Financial Performance and Losses - The company reported a total other losses of HKD 186,638,000 for the year ended December 31, 2023, which includes a write-down of development properties and completed properties held for sale amounting to HKD 178,564,000[4]. - The company recognized an impairment loss of approximately HKD 102,600,000 related to goodwill and an impairment loss of approximately HKD 56,800,000 related to intangible assets[15]. - The company recognized impairment losses on goodwill and intangible assets due to the underperformance of the auction business, which did not generate any profit throughout 2023[19]. - The anticipated rebound in the art market following the reopening of the Hong Kong-China border in early 2023 did not materialize, leading to a decision not to hold the planned autumn auction in 2023[22]. - The company expects no substantial improvement in the financial performance of the auction business or future cash flow estimates for the fiscal year ending December 31, 2024[22]. Property Valuation and Management - The write-down of development properties and completed properties was primarily due to a valuation discrepancy between the company's management assessment and the independent valuation provided by Jones Lang LaSalle[5]. - The estimated value of the properties as of December 31, 2023, is RMB 744,789,000 according to Jones Lang LaSalle's valuation report[6]. - The company’s internal assessment of the commercial value of the properties was higher than the valuation provided by Jones Lang LaSalle, leading to a write-down of HKD 149,667,000 (RMB 135,261,000) for the year ended December 31, 2023[7]. - The valuation methods used by Jones Lang LaSalle for the properties included both comparative and income approaches, ensuring a comprehensive assessment based on market evidence[9]. - The company has maintained consistent valuation assumptions compared to the previous year, with no significant changes noted in the valuation methods or input data[14]. Strategic Initiatives and Future Plans - The company plans to undertake further renovations and improvements to enhance the overall value of the properties located in Xi'an, aiming to position them as premier luxury commercial and office buildings[6]. - The company’s management is focused on enhancing property value through strategic renovations and improvements, leveraging historical sales data for future projections[6]. - The company is committed to ensuring the properties are well-maintained and legally compliant, with existing lease agreements being enforceable and effective[17]. Audit and Reporting - The publication of the annual results for the fiscal year ending December 31, 2023, has been delayed due to additional time needed to address auditor requirements and impairment testing[23]. - The company has initiated valuation procedures to meet auditor requirements, focusing on expected credit loss assessments and impairment testing of intangible assets and goodwill[26]. - The company has updated its audit planning procedures to ensure effective and timely completion of future audit processes[27]. - The company believes the delay in publishing the annual results is a one-time event and has implemented measures to prevent similar occurrences in the future[30]. Art Financing Business - As of December 31, 2023, the company had 22 clients in its art financing business, providing advances secured by their artworks[22]. - The cash-generating unit of the auction business had a recoverable amount based on value in use, calculated using cash flow forecasts approved by management for a five-year financial budget[20].
大唐西市(00620) - 2023 - 年度业绩