Financial Performance - The company reported a total loss of HKD 13,813,000 for the year ending December 31, 2024, compared to a loss of HKD 21,970,000 in 2023, representing a 37% improvement in losses year-over-year[4] - Total comprehensive loss for the year was HKD 11,857,000, down from HKD 21,300,000 in the previous year, indicating a 44% reduction in comprehensive losses[4] - The company had no revenue reported for the year 2024, consistent with the previous year, indicating ongoing challenges in generating sales[4] - The total reported segment loss for the year ended December 31, 2024, was HKD 4,875,000, compared to a loss of HKD 4,426,000 for the year ended December 31, 2023, indicating an increase in losses by approximately 10.1%[20] - The group reported a loss of approximately HKD 13,700,000 for the year, a decrease from HKD 21,900,000 in the previous year, indicating a reduction in losses by about 37%[42] - The group did not record any revenue or gross profit for the year, consistent with the previous year[45] Expenses and Liabilities - Administrative expenses decreased to HKD 13,825,000 from HKD 22,354,000, reflecting a 38% reduction in operational costs[4] - The company’s current liabilities net worth stood at HKD 212,675,000, compared to HKD 201,133,000 in 2023, showing an increase in financial obligations[6] - The company’s cash and bank balances decreased to HKD 202,000 from HKD 874,000, indicating a significant decline in liquidity[6] - The company recognized other income of HKD 27,000, down from HKD 885,000 in the previous year, marking a 97% decrease[16] - The company’s equity attributable to owners decreased to HKD (213,913,000) from HKD (202,187,000), reflecting a decline in shareholder equity[6] - The company’s total liabilities increased to HKD 213,020,000,000 as of December 31, 2024, from HKD 204,645,000,000 as of December 31, 2023, an increase of approximately 4.7%[20] - The employee cost for the year is approximately HKD 6,600,000, down from approximately HKD 13,200,000 as of December 31, 2023[71] Strategic Focus and Development - The company is focused on developing high-tech electric vehicles and advanced battery materials, indicating a strategic emphasis on innovation and market expansion[7] - The group has been engaged in electric vehicle development for over ten years, focusing on advanced battery management systems and related technologies[41] - The company plans to launch in-car audio and short drama business by 2025, capitalizing on the growing demand for in-car entertainment and digital media content[51] - The company is exploring opportunities for industrialization and production development, including facility renovations and procurement of production machinery, contingent on financing opportunities post-COVID-19[53] Financing and Investment - The company is actively seeking financing options, including equity and debt financing, to support its business development plans[56] - A subscription agreement was established for a two-year convertible bond issuance of HKD 100 million at an interest rate of 5%, convertible into 1 billion shares at an initial conversion price of HKD 0.10 per share[59] - The net proceeds from the subscription will be approximately HKD 99,500,000, allocated as follows: 50% for settling the promissory notes, 30% for operational funding, and 20% for general working capital[61] - The group aims to explore all possible financial solutions, including equity financing and debt financing, to enhance financial flexibility[47] Governance and Compliance - The independent auditor's report highlighted significant uncertainty regarding the group's ability to continue as a going concern due to accumulated losses and current liabilities[39] - The board does not recommend any final dividend for the year ending December 31, 2024, consistent with the previous year[65] - The company has not complied with the corporate governance code regarding the attendance of independent non-executive directors at the annual general meeting, as only one independent director attended the meeting held on June 6, 2024[75] - Following the resignations of several directors in 2025, the company failed to meet the requirement of having at least three independent non-executive directors on the board, but has since rectified this by appointing new members[76] - The auditors have confirmed that the preliminary announcement of the group's consolidated financial statements for the year ending December 31, 2024, is consistent with the audited financial statements[78] Market Conditions and Challenges - The macroeconomic environment remains uncertain, significantly hindering the group's business development and fundraising efforts[45] - The group has identified several potential business partners and investors, including government agencies and automotive manufacturers, but negotiations have been delayed due to the COVID-19 pandemic[47] - The company has entered into a purchase agreement to acquire Best Knob International Limited for HKD 392 million, with the price revised to HKD 228 million in a supplemental agreement[57][60] - The acquisition aims to enhance the company's electric vehicle manufacturing capabilities and expand sales channels to leading automotive manufacturers in China[55] Shareholder and Market Activity - Basic loss per share for the year ended December 31, 2024, was approximately HKD 0.674, compared to HKD 1.078 for the year ended December 31, 2023[28] - The company's shares have been suspended from trading since April 1, 2025, pending further notice[82] - The group has no significant contingent liabilities as of December 31, 2024[62] - The group has no pledged assets as of December 31, 2024, consistent with the previous year[69] - The group has no borrowings as of December 31, 2024, and maintains a conservative treasury policy[68]
正道集团(01188) - 2024 - 年度业绩