Financial Performance - Total revenue decreased by approximately 7.2% from HKD 103.5 million in 2023 to HKD 96.0 million in 2024[4] - Gross profit fell by about 22.4% from HKD 44.2 million in 2023 to HKD 34.3 million in 2024, with a gross margin decline from 42.7% to 35.7%[4] - The airline ticket distribution segment's revenue dropped by approximately 51.1% from HKD 22.1 million to HKD 10.8 million due to geopolitical tensions affecting air transport volumes[12] - The travel business process management segment's revenue remained stable at approximately HKD 21.5 million in 2024, with an increase in gross margin from 66.4% to 71.5%[13] - Revenue from the travel products and services segment increased by about 5.6% from HKD 60.3 million to HKD 63.7 million, driven by growth in the Greater Bay Area[14] - The company reported a significant loss of HKD 44.5 million in 2024 compared to a profit of HKD 2.9 million in 2023, marking a decline of 1,634.5%[4] Assets and Equity - Total assets decreased by 21.9% from HKD 141.8 million in 2023 to HKD 110.8 million in 2024[4] - Shareholders' equity plummeted by 98.9% from HKD 50.3 million to HKD 0.6 million, indicating severe financial strain[4] Liquidity and Ratios - The current ratio and quick ratio fell by 25.0% from 1.2 to 0.9, reflecting liquidity challenges[4] - The debt-to-equity ratio surged to approximately 415.9% as of December 31, 2024, up from approximately 6.6% as of December 31, 2023, primarily due to additional expected credit loss provisions impacting total equity[41] Credit Loss Provisions - As of December 31, 2024, the cumulative expected credit loss provision is approximately HKD 110.6 million, an increase from approximately HKD 83.9 million as of December 31, 2023, reflecting a significant rise in expected credit losses due to adverse impacts on international travel demand[36] - The expected credit loss provision for trade receivables increased to approximately HKD 1.8 million from approximately HKD 0.5 million year-on-year, while the provision for other receivables rose to approximately HKD 108.8 million from approximately HKD 83.4 million[36] Governance and Board Composition - The company is committed to good corporate governance practices, adhering to applicable codes and principles to enhance shareholder value[87] - The board consists of three independent non-executive directors, meeting the requirement that independent directors must constitute at least one-third of the board[93] - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each operating within its defined scope[101] - The company has adopted a board diversity policy, considering factors such as gender, age, cultural and educational background, and professional experience in the selection process[109] Risk Management - The company has established policies and procedures for risk management and internal control, with the board responsible for assessing the nature and extent of risks[110] - The risk management and internal control systems include a strategic risk register to control and evaluate identified risks, ensuring the effectiveness of risk mitigation procedures[111] - The board is aware that the risk management and internal control systems are designed to manage rather than eliminate risks associated with achieving business objectives[110] Employee and Management - As of December 31, 2024, the company had a total of 82 employees, comprising 32 males and 50 females, and is committed to reviewing gender diversity among its workforce[140] - The total remuneration for senior management for the year ending December 31, 2024, is approximately HKD 5.0 million, including salaries, allowances, bonuses, and retirement plan contributions[94] Environmental Commitment - The company has implemented recycling programs for consumables like toner and paper to minimize its environmental impact and is committed to sustainable development[139] Shareholding and Ownership - As of December 31, 2024, the company had a significant shareholding of 900,000,000 shares, representing 75.0% ownership by Mr. Liu through controlled entities[156] - The shareholding structure indicates that Mr. Liu controls 75.0% of the company through Tomorrow Education Technology Limited[157] Dividend Policy - The board will consider various factors, including financial performance and liquidity, when determining dividend payments to shareholders[127] - The company reported no final dividend for the year ended December 31, 2024, in order to retain cash for operational needs and future development[141]
富盈环球集团(01620) - 2024 - 年度财报