Financial Performance - Revenue decreased by 4.6% to HKD 82,060,000 in 2023 from HKD 86,050,000 in 2022[3] - The company reported a loss of HKD 66,449,000 for the year, a 51.3% increase in loss compared to HKD 43,929,000 in 2022[3] - Basic loss per share increased to HKD 12.35 in 2023 from HKD 8.16 in 2022, reflecting a 51.3% increase in loss per share[3] - The group reported a revenue of HKD 82,060,000 from leather processing sales in mainland China for 2023, a decrease of 4.6% from HKD 86,050,000 in 2022[21] - The company reported a consolidated loss attributable to shareholders of HKD 66,449,000 for 2023, an increase of 51.3% compared to a loss of HKD 43,929,000 in 2022[42] - Basic loss per share for 2023 was HKD 0.1235, compared to HKD 0.0816 in 2022[42] Liquidity and Financial Ratios - Current ratio decreased by 55.4% to 1.08 in 2023 from 2.42 in 2022[3] - Quick ratio decreased by 53.7% to 0.44 in 2023 from 0.95 in 2022[3] - Debt-to-asset ratio increased by 96.8% to 61.0% in 2023 from 31.0% in 2022[3] - Total assets decreased by 22.1% to HKD 135,537,000 in 2023 from HKD 174,007,000 in 2022[3] - Net asset value per share decreased by 54.5% to HKD 0.10 in 2023 from HKD 0.22 in 2022[3] - The group has sufficient operating funds to meet its financial obligations in the foreseeable future, as per cash flow forecasts[14] Inventory and Receivables - The total inventory as of December 31, 2023, was HKD 50,457,000, a decrease of 30.9% from HKD 73,028,000 on December 31, 2022[56] - Accounts receivable decreased to HKD 26,873,000 in 2023 from HKD 37,418,000 in 2022, reflecting a reduction of approximately 28%[34] - The group reported an impairment of receivables amounting to HKD 3,215,000 in 2023, up from HKD 1,156,000 in 2022, indicating increased credit risk[23] Operational Performance - The company experienced an operating cash outflow of approximately HKD 15,686,000 for the year, indicating significant operational challenges[41] - The group incurred a pre-tax loss of HKD 89,449,000 in cost of goods sold for 2023, compared to HKD 92,726,000 in 2022, reflecting a reduction of 3.7%[25] - The total production of cowhide leather for the year was 4,613,000 square feet, a decrease of 10.9% from 5,180,000 square feet in the previous year[54] - The total sales volume of cowhide leather increased by 7.2% to 6,219,000 square feet, compared to 5,802,000 square feet in the previous year[54] - The sales revenue from cowhide leather was HKD 69,701,000, down 6.3% from HKD 74,365,000 in 2022[55] Government Support and Subsidies - The group received approximately HKD 8,000,000 in government subsidies in 2023, a decrease from HKD 475,000 in 2022, highlighting a substantial reduction in support[23] Employee and Operational Changes - The group had 288 employees as of December 31, 2023, down from 327 employees in 2022[65] - The company is actively exploring external processing business to utilize excess production capacity and ensure stable operations[44] - The company has implemented a procurement efficiency improvement mechanism in Q4 2023 to reduce material costs[46] - The company is focusing on enhancing production capacity and strict quality control measures to ensure stable production environment[46] Capital Structure and Expenditures - The company had interest-bearing bank loans totaling HKD 14,811,000 as of December 31, 2023, compared to zero in the previous year[59] - As of December 31, 2023, the net debt-to-equity ratio of the group was 21.9%, compared to zero on December 31, 2022[60] - Interest expenses for the year amounted to HKD 879,000, an increase of 721.5% year-on-year, primarily due to increased loan amounts and rising interest rates[60] - Capital expenditures for the year totaled HKD 866,000, down from HKD 2,058,000 in 2022, mainly for machinery and equipment upgrades[61] Financial Reporting and Governance - The group has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, with no significant impact on the financial statements[17] - The consolidated financial statements for the year ended December 31, 2023, were audited by Zhonghui Anda CPA Limited, which is eligible for reappointment[73] - The company did not recommend any dividend for the year ended December 31, 2023, consistent with 2022[32] Future Plans - The company plans to hold its 2024 Annual General Meeting on June 14, 2024[72]
南粤控股(01058) - 2023 - 年度业绩