 31, 2024, was 3.06, an increase from 2.93 as of December 31, 2023, indicating improved liquidity [17]. - The debt-to-equity ratio as of December 31, 2024, was 13.4%, down from 19.7% as of December 31, 2023, reflecting a reduction in leverage [17]. - Total liabilities decreased from RMB 378,523,000 in 2023 to RMB 321,143,000 in 2024, indicating improved financial stability [143]. Shareholder Information - The company did not recommend any dividend payment for the year, consistent with the previous year [25]. - As of December 31, 2024, the company has significant shareholdings by major shareholders, with Fame Build Holdings Limited owning 1,517,896,394 shares, representing 26.00% of the issued share capital, and Talent Connect Investments Limited owning 1,780,596,394 shares, representing 30.50% [49]. - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting [112]. Corporate Governance - The board consists of six members, with three executive directors and three independent non-executive directors [64]. - The board has a balanced composition of executive and non-executive directors, ensuring sufficient independent judgment [69]. - The company has adopted a board diversity policy to ensure a balanced mix of skills, experience, and diverse thinking among board members [67]. - The company has established appropriate recruitment measures to promote diversity among employees [67]. - The company has maintained compliance with the corporate governance code throughout the fiscal year ending December 31, 2024 [62]. Risk Management - The board has established a risk management system that includes a three-line defense model to identify, assess, and mitigate risks [83]. - The company has engaged an external consultant to review its risk management and internal control systems for effectiveness [84]. - The company has established a risk mitigation plan and appointed risk owners for significant risks identified [83]. Compliance and Regulations - The company is committed to minimizing its environmental impact and has implemented various measures to ensure compliance with environmental laws and regulations [55]. - The company has adhered to all relevant laws and regulations that significantly impact its operations during the year [56]. - The company has established an "Insider Information Policy" to ensure timely and fair disclosure of insider information, maintaining confidentiality until public release [85]. Financial Reporting - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, reflecting a true and fair view of the group's financial position [120]. - The audit opinion confirms that the financial statements are free from material misstatement, providing assurance to stakeholders [121]. - The company is committed to transparency and adherence to ethical standards in its financial reporting and auditing processes [121]. Employee Information - The total employee cost for the year ended December 31, 2024, was RMB 8,144,000, slightly up from RMB 8,013,000 in 2023 [19]. - The gender ratio among employees, including senior management, is 1.62:1 as of December 31, 2024 [67]. Projects and Development - The company is focusing on residential property projects in China, specifically in Xinyang, Henan Province, and Wugang, Hunan Province, amidst a challenging domestic real estate market [8]. - The company has several ongoing projects, including the Xixian Kangqiao Academy in Henan and the Wugang Kangqiao Academy in Hunan, with expected completion dates ranging from 2025 to 2027 [10]. - The total area of ongoing and completed projects amounts to 1,107,000 square meters, with a significant portion still under development [10].
建德国际控股(00865) - 2024 - 年度财报