Business Performance - The Group reported a cautious optimism regarding business performance despite a volatile macro-economic environment due to global events[20]. - Businesses have tightened their budgets on marketing and advertisement expenses, impacting overall business confidence[20]. - The Group aims to remain resilient in the face of these challenges and is committed to continuous improvement and success[21]. Financial Results - The Group recorded total revenue of approximately HK$20,841,000 for the year ended 31 December 2024, representing a decrease of approximately 12% from approximately HK$23,550,000 for the year ended 31 December 2023[24]. - Total gross profit increased by approximately 44% to approximately HK$9,198,000 for the year ended 31 December 2024, compared to approximately HK$6,375,000 for the year ended 31 December 2023[47]. - Loss attributable to the owners of the Company amounted to approximately HK$19,791,000 for the year ended 31 December 2024, a significant improvement from a loss of approximately HK$73,721,000 for the year ended 31 December 2023[24]. - Revenue from the publications and advertising business increased to approximately HK$13,207,000 for the year ended 31 December 2024, up from approximately HK$9,109,000 for the year ended 31 December 2023[32]. - Revenue generated from online sales of beauty and cosmetics products decreased to approximately HK$684,000 for the year ended 31 December 2024, down from approximately HK$11,321,000 for the year ended 31 December 2023[37]. - Revenue from sales of luxury products increased to approximately HK$6,950,000 for the year ended 31 December 2024, compared to approximately HK$3,120,000 for the year ended 31 December 2023[38]. - The Group did not generate any revenue from the exhibition and trade show business and related services for the year ended 31 December 2024, consistent with the previous year[36]. - Other income increased by approximately HK$485,000 to approximately HK$639,000 for the year ended 31 December 2024, primarily due to government grants related to technology modernization[48]. - The Directors do not recommend the payment of a final dividend for the year ended 31 December 2024[24]. - Gross profit increased by approximately 44% from HK$6,375,000 for the year ended December 31, 2023, to approximately HK$9,198,000 for the year ended December 31, 2024[51]. - Other income rose significantly by approximately 485% from HK$154,000 for the year ended December 31, 2023, to approximately HK$639,000 for the year ended December 31, 2024, primarily due to a government subsidy of HK$629,000 for technological modernization[52]. - The Group recorded other losses of approximately HK$905,000 for the year ended December 31, 2024, compared to other gains of approximately HK$56,802,000 for the year ended December 31, 2023[53]. - Operating expenses increased by approximately 3% from HK$11,360,000 for the year ended December 31, 2023, to approximately HK$11,688,000 for the year ended December 31, 2024[56]. - Finance costs amounted to approximately HK$1,803,000 for the year ended December 31, 2024, compared to approximately HK$1,198,000 for the year ended December 31, 2023[57]. - The loss attributable to owners of the Company for the year ended December 31, 2024, was HK$19,791,000[63]. Financial Position - The current ratio decreased from approximately 0.5 times as of December 31, 2023, to approximately 0.4 times as of December 31, 2024[68]. - Cash and cash equivalents increased to approximately HK$9,590,000 as of December 31, 2024, from approximately HK$3,552,000 as of December 31, 2023[69]. - The gearing ratio improved to approximately 7% as of December 31, 2024, down from 29% as of December 31, 2023[70]. - Trade receivables decreased from approximately HK$25,436,000 to HK$8,598,000, with trade receivable turnover days improving from approximately 217 days to approximately 151 days[73]. Human Resources - As of December 31, 2024, the Group's employee headcount was 12, a decrease from 13 in 2023, with total staff costs amounting to approximately HK$5,330,000, down from approximately HK$7,158,000 in 2023[93]. - The Group conducts annual performance reviews for employees, which influence salary reviews and promotion appraisals, alongside providing bonuses based on financial performance[89]. Corporate Governance - The Group has no major investment or capital asset plans as of December 31, 2024[91]. - There are no significant asset pledges by the Group as of December 31, 2024[92]. - The Group's principal activity is investment holding, with key subsidiaries' activities detailed in note 36 of the consolidated financial statements[119]. - For the year ended December 31, 2024, the Group focused on minimizing environmental damage and ensuring employee well-being, with no recorded non-compliance in environmental and social aspects[121]. - Stakeholder engagement highlighted key material issues including employee health and safety, labor standards, intellectual property rights, customer data protection, and anti-corruption, all of which are actively managed by the Group[121]. - The Group will publish an Environmental, Social and Governance Report within three months of this annual report, detailing environmental policies, stakeholder relationships, and compliance with relevant laws[122]. - Continuous efforts were made to enhance corporate governance and business exposure across various sectors including automobile, construction, and oil and gas[108]. - The Group's financial performance analysis will be included in the Management Discussion and Analysis section of the annual report[120]. - The Group's business operations are committed to advancing environmental, social, and governance management through close communication with stakeholders[121]. - The Group's future business development and potential risks will be discussed in the Chairman's Statement and Management Discussion and Analysis[120]. - The Group has maintained a focus on corporate accounting, finance, and corporate secretarial matters through its financial controller[107]. - The Group's directors have confirmed no changes in their information as required by GEM Listing Rules[113]. Shareholder Information - For the year ended December 31, 2024, the Group's sales to the five largest customers accounted for approximately 26% of total sales, with the largest customer contributing about 12%[139]. - Purchases from the Group's five largest suppliers represented approximately 80% of total purchases, with the largest supplier accounting for around 24%[139]. - The Group did not recommend the payment of any final dividend for the year ended December 31, 2024[127]. - As of December 31, 2024, the Company had no reserves available for distribution to shareholders[130]. - There were no material acquisitions or disposals of subsidiaries and affiliated companies during the year, except for the acquisition of 50.1% of Yantic Limited on April 1, 2023[155]. - The Group adopted a share option scheme on February 16, 2015, which is set to expire on February 16, 2025[157]. - The Remuneration Committee is responsible for recommending the Company's remuneration policy, considering market competitiveness and individual performance[156]. Compliance and Regulations - The Group's operations continued to focus on reducing environmental impact and ensuring employee welfare, with no recorded violations related to environmental and social aspects[125]. - The Group will publish its environmental, social, and governance report within three months after the annual report release, detailing its policies and performance[125]. - The Group's financial performance analysis is included in the management discussion and analysis section of the annual report[125]. - The company adopted a share option scheme on February 16, 2015, which will expire on February 16, 2025[162]. - As of December 31, 2024, the company had 87,091,200 shares issued[178]. - Mr. Lui Man Wah holds a long position of 34,330 shares, representing approximately 0.04% of the company's issued share capital[170]. - There were no interests or short positions in shares or debentures of the company required to be disclosed by directors or chief executives as of December 31, 2024[174]. - The company confirmed compliance with the disclosure requirements under Chapter 20 of the GEM Listing Rules regarding related party transactions[186]. - The company maintained a sufficient public float of not less than 25% of its issued shares as required under the GEM Listing Rules[184]. - The consolidated financial statements for the reporting period were audited by Global Link CPA Limited[189]. - The company has complied with the GEM Listing Rules and the Corporate Governance Code throughout the year[192]. - There were no connected transactions subject to disclosure requirements under the GEM Listing Rules during the year[183]. - The remuneration for the auditors will be proposed for approval at the forthcoming annual general meeting[190]. - The Company has not complied with GEM Listing Rules 5.05(1) and 5.28 since the resignation of Ms. Liu Xiaomin on January 13, 2025, which requires at least three independent non-executive directors and a minimum of three members in the audit committee[193][196]. - The Company currently has no CEO, with all CEO duties shared among executive Directors, which the Board believes allows for prompt decision-making and effective response to changing environments[194][197]. - The Company is committed to enhancing its corporate governance standards to comply with regulatory requirements and meet the growing expectations of shareholders and investors[195][197]. - The Company has adopted a code of conduct for Directors' securities transactions that meets or exceeds the standards set out in GEM Listing Rules 5.48 to 5.67, with all Directors confirming compliance during the year ended December 31, 2024[198]. - Directors and officers are indemnified under a liability insurance policy against any liabilities incurred while discharging their duties[199]. - The Board of Directors is responsible for the leadership and monitoring of the Company, collectively promoting the success of the Group[200].
惠陶集团(08238) - 2024 - 年度财报