Financial Performance - Revenue for the year ended June 30, 2023, was HK$25,292,000, a decrease of 58.6% compared to HK$60,969,000 in 2022[2] - Attributable loss for the year was HK$12,183,000, improving from a loss of HK$50,869,000 in the previous year[2] - Cash and cash equivalents as of June 30, 2023, were HK$9,147,000, down from HK$24,493,000 in 2022, representing a decline of 62.7%[2] - Total assets decreased to HK$174,030,000 from HK$179,045,000, a reduction of 0.6%[2] - The equity position improved to HK$111,252,000 from HK$130,855,000, indicating a decrease of 15%[2] - The current assets to current liabilities ratio was 3.51, down from 4.98 in 2022, reflecting a tighter liquidity position[2] - The Group reported total revenue of approximately HK$25 million for the year, a decrease of approximately 59% compared to HK$61 million in 2022[36] - Loss attributable to owners of the Company was approximately HK$12 million, down from approximately HK$51 million in 2022, with a loss per share of HK0.45 cents compared to HK2.75 cents in the previous year[37] - The gross profit ratio improved to 16% from 5.3% in 2022, despite the overall revenue decline[37] - Other income increased to approximately HK$3.2 million from HK$2.3 million in 2022, primarily due to higher interest income[38] - General and administrative expenses decreased by approximately 27% to about HK$19 million from HK$27 million in 2022, reflecting cost control measures[39] - The Group recognized a fair value gain on financial assets of approximately HK$11 million, compared to a loss of approximately HK$13.9 million in the previous year[45] - Finance costs significantly decreased to approximately HK$172,000 from approximately HK$12 million in 2022 due to the settlement of all interest-bearing loans[46] Business Operations and Strategy - The company secured two smart construction site contracts totaling over HK$12 million in December 2022 and January 2023, indicating growth in the IoT business segment[10] - The company has temporarily suspended its gasoil business activities as a risk avoidance measure due to geopolitical tensions and market instability[11] - The management is focused on revitalizing the business post-COVID-19, particularly in the areas of Solar Photovoltaic Systems and Smart City initiatives[10] - The company aims to adapt to market conditions and position itself for long-term success despite ongoing challenges in the global economic landscape[10] - The Group signed two significant contracts in the renewable energy sector, including a HK$12 million contract for a SPV system at a mega movie studio and a HK$50 million contract for a local university, providing sustainable revenue sources[18][22] - The Group's Renewable Energy Business is expected to continue expanding following the lifting of COVID-19 social gathering bans in January 2023[18][22] - The Group plans to extend its Smart City Solution Business, having successfully executed two projects during the year[25][29] - The Group remains committed to investing in research and development in clean and renewable energy despite challenges in the market[17][21] - The Group's strategy focuses on creating sustainable and intelligent environments through advanced infrastructure and digital solutions[20][23] - The Group aims to explore new opportunities in overseas markets to diversify its revenue streams[19][22] Market Conditions and Trends - Global oil demand is expected to rise by 2.4 million barrels per day (mb/d) in 2023, with China accounting for 60% of the increase[55] - Saudi Arabia has committed to further reduce oil output by 1 mb/d in July 2023, leading to a two-year low production level of 9 mb/d[55] - The Group's cautious approach in fuel oil trading has limited business scale, focusing on cash transactions and avoiding international waters to mitigate risks[54] - The European market is experiencing a surge in demand for solar energy systems and reliable inverters, with potential customers approaching the Group for procurement[186] - The demand for high-efficiency inverters in Europe is increasing due to the growing adoption of solar energy, driven by commitments to sustainable and renewable energy[188] Technological Development - The Group has integrated Artificial Intelligence, Big Data, and Machine Learning into its IoT devices, enhancing growth opportunities in the data center market[26][29] - The establishment of an intelligent computing platform in Gansu aligns with the trend of reducing reliance on US computing services, presenting stable cash inflow opportunities[27][30] - The interrelationship among IoT, AI, Big Data, and Data Centers enhances the functionality and accuracy of IoT devices, driving the development of cloud applications[78] - The company has been participating in the data center business since 2019, responding to the US-China strategic rivalry and the need for local data centers[84] - The Group is providing value-added services including the design, development, and installation of training computing platforms and education cloud platforms for educational institutions in Lanzhou, generating revenue from these services[198] Project Updates - The Lanzhou Projects, with a total contract sum of approximately RMB139 million, are expected to commence in October 2023 and be completed by February 2024[28] - The Group signed two service contracts for the "Lanzhou Project" in July 2023, with a contract value of approximately RMB 139 million, expected to be completed by February 2024[31] - In June 2023, the company signed two service contracts in Guangzhou and Guangdong, with contract sums of approximately RMB4.8 million and RMB6.5 million respectively, both expected to be completed by November 2023[191][193] - In July 2023, the company secured two new projects in Lanzhou with state-owned enterprises, with contract sums of approximately RMB100 million and RMB39 million, expected to commence in October 2023 and complete by February 2024[196] Investment and Financial Assets - The Group's total investment in financial assets at fair value through profit or loss amounted to HK$44,809,364, with a total unrealized loss of HK$10,586,193 as of June 30, 2023[128] - The investment portfolio included 8 equity securities listed on the Stock Exchange of Hong Kong and one unlisted security, with 5 on the Main Board and 3 on the GEM[124][125] - The Group held 1,561,000 shares in Zijing International Financial Holdings, with an accumulated unrealized loss of HK$12,279,774 as of June 30, 2023[133] - The Group held 1,423,000 shares in China Fortune Financial Group, with an accumulated unrealized loss of HK$2,063,930 as of June 30, 2023[137] - The Group held 180,000 shares in Worldgate and recorded an accumulated unrealized loss of HK$2,258,100 in respect of such investment as of 30 June 2023[146] - The Group held 12,240,000 shares in China Star Group with an accumulated unrealized loss of HK$93,455[168] - The Group acquired 3,000,000 shares of Differ during the year, recording an accumulated unrealized loss of HK$540,000[172] - STAR CM Holdings Limited disposed of 26,400 shares with a realized gain of HK$1,400,000 during the year under review[180] - As of 30 June 2023, the Group held 213,600 shares in STAR CM with an accumulated unrealized gain of HK$17,387,040[180] Cultural Products and Assets - The Group's cultural products, including precious stones and artifacts, had a book value of approximately HK$ 1.26 million as of June 30, 2023, down from approximately HK$ 8.12 million as of June 30, 2022[103] - As of June 30, 2023, the value of cultural products in the group's inventory was approximately HK$1.26 million, a significant decrease from approximately HK$8.12 million on June 30, 2022[108] - The group holds a total of 225 cultural products, unchanged from the previous year, stored in a secure facility operated by a renowned security company[109]
冠军科技集团(00092) - 2023 - 年度财报