Financial Performance - Revenue for the year ended December 31, 2024, decreased by 0.0% to HKD 1,486,479,000 compared to HKD 1,487,090,000 in 2023[3] - Core operating profit fell by 43.2% to HKD 41,444,000, including a 47.8% decline to HKD 34,275,000 when accounting for lease liabilities[3] - Net profit attributable to shareholders decreased by 58.6%, amounting to HKD 23,914,000, down from HKD 57,709,000 in the previous year[3] - The group reported total revenue of HKD 1,486,479,000 for the year ended December 31, 2024, a slight decrease of 0.04% compared to HKD 1,487,090,000 in 2023[52] - Core operating profit decreased significantly to HKD 41,444,000, down 43% from HKD 72,973,000 in the previous year[52] - The net profit attributable to shareholders was HKD 23,914,000, a decline of 58.6% from HKD 57,709,000 in 2023[54] - The company’s total comprehensive income for the year 2024 was HKD 21,425,000, down from HKD 57,760,000 in 2023, a decrease of 62.96%[57] - The company reported a profit attributable to shareholders of HKD 23,914,000 for the year 2024, compared to HKD 57,709,000 in 2023, a significant drop of 58.6%[57] Retail and Store Operations - The total number of retail stores decreased from 176 in 2023 to 157 in 2024, with significant reductions in the number of stores in Hong Kong and Guangzhou[6] - The group opened three new Saint Anna bakery locations in Hong Kong and Macau while closing 12, resulting in a total of 125 locations, a decrease of nine from the previous year[18] - The group aims to optimize its store network and has closed a poorly performing store while opening a new one in a high-traffic area[35] Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.01 per share, with a total annual dividend of HKD 0.03 per share, resulting in a payout ratio of 97%[7] - The proposed final dividend for the year ending December 31, 2024, is HKD 0.01 per share, totaling an annual dividend of HKD 0.03 per share, down from HKD 0.06 per share in 2023[102] - The company maintains a policy to distribute no less than 50% of the group's net profit as general dividends to shareholders[102] Business Segments and Performance - The wholesale business for baked goods showed strong performance, offsetting declines in retail sales due to changing consumer patterns[7] - The bakery business experienced a decline in same-store sales due to a weak consumer atmosphere, high interest rates, and changing consumption patterns, with total revenue showing a low single-digit decrease compared to 2023[17] - The "business-to-business" segment recorded a significant double-digit sales increase, helping to offset the lower retail sales in the bakery business[21] - Eyewear sales revenue increased to HKD 149,200,000 in 2024 from HKD 142,379,000 in 2023, reflecting a growth of 4.83%[66] Financial Position and Assets - The company reported a net cash position of HKD 207,000,000 with no bank borrowings, maintaining a strong financial status[7] - The group has a cash balance of HKD 207,000,000 as of December 31, 2024, with no bank borrowings[39] - The group’s total assets decreased to HKD 1,213,604,000 in 2024 from HKD 1,286,088,000 in 2023, a reduction of 5.6%[56] - The company’s total equity fell to HKD 635,422,000 in 2024, down from HKD 660,190,000 in 2023, representing a decrease of 3.7%[56] Operational Efficiency and Investments - The group invested in equipment upgrades and new production locations to enhance capacity and efficiency, aiming to improve product quality and seize new business opportunities[22] - The group streamlined workflows and enhanced food production management to improve operational efficiency amid a tough market[21] - The group aims to enhance operational efficiency through the adoption of new equipment and the latest technology[45] Market Trends and Consumer Behavior - The company anticipates that government measures to stimulate local consumption will improve consumer confidence and purchasing power in the second half of 2024[13] - The company aims to enhance its core competencies and adapt to new consumer trends while expanding its market presence in both Hong Kong and Singapore[13] - The group introduced new high-margin daily baked goods, increasing market share in categories like sourdough bread and frozen sandwiches, while also launching low-sugar products to cater to health-conscious consumers[19] Governance and Compliance - The company maintained a strong governance structure, with independent non-executive directors leading key committees to ensure accountability and transparency[91] - The board of directors is responsible for the risk management and internal control systems, which are reviewed annually for effectiveness and adequacy[98] - The audit committee confirmed that the risk management and internal control systems are established, sufficient, and effective, providing reasonable assurance for asset protection and risk monitoring[99] Employee and Labor Costs - The company had a total of 2,733 employees as of December 31, 2024, with 56% based in Hong Kong and 44% in Guangzhou, Macau, Shenzhen, and Singapore[44] - Employee benefits expenditure increased to HKD 523,000,000 in 2024 from HKD 492,000,000 in 2023, reflecting a growth of 6.3%[44] Taxation and Financial Reporting - The estimated tax provision for the year was calculated at a rate of 16.5% on the estimated taxable profit for both 2024 and 2023[80] - The effective tax rate for 2024 was 22.9%, compared to 18.9% in 2023, reflecting changes in tax liabilities across different regions[81] - The company has adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant impact on the financial statements[63]
利亚零售(00831) - 2024 - 年度业绩