Financial Performance - Revenue for the fiscal year 2024 decreased from approximately HKD 165.0 million in 2023 to about HKD 99.3 million in 2024, representing a decline of approximately 40%[10] - Gross profit margin fell from approximately 52.8% in 2023 to about 8.7% in 2024, with gross profit dropping from HKD 87.1 million to HKD 8.6 million[10] - The company reported a loss attributable to owners of approximately HKD 47.9 million for 2024, compared to a profit of HKD 18.9 million in 2023[10] - Earnings per share for 2024 were approximately HKD -13.31, down from HKD 5.30 in 2023[10] - The company has decided not to declare a final dividend for the fiscal year 2024, consistent with the previous year[10] - The company's revenue for the fiscal year 2024 was approximately HKD 99.3 million, a decrease of about 39.8% from HKD 165.0 million in 2023[30] - Gross profit fell to approximately HKD 8.6 million in 2024, down about 90.1% from HKD 87.1 million in 2023, with a gross margin of approximately 8.7% compared to 52.8% in the previous year[42] - The company reported a loss attributable to equity holders of approximately HKD 47.9 million for the fiscal year 2024, compared to a profit of HKD 18.9 million in 2023[30] - Sales costs increased by approximately 16.3% to about HKD 90.7 million in 2024, compared to HKD 77.9 million in 2023[41] - Other income decreased from approximately HKD 44.2 million in FY2023 to about HKD 38.9 million in FY2024, a reduction of approximately HKD 5.3 million[43] Market Performance and Strategy - The traditional watch sales experienced a significant decline, primarily due to over-reliance on the Chinese market, which accounted for over half of the sales points[12] - The company is actively participating in overseas exhibitions and adjusting marketing strategies to expand into international markets, including ASEAN and Dubai[12] - Sales in the smartwatch manufacturing segment increased compared to the previous year, but were affected by geopolitical factors and tariff issues, leading to more conservative order placements by clients[13] - Future sales strategies for traditional watches will focus on overseas markets, aiming to enhance brand recognition and develop exclusive designs for international buyers[14] - The company plans to stabilize customer orders in the smartwatch segment while controlling production costs and improving gross margins[14] - Revenue from the Chinese market decreased by approximately 37.9% to about HKD 81.9 million in 2024, accounting for approximately 82.5% of total revenue[32] - Sales in the Hong Kong and Macau markets increased by approximately 100.5% to about HKD 11.2 million in 2024, representing approximately 11.3% of total revenue[33] - Revenue from other markets, primarily in Europe, increased by approximately 62.7% to about HKD 3.4 million in 2024, accounting for approximately 3.4% of total revenue[34] Operational Changes and Employee Management - The total employee count increased by approximately 24.9% from 434 to 542 full-time employees, with total employee costs rising from approximately HKD 57 million to HKD 60.4 million[68] - The company encourages employee training and development, offering subsidies for external training courses[170] - Employee development is a priority, with the company providing training in management skills, sales, production, and quality control[198] - The employee turnover rate in mainland China reached 83.8%, significantly higher than Hong Kong's 5.4% and Switzerland's 10.8%[166] - The company reported zero work-related fatalities in the past three years, maintaining a safe working environment[168] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules appendix 14, which is crucial for enhancing overall performance and accountability[84] - All directors have confirmed compliance with the standard code of conduct for securities trading as per listing rules appendix 10 for the fiscal year 2024[85] - The board consists of two executive directors, one non-executive director, and two independent non-executive directors, ensuring a diverse range of expertise and industry knowledge[87] - The company has established five committees: Audit, Remuneration, Nomination, Executive, and Investment, each with defined roles and responsibilities[99] - The Audit Committee includes members with appropriate professional qualifications and experience, ensuring effective oversight of financial reporting[100] - The company has implemented a whistleblowing policy to encourage employees to report potential violations, ensuring complete protection and confidentiality for whistleblowers[188] - The company has not faced any legal prosecution related to corruption or criminal offenses during the year[188] Environmental, Social, and Governance (ESG) Initiatives - The company has identified key ESG issues, including employee rights, safety and health, product quality and safety, and innovation management, to enhance performance in daily operations[132] - The report includes key performance indicators to track and list performance in resource utilization[136] - The total emissions of greenhouse gases for the year 2024 amounted to 96.61 tons of CO2 equivalent, a decrease of 22.6% from 124.88 tons in 2023[149] - The company aims to enhance resource efficiency and has implemented measures to track consumption patterns, leading to increased awareness of environmental conservation among employees[154] - The company has committed to sustainable waste management practices, including recycling old watch batteries and minimizing hazardous waste generation[150] - The company has established a procurement policy to control material purchases and minimize potential waste[154] - The company is committed to managing environmental and social risks in its supply chain, with specific practices in place for supplier selection and monitoring[192] Future Outlook - The external economic environment is expected to be complex and challenging, impacting the watch industry negatively in 2025[71] - The group plans to focus on inventory clearance and redesign existing watch inventory to improve cost efficiency and accelerate turnover[72] - In 2025, the group aims to enhance brand visibility through a new store design and promotional activities, including tiered gift offerings to stimulate sales[73] - The group intends to expand its market presence in Southeast Asia and North America, with a focus on increasing the number of duty-free stores in Singapore[77] - The company aims to reduce carbon emission density by 10% and energy consumption density by 10% by 2028[162]
依波路(01856) - 2024 - 年度财报