Financial Performance - The group's revenue decreased by 84% from HKD 542 million in 2022 to HKD 89 million in 2023[7]. - The net loss attributable to shareholders significantly reduced by 72% from HKD 332 million in the previous year to HKD 92 million in the current year[7]. - The group reported a net loss of approximately HKD 91,919,000 for the year ended March 31, 2023, indicating significant financial challenges[57]. - The total loss for the group as of March 31, 2023, was HKD 795 million, compared to total equity of HKD 273 million in 2022[105]. - The total loss for the year was HKD 515,614,000, compared to HKD 594,594,000 in the previous year, indicating a reduction in overall losses[168]. - The company reported a total loss of HKD 515,614,000 for the year 2023, compared to a loss of HKD 594,594,000 in 2022, indicating a 13.2% improvement in overall loss[173]. - Loss from continuing operations was HKD 86,547,000 in 2023, significantly reduced from HKD 331,659,000 in 2022, reflecting a 73.9% decrease[171]. - Loss from discontinued operations increased to HKD 423,695,000 in 2023 from HKD 262,916,000 in 2022, representing a 60.9% increase[171]. Operational Changes - The group is transitioning from a self-operated contract manufacturing model to a more cost-effective OEM/ODM production model to adapt to changing market demands[9]. - Future strategies include operational optimization through ongoing layoffs, process improvements, and cost control measures[14]. - The group is implementing measures to streamline its product portfolio and enhance cost control to improve gross profit and operating cash flow[196]. - The group has faced significant operational challenges due to rising costs from the US-China trade war and the COVID-19 pandemic, leading to the termination of its production line in Dongguan[75]. Debt and Liquidity Management - The company is focused on debt reduction and has successfully negotiated with creditors to lower its debt burden, establishing a more sustainable capital structure[11]. - As of March 31, 2023, the group's net current liabilities amounted to approximately HKD 921,749,000, including overdue borrowings of about HKD 199,874,000[57]. - The group's cash and bank balances were only approximately HKD 2,940,000 as of March 31, 2023, raising concerns about liquidity[57]. - The group is actively seeking to restore its disrupted cash flow to fulfill all orders and improve sales and revenue[9]. - The group is in discussions with banks for debt restructuring, with total bank borrowings related to the financing agreement amounting to approximately HKD 133.068 million[192]. Corporate Governance - The board consists of two executive directors and three independent non-executive directors, ensuring a diverse governance structure[27]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance board efficiency[30]. - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring unbiased oversight[28]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[25]. - The board is responsible for major business and strategic decisions, as well as monitoring the performance of senior management[31]. Financial Reporting and Compliance - The company has adopted new Hong Kong Financial Reporting Standards effective from April 1, 2022, which include several amendments that do not have a significant impact on financial performance or disclosures[200]. - The independent auditor issued a disclaimer of opinion regarding the financial statements due to uncertainties surrounding the company's ability to continue as a going concern[160]. - The company continues to ensure compliance with the latest accounting standards to maintain transparency and accuracy in financial reporting[200]. - The company has implemented various plans and measures to alleviate liquidity pressure and improve financial conditions[57]. Future Outlook - The company maintains a cautiously optimistic outlook for future growth and profitability opportunities[12]. - The group anticipates an increase in sales volume for laptop products in the coming months, based on existing sales orders as of June 2022[196]. - Capital market financing options, such as rights issues, are being considered to raise funds for strategic investments and future growth plans[14].
ALCO HOLD-NEW(00328) - 2023 - 年度财报