Financial Performance - The group's revenue for 2024 was HKD 560,626,000, a decrease of 20.1% compared to HKD 701,552,000 in 2023[6] - 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[6] - Operating profit for 2024 was HKD 42,503,000, a slight increase of 0.7% from HKD 42,206,000 in 2023[14] - Profit attributable to owners for 2024 was HKD 20,909,000, an increase of 85.2% from HKD 11,288,000 in 2023[14] - Basic earnings per share for 2024 were HKD 0.0909, up 85.1% from HKD 0.0491 in 2023[15] - The group recorded a net financing expense of HKD 8,254,000 in 2024, a decrease of 34.6% from HKD 12,621,000 in 2023[11] - Other income and gains totaled HKD 18,669,000 in 2024, an increase of 120.6% from HKD 8,464,000 in 2023[7] - The net profit for the year was HKD 20,907,000, an increase of 77.8% compared to HKD 11,754,000 in 2023[199] - Basic earnings per share increased to HKD 0.0909 from HKD 0.0491, representing an increase of 84.5%[199] Dividends - The board 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[17] - The company plans to distribute a final dividend of HKD 0.03 per share, totaling HKD 6,902,000, alongside a special dividend of HKD 0.10 per share and an interim dividend of HKD 0.03 per share, resulting in a total dividend of HKD 0.16 per share for the fiscal year ending December 31, 2024, compared to HKD 0.045 per share in 2023[48] Assets and Liabilities - Total assets decreased to HKD 737,318,000 in 2024 from HKD 820,783,000 in 2023, a decline of 10.1%[196] - Total liabilities decreased to HKD 292,270,000 in 2024 from HKD 342,641,000 in 2023, a reduction of 14.7%[197] - The group's cash and cash equivalents balance as of December 31, 2024, was HKD 26,048,000, down from HKD 29,795,000 in 2023[24] - The inventory balance as of December 31, 2024, was HKD 69,993,000, a decrease from HKD 80,209,000 in 2023, with inventory turnover days increasing from 54 to 61 days[24] - The accounts receivable balance as of December 31, 2024, was HKD 206,372,000, slightly down from HKD 209,795,000 in 2023, with accounts receivable turnover days improving from 135 to 125 days[25] Economic Environment - The Chinese economy faced challenges with a GDP growth rate of 5.0% in 2024, slightly down from 5.4% in 2023, while industrial value-added increased by 5.7%[18] - The group is facing challenges due to a weak economic environment in Europe, particularly in Germany, impacting the performance of its joint ventures[20] Strategic Initiatives - The group plans to expand its service team by hiring more engineers to enhance technical capabilities, anticipating revenue growth from after-sales services[21] - The company recognizes the risk of over-reliance on the Chinese market, with any adverse changes significantly impacting revenue, and aims to expand its business in Southeast Asia to mitigate this risk[52] - The company intends to enhance its product and service value to address competitive pressures, including increasing technical support and after-sales service for customers[52] - The company is exploring investment opportunities in manufacturing equipment in other countries, including Europe, to diversify its market risks[52] Sustainability and Environmental Management - The company emphasizes environmental management and aims to reduce its environmental impact through waste optimization and resource management[142] - The company has established a range of communication channels to engage with stakeholders and gather feedback on sustainability performance[135] - The company has set a mid-term target to reduce greenhouse gas emissions intensity by 10% from the 2021 baseline by 2030[175] - The company aims to reduce energy consumption intensity by 10% from the 2021 baseline by 2030, incorporating energy efficiency standards in office equipment procurement by 2023[175] - Water consumption and water density are targeted to decrease by 10% from the 2021 baseline by 2030[175] Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange rules and has complied with it for the year ending December 31, 2024[80] - The company confirmed that all independent non-executive directors are independent as per the relevant rules[84] - The audit committee has reviewed the accounting principles and practices adopted by the group and discussed risk management and internal control systems[82] - The board has established risk management systems to identify and manage significant risks that could adversely affect the company's performance[51] Employee and Labor Practices - The company has implemented a defined contribution retirement plan for eligible employees in Hong Kong since December 1, 2000, and complies with the national social insurance plan for employees in mainland China[145] - The company strictly prohibits forced labor and child labor, ensuring compliance with local labor laws and regulations[151] - Employee engagement initiatives included regular meetings and surveys to gather feedback, fostering a harmonious workplace culture[154] Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements reflect the company's financial position accurately as of December 31, 2024[178] - The consolidated financial statements have been audited by PwC[92] - The company reported a total audit fee of HKD 488,000 for the year, with an additional HKD 530,000 for interim performance announcement services[124]
力丰(集团)(00387) - 2024 - 年度财报