进腾集团(02011) - 2024 - 年度业绩

Supplementary Announcement to the 2023 Annual Report Impairment Details The company recognized impairment losses on property, plant, and equipment and right-of-use assets totaling HKD 54 million due to revised zipper business forecasts, assessed by an independent valuer using discounted cash flow Reasons and Circumstances for Impairment Impairment resulted from management's revised financial forecasts for the zipper business, incorporating more conservative assumptions for 2023, including a shift to negative growth and lower gross margins 2023 Impairment Loss Details | Asset Category | Impairment Loss Amount (HKD Million) | | :--- | :--- | | Property, Plant, and Equipment | 25.5 | | Right-of-Use Assets | 28.5 | Key Financial Forecast Assumptions Comparison (2023 vs 2022) | Assumption | 2023 Forecast | 2022 Forecast | | :--- | :--- | :--- | | First-Year Growth Rate | -8% | +8% | | Fifth-Year Growth Rate | 3% | 2% | | Gross Profit Margin | 31% | 32% to 34% | | Discount Rate | 10% | 11% | | Terminal Growth Rate | 2% | 2% | Impairment Assessment Methodology and Assumptions An independent valuer assessed the zipper business's value in use via a five-year DCF model, incorporating specific revenue growth, gross margin, terminal growth, and a 10.02% WACC discount rate - The valuer used the discounted cash flow (DCF) method to estimate the value in use of assets or cash-generating units, complying with Hong Kong Accounting Standard 36[4] Key Financial Forecast Input Data for Valuation | Parameter | Input Data | | :--- | :--- | | Revenue Growth Rate | -9% for 2024, then 3% to 5% | | Gross Profit Margin | 31% | | Profit Margin | -4% to 0% | | Terminal Growth Rate | 2% | Key Parameters for Weighted Average Cost of Capital (WACC) Calculation | Parameter | Input Data | | :--- | :--- | | Risk-Free Rate | 2.56% | | Market Risk Premium | 10.02% | | Re-levered Beta | 0.57 | | Cost of Equity | 11.17% | | Cost of Debt | 4.90% | | Weighted Average Cost of Capital (WACC) | 10.02% | Update on Use of Proceeds from Fund-raising Activities The company updated the use of HKD 68.6 million from a 2022 share placement, with HKD 30 million remaining unutilized by year-end 2023, expected to be fully deployed by June 2024 for general operations and investments Use of Placement Proceeds and Progress (As of December 31, 2023) | Intended Use | Allocated Amount (HKD Million) | Utilized (HKD Million) | Unutilized (HKD Million) | Expected Utilization Time | | :--- | :--- | :--- | :--- | :--- | | General Working Capital, Business Opportunities, and Investments | 68.6 | 38.6 | 30.0 | June 30, 2024 | - There has been no change to the intended use of proceeds from the placement[9] New Share Option Scheme Update The company adopted a new share option scheme on May 30, 2023, granting 55,776,480 options to directors, reaching the 10% authorized limit, with no cancellations by year-end 2023 - The company granted a total of 55,776,480 share options to executive directors and the investment director in 2023, representing 10% of the issued shares on the adoption date[10] - As of November 29, 2023, the maximum number of share options grantable under the new scheme has been reached[10] - For the year ended December 31, 2023, the number of granted share options cancelled was zero[10][11]