Financial Performance - Revenue for the year 2025 reached $200.2 million, a decrease of 10.2% compared to 2024[3] - Net profit margin reached a historic high of 7.9% despite a 7.4% decline in net profit to $15.9 million[4] - The company experienced a revenue decline of $18.1 million due to strict credit risk management with two major clients[5] - Excluding the impact of the two major clients, revenue from other business segments would have increased by 2.7%[4] - The group reported a gross profit of $57,012,819 for the year, down from $63,490,667 the previous year[19] - The net profit for the year was $15,870,991, down from $17,144,830 in the previous year, indicating a slight decline[20] - Total revenue for 2025 was $200,156,359, a decrease of 10.2% from $222,929,009 in 2024[30] - Revenue from the United States was $122,931,000, down from $125,395,340 in 2024, representing a decline of 3.7%[30] - Revenue from Greater China increased significantly to $3,608,949 from $1,429,279, marking a growth of 152.5%[30] - Gross profit declined from $63.5 million in 2024 to $57.0 million in 2025, reflecting a decrease of 10.2%, while maintaining a stable gross margin of 28.5%[48] Cash and Assets Management - Cash balance reached a record high of $41.5 million, maintaining a zero-debt status[4] - Non-current assets totaled $9,625,068 in 2025, up from $5,908,070 in 2024, reflecting a growth of 63.5%[21] - Current assets increased to $99,788,656 in 2025 from $89,111,905 in 2024, an increase of 11.9%[21] - Net assets rose to $69,749,989 in 2025, compared to $63,021,174 in 2024, an increase of 10.8%[22] - The company reported a significant increase in trade receivables, which rose to $39,940,402 in 2025 from $33,254,592 in 2024, a growth of 19.0%[21] - Cash and cash equivalents amounted to $41.5 million as of December 31, 2025, up from $34.1 million in 2024, marking a historical high[51] - The company's current assets net value increased to $62.6 million in 2025 from $57.3 million in 2024, with a current ratio of 2.7 times[52] - The debt-to-equity ratio was 0% as of December 31, 2025, due to no bank borrowings, indicating a strong cash position[53] Dividends and Shareholder Returns - The company maintained a final dividend of 7.0 HKD per share despite the profit decrease[4] - The group maintained a final dividend of 7.0 HKD cents per share, with a payout ratio of 51.7%[17] - The company proposed a mid-year dividend of 3.0 HKD per share for 2025, consistent with the previous year, and a final dividend of 7.0 HKD per share, up from 6.0 HKD in 2024[39] - The board proposed a final dividend of 7.0 HKD cents per share, amounting to 44.7 million HKD (equivalent to $5.7 million), representing 51.7% of the group's net profit for the year[57] Strategic Acquisitions and Growth - The acquisition of Active Apparel Group (AAG) is expected to enhance growth advantages in 2026[4] - The acquisition of AAG marks the largest acquisition to date, enhancing capabilities in the sports apparel sector[10] - AAG's acquisition is expected to reflect fully in the group's performance by 2026, enhancing the company's ability to win new sportswear customers[13] - The group anticipates further acquisition opportunities due to the deteriorating financial conditions of brands and retailers, which may lead to more reasonably valued targets[14] - The company has prepared to seize expansion opportunities and solidify its market position through strategic acquisitions[51] Operational Efficiency and Risk Management - The company achieved zero bad debts through stringent credit risk management during a challenging year[7] - The company continues to implement proactive credit risk measures to minimize potential bad debts from customers with poor credit conditions[46] - The company's flexible asset-light business model demonstrated resilience despite the adverse effects of tariffs[9] - The implementation of a strong credit control system enhanced the company's cash position and ability to earn more interest income[50] - The company effectively managed financial risks by reducing business volume with certain customers, leading to a decrease in bad debt losses[49] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange rules and has complied with all relevant provisions up to December 31, 2025[60] - The company has established an Audit Committee to oversee financial reporting and internal control systems, consisting of four independent non-executive directors[65] - The company has established a Remuneration Committee to review and recommend policies regarding the remuneration of directors and senior management[66] - The Nomination Committee was established on October 12, 2019, in accordance with corporate governance guidelines, consisting of five members[67] - The main responsibilities of the Nomination Committee include reviewing the board structure, size, and composition, as well as evaluating the independence of independent non-executive directors[67] Upcoming Events - The company will hold its Annual General Meeting on April 9, 2026, with a record date for attendance set for the same day[58] - The company will temporarily suspend share transfer registration from April 1 to April 9, 2026, to determine shareholder eligibility for voting at the AGM[58] - The company plans to propose a final dividend, pending approval at the AGM, with a registration period from April 16 to April 17, 2026[59]
利华控股集团(01346) - 2025 - 年度业绩