Theme International (990) H2 2024 earnings summary

Executive summary

• Net profit for 2024 was HK$371.9 million, down from HK$1,382.1 million in 2023, mainly due to lower commodity trading margins, reduced fair value gains, and a provision for suspected fund misappropriation in a Singapore subsidiary.

• Revenue decreased 26% year-over-year to HK$40.9 billion, primarily from a decline in trading volumes of silver and gold ingots, which ceased operations in H2 2024.

• Financial services segment continued steady expansion, contributing HK$892.2 million in revenue, up from HK$850.6 million in 2023.

• Gross profit dropped to HK$1,032.5 million from HK$1,780.6 million, reflecting a sluggish commodity market.

Financial highlights

• Revenue: HK$40,913,965,000 (2024) vs HK$55,376,948,000 (2023), a 26% decrease year-over-year.

• Net profit: HK$371,921,000 (2024) vs HK$1,382,081,000 (2023), a 73% decrease year-over-year.

• Basic EPS: HK2.20 cents (2024) vs HK8.91 cents (2023).

• Gross profit: HK$1,032,514,000 (2024) vs HK$1,780,649,000 (2023).

• Finance costs: HK$20,310,000 (2024) vs HK$28,321,000 (2023).

Outlook and guidance

• Focus remains on expanding both financial services and distribution, trading, and processing businesses in 2025.

• Plans to launch additional investment funds and seek further acquisition opportunities, especially in chemical trading.

• Ongoing investment in human capital, with headcount rising to 399 in 2024.