Financial Performance - Revenue from contracts with customers decreased from HK$812,918,000 in 2023 to HK$753,555,000 in 2024, representing a decrease of 7%[42]. - The Group reported an operating loss of HK$74,447,000 in 2024, compared to an operating profit of HK$76,318,000 in 2023[37]. - Impairment provisions against goodwill and other intangible assets amounted to HK$52,248,000 in 2024, up from HK$40,544,000 in 2023[43]. - Total assets decreased from HK$1,056,457,000 in 2023 to HK$911,023,000 in 2024[38]. - Shareholders' funds declined from HK$382,922,000 in 2023 to HK$273,651,000 in 2024[38]. - Cash and cash equivalents decreased by approximately HK$34,254,000, with net cash generated from operating activities of HK$74,020,000 offset by net cash outflows from investing and financing activities of HK$102,918,000[40]. - The security, infrastructure, and insurance business generated revenue of HK$500,018,000 in 2024, down from HK$572,533,000 in 2023[42]. - The Group's revenue decreased from HK$812,918,000 in 2023 to HK$753,555,000 in 2024, representing a decline of 7%[46]. - The security segment's revenue dropped by 4% from HK$515,503,000 in 2023 to HK$493,704,000 in 2024, contributing approximately 66% of the Group's total revenue[49]. - The Group reported an operating profit of HK$9,944,000 in the infrastructure segment for 2024, down from HK$84,243,000 in 2023, after accounting for impairment provisions of HK$42,381,000[56]. - The insurance segment recorded a share of loss of HK$818,000 in 2024, compared to a profit of HK$4,209,000 in 2023[51]. - The aviation segment's profit improved from HK$9,653,000 in 2023 to HK$12,436,000 in 2024 due to increased demand for chartered flights[58]. - The logistics segment reported a revenue increase to HK$225,587,000 in 2024 from HK$200,299,000 in 2023, but incurred an operating loss of HK$7,087,000[61]. - The healthcare segment generated a revenue of HK$16,423,000 in 2024, down from HK$18,628,000 in 2023, with an operating loss of HK$24,799,000, an improvement from a loss of HK$28,304,000 in 2023[66]. - The Group's total liabilities as of December 31, 2024, were HK$513,772,000, down from HK$553,485,000 in 2023[87]. - The Group's net asset value per share (excluding non-controlling interests) decreased to HK$0.11 as of December 31, 2024, from HK$0.16 in 2023[87]. - Available cash and bank balances as of December 31, 2024, were HK$163,857,000, down from HK$198,111,000 in 2023[88]. - Total borrowings decreased to HK$140,000,000 as of December 31, 2024, from HK$209,049,000 in 2023[88]. - The gearing ratio as of December 31, 2024, was approximately 15.4%, down from 19.8% in 2023[89]. - The Group did not have any significant investments or material acquisitions during the year ended December 31, 2024[100]. - The Group has no concrete future plans for material investments or capital assets as of December 31, 2024[102]. - The Group's consolidated net loss after tax was approximately HK$364,000, failing to meet the target profit requirements[109]. Security Segment Performance - In 2024, the security segment accounted for 66% of total revenue, with significant growth in Africa where revenue increased year-on-year and net profit rose by over 40%[20]. - The security segment's growth has solidified the company's market position in core business areas, laying a foundation for future technological innovation[19]. - The company successfully implemented "closed-loop security protection" in select pilot zones in Africa, ensuring a safe environment for enterprises investing in the region[20]. - The newly established Asset Recovery Department began exploring asset recovery business, forming initial connections with multiple financial platforms to create a "Security + Asset Management" model[26]. - The security segment is positioned as the core business and primary revenue driver, with expectations for sustained returns from expanding global operations[73]. - Impairment provision for goodwill and other intangibles in the security segment increased to HK$35,018,000 in 2024 from HK$19,490,000 in 2023[50]. Corporate Governance - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2024, except for the separation of the roles of Chairman and CEO[123]. - The Board comprises eight male and one female Directors, reflecting a gender ratio of approximately 95:5 (men to women) across the workforce as of December 31, 2024[175][176]. - The Company has established four board committees: Audit Committee, Nomination Committee, Remuneration Committee, and Risk Committee, to enhance corporate governance[132][140]. - The Audit Committee comprises three independent non-executive directors, with Mr. Yap Fat Suan serving as Chairman, ensuring oversight of the independent auditor and compliance with financial reporting standards[140][141]. - The Nomination Committee is responsible for identifying and recommending candidates for director appointments based on qualifications, skills, and potential contributions to the Board[145][148]. - Independent non-executive directors are required to confirm their independence annually, and all have met the independence requirements as per the Listing Rules[134][138]. - The Company provides ongoing training for directors, ensuring they are updated on business developments and regulatory changes[135][139]. - The Company has maintained a robust corporate governance framework, ensuring compliance with legislative and regulatory developments[192][193]. - The Company engaged PricewaterhouseCoopers Hong Kong as its statutory auditor for the year ended 31 December 2024, with total remuneration for auditing services amounting to HK$4,190,000 and non-auditing services at HK$52,000, totaling HK$4,242,000[188][191]. - The Company had a total of 1 annual general meeting and 5 board meetings held during the reporting period[182]. - The Company has a total of 3 remuneration committee meetings held during the year, reflecting active governance practices[182]. - The Company has adhered to the standards of the Corporate Governance Code, demonstrating commitment to best practices in governance[185][192]. Risk Management - The Board is responsible for establishing a proper risk management culture and appetite, regularly monitoring risk levels to safeguard shareholders' interests[197]. - The Group has allocated resources for the design, implementation, and monitoring of risk management and internal control systems to achieve business objectives[198]. - An external consultant has been engaged to facilitate the internal audit function, assisting in the review of risk management and internal control systems[199]. - The Risk Management Policy is reviewed annually to maintain a consistent framework for risk identification, analysis, evaluation, treatment, monitoring, and reporting[200]. - Following the Group's inclusion on the Entity List, the Risk Committee has been working with legal experts to implement compliance safeguards[159]. - The Group's risk management approach includes reviewing risk reports and assessing the effectiveness of risk control tools[156]. - The Group's risk strategy includes considering emerging risks and ensuring appropriate arrangements are in place to mitigate them effectively[156]. Human Resources and Employee Management - Localized human resource management progressed steadily, with performance evaluations becoming increasingly data-driven and scientific[25]. - The Group's employee count increased to 2,176 as of December 31, 2024, from 1,939 in 2023[84]. - A new share scheme was adopted on June 28, 2023, allowing the company to grant share options and awards to incentivize and retain valued employees[81]. - No share options or share awards have been granted under the new Share Scheme since its adoption[83]. - The Remuneration Committee reviewed and evaluated the Group's remuneration policy and structure for executive directors and senior management[161]. - The Committee ensured that the Group's remuneration practices remained competitive, performance-linked, and in line with market norms[161]. - The Nomination Committee ensures that candidates for Board positions are evaluated based on merit and contribution, considering the benefits of diversity[174][179]. Legal and Regulatory Matters - The Company was added to the U.S. export control list on June 12, 2023, due to allegations of providing training to Chinese military pilots, which it firmly denies[111]. - The Company has retained legal and professional advisors to address the allegations and submitted a petition for removal from the export control list on September 16, 2024[118]. - The Company has no significant contingent liabilities as of December 31, 2024 and 2023[107]. - The Company has no significant subsequent events after December 31, 2024[108].
先丰服务集团(00500) - 2024 - 年度财报