Financial Performance - The group's revenue for the year ended December 31, 2024, was HKD 560,626,000, a decrease of 20.1% compared to HKD 701,552,000 in 2023[3] - Gross profit for 2024 was HKD 138,549,000, down 12.8% from HKD 158,865,000 in 2023, with a gross margin of 24.7% compared to 22.6% in the previous year[3] - Operating profit for 2024 was HKD 42,503,000, a slight increase of 0.7% from HKD 42,206,000 in 2023[11] - Profit attributable to owners of the company was HKD 20,909,000 in 2024, an increase of 85.2% from HKD 11,288,000 in 2023[11] - Basic earnings per share for 2024 were HKD 0.0909, up 85.1% from HKD 0.0491 in 2023[11] - The company reported a profit for the year of HKD 20,907,000, compared to HKD 11,754,000 in the previous year, representing an increase of approximately 78.5%[25] - The company reported a comprehensive income of HKD 5,203,000 for the year 2024, compared to HKD 12,258,000 in 2023[53] Income and Expenses - Other income and gains totaled HKD 18,669,000 in 2024, an increase of 120.6% from HKD 8,464,000 in 2023[5] - Financing expenses for 2024 were HKD 9,414,000, a decrease of 31.9% from HKD 13,821,000 in 2023, primarily due to improved cash flow[8] - Tax expenses for 2024 increased by 96.8% to HKD 3,769,000 from HKD 1,915,000 in 2023[10] - The net loss from fair value adjustments of investment properties was HKD 7,347,000 for the year ended December 31, 2024, compared to a loss of HKD 3,970,000 in 2023[34] Assets and Liabilities - Total assets decreased from HKD 820,783,000 to HKD 737,318,000, a decline of approximately 10.1% year-over-year[16] - Non-current assets decreased from HKD 464,369,000 to HKD 400,969,000, a reduction of about 13.6%[16] - Current assets decreased from HKD 356,414,000 to HKD 336,349,000, a decline of approximately 5.6%[16] - Total liabilities decreased from HKD 342,641,000 to HKD 292,270,000, a reduction of about 14.7%[17] - The total equity decreased from HKD 478,142,000 to HKD 445,048,000, a decline of approximately 6.9%[17] - Total borrowings decreased to HKD 128,071,000 in 2024 from HKD 172,146,000 in 2023, reflecting a reduction of approximately 25.6%[60] Revenue Breakdown - Sales of goods decreased from HKD 626,121,000 to HKD 464,800,000, a decline of approximately 25.7%[27] - Commission income increased from HKD 68,509,000 to HKD 89,698,000, an increase of about 30.9%[27] - Service revenue for the year ended December 31, 2024, was HKD 6,128,000, a decrease from HKD 6,922,000 in 2023[28] - Approximately HKD 89,536,000 of revenue for the year ended December 31, 2024, came from one customer, accounting for over 10% of total revenue[28] Dividends and Retained Earnings - The company proposed a final dividend of HKD 0.03 per share, totaling HKD 6,902,000, with total dividends for the year amounting to HKD 0.16 per share compared to HKD 0.045 per share in 2023[13] - The company's retained earnings increased from HKD 177,167,000 to HKD 216,253,000, an increase of approximately 22.1%[17] Operational Efficiency - The average accounts receivable turnover days improved to 125 days in 2024 from 135 days in 2023, indicating better collection efficiency[62] - The net debt-to-equity ratio decreased to approximately 21.7% as of December 31, 2024, from 28.7% in 2023, due to reduced bank borrowings aimed at lowering financing costs[66] - The net profit margin for 2024 is approximately 5.4%, an increase from 3.9% in 2023, due to fair value gains on financial assets and improved operational cost efficiency[65] Future Outlook and Strategy - The group plans to expand its service team by hiring more engineers to enhance technical capabilities, anticipating revenue growth from after-sales services[67] - The Chinese government has set a GDP growth target of 5% for 2025, with a projected 30% increase in new energy vehicle sales to 16.5 million units[67] - The group is confident in its product and market despite challenges from the US-China tariff war and underperformance of joint ventures in Germany and China[67] Corporate Governance - The company's annual performance for the year ending December 31, 2024, has been reviewed by the audit committee and confirmed by the auditor, PwC, with no discrepancies noted in the financial statements[83] - The company plans to hold its 2025 Annual General Meeting on June 25, 2025, with further details to be announced[84] - The board of directors includes three executive directors: Mr. Li Siu Leung, Mr. Chan Cheng Huan, and Mr. Pan Yiu Ming, along with non-executive and independent directors[86]
力丰(集团)(00387) - 2024 - 年度业绩