Workflow
正道集团(01188) - 2024 - 年度财报
01188HYBRID KINETIC(01188)2025-06-04 23:42

Business Development and Strategy - The company is preparing to launch in-vehicle audio-visual and short drama business in 2025, targeting the rapidly growing automotive sector in China, which has over 500 million passenger vehicles[12] - The short drama industry in China has surpassed traditional film box office revenues, indicating significant growth potential for the company's new ventures[12] - The Group has a long-term commitment to the global automobile industry and is preparing to launch into the in-vehicle audio-visual and short drama business in 2025, capitalizing on the growing demand for in-car entertainment[56][58] - The integration of in-vehicle audio-visual and short drama content into the business model is seen as a potential growth area, especially with the rise of smart vehicles[57] - The Group aims to leverage its technological advantages to enter the fast-growing market of in-vehicle entertainment and achieve its expansion goals[58] - Continuous efforts in research and development, along with exploring collaborations with business partners, are expected to help the Group regain momentum as the global economy improves[49] - The Group plans to launch in-vehicle entertainment and short drama business by 2025, capitalizing on the growing demand driven by the increasing number of electric vehicles and digital media[62] - The Group is committed to accelerating its electric vehicle business development through potential acquisitions[143] Financial Performance - The Group did not record any revenue or gross profit for the year ended December 31, 2024, remaining at approximately HKNil,consistentwiththepreviousyear[43][50]−ThelossfortheyeardecreasedtoapproximatelyHKNil, consistent with the previous year[43][50] - The loss for the year decreased to approximately HK13.8 million, down from HK22.0millionin2023,whilethelossattributabletoshareholderswasapproximatelyHK22.0 million in 2023, while the loss attributable to shareholders was approximately HK13.7 million, compared to HK21.9millionintheprioryear[48][53]−OperatingexpensesdecreasedtoapproximatelyHK21.9 million in the prior year[48][53] - Operating expenses decreased to approximately HK13.8 million from HK22.4millionin2023,primarilyduetoareductioninemployeebenefitexpensesfromapproximatelyHK22.4 million in 2023, primarily due to a reduction in employee benefit expenses from approximately HK13.2 million to HK6.6million[44][51]−TheuncertainmacroeconomicenvironmentandcautiousmarketsentimentsignificantlyhinderedtheGroup′sbusinessdevelopment,leadingtostagnantgrowthanddifficultiesinraisingcapital[42][52]−TheGroupincurredalossofHK6.6 million[44][51] - The uncertain macroeconomic environment and cautious market sentiment significantly hindered the Group's business development, leading to stagnant growth and difficulties in raising capital[42][52] - The Group incurred a loss of HK13,813,000 for the Year and had net current liabilities of approximately HK212,675,000asofDecember31,2024,indicatingsignificantuncertaintyregardingitsabilitytocontinueasagoingconcern[128]ManagementandGovernance−Mr.DanChuanlongwasappointedasanexecutivedirectorinMarch2025,previouslymanagingoperationsatTianCaiHoldingsandWuhanXiuLifeConvenienceStore[24]−Mr.KongFanwasappointedasanexecutivedirectorinMarch2025,servingasthedeputygeneralmanagerofWuhanXiuLifesinceMay2022[25]−Mr.RuanJian,aged44,appointedasanon−executivedirectorinMarch2025,hasbeenthedeputygeneralmanagerofHubeiDongxingsinceNovember2018[26]−Mr.ZhengYu,aged37,appointedasanon−executivedirectorinMarch2025,hasbeenthegeneralmanagerofWuhanErchangBeveragessinceJune2020[27]−Ms.PanHong,aged32,appointedasanindependentnon−executivedirectorinMay2025,hasextensiveexperienceinaccountingandcurrentlyoverseestheaccountingdepartmentatWuhanTravelTianDiNetworkTechnology[28]−Mr.WuWenchang,aged44,appointedasanindependentnon−executivedirectorinMay2025,hasover20yearsofexperienceinthetourismindustry[31]−Mr.YuenWaiKeung,aged44,appointedasanindependentnon−executivedirectorinMay2025,hasapproximately20yearsofexperienceinaudit,accounting,andfinance[32]−Ms.ChenLi,aged36,appointedascompanysecretaryon19March2025,alsoservesasthechieffinancialofficeroftheCompany[35]−Theboardcompositionincludesbothexecutiveandindependentnon−executivedirectors,ensuringdiversegovernance[146]FinancingandCapitalStructure−Themanagementisactivelyseekingcollaborationsandinvestmentopportunitiestoenhanceliquidityandoperationalperformanceinthelongrun[13]−Theboardismaintainingdiscussionswithprivateequityfirmsandinvestmentbankstoexplorenewcapital−raisingstrategies[17]−TheGroupisactivelyexploringfinancingopportunitiestosupportitsbusinessdevelopment,includingequityanddebtfinancingoptions[74]−AproposedacquisitionofBestKnobInternationalLimited,engagedinmanufacturingautomobileparts,isunderwaytoenhancetheGroup′selectricvehiclemanufacturingcapabilities[68]−ThecompanyenteredintoasaleandpurchaseagreementtoacquireBestKnobInternationalLimitedforHK212,675,000 as of December 31, 2024, indicating significant uncertainty regarding its ability to continue as a going concern[128] Management and Governance - Mr. Dan Chuanlong was appointed as an executive director in March 2025, previously managing operations at Tian Cai Holdings and Wuhan Xiu Life Convenience Store[24] - Mr. Kong Fan was appointed as an executive director in March 2025, serving as the deputy general manager of Wuhan Xiu Life since May 2022[25] - Mr. Ruan Jian, aged 44, appointed as a non-executive director in March 2025, has been the deputy general manager of Hubei Dongxing since November 2018[26] - Mr. Zheng Yu, aged 37, appointed as a non-executive director in March 2025, has been the general manager of Wuhan Erchang Beverages since June 2020[27] - Ms. Pan Hong, aged 32, appointed as an independent non-executive director in May 2025, has extensive experience in accounting and currently oversees the accounting department at Wuhan Travel Tian Di Network Technology[28] - Mr. Wu Wenchang, aged 44, appointed as an independent non-executive director in May 2025, has over 20 years of experience in the tourism industry[31] - Mr. Yuen Wai Keung, aged 44, appointed as an independent non-executive director in May 2025, has approximately 20 years of experience in audit, accounting, and finance[32] - Ms. Chen Li, aged 36, appointed as company secretary on 19 March 2025, also serves as the chief financial officer of the Company[35] - The board composition includes both executive and independent non-executive directors, ensuring diverse governance[146] Financing and Capital Structure - The management is actively seeking collaborations and investment opportunities to enhance liquidity and operational performance in the long run[13] - The board is maintaining discussions with private equity firms and investment banks to explore new capital-raising strategies[17] - The Group is actively exploring financing opportunities to support its business development, including equity and debt financing options[74] - A proposed acquisition of Best Knob International Limited, engaged in manufacturing automobile parts, is underway to enhance the Group's electric vehicle manufacturing capabilities[68] - The company entered into a sale and purchase agreement to acquire Best Knob International Limited for HK392 million, which will be settled by the issuance of promissory notes[89] - The consideration for the acquisition was revised to HK228millionafternegotiations,withpaymentstobemadetotwovendors[90]−Thecompanyhasconditionallyagreedtoissuea2−yearconvertiblebondworthHK228 million after negotiations, with payments to be made to two vendors[90] - The company has conditionally agreed to issue a 2-year convertible bond worth HK100 million at a 5% annual interest rate, convertible into 1 billion new ordinary shares[95] - The net proceeds from the subscription are expected to be approximately HK99.5million,with5099.5 million, with 50% allocated for settling promissory notes related to the acquisition[100] - The company plans to use 30% of the net proceeds from the subscription for business development working capital[100] - The Group's gearing ratio as of December 31, 2024, was approximately 100.2%, slightly improved from 101.9% a year earlier[112] - The Group had no borrowings as of December 31, 2024, and follows a conservative treasury policy[114] Employee and Operational Metrics - The total staff costs, including Director's remuneration, were approximately HK6.6 million for the year, down from approximately HK13.2millioninthepreviousyear[120]−TheGrouphadatotalofapproximately22employeesasofDecember31,2024,adecreasefrom55employeesayearearlier[120]−TheGroup′semployeecosts,includingdirectorremuneration,wereapproximatelyHK13.2 million in the previous year[120] - The Group had a total of approximately 22 employees as of December 31, 2024, a decrease from 55 employees a year earlier[120] - The Group's employee costs, including director remuneration, were approximately HK6,600,000 for the Year, down from approximately HK$13,200,000 in the previous year[124] Legal and Compliance Matters - The Group is in negotiations with XALT to recover prepayments related to a legal dispute, while also exploring mediation options[84] - The company is actively seeking professional advice to explore the possibility of recovering any advance payments related to legal disputes[86] - The Company has not faced significant foreign exchange risk and has not adopted any financial instruments for hedging purposes[123] - All related party transactions were fully exempt from announcement and reporting requirements under the Listing Rules[196] Share Options and Ownership Structure - The share option scheme was adopted on June 13, 2013, and is currently in force[165] - The total number of shares in issue as of December 31, 2024, is 20,352,872,747[162] - The total number of share options granted to directors and employees during the period was 140,000,000[166] - The number of share options lapsed during the period was 418,500,000[166] - The company has a total of 400,000,000 share options available as of December 31, 2024[166] - The company’s shareholding structure includes trusts established for the benefit of Dr. Yeung's children, indicating a complex ownership arrangement[162]