BUSINESS REVIEW
The Group’s revenue for the year 2024 was HK$3.4 billion, reflecting a decrease of approximately 6% compared to 2023. The Group’s loss attributable to owners of the Company for the year was HK$190.2 million as compared to the loss attributable to owners of the Company of HK$132.8 million for last year, mainly due to global economic downturn, coupled with the prevailing trade and geopolitical tensions and continued high interest rate.

Trading and Distribution Division

The revenue of the Group’s Trading and Distribution Division for 2024 was HK$1.6 billion, representing a decrease of approximately 14% compared to last year. This was mainly due to fact that the customers of the Division’s Taiwan subsidiary reduced their orders to scale back their inventory and capital expenditure. In contrast, the Division’s subsidiaries in the PRC performed well during the year 2024 compared to last year as their customers increased their capacity and orders. As a result, the Trading and Distribution Division achieved an operating profit of HK$65 million for the year 2024, reflecting a decrease of approximately 6% compared to last year.

OEM Manufacturing Division

The Group’s OEM Manufacturing Division incurred an operating loss of HK$169.2 million for this year as compared to an operating loss of HK$122.7 million last year despite a slight increase in revenue by approximately 1.4% to HK$1.8 billion for 2024 compared to last year. This was due, first, to a change in the product mix. Secondly, the Division’s Mexican manufacturing facility did not operate at its optimal efficiency as anticipated in the second half of 2024. The inefficiency was mainly due to the labour quality of the local workforce, and the inability to source key components from nearby countries, resulting in the need to still source from mainland China.

FINANCE

As at 31 December 2024, the Group had committed bank and other financing facilities totaling HK$2,570 million, of which HK$719 million was drawn down. As at 31 December 2024, the Group’s consolidated net debt amounted to HK$112.5 million and total equity amounted to HK$1,487.1 million, resulting in a net gearing ratio of 7.6%. The net gearing ratio was calculated as net debt divided by total equity. Net debt is calculated as total bank borrowings and lease liabilities less cash and cash equivalents and short-term bank deposits.

Most of the Group’s sales were conducted in the same currencies as the corresponding purchase transactions. Foreign exchange contracts were used to hedge exposure where necessary.

CAPITAL STRUCTURE
The Group’s capital structure consists of bank borrowings, cash and cash equivalents, short-term bank deposits and equity attributable to owners of the Company, comprising issued share capital and reserves.

HUMAN RESOURCES
As at 31 December 2024, the Group had a total of 3,880 employees, of whom 191 were based in Hong Kong, 2,770 in the PRC and 919 overseas. The remuneration packages of the Group’s employees are mainly based on their performance and experience, taking into accounts current industry practices. Provident fund scheme, medical allowance and in-house and external training programs are available to employees. Share options and discretionary bonus may be provided to employees according to the performance of the individual and the Group. The remuneration policy and packages of the Group’s employees are regularly reviewed.

ENVIRONMENTAL MANAGEMENT

The Group is committed to making contributions in various areas of sustainable development, including environment protection. The Group has established a green council to lead and organize various environmental protection activities and programs.

The Group has set up various systems, including a sewage treatment plant, solar panels for warming water supplies for workers, LED and solar energy lighting systems, computerized filing systems to limit paper usage, lead-free soldering systems, an ISO14001 certified environmental management system since 2002, an IECQ QC080000 hazardous substance process management system, as well as an ISO50001 energy management system for the monitoring and improvement of greenhouse gas emissions and energy consumption.

The Group applies environmentally friendly designs and packaging and complies with green procurement policies. Moreover, the supply chain and the entire product life-cycle are in keeping with a clean and green manufacturing policy, thus producing consistently high-quality green products from start to finish. The Group constantly instils an awareness of environmental protection in its employees, the main internal stakeholders, thereby setting a good example to external stakeholders.

The Group’s success in the field of environmental protection has earned recognition from the Government, industry, customers and suppliers.

SOCIAL RESPONSIBILITY

Corporate social responsibility is one of the core management philosophies in the Group. The Group has made donations to various charities, and also provided scholarships to eligible students who otherwise cannot afford to further their studies at university.

The Group has been awarded the “15 Years Plus Caring Company” logo by the Hong Kong Council of Social Service.

The Group’s staff have formed a volunteer team who contributed their free time in the service of society by visiting and organizing activities at centers for elderly people.

LEGAL AND REGULATORY COMPLIANCE

The Group complies with all relevant laws and regulations that have a significant impact on the operations of the Group.

PROSPECTS

Despite the volatile global economy and prevailing trade tensions in 2025, the demand for the products distributed by the Trading and Distribution Division is expected to remain largely stable this year, based on current business inquiries.

In light of the ongoing geopolitical headwinds and unstable global economic landscape in 2025, the Group’s management has been proactively implementing measures to enhance the efficiency of the OEM Manufacturing Division’s Mexican manufacturing facility, and to reduce costs and closely manage its cash flow. Capital expenditures will be carefully planned and controlled until theOEM Manufacturing Division’s facilities are fully utilized.

In addition, the Group’s management aims to reduce overall operational costs, while enhancing overall efficiency through better allocation of internal resources. The Group remains steadfastly committed to its long-term sustainable strategy by strengthening strategic resilience to better serve and grow alongside our customers. Furthermore, the Group will continuously monitor market conditions and make timely adjustments to its business strategies as necessary.

On behalf of the Board, I wish to thank all employees for their loyalty, support and hard work throughout the year.

By Order of the Board

Wong Senta
Chairman
Hong Kong, 27 March 2025