Financial Performance - The Group's revenue for the year ended December 31, 2024, was approximately HK$897.5 million, representing an increase of approximately 10.9% compared to HK$809.1 million in 2023[21]. - The Group reported a loss of approximately HK$99.0 million for the year, compared to a loss of approximately HK$61.1 million in 2023[21]. - The basic loss per share amounted to approximately HK$1.35 cents, an increase from approximately HK$0.52 cents in 2023[21]. - For the year ended 31 December 2024, the Group's revenue and gross profit amounted to approximately HK$897.5 million and HK$516.2 million, representing an increase of approximately 10.9% and 9.5% compared to the previous year[44]. - The Group's net loss for the year ended 31 December 2024 was approximately HK$99.0 million, an increase from a net loss of approximately HK$61.1 million in 2023, with basic loss per share at approximately HK$1.35 cents[44]. Dividend Policy - The Board has decided not to recommend any final dividend for the year ended December 31, 2024, consistent with the previous year[18]. - The Company aims to provide stable and sustainable returns to shareholders through its dividend policy, which was adopted in December 2018[19]. - The Company will consider various factors, including operational performance and future prospects, when proposing dividends[19]. - The Group's dividend policy aims for stable and sustainable returns to shareholders, but no final dividend was recommended for the year ended 31 December 2024[22][24]. Business Segments - The pharmaceutical business remains a key pillar for the Group, with plans for sales expansion and enhancement of core competitiveness through research and development[32]. - The fitness business in Singapore is set to introduce a new revenue line of Pilates Reformers in 2025, capitalizing on growing consumer interest[37]. - The Group's fitness business has recovered significantly from the impact of the COVID-19 pandemic, offsetting the adverse effects of decreased royalty fee income[45]. - For the year ended December 31, 2024, the revenue and gross profit of the Group's pharmaceutical business were approximately HK$682.1 million and HK$501.1 million, representing year-on-year increases of approximately 12.3% and 7.3% respectively[48]. - The profit from the pharmaceutical business segment decreased to approximately HK$7.0 million for the year ended December 31, 2024, down from approximately HK$69.6 million in 2023, primarily due to a one-off gain of approximately HK$110.5 million from the disposal of 66% equity interest in Shaanxi Life Care in 2023[49]. - The Group's fitness business revenue was approximately HK$215.4 million for the year ended December 31, 2024, an increase from approximately HK$202.0 million in 2023, with a loss of approximately HK$71.8 million, improved from a loss of approximately HK$81.5 million in 2023[68]. Operational Strategies - The Company is focused on enhancing its market position and exploring new opportunities for growth[17]. - The Group will continue to focus on cost control to mitigate the negative impacts on profitability from product price fluctuations[32]. - The introduction of effective marketing strategies has driven revenue and gross profit growth in the pharmaceutical business segment[45]. - The Group plans to explore new product launches and market entries in alignment with health consumption trends[31]. - The Group will opportunistically commence investment activities to identify a second growth curve[31]. Financial Health and Management - As of 31 December 2024, the Group maintained bank balances and cash reserves of approximately HK$80.6 million, an increase from HK$77.7 million as of 31 December 2023[72]. - The Group had outstanding borrowings repayable within one year of approximately HK$88.1 million, compared to HK$39.5 million in the previous year[73]. - The gearing ratio as of 31 December 2024 was 5.5%, up from 3.0% in 2023, indicating an increase in financial leverage[75]. - The Group's bank borrowings increased to approximately HK$85.5 million in 2024 from HK$28.8 million in 2023[80]. - The Group's staff costs were approximately HK$145.0 million as of 31 December 2024, down from HK$165.0 million in the previous year, reflecting a reduction in employee expenses[86]. Environmental, Social, and Governance (ESG) Initiatives - The report outlines the company's commitment to environmental, social, and governance (ESG) performance, focusing on sustainable operations and stakeholder interests[101]. - The governance structure includes a Board responsible for overseeing ESG policies and an Executive Committee for implementing related measures[109]. - The company has established a robust ESG management framework to ensure effective implementation of policies and risk management[110]. - The report adheres to four principles: materiality, quantitative, balance, and consistency, ensuring comprehensive and comparable ESG disclosures[102]. - The company emphasizes the importance of regular reviews and assessments of ESG performance and objectives by the management[116]. - The Group is developing and implementing an ESG management framework, including strategies and objectives, to enhance sustainable development[117]. - The Executive Committee is responsible for formulating policies and allocating budgets for ESG activities, aligning with the Group's overall business strategy[124]. - The Group has identified key stakeholders and established various communication channels to engage with them regarding ESG issues[128]. - A materiality assessment has been conducted to identify and prioritize key ESG issues relevant to the Pharmaceutical and Fitness businesses[138]. - The Group aims to comply with all applicable environmental requirements and continuously improve its environmental management practices[124]. Waste Management and Emissions - The company has implemented a solar energy generation project in its Beijing plant, covering over 30,000 square feet, fulfilling daily energy consumption needs and selling surplus energy to nearby plants[155]. - The company has replaced gas-fired boilers with electric steam generators to reduce exhaust gas emissions[160]. - The company has installed electrostatic fume purifiers and low-nitrogen burners to monitor and reduce exhaust gas emissions[156]. - The company conducts regular monitoring of exhaust gas emissions to ensure compliance with government regulations and standards[153]. - The company has engaged a qualified inspection company for self-monitoring of pollutant emissions to maintain stable emission levels[160]. - The company is committed to reducing greenhouse gas emissions and has initiated various energy-saving actions[156]. - The company has upgraded its wastewater treatment system to a three-tier deep treatment device to further reduce emissions of harmful gases[159]. - The company emphasizes diversity and inclusion, respecting the labor rights and human rights of all employees[151]. - The company has centralized the handling of hazardous wastes in accordance with relevant laws and regulations, ensuring detoxification treatments by qualified vendors before disposal[166]. - The Group aims to reduce the generation of hazardous and non-hazardous waste and has established waste reduction targets[192]. Resource Optimization - The Group aims to optimize resource usage by implementing the 3R Principle (Reduce, Reuse, Recycle) and improving water recycling utilization rates[199]. - The Group has focused on reducing water consumption in production and enhancing the maintenance and recharge of water sources[200]. - The Group has strengthened the management of raw materials to minimize pollutant generation and sought alternatives for difficult-to-process materials[200]. - The Group has improved operational management for wastewater treatment, significantly reducing technical difficulties and pollution[200]. - The Group's initiatives in resource optimization include energy conservation and water conservation across all business operations[199].
华控康泰(01312) - 2024 - 年度财报