Financial Performance - For the year ended December 31, 2023, the company reported a revenue of HKD 262,134,000, a slight increase of 0.7% compared to HKD 260,179,000 in 2022[2] - The gross profit for the year was HKD 19,956,000, representing a 9.2% increase from HKD 18,276,000 in the previous year[2] - The company incurred a loss before tax of HKD 33,796,000, an improvement of 22.7% compared to a loss of HKD 43,715,000 in 2022[2] - The net loss for the year was HKD 33,394,000, down from HKD 43,715,000 in the prior year, indicating a 23.6% reduction in losses[2] - Total comprehensive income for the year was HKD 10,113,000, compared to HKD 5,663,000 in 2022, marking an increase of 78.1%[3] - The basic and diluted loss per share improved to HKD 4.64 from HKD 6.41, a reduction of 27.5%[3] - The annual loss attributable to the company's owners was HKD 31,043,000 in 2023, an improvement from a loss of HKD 41,053,000 in 2022[34] - The group reported a loss attributable to shareholders of approximately HKD 31.0 million, a reduction of 24.6% from HKD 41.1 million in the previous year[72] Assets and Liabilities - Non-current assets increased to HKD 529,860,000 from HKD 447,053,000, reflecting an 18.5% growth[4] - Current assets decreased to HKD 170,235,000 from HKD 258,327,000, a decline of 34.1%[4] - The company's total liabilities remained stable at HKD 666,805,000, compared to HKD 666,743,000 in the previous year[4] - As of December 31, 2023, the company's current liabilities amounted to approximately HKD 666,805,000, which includes construction costs payable of about HKD 93,501,000 and bank borrowings of approximately HKD 299,282,000[20] - The group's current liabilities net amount was approximately HKD 496.6 million, with a current ratio of about 0.26, indicating a decrease from 0.39 in the previous year[83] - The cash and bank balance, including pledged bank deposits, was approximately HKD 49.7 million as of December 31, 2023, down from HKD 75.2 million in the previous year[83] Revenue Sources - PCB sales accounted for HKD 262,134,000 in 2023, compared to HKD 253,167,000 in 2022, reflecting a growth of approximately 3.8%[26] - Single-sided PCB revenue increased to HKD 48,431,000 from HKD 29,811,000, representing a growth of 62.4%[49] - Double-sided PCB revenue remained stable at HKD 207,350,000, a marginal increase of 0.8% from HKD 205,746,000[49] - Multi-layer PCB revenue decreased significantly to HKD 6,353,000 from HKD 17,610,000, a decline of 64.0%[49] - Revenue from the Chinese market (excluding Hong Kong) rose by 6.7% to HKD 244.9 million, while revenue from Hong Kong decreased by 42.5% to HKD 5.5 million[68] Cost Management and Financial Strategy - Management is focusing on cost control measures to enhance operational performance and cash flow from existing businesses[20] - The group continues to implement cost control measures and strategic pricing policies to attract more sales orders amid ongoing economic challenges[76] - The group is actively negotiating with creditors to extend repayment terms for engineering payments and other borrowings[3] - The company is considering issuing more equity to further raise new funds[5] Legal and Compliance Issues - The company is involved in a legal dispute with former director Mr. Lai, claiming HKD 1,640,000 in unpaid bonuses, while the company countersued for HKD 5,240,000 due to alleged wrongful receipt[93] - The company has ongoing legal claims in China totaling RMB 38,500,000 related to disputes with suppliers, contractors, and former employees, with a bank account frozen for approximately HKD 5,076,000 (RMB 4,568,000) as of December 31, 2023[93] - The company confirmed compliance with the corporate governance code throughout the year, except for certain exceptions regarding the distribution of management accounts to the board[111] Future Plans and Developments - The group plans to enhance R&D efforts to focus on high-value-added PCB products, particularly copper-based PCBs for clean environmental applications[71] - The group is developing a new production facility adjacent to existing factories, with a total construction area of 120,513.22 square meters[69] - Project A involves an investment of RMB 349,320,000 for a new factory with a total construction area of approximately 151,875.44 square meters, expected to generate at least RMB 26.68 million in annual tax revenue[102] - Project B entails an investment of RMB 571,170,000 for a new factory covering approximately 248,333.45 square meters, anticipated to yield at least RMB 40 million in annual tax revenue[103] Shareholder and Capital Management - The group has issued 133,883,000 new shares, raising approximately HKD 13.2 million to support funding needs[5] - The company issued a three-year convertible bond with a principal amount of HKD 15,262,320 at an annual interest rate of 8%, resulting in the issuance of 133,880,000 shares at an initial conversion price of HKD 0.114, which is a premium of approximately 3.64% over the closing price on the agreement date[79] - The anticipated credit loss for trade receivables was HKD 5.8 million, an increase from HKD 4.0 million in 2022[74] Employee and Governance - The group employed a total of 328 employees as of December 31, 2023, a decrease from 372 employees in the previous year[87] - The audit committee consists of four independent non-executive directors, with Dr. Lu resigning on November 30, 2023, leaving three members thereafter[118] - The appointment of a new independent non-executive director on February 28, 2024, restored compliance with the minimum requirement for independent non-executive directors[115]
中华银科技(00515) - 2023 - 年度业绩