Company Overview - Hung Hing Printing Group has a total production floor space of over 600,000 square meters and employs approximately 5,000 staff across Hong Kong, mainland China, and Vietnam[12]. - The company operates seven manufacturing facilities, including one in Hong Kong, five in mainland China, and one in Vietnam, with the Vietnam operation starting in Q4 2019[12][28]. Financial Performance - Revenue for the year ended December 31, 2024, decreased by 8% to HK2,387 million in 2023[38]. - The company reported a loss attributable to equity shareholders of HK135 million in 2023[38]. - Basic loss per share for 2024 was HK(4.8) cents, compared to earnings of HK15.0 cents per share in 2023[38]. - Total assets decreased to HK3,811,213 thousand in 2023[38]. - The Group recorded a loss attributable to equity shareholders of approximately HK135 million last year, with a basic loss per share of HK15 cents in 2023[65]. - The Book and Packaging Printing (BPP) business unit experienced a revenue decline of 12.3% to HK1,700 million in 2023[86]. - The Consumer Product Packaging (CPP) business unit achieved a revenue increase of 14.5% to HK296 million in 2023, due to the resumption of full operations at the Wuxi plant[87]. - Overall profit contribution from BPP decreased to HK198 million in 2024, compared to HK15 million due to unfavorable market conditions[98]. - The Paper Trading (PT) business experienced a revenue decline of 17.9% to HK914 million, allowing for long-term sustainable growth investments and shareholder rewards[104]. Sustainability and Environmental Goals - The company is committed to achieving net carbon zero by 2050 and is reviewing key materials usage to minimize consumption and reduce waste[52]. - The Group is focusing on sustainability by introducing a new collection of samples showcasing eco-friendly materials in response to global demand[66]. - In 2024, the company expanded its solar panel capacity to 8,662 kWp, up from 6,101 kWp in 2023, resulting in a 33% increase in green energy generation to 7,313 MWh from 5,478 MWh[197]. - The company purchased a green energy certificate for a one-time offset of its carbon emissions as part of its commitment to long-term environmental goals[195]. - The intensity of Scope 1 & 2 CO2 emissions was recorded at 12.36 in 2024, with a target of 10.44[197]. - The electricity usage intensity was 27.8 in 2024, with a target of 20.83[197]. - The hazardous waste intensity was recorded at 0.22 in 2024, with a target of 0.21[197]. - The company remains committed to achieving meaningful reductions in its carbon footprint despite temporary setbacks[195]. Innovation and Development - Hung Hing has developed new educational platforms such as Yum Me Play, STEM Plus, and Active Minds, expanding its portfolio in children's education[13]. - The company aims to drive innovation through its design hub Beluga and investments in digital+print products[13]. - The children's book distribution business, AML, has optimized its bookstore network and invested in RFID technology for smart warehousing solutions to enhance inventory efficiency[71]. - Yum Me Print, a subsidiary, has launched an upgraded model capable of printing documents at over 50 locations across the city, utilizing FSC™-certified paper for environmentally friendly practices[72]. - The company is investing in digital transformation and smart warehousing solutions to enhance inventory efficiency[74]. Operational Efficiency and Strategy - The company emphasizes operational efficiency, cost optimization, and innovation to navigate the complex external environment[37]. - Hung Hing's strategy includes resilience and long-term commitment in fixed and human assets to enhance operational efficiency[14]. - The company is committed to diversifying its business while consolidating core operations to adapt to market pressures and competition[68]. - Geopolitical tensions and supply chain disruptions have led to increased logistics costs and challenges in the export business, affecting both exports and domestic sales[64]. Corporate Governance - The Board of Directors consists of 9 members, including 2 Executive Directors, 4 Non-executive Directors, and 3 Independent Non-executive Directors[117]. - The Company has satisfied the Listing Rules by having one Independent Non-executive Director with appropriate accounting qualifications on the Audit Committee[118]. - All Independent Non-executive Directors have confirmed their independence annually as per Rule 3.13 of the Listing Rules[119]. - The attendance record for the Board meetings shows that all Directors participated actively, with the Executive Chairman attending 4 out of 4 meetings[130]. - The Company Secretary ensures that Board papers are sent to Directors at least three days before meetings, allowing for adequate preparation[130]. - Directors have full access to information on the Group and can obtain independent professional advice when necessary[131]. - Newly appointed Directors receive a comprehensive induction and ongoing professional development to ensure they understand the Company's operations[134]. - The Nomination Committee, primarily composed of Independent Non-executive Directors, is responsible for recommending candidates for directorship[121]. - The Board meets regularly and can convene additional meetings as required to address key business matters[126]. - The Company emphasizes internal control and risk management, with the Audit Committee assisting the Board in maintaining an effective system[145]. - The Internal Audit Department formulates audit plans covering key internal control areas on a rotational basis for review by the Audit Committee[146]. - All Directors confirmed compliance with the required standards of dealings and the code of conduct throughout the year ended December 31, 2024[140]. - The Board is satisfied that the overall financial, operational, and compliance controls, and risk management of the Group continue to be effective[148]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring proper notification and acknowledgment for securities dealings[142]. - The incentive bonus program for Executive Directors and Senior Management is linked to the financial targets of the Group for the year ended December 31, 2024[170]. - The Audit Committee held four meetings during the financial year ended December 31, 2024, with full attendance from three Independent Non-executive Directors[178]. - The Company plans to renew the current restricted share award scheme for an additional three years, extending it until June 30, 2027, under similar terms as the existing scheme[170]. - The Board Diversity Policy aims to enhance performance by considering factors such as skills, regional and industry experience, and gender diversity[171]. - The Audit Committee reviewed the financial statements for the six months ended June 30, 2024, focusing on business highlights and compliance with accounting standards[180]. - The Company has adopted a Shareholders Communication Policy to ensure timely information is provided to shareholders and to facilitate active engagement[182]. - The external auditors' performance and audit fees were reviewed, and their reappointment for the financial year ending December 31, 2025, has been recommended[181]. - The Nomination Committee will report annually on the composition of the Board from a diversified perspective and monitor the implementation of the Board Diversity Policy[172]. - The recommendation for the re-election of retiring directors at the annual general meeting was made[174]. - The Company emphasizes the importance of communication with shareholders, providing opportunities for engagement during the annual general meeting[183]. Community Engagement - The company organized a corporate blood drive and various community engagement activities to promote work-life balance[198]. - The company received the Green Dot Award from Koenig & Bauer and multiple awards at the Hong Kong Smart Design Awards 2024 for its innovative designs[200].
鸿兴印刷集团(00450) - 2024 - 年度财报