Financial Performance - For the year ending December 31, 2024, the group's revenue increased by 27% to HKD 100.3 million, compared to HKD 79.2 million in the same period of 2023[4] - The group's gross profit for the year ending December 31, 2024, rose by 24% to HKD 52.4 million, up from HKD 42.3 million in 2023[4] - The group recorded an annual profit of HKD 3.7 million for the year ending December 31, 2024, a significant recovery from a loss of HKD 19.2 million in 2023[4] - Total revenue for 2024 reached HKD 100,287,000, up from HKD 79,207,000 in 2023, marking a year-over-year increase of 26.6%[21] - Basic earnings per share improved to a profit of HKD 3,732,000 in 2024, compared to a loss of HKD 19,211,000 in 2023[25] - Gross profit for the year was HKD 52.4 million, with a gross margin of 52%, slightly down from 53% in the previous year[34][36] Assets and Liabilities - Total assets less current liabilities increased to HKD 64.9 million in 2024 from HKD 62.5 million in 2023[7] - The group's net assets rose to HKD 61.8 million in 2024, compared to HKD 58.2 million in 2023[8] - Cash and cash equivalents increased to HKD 25.7 million in 2024 from HKD 20.2 million in 2023[7] - Accounts receivable, net of loss provisions, increased to HKD 15,133,000 in 2024 from HKD 6,662,000 in 2023, reflecting a growth of 126.5%[27] - Payables rose to HKD 25,063,000 in 2024, compared to HKD 11,029,000 in 2023, indicating an increase of 127.5%[30] - The group maintained a debt ratio of 0% as of December 31, 2024, consistent with the previous year[57] Dividends and Shareholder Returns - The board of directors did not recommend the payment of a final dividend for the year ending December 31, 2024[4] - The board does not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with the previous year[32] - The group continues to maintain a sustainable dividend policy, balancing shareholder expectations with prudent capital management[40] Operational Efficiency and Cost Management - Research and development expenses decreased to HKD 12.9 million in 2024 from HKD 17.5 million in 2023, indicating a focus on cost management[5] - Operating expenses decreased by 22% to HKD 49.0 million from HKD 62.7 million in 2023, primarily due to cost-saving measures[37] - The group has initiated a deregistration process for its Manila subsidiary, which is expected to further improve operational efficiency and cost savings once completed[46] - The group employed 93 full-time employees as of December 31, 2024, down from 113 the previous year, with employee costs amounting to HKD 29.8 million compared to HKD 40.2 million in 2023[63] Market and Product Development - The company operates primarily in the development, sales, and distribution of smart card products, software, and hardware[9] - The group operates as a single operating segment focused on the development, sale, and distribution of smart card products and related services[20] - Revenue from the development, sale, and distribution of smart card products was HKD 100,076 thousand in 2024, up from HKD 78,955 thousand in 2023, reflecting a growth of 27.0%[17] - New product launches include the ACR1555U secure Bluetooth NFC reader and WalletMate II mobile wallet NFC reader module, which received positive market feedback[41] - The WalletMate mobile wallet NFC reader won the IOTE Gold Award for "Innovative Product" in 2024, enhancing the company's reputation as a reliable supplier in the industry[45] - The group plans to launch several breakthrough solutions in 2025, focusing on innovation in the fintech and smart living sectors[44] Customer and Revenue Concentration - Customer A contributed HKD 15,285 thousand in 2024, representing over 10% of the total revenue, while in 2023, no customer contributed over 10%[18] - Sales to the top five customers accounted for 35% of the group's revenue for the year ending December 31, 2024, up from 23% in 2023, indicating increased reliance on a limited number of customers[48] Challenges and Strategic Focus - The global IC chip shortage poses significant challenges to production capacity, prompting the company to diversify suppliers to enhance future supply flexibility[51] - The company emphasizes the importance of balancing investment in new product development with maintaining financial stability amid supply chain reliability concerns[54] - The rapid development of artificial intelligence and automation technologies presents challenges in talent management, necessitating significant retraining for employees[50] - The company is diversifying its market focus towards regions such as the Americas, Japan, China, and Southeast Asia to mitigate risks from geopolitical tensions[42] Governance and Compliance - The audit committee reviewed the financial statements for the year ending December 31, 2024, ensuring compliance with internal control policies and financial reporting systems[68] - The company will disclose details regarding its corporate governance principles and procedures in the 2024 annual report[66] - The group has no significant contingent liabilities as of December 31, 2024[62] Other Financial Information - Interest income decreased to HKD 598,000 in 2024 from HKD 800,000 in 2023, a decline of 25.3%[21] - The group received government subsidies of approximately HKD 4,000 in 2024, significantly lower than HKD 116,000 in 2023, a decrease of 96.6%[21] - The group reported a significant increase in inventory write-downs, with HKD 4,000 in 2024 compared to HKD 1,511,000 in 2023[23] - There were no significant sales or investments in subsidiaries or associates during the year ending December 31, 2024[58] - The group had no capital commitments related to the acquisition of properties, plants, or equipment as of December 31, 2024[59] - The group has not engaged in any buybacks, sales, or redemptions of its listed securities during the year[64]
高维科技(02086) - 2024 - 年度业绩