Financial Performance - The group's revenue for the year ended December 31, 2024, decreased by 13% to approximately HKD 136,109,000, compared to HKD 155,905,000 in 2023[8] - The loss attributable to the company's owners for the year was approximately HKD 27,020,000, an improvement from a loss of HKD 30,532,000 in 2023[8] - The core business recorded a loss of approximately HKD 23,433,000, compared to a loss of HKD 20,480,000 in 2023[8] - Revenue from toy products decreased by approximately 11% to about HKD 136,109,000, with a loss of HKD 18,220,000, up from a loss of HKD 16,714,000 in 2023[9] - The company reported a loss before tax of HKD 29,199,000, compared to a loss of HKD 27,606,000 in 2023, indicating a worsening financial performance[176] - The net loss for the year was HKD 29,373,000, slightly improved from HKD 30,578,000 in the prior year[176] - Basic and diluted loss per share for the year was HKD 8.26, compared to HKD 9.34 in 2023, reflecting a reduction in loss per share[176] - The company’s total comprehensive income for the year was HKD (30,356,000) in 2024, compared to HKD (29,526,000) in 2023, reflecting a slight increase in losses of about 2.8%[180] Cash Flow and Assets - As of December 31, 2024, the group's cash and bank balances were approximately HKD 24,547,000, down from HKD 42,986,000 in 2023[13] - Total current assets decreased to HKD 56,291,000 from HKD 89,423,000, a decline of 37.1% year-over-year[177] - Cash and cash equivalents decreased from HKD 42,986,000 at the beginning of the year to HKD 24,547,000 by the end of 2024, a reduction of about 42.9%[183] - The company's total assets less current liabilities decreased to HKD 54,442,000 from HKD 86,353,000, indicating a significant reduction in asset value[177] - The company's equity decreased to HKD 43,010,000 from HKD 74,661,000, reflecting a significant decline in shareholder value[177] Expenses and Liabilities - Distribution costs decreased by approximately 24% to about HKD 1,879,000, while administrative expenses decreased by approximately 25% to about HKD 58,582,000[11] - Financial expenses increased by approximately 60% to about HKD 1,108,000 due to increased interest on lease liabilities and loans[12] - The company's total liabilities increased, leading to a significant decrease in total equity, which fell from HKD 74,661,000 to HKD 43,010,000[179] - The company paid dividends to non-controlling interests amounting to HKD 1,295,000 in 2024, down from HKD 2,352,000 in 2023, a decrease of approximately 44.9%[183] Corporate Governance - The company has complied with the corporate governance code, except for the separation of roles between the chairman and the CEO, which is currently shared among the board members and the company secretary[34] - The board consists of six directors, all experienced professionals, responsible for setting the overall business development goals and long-term corporate strategies[37] - The company has established a nomination committee to provide a framework for appointing high-quality directors for sustainable development[54] - The board has three committees: the Remuneration Committee, the Audit Committee, and the Nomination Committee, each with specific responsibilities[69] - The company has adopted the latest revised corporate governance code as of August 29, 2013, and has taken steps to comply with its provisions[33] Shareholder Communication - The company is committed to maintaining high levels of transparency and timely disclosure of company information[115] - The company has a policy in place to ensure shareholders receive timely and equal access to relevant information[113] - The board will continue to review and assess the effectiveness of shareholder communication[113] - The company has confirmed the independence of all non-executive directors as per the listing rules[134] Strategic Initiatives - The company aims to enhance its product portfolio and revenue sources through the anticipated strategies outlined in the August and November framework agreements[21] - The company is actively seeking mergers and acquisitions opportunities in the oil, gas exploration, and sustainable energy infrastructure sectors[21] - The company is also looking for investment opportunities in high-tech sectors in addition to oil and gas exploration[22] - The company has entered into a non-binding cooperation framework agreement with the government of Wuwei City, Gansu Province, to develop sustainable energy infrastructure, including energy storage facilities and transmission stations[19] Risk Management - The audit committee is responsible for ensuring effective risk management and internal controls are in place[93] - The company has established and maintained an effective risk management and internal control system for the year ending December 31, 2024[101] - The board has not identified any significant concerns or weaknesses in the internal control and risk management systems during the annual review[106] - No significant risks were identified during the risk assessment conducted for the year ending December 31, 2024[104] Employee and Board Diversity - The group employed approximately 610 full-time employees as of December 31, 2024, down from 740 in 2023[17] - As of December 31, 2024, 62% of the group's employees are female, highlighting the company's commitment to gender diversity[87] - The board diversity policy was adopted on August 29, 2013, and revised on December 20, 2018, emphasizing the importance of a diverse board for strategic goals and sustainable development[84] Audit and Compliance - The independent auditor confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024, in accordance with Hong Kong Financial Reporting Standards[157] - The audit committee has reviewed the full-year results and confirmed compliance with applicable accounting standards and regulations[146] - The external auditor, Tianjian International CPA Limited, was paid HKD 785,000 for audit services during the review year[108]
PERFECTECH INTL(00765) - 2024 - 年度财报