Financial Performance - Revenue for the year ended December 31, 2023, was approximately HKD 74 million, a decrease of 61.6% from HKD 192.7 million for the year ended December 31, 2022[5]. - Loss attributable to owners increased to approximately HKD 74.9 million from HKD 58.2 million in the previous year, primarily due to operational losses and increased estimated interest expenses[5]. - The gross loss for the reporting period was approximately HKD 10.3 million, with inventory impairment recognized at approximately HKD 12.9 million[10]. - Estimated interest expenses related to convertible bonds amounted to HKD 17.5 million, compared to HKD 15.7 million in the previous year[7]. - The company recorded a loss of approximately HKD 55 million before accounting for non-cash items, compared to HKD 41 million in the previous year[6]. - The group incurred a loss of approximately HKD 74.9 million during the reporting period, with a net current liability of about HKD 23.1 million as of December 31, 2023[15]. Cash Flow and Liquidity - The net cash used in operating activities decreased significantly by approximately 53.1% year-on-year to about HKD 3.8 million[16]. - As of December 31, 2023, the group's bank balances and cash were approximately HKD 7.2 million, an improvement from HKD 6.4 million as of December 31, 2022[19]. - The current ratio was 0.4 times as of December 31, 2023, compared to 1.3 times in 2022[25]. - The group received a total of approximately HKD 5.9 million in shareholder loans during the reporting period, with an additional HKD 1.9 million received post-reporting period[19]. - The board believes that with the support of shareholder loans and proposed equity financing, the group will have sufficient operating funds to meet its financial obligations due within the next twelve months[21]. - The group plans to explore equity financing options to improve its financial condition and support future development, aiming to complete this by December 31, 2024[123]. Economic Environment - The overall economic environment, including rising interest rates and rapid industry advancements, contributed to the significant decline in revenue[10]. - The global economic growth rate is projected to be 3.1% in 2024 and slightly increase to 3.2% in 2025, which is below the historical average of 3.8% from 2000 to 2019[37]. - China's economy grew by 5.2% in 2023, surpassing the official target of around 5%, but is expected to slow down to 4.6% in 2024 and 4.0% in 2025 due to ongoing challenges in the real estate sector[40]. Corporate Governance - The board believes that the group will have sufficient working capital to meet its financial obligations due within the next twelve months, based on received shareholder loans and proposed equity financing[124]. - The company has committed to maintaining high standards of corporate governance, adhering to the principles and code provisions of the Corporate Governance Code[87]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced composition with diverse skills and experience[88]. - The company has established procedures for directors to seek independent professional advice at the company's expense when fulfilling their duties[96]. - The company has adopted a new share option scheme, replacing the old scheme that was terminated in June 2022[79]. Risk Management - The group is committed to maintaining a robust risk management and internal control system to mitigate significant risks and achieve its business objectives[125]. - The company has adopted a three-tier risk management approach to identify, assess, and manage various types of risks[127]. - An independent review of the company's risk management and internal control systems was conducted, with no significant weaknesses or deficiencies found[128]. - The board believes that the risk management and internal control systems are effective and adequate during the reporting period[128]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report outlines the company's commitment to sustainable development and its management policies[141]. - The ESG report aims to reflect the group's commitment to corporate social responsibility and environmental protection[156]. - The group conducted a materiality assessment to identify significant sustainability factors impacting business operations, ensuring the ESG report covers key issues[157]. - The company achieved a 71% reduction in greenhouse gas emissions compared to 2021[165]. - The company has implemented measures to promote responsible energy consumption among employees[162]. Employee Management - The total number of employees as of December 31, 2023, is 22, a decrease from 34 in 2022, indicating a reduction of 35.29%[198]. - The overall employee turnover rate for 2023 is 59.09%, significantly higher than the previous year's rates, particularly for female employees at 59.09% compared to 13.04% in 2022[199]. - The company maintains a strict compliance with labor laws, with no known violations reported during the reporting period[199]. - The company offers various employee benefits, including annual leave, sick leave, and retirement plans, to support employee well-being[196].
瑞鑫国际集团(00724) - 2023 - 年度财报