Financial Performance - The total revenue for the year ended December 31, 2024, was HKD 2,194,763, a decrease of 8.0% compared to HKD 2,386,862 in 2023[3] - The gross profit for the year was HKD 306,508, down 21.2% from HKD 388,912 in the previous year[3] - The operating loss for the year was HKD 34,947, compared to an operating profit of HKD 177,207 in 2023[3] - The net loss attributable to equity holders of the company was HKD 43,364, compared to a profit of HKD 135,155 in the previous year[3] - Basic and diluted loss per share for the year was HKD 4.8, compared to earnings per share of HKD 15.0 in 2023[3] - Total comprehensive loss for the year was HKD 99,297, compared to a total comprehensive income of HKD 100,236 in 2023[4] - The company reported a net loss of HKD 51,787,000 for 2024, compared to a profit of HKD 131,268,000 in 2023, representing a significant decline[17] - Basic loss per share for 2024 was HKD 4.8, compared to earnings of HKD 15.0 per share in 2023[26] - The company reported a loss attributable to equity holders of approximately HKD 43 million for 2024, compared to a profit of HKD 135 million in 2023, resulting in a basic loss per share of HKD 0.048[32] Asset and Equity Changes - Non-current assets decreased to HKD 1,553,555 from HKD 1,661,908 in the previous year, a decline of 6.5%[6] - Current assets decreased to HKD 1,882,022 from HKD 2,149,305, a decline of 12.5%[6] - Total equity decreased to HKD 2,958,612 from HKD 3,175,155, a decline of 6.8%[6] Segment Performance - The book and packaging printing segment generated revenue of HKD 1,495,398,000 in 2024, down from HKD 1,705,643,000 in 2023, a decrease of 12.3%[17] - The consumer products packaging segment reported a loss of HKD 38,788,000 in 2024, compared to a loss of HKD 51,114,000 in 2023, indicating an improvement[17] - The revenue from paper trading was HKD 412,578,000 in 2024, down from HKD 477,100,000 in 2023, reflecting a decline of 13.5%[17] - Sales in the book and packaging printing (BPP) segment decreased by 12.3% to HKD 1.49 billion in 2024, while the overall profit contribution fell to HKD 25.7 million[37] - The consumer products packaging (CPP) segment saw a sales increase of 14.5% to HKD 339 million in 2024, supported by the full recovery of operations at the Wuxi factory[37] - The sales of the corrugated box business (CB) in 2024 recorded a slight increase of 6%, reaching HKD 198 million (2023: HKD 187 million), but the segment incurred a loss of HKD 15 million due to various market adverse factors[38] - The paper trading business (PT) experienced a significant decline in sales in 2024, down 17.9% to HKD 167 million, primarily due to weak market demand and fluctuations in paper supply and prices[38] Cost and Expense Management - The company reported a significant increase in distribution costs to HKD 57,052 from HKD 48,432, reflecting a rise of 17.0%[3] - Financing costs decreased to HKD 4,539,000 in 2024 from HKD 9,391,000 in 2023, a reduction of 51.7%[19] - The total tax expense for 2024 was HKD 10,474,000, a decrease from HKD 73,249,000 in 2023[22] Dividends and Shareholder Returns - The company proposed a special dividend of HKD 0.05 per share and a final dividend of HKD 0.04 per share, subject to shareholder approval, totaling HKD 118.023 million for 2024[29] - The company plans to distribute a special dividend of HKD 0.05 per share and a final dividend of HKD 0.04 per share, maintaining the total dividend for the fiscal year at HKD 0.13 per share[47] Operational Developments - The company is expanding its operations in Vietnam with a new factory set to be completed by the end of 2025, covering approximately 62,300 square meters[35] - The construction of the second factory in Vietnam, HHDream Thai Ha, is progressing as planned, with the first phase expected to be completed by mid-2025, aimed at meeting local and export market demands[44] - The group invested HKD 51 million in 2024 to expand and upgrade existing equipment and acquire new machinery and technology for core business facilities and a new plant in Vietnam[40] Strategic Initiatives - STEM PLUS is actively expanding in the education sector, with participation in events increasing from fewer than 200 institutions in 2023 to over 300 in 2024[35] - The company is enhancing its digital transformation efforts, including the introduction of an online store and the use of RFID technology for inventory management[36] - The group is actively enhancing its STEM PLUS education consulting services and expanding its digital bookstore to attract target audiences[45] - The application of artificial intelligence (AI) in the printing industry is expected to transform operations, with the company committed to training employees to leverage AI for improved efficiency[45] - The company is focusing on cost-saving measures and new revenue sources to improve operational efficiency amid economic uncertainties[37] Financial Position and Governance - The group holds a strong financial position with a net cash of HKD 914 million, allowing for continued pursuit of quality investment opportunities and sustainable business development[40] - The debt ratio remains at a conservative level of 2.1% (2023: 4.0%), effectively managing interest rate risks[41] - The board believes that the company has complied with the corporate governance code, with the exception of the separation of roles between the chairman and the CEO[51] - The audit committee reviewed the preliminary results for the year ending December 31, 2024, and confirmed consistency with the consolidated financial statements[55] - The audit was conducted by KPMG, but it did not constitute an audit or review under Hong Kong auditing standards[55] - The board consists of an executive chairman and several non-executive and independent directors, ensuring effective oversight of business performance[56] Regulatory Environment - The EU's Deforestation Regulation (EUDR) has extended its implementation date to December 2025, providing the industry more time to comply with regulations, which may create better opportunities in the long run[42] Share Transactions - The company did not purchase, redeem, or sell any of its shares during the year[50]
鸿兴印刷集团(00450) - 2024 - 年度业绩