Financial Performance - The group's revenue increased by approximately 3.5% to about HKD 147,300,000 for the year ended December 31, 2024, compared to HKD 142,300,000 in 2023[7] - Gross profit rose by approximately HKD 19,200,000 to about HKD 40,800,000, with a gross profit margin increase of approximately 12.5% to about 27.7%[7] - The pre-tax loss decreased by approximately HKD 16,900,000 to about HKD 41,400,000, down from HKD 58,300,000 in 2023[8] - Basic loss per share for the year was approximately HKD 1.47, compared to HKD 1.88 in 2023[9] - The company recorded a net loss of approximately 28.1 million HKD in its sugar and ethanol business segment, a reduction of approximately 29.8 million HKD compared to a net loss of approximately 57.9 million HKD in 2023[20] - The group reported a net loss of HKD 41,410,000 for the year ending December 31, 2024, with current liabilities and total liabilities amounting to HKD 1,107,936,000 and HKD 1,126,753,000 respectively, indicating significant uncertainty regarding the group's ability to continue as a going concern[196] Production and Sales - The average selling price of raw sugar and molasses increased by approximately 6.3% and 23.9%, respectively, due to adverse weather conditions affecting production in major sugar-producing countries[14] - Raw sugar and molasses sales volumes decreased by approximately 2.5% and 3.6%, respectively, attributed to reduced production[15] - The group crushed approximately 176,200 tons of sugarcane, producing about 11,100 tons of raw sugar and about 9,100 tons of molasses, compared to 189,000 tons of sugarcane and 11,300 tons of raw sugar in 2023[15] - The supply of sugarcane from farmers decreased by approximately 10.7%, from about 80,000 tons in 2023 to 71,400 tons in 2024[15] - The area planted with sugarcane decreased by approximately 3.1% from about 2,266 hectares in 2023 to 2,157 hectares in 2024[15] Dividends and Reserves - The board does not recommend the payment of a dividend for the year ended December 31, 2024[10] - The company does not recommend paying dividends for the years ended December 31, 2024, and 2023[24] - The company's distributable reserves include special reserves of approximately HKD 468,577,000, offsetting accumulated losses of approximately HKD 1,820,721,000[77] - The company will periodically review its dividend policy and reserves the right to update or amend it at any time[184] Corporate Governance - The company has adopted a board diversity policy since March 27, 2014, with measurable goals related to gender, age, skills, and experience[142] - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors, ensuring a diverse range of expertise and independent judgment[118] - The board has emphasized the importance of maintaining high standards of corporate governance to enhance shareholder value and protect shareholder interests[109] - The company has complied with the corporate governance code, with some deviations noted in specific clauses[110] - The company has mechanisms in place to ensure the board receives independent views and opinions, which have been reviewed for effectiveness[129] Risk Management and Internal Controls - The audit committee assessed the effectiveness of the group's risk management and internal control systems at least annually[168] - The group has implemented policies and procedures to evaluate and improve the effectiveness of its risk management and internal control systems[172] - The internal audit department conducts reviews of the group's risk management and internal control aspects and reports to the board and audit committee at least annually[169] - The group maintains a zero-tolerance policy towards corruption and related misconduct, which is integral to its corporate governance framework[173] Employee and Labor Costs - Employee costs totaled approximately HKD 52,900,000 for the year, up from HKD 47,600,000 in 2023, reflecting a 13.4% increase mainly due to a 15.3% rise in wages[47] - The number of temporary employees decreased by 114 (approximately 21.8%) to 408 as of December 31, 2024, due to the delayed start of the crushing season[47] - The company has taken measures to promote diversity at all levels of the employee team[146] Investments and Capital Expenditures - The company invested approximately HKD 4,231,000 in the acquisition of properties, plants, and equipment during the year, compared to HKD 2,252,000 in 2023[75] - There were no significant investments or capital asset plans reported for the review year[46] Future Outlook - The global supply of edible sugar is expected to increase in 2025, with the potential for 1 million tons of raw sugar to be exported to the world market[25] - The sugar production business's revenue and net operating loss may be negatively impacted in 2025 due to reduced sugarcane supply and rising production costs[25] Management Changes - The company appointed Mr. Wu Shurong as the Executive Director and Chairman of the Board on September 30, 2024, bringing over 16 years of experience in business management and investment management[50] - Mr. Wang Xiang, with over 24 years of legal and corporate governance experience, was appointed as an Executive Director and Nomination Committee member on September 30, 2024[51] - Mr. Liu Jun, who has over 10 years of financial management experience, was appointed as an Executive Director and Compensation Committee member on September 30, 2024[52] - Mr. Li Baojian, with over 16 years of experience in agricultural business and financial management, was appointed as an Executive Director on September 30, 2024[53] - Dr. Wu Liwen, appointed as an Independent Non-Executive Director, has approximately 30 years of experience in professional accounting services and corporate finance[54] - Mr. Chen Chuanren, with around 40 years of legal experience, was appointed as an Independent Non-Executive Director on September 30, 2024[56]
华联国际(00969) - 2024 - 年度财报