Economic Performance - The year 2024 was marked by significant economic challenges, including persistent inflation and geopolitical conflicts impacting global supply chains and trade flows[16]. - For FY2024, the Group recorded revenue of approximately HK$515.9 million, representing a decrease of approximately 1.4% compared to FY2023 revenue of approximately HK$523.3 million[25]. - The Toys Division's revenue decreased by approximately 1.7% to HK$514 million, with gross profit dropping to approximately HK$13.8 million, a decrease of approximately 64.8% from HK$39.2 million in FY2023[29]. - The Group's net loss for FY2024 amounted to approximately HK$73.8 million, compared to a net loss of approximately HK$29.4 million in FY2023, primarily due to a reduction in gross profit and increased impairment losses[27]. - The Agricultural Products Division improved its revenue to approximately HK$1.9 million in FY2024, up from approximately HK$0.4 million in FY2023, but still recorded a segment loss before taxation of approximately HK$3.5 million[34]. - The Toys Division faced tremendous pressure on product margins and turnover in FY2025, indicating a challenging market environment ahead[18]. Financial Position - The Group's net current liabilities at the end of FY2024 were approximately HK$220.3 million, an increase from HK$185.2 million in FY2023, with cash and cash equivalents of approximately HK$55.3 million[35]. - Capital deficiencies attributable to owners of the Company increased to approximately HK$139 million as of December 31, 2024, compared to approximately HK$80.1 million as of December 31, 2023[36]. - The Group's gearing ratio as of December 31, 2024, was approximately 136.7%, up from 131% in 2023, indicating a high level of debt relative to equity[36]. - The Group's current liabilities net amount to approximately HKD 220,257,000, while total liabilities net amount to approximately HKD 140,487,000, indicating significant uncertainty regarding the Group's ability to continue as a going concern[45]. - The Group's bank balance is approximately HKD 55,258,000, against loans of approximately HKD 217,089,000 that are due within the next twelve months[45]. Management Plans and Strategies - The Group is cautiously optimistic about the performance improvements in both the Toys Division and Agricultural Products Division, with plans to explore new business opportunities[19]. - The management plans to extend the plantation and sales of agricultural products in Japan, which are currently in the development stage[34]. - The Group has proposed to issue shares under the general mandate on January 28, 2025, to support ongoing business operations despite the current financial challenges[37]. - Management believes that the Group will have sufficient working capital for at least 12 months from December 31, 2024, based on successful measures such as share issuance and loan maturity extensions[47]. - The management plans to raise equity funds through new share placements and/or rights issues to address auditor concerns regarding going concern issues, aiming to complete this by the end of 2025[53]. - The audit committee agrees with management's action plan to address the audit qualification and supports the Group's ability to continue as a going concern[49]. ESG Commitment and Governance - The Group's ESG management structure and processes remained unchanged from the previous reporting period, indicating a consistent approach to environmental, social, and governance issues[67]. - The Group is committed to providing strong returns to investors while ensuring a healthy and safe working environment for employees and contributing to sustainable local community developments[68]. - The reporting scope of the ESG Report focuses on the primary business of manufacturing and trading toys, with the Zhongshan division being financially significant and operationally important[71]. - The Board regularly approves and updates strategies related to environmental and social issues, ensuring that all departments implement ESG policies according to their operations[68]. - The Group continues to invest substantial resources to monitor ESG issues, policies, and practices, reflecting its commitment to sustainability and compliance with legal requirements[67]. - The Group's governance structure emphasizes the importance of risk management and compliance with relevant laws and regulations to enhance competitiveness and promote sustainable business development[63]. Environmental Performance - The Group's environmental performance is overseen by the Board, ensuring compliance with all relevant environmental laws and regulations[85]. - The Group has complied with the Environmental Protection Law of the PRC and other relevant regulations to minimize environmental risks[85]. - The Group has established an environmental management system in accordance with ISO 14001 standards to enhance its environmental performance[92]. - The Group's indirect CO2 emissions increased by 3.00% from 5,129 tonnes in 2023 to 5,283 tonnes in 2024, while CO2 emissions per employee decreased by 6.05% from 3.47 tonnes to 3.26 tonnes[98]. - The Group aims to reduce air pollutant emissions, specifically hazardous SOx, NOx, and PM, by 2-3% in the coming year[106]. - The Group has not reported any confirmed cases of breaching environmental legislation regarding emissions and waste discharge during the 2024 Reporting Period[93]. Climate Change and Risk Management - The Board oversees climate-related risks, recognizing them as material risks that could impact strategic objectives and financial performance[149]. - The Group has identified energy and water as immediate areas to address climate change and reduce future costs[150]. - The Group recognizes climate change as a strategic business risk and integrates climate-related risks and opportunities into its overall business strategy[175]. - The Group has identified extreme weather events such as typhoons, heavy rain, and flooding as physical acute risks, which could lead to delivery delays and increased operational costs[158]. - Legal and policy risks related to stricter carbon emission reduction policies may increase operational costs and litigation risks for the Group[166]. - The Group acknowledges that climate change presents opportunities for cost savings through improved energy efficiency and the adoption of green technologies[169]. Employee Welfare and Practices - The Group employed 1,654 full-time employees as of December 31, 2024, in Zhongshan and Hong Kong[197]. - The employee gender distribution shows 971 males and 683 females in 2024, compared to 952 males and 566 females in 2023, indicating a growth in both male and female employees[199]. - The Group has established an updated employment policy in compliance with the National Labour Law, with no reported cases of non-compliance regarding employment practices during the 2024 reporting period[192]. - The Group contributes to "Five social insurance and one housing fund," ensuring employees receive endowment, medical, unemployment, employment injury, maternity insurance, and housing provident fund[194]. - All employees are entitled to various statutory holidays and paid leave, including paternity and maternity leave, as part of the Group's commitment to employee welfare[194]. - The Group has been certified by the ICTI CARE Foundation, demonstrating its commitment to promoting safe and fair working conditions[192].
瀛晟科学(00209) - 2024 - 年度财报