Financial Performance - The company reported a net loss attributable to equity holders of approximately HKD 396 million for the year ended December 31, 2024, a decrease of about 31.4% compared to a net loss of approximately HKD 577 million in 2023[5]. - The company's revenue for 2024 was approximately HKD 578 million, a decrease of about HKD 187 million or 24.4% compared to 2023[28]. - The gross profit for 2024 was HKD 132 million, down 23.3% from HKD 172 million in 2023[28]. - The Ferrari business generated revenue of approximately HKD 420 million in 2024, an increase of 22.1% from HKD 344 million in 2023[34]. - The Maserati business recorded revenue of approximately HKD 61 million in 2024, a decline of 51.6% from HKD 126 million in 2023[35]. - The high-value collectibles and logistics business saw a revenue drop of 65.8% to approximately HKD 51 million in 2024, with an operating loss of HKD 52 million[36]. - The property investment and holding segment reported a rental income decrease of 25.0% to approximately HKD 6 million in 2024, with an operating loss of HKD 121 million[32]. - The securities business recorded an operating loss of HKD 4 million in 2024, significantly improved from a loss of HKD 251 million in 2023[33]. - Total revenue for 2024 was approximately HKD 578,000,000, a decrease of about 24.4% from HKD 765,000,000 in 2023, with 99.7% of revenue coming from Hong Kong, Macau, and mainland China[39]. - The company's equity attributable to shareholders decreased to approximately HKD 672,000,000 in 2024 from HKD 731,000,000 at the beginning of the year, a reduction of about HKD 59,000,000[40]. Dividend Policy - The company did not declare a final dividend for 2024, maintaining cash reserves to address future challenges, consistent with no dividends declared in 2023[6]. - The board of directors does not recommend a final dividend for 2024, maintaining cash reserves to address future challenges, consistent with no dividends declared in 2023[149]. - The company has adopted a dividend policy since January 2019, allowing for the declaration and distribution of dividends to shareholders while retaining sufficient reserves for future growth[136]. - The board will consider the group's financial performance, overall financial condition, and other relevant factors when proposing any dividends[138]. Business Operations - The property business in Hong Kong continues to consolidate amid a weak economy and low investment sentiment, with expectations of uncertainty in the property market for 2025 due to economic factors[8][9]. - The securities business generated stable interest income from receivable bills, as the company refrained from trading listed stocks or securities to preserve cash and reduce risk[10]. - Blackbird Group's Ferrari business saw a 70% increase in vehicle deliveries compared to 2023, with significant growth in personalized vehicle options, which increased by 33%[12]. - The launch of the Ferrari V12 GT car "12Cilindri" attracted 320,000 visitors during a four-day event in Hong Kong, exceeding initial sales targets by 80%[13]. - The Maserati Grecale was the best-selling model for Blackbird Tridente in 2024, with plans to introduce the GranTurismo model to the Hong Kong and Macau markets next year[15]. - The antique car and investment-grade vehicle business faced challenges due to a slowing global market, but management remains cautiously optimistic about long-term prospects[16]. - The company plans to expand cross-border services between Hong Kong and China, as well as Hong Kong and Macau, and will launch new projects including unloading RoRo cargo by 2025[17]. - The company has agreed to sell its stage sound and lighting business for a total consideration of HKD 8,100,000, with completion expected by February 28, 2025[18]. Risk Management - The outlook for 2025 is filled with uncertainties and challenges, including geopolitical instability and inflation, which pose significant risks to economic recovery[19]. - The company has identified key risks including geopolitical risks, inflation, and government policy changes that could significantly impact operations[127]. - The company employs a conservative approach to risk management, covering various types of risks including operational and market risks[123]. - The internal audit department conducts semi-annual reviews of the internal control system based on risk criteria[121]. - The board believes that the risk management and internal control systems are effective and sufficient for the year 2024[122]. Corporate Governance - The company has maintained a dual leadership structure with the same individual serving as both Chairman and CEO, which has been effective for strategic planning and execution[73]. - The company has adhered to all provisions of the corporate governance code for the fiscal year ending December 31, 2024, except for the separation of roles between Chairman and CEO[71]. - The board has established an ESG governance framework to oversee sustainability and related risks[70]. - The company has established three board committees: the Remuneration Committee, Audit Committee, and Nomination Committee, each with clearly defined responsibilities to assist the board in its duties[100]. - The Audit Committee is composed entirely of three independent non-executive directors, ensuring a high level of financial expertise[106]. - The board consists of two executive directors and three independent non-executive directors, maintaining a balance of skills and experience[88]. - The company has adopted a board diversity policy since August 2013, focusing on various aspects such as gender, age, and professional experience[113]. - The company has sufficient and appropriate liability insurance for directors and senior management against claims arising from corporate activities[87]. Employee Engagement - The company encourages employee training and development, providing competitive compensation and benefits[61]. - The company emphasizes employee welfare, providing competitive compensation and a safe working environment, with a focus on professional development[178]. - The company has implemented environmental management practices aimed at reducing operational impact and promoting sustainability[177]. Financial Obligations - The company has obtained waivers for financial covenants related to loans amounting to HKD 1.157 billion[81]. - The company is actively seeking opportunities to sell several assets, particularly properties, with expected completion between mid-2025 and late 2025[81]. - The board has reviewed the group's cash flow forecast, which covers a period of at least twelve months from the reporting date, and believes there will be sufficient working capital to meet financial obligations due by December 31, 2025[82]. - The group has a revolving loan amounting to HKD 344,000,000, which is renewed every three to twelve months, with a strong historical record of renewal[83]. Shareholder Communication - The company has established a shareholder communication policy to ensure active two-way communication with shareholders, providing timely and comprehensive information[133]. - The board reviewed the implementation and effectiveness of the shareholder communication policy and deemed it effective[135]. Charitable Contributions - The group made charitable donations of approximately HKD 56,000 in 2024, reflecting its commitment to community engagement[64]. - The company reported a charitable donation of approximately HKD 56,000 during the year, compared to HKD 50,000 in 2023[165].
中建富通(00138) - 2024 - 年度财报