Financial Performance - For the fiscal year 2024, the company's revenue increased by approximately 158.4% to RMB 389.1 million, compared to RMB 150.6 million in fiscal year 2023[9][16]. - The company's net loss before tax for fiscal year 2024 was approximately RMB 27.9 million, up from RMB 12.7 million in fiscal year 2023[9]. - The wholesale business of children's clothing and related products accounted for approximately RMB 260.3 million or 66.9% of total revenue in fiscal year 2024[16]. - The commodity trading segment contributed approximately RMB 128.8 million or 33.1% to total revenue in fiscal year 2024[17]. - Cost of sales increased by approximately 195.8% to RMB 370.0 million in fiscal year 2024, compared to RMB 125.1 million in fiscal year 2023[18]. - Gross profit decreased by approximately 25.1% to RMB 19.1 million in fiscal year 2024, with a gross margin of 4.9%, down from 17.0% in fiscal year 2023[19]. - Selling and distribution expenses rose by approximately 38.8% to RMB 25.4 million in fiscal year 2024, representing 6.5% of revenue compared to 12.1% in fiscal year 2023[23]. - The income tax expense for fiscal year 2024 was approximately RMB 0.5 million, compared to RMB 0.05 million in fiscal year 2023[26]. - The pre-tax loss for fiscal year 2024 was approximately RMB 27.9 million, compared to approximately RMB 12.7 million in fiscal year 2023[27]. Cash Flow and Assets - As of December 31, 2024, cash and cash equivalents totaled approximately RMB 39.7 million, unchanged from RMB 39.7 million on December 31, 2023, representing 24.9% of total current assets[28]. - Inventory decreased from approximately RMB 31.1 million on December 31, 2023, to approximately RMB 17.5 million on December 31, 2024, with an inventory turnover period of 24 days in fiscal year 2024 compared to 79 days in fiscal year 2023[29]. - Trade receivables decreased from approximately RMB 93.9 million on December 31, 2023, to approximately RMB 88.5 million on December 31, 2024, with a trade receivable turnover period of 86 days in fiscal year 2024 compared to 217 days in fiscal year 2023[30][31]. - Trade payables decreased from approximately RMB 33.0 million on December 31, 2023, to approximately RMB 2.7 million on December 31, 2024, with a trade payable turnover period of 18 days in fiscal year 2024 compared to 54 days in fiscal year 2023[32]. Employee and Labor Practices - The total employee cost for the fiscal year 2024 is approximately RMB 27.1 million, an increase from RMB 26.5 million in fiscal year 2023[46]. - The company employs around 300 full-time employees as of December 31, 2024[46]. - During the 2024 reporting period, 9 employees voluntarily left the company for career development reasons[125]. - The employee turnover rate for males was 2.56% and for females was 3.27%[127]. - All employee benefits and wages were settled on time, with no labor disputes recorded in the past year[118]. - The company continues to strictly comply with the Labor Law of the People's Republic of China and the Employment Ordinance of Hong Kong, ensuring competitive salaries and benefits for all employees[132]. - During the 2024 reporting period, the company reported no work-related fatalities or injuries, maintaining a zero-incident record for the past three years[137]. - The company invests in employee training and development, providing systematic training programs for new production staff lasting one to three months[138]. - The company adheres to the principle of equal pay for equal work, regularly reviewing its compensation policies to ensure competitiveness in the market[141]. - The company has established a policy to prohibit child labor and forced labor, with strict measures in place to enforce this policy[143]. Environmental, Social, and Governance (ESG) Initiatives - The group continues to focus on sustainable development and compliance with environmental, social, and governance (ESG) principles[48]. - The board of directors regularly reviews and updates the company's ESG strategies and policies to align with stakeholder expectations[52]. - The company is committed to providing a healthy and safe working environment for its employees while contributing to local community sustainability[52]. - The group has initiated supply chain management operations, including commodity trading in China[48]. - The company emphasizes the importance of employee well-being through programs that support mental and physical health[49]. - The board believes that a strong focus on ESG management enhances corporate image and reduces associated risks[51]. - The ESG report is prepared in accordance with the Hong Kong Stock Exchange's guidelines, ensuring transparency and accountability[47]. - The group has established a management structure to rigorously manage and monitor environmental, social, and governance (ESG) aspects[59]. - The group engages with stakeholders through various communication channels, including shareholder meetings and direct email inquiries[57]. - The group aims to minimize negative environmental impacts through its "Green Environmental Policy and Measures" by avoiding pollution and promoting resource conservation[62]. Climate Change and Risk Management - The company recognizes the impact of climate change and aims to collaborate with stakeholders to explore sustainable production techniques[93]. - The company has identified extreme weather events as acute physical risks that could lead to economic losses and increased operational costs[96]. - The company is committed to understanding the financial impacts of climate-related risks and integrating them into financial planning[95]. - The board of directors directly manages climate-related risks and opportunities, with the CEO responsible for ensuring effective implementation of strategies and policies across the organization[97]. - The company has identified extreme weather as a chronic risk, with potential consequences including increased employee heatstroke, turnover rates, and operational costs due to rising electricity demand[100]. - The company has implemented various measures to mitigate the negative impacts of extreme weather, including securing equipment and providing 24-hour access to cold water during high temperatures[102]. - The company recognizes climate change as a strategic business risk and has integrated climate-related risks and opportunities into its overall business strategy[109]. - The company is committed to monitoring key indicators, particularly greenhouse gas emissions, to manage and assess climate-related risks and opportunities throughout the 2024 reporting period[110]. - The company anticipates that long-term regulatory frameworks and carbon trading will create opportunities for utilizing sustainable financial tools to address climate change[105]. - The company has updated its assessment methods for climate risks and opportunities based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)[106]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, maintaining a balance of power and authority[160]. - The company has adopted the corporate governance code and has complied with it during the 2024 fiscal year, with one exception regarding the roles of the chairman and CEO being held by the same individual[160]. - The board has established three committees: audit committee, remuneration committee, and nomination committee to oversee different aspects of the company's affairs[163]. - The company provides appropriate insurance arrangements for its directors and executives against potential legal actions[168]. - The company is committed to maintaining high levels of corporate governance and ensuring shareholder interests are protected[160]. - The board meets quarterly and as needed to discuss overall strategy, operational performance, and approve interim and annual results[182]. - The company has established a clear written terms of reference for each board committee, outlining their responsibilities and powers[171]. - The board has fulfilled its corporate governance functions, including reviewing compliance with legal and regulatory requirements[180]. - The company has appointed Mr. Peng Yongkang as the company secretary since October 19, 2015, who also serves as the secretary for the audit, nomination, and remuneration committees[189]. Shareholder Engagement - Shareholders are encouraged to participate in company affairs through annual general meetings, where they can communicate directly with the board[194]. - The company actively engages with investors, analysts, and media through roadshows, presentations, and individual meetings[200]. - The company has reviewed its shareholder communication policy and considers it sufficient and effective for the current year[200]. - Shareholders can request a special general meeting if they hold at least 10% of the paid-up capital and must submit their request in writing[196]. - The special general meeting must be held within two months of the request, and if the board fails to convene it within 21 days, the requesting party can call the meeting themselves[196]. - Voting at the annual general meeting is conducted on a poll basis to ensure each share has one vote[198]. - Voting results are published on the company's website on the day of the annual general meeting[198].
米格国际控股(01247) - 2024 - 年度财报