Financial Performance - Revenue for the year ended December 31, 2023, was HKD 143,779,000, an increase of 12.6% from HKD 127,730,000 in 2022[2] - Gross profit for the year was HKD 60,789,000, compared to HKD 57,924,000 in the previous year, reflecting a gross margin improvement[2] - Net profit attributable to equity holders for the year was HKD 22,039,000, down 36.8% from HKD 34,929,000 in 2022[7] - Operating profit before tax was HKD 28,103,000, a decrease of 32.2% from HKD 41,432,000 in the prior year[11] - The adjusted net profit for the year, excluding non-recurring items, was HKD 37,402,000, slightly down from HKD 38,828,000 in 2022[11] - Basic earnings per share fell to HKD 5.5 in 2023 compared to HKD 8.7 in 2022, a decrease of about 37%[17] - The company's profit attributable to equity holders decreased to HKD 22,039 thousand in 2023 from HKD 34,929 thousand in 2022, representing a decline of approximately 37%[17] - The income tax expense for 2023 was HKD 6,064 thousand, a decrease from HKD 6,503 thousand in 2022[122] Revenue Breakdown - Revenue from rotary bearings decreased by approximately HKD 5.0 million, or 6.7%, to HKD 70.3 million for the fiscal year ending December 31, 2023[64] - Revenue from machinery parts reached HKD 34.2 million, a decrease of 71.3% compared to the previous year[63] - Revenue from the Philippines significantly increased to HKD 33,637,000 in 2023, up from HKD 12,806,000 in 2022, marking a growth of approximately 162%[197] - Revenue from Singapore decreased to HKD 44,043,000 in 2023 from HKD 51,216,000 in 2022, a decline of about 14%[197] - Revenue from Hong Kong decreased to HKD 32,204,000 in 2023 from HKD 35,799,000 in 2022, a decline of about 10%[197] - Revenue from Taiwan surged to HKD 4,326,000 in 2023, compared to HKD 912,000 in 2022, reflecting a growth of approximately 375%[197] - Revenue from China increased to HKD 4,261,000 in 2023 from HKD 1,064,000 in 2022, representing a growth of about 300%[197] - Revenue from Japan rose to HKD 3,974,000 in 2023, up from HKD 3,030,000 in 2022, indicating an increase of approximately 31%[197] Expenses and Costs - Administrative expenses increased to HKD 30,962,000 from HKD 15,891,000, indicating a rise in operational costs[2] - Total expenses for sales, distribution, and administrative costs increased from HKD 88,384 thousand in 2022 to HKD 117,319 thousand in 2023, marking a growth of about 32.7%[120] - Direct labor costs increased by approximately 36.3% from HKD 4.7 million in FY2022 to HKD 6.4 million during the reporting period[85] - The cost of raw materials and consumables increased from HKD 56,999 thousand in 2022 to HKD 75,273 thousand in 2023, representing a rise of approximately 32%[120] Market and Product Development - The company plans to continue its market expansion and product development strategies in the upcoming fiscal year[9] - The market has shown strong recovery post-COVID-19, with increased demand for the company's products and services[40] - The company has expanded its product line to include machinery components, which are complementary to its rotary bearing business, enhancing customer relationships and generating recurring orders[58] - The company has developed new products and services since 2020, expanding beyond turntable bearings to include other machinery components[39] Customer and Sales Growth - The company has attracted several new ODM customers since 2021, contributing to revenue growth, including a theme park and resort in Hong Kong[55] - The company continues to expand its customer base, including partnerships with major theme parks and resorts in Hong Kong[65] - The total number of ODM customers increased to 23 during the reporting period, contributing approximately HKD 4.8 million in revenue[70] Financial Position and Assets - As of December 31, 2023, the group's cash and cash equivalents amounted to HKD 54.9 million, an increase of approximately 7.6% or HKD 3.9 million compared to HKD 51.0 million on December 31, 2022[89] - The total current assets and current liabilities as of December 31, 2023, were approximately HKD 140.0 million and HKD 17.0 million, respectively, resulting in a current ratio of 8.2 times, down from 22.3 times on December 31, 2022[90] - The total assets amounted to HKD 164,857,000, an increase from HKD 149,188,000 in the previous year[184] - The company's equity totalled HKD 147,660,000, up from HKD 143,565,000 year-over-year[184] Corporate Governance and Compliance - The audit committee, established on October 21, 2019, consists of three independent non-executive directors, ensuring compliance with corporate governance standards[176] - The company has adhered to all applicable corporate governance codes during the reporting period, with the exception of the separation of roles between the Chairman and CEO[175] - The company has adopted a securities trading policy for directors and relevant personnel, ensuring compliance with the standard rules[164] Future Plans and Investments - The company plans to utilize all net proceeds from the listing in 2024[95] - The company aims to expand its financial department, allocating 5.0% of the net proceeds (HKD 1.4 million) for this purpose, also expected to be completed in Q4 2024[100] - The company plans to reallocate funds from postponed training programs to strengthen market promotion efforts[131] Transition and Listing - The company successfully transitioned from GEM to the Main Board of the Hong Kong Stock Exchange on September 29, 2023[38] - The company was established in October 2018 and listed on the GEM of the Hong Kong Stock Exchange on October 31, 2019, later transferring to the main board on September 28, 2023[186]