Financial Performance - The company reported a total revenue of approximately HKD 3,824,300,000 for the fiscal year 2024, representing a year-on-year increase of 6.1%[21]. - The EBITDA for the fiscal year 2024 was HKD 314,938,000, showing an improvement compared to the previous year's HKD 239,379,000[7]. - The net profit attributable to ordinary shareholders for the fiscal year 2024 was approximately HKD 28,200,000, a significant recovery from a net loss of HKD 131,089,000 in 2023[21]. - The gross profit margin for the fiscal year 2024 was reported at 11.0%, an increase from 8.2% in 2023[8]. - The group's overall revenue increased by approximately 6.1% year-on-year to HKD 3,824,300,000, with gross profit rising by about 43.1% to approximately HKD 422,400,000[31]. - The net profit attributable to ordinary shareholders was HKD 28,200,000, a significant turnaround from a net loss of HKD 132,900,000 in the previous year[31]. - The gross profit rose by approximately 43.1% to about HKD 422,400,000, with a gross profit margin increasing to approximately 11.0% from 8.2% in 2023[38]. - The company reported a significant reduction in financing costs to HKD 57,550,000 in 2024 from HKD 104,734,000 in 2023[182]. - The company reported a profit of HKD 28,155,000 for the year, compared to a loss of HKD 132,908,000 in the previous year[186]. - Total comprehensive income for the year amounted to HKD 70,160,000, compared to a total comprehensive loss of HKD 257,710,000 in the previous year[186]. Dividends and Shareholder Returns - The company plans to pay a final dividend of HKD 0.7 per share for the fiscal year 2024, compared to no dividend in 2023[22]. - The board proposed a final dividend of HKD 0.007 per ordinary share, compared to no dividend in 2023, pending shareholder approval[47]. - The company proposed a final dividend of HKD 0.7 per share for the current year, compared to no dividend in 2023[129]. Acquisitions and Expansion - The company signed a memorandum of understanding to acquire 100% of Korea Textile & Dyeing Support Services Joint Stock Company for approximately USD 10,800,000, enhancing production capacity in Vietnam[20]. - The group plans to enhance its Southeast Asian manufacturing capacity by acquiring Korea Textile & Dyeing Support Services Joint Stock Company for a total cash consideration of approximately HKD 83,892,000[33]. - The acquisition of KTD will allow the group to utilize existing infrastructure without the need for new land and construction investments, rapidly increasing its manufacturing capacity in Vietnam[33]. - The group recorded a gain of approximately HKD 32,598,000 from the sale of a subsidiary in Vietnam, with the proceeds allocated for the acquisition of KTD and integration of operations[34]. - The group aims to strengthen its production triangle of "China + Vietnam + Cambodia" to address geopolitical uncertainties and enhance customer retention[24]. Debt and Financial Position - The company has reduced its debt levels over the past two years, minimizing borrowing and financing costs[21]. - The company’s asset-liability ratio improved to 37.3% in 2024, down from 42.3% in 2023, indicating a stronger balance sheet[8]. - The total bank borrowings amounted to approximately HKD 886,900,000, a decrease from HKD 1,261,500,000 in 2023, with a net debt to equity ratio of approximately 37.3%[44]. - Non-current liabilities decreased from HKD 396,169,000 to HKD 228,161,000, a reduction of approximately 42.5%[185]. Operational Efficiency and Strategy - The company is strategically expanding its operations in Southeast Asia to capitalize on market conditions and improve operational efficiency[20]. - The company is focusing on integrating newly acquired factories in Vietnam to further increase production capacity and expand its range of value-added products and services[24]. - The company aims to explore potential investment opportunities in Southeast Asia to mitigate geopolitical risks and reduce operational costs[36]. Governance and Compliance - The company has complied with listing rules regarding independent non-executive directors, with three such directors making up at least one-third of the board[71]. - The chairman and CEO roles are separated, ensuring distinct leadership and management responsibilities[72]. - The company has established a remuneration committee to review and recommend adjustments to executive directors' remuneration[75]. - The board consists of 50.0% executive directors, 12.5% non-executive directors, and 37.5% independent non-executive directors, exceeding the requirement of at least one-third independent directors[81]. - The company has achieved its gender diversity target with 25% of board members being female, totaling 2 out of 8 directors[81]. Risk Management and Internal Controls - The company has adopted a dividend policy that considers financial performance, cash flow, and future business needs, with no predetermined dividend rate[98]. - The risk management system is designed to provide reasonable assurance against significant misstatements or losses, with ongoing reviews conducted by the board[96][97]. - The board is responsible for maintaining an effective internal control system to safeguard shareholder investments and company assets[94]. - The internal audit department reviews the effectiveness of the internal control system and risk management procedures, with no significant failures reported in the current year[94][97]. Environmental, Social, and Governance (ESG) - The board regularly reviews the company's environmental, social, and governance (ESG) strategies and reports[107]. - The company has implemented a whistleblowing policy to maintain high levels of transparency and accountability[105]. - A zero-tolerance policy towards bribery and corruption is enforced, ensuring business integrity and fairness[106]. - The company has adopted strict environmental protection measures to comply with current environmental laws and regulations[122]. - There were no violations of environmental regulations that significantly impacted the company's development and performance during the fiscal year[123]. Employee Relations and Workforce - The number of employees in China decreased to 3,638 from 3,806 in 2023, while employees in Cambodia increased to 3,356 from 2,734[53]. - As of December 31, 2024, approximately 53% of the overall employee team, including senior management, are female, reflecting the company's commitment to gender diversity[87]. - Maintaining good relationships with employees, customers, and suppliers is considered a key factor for the company's stable development[126]. Financial Reporting and Audit - The audit opinion confirms that the consolidated financial statements present a true and fair view of the group's financial position and performance in accordance with Hong Kong Financial Reporting Standards[165]. - The audit committee assists the board in overseeing the financial reporting process, ensuring compliance with relevant regulations[175]. - The independent auditor's report does not cover other information included in the annual report, focusing solely on the consolidated financial statements[173].
锦兴国际控股(02307) - 2024 - 年度财报