Financial Performance - Revenue for 2023 was HK$660.0 million, a decrease of 36.7% from HK$1,042.4 million in 2022[6] - Profit before interest, tax, depreciation, and non-cash items was HK$39.9 million, down 84.4% from HK$256.6 million in 2022[6] - Profit for the year attributable to owners of the Company was HK$40.7 million, a decline of 82.4% compared to HK$231.0 million in 2022[6] - Proposed final dividend is HK$9.1 million, down from HK$36.3 million in 2022, with a dividend per share of HK$1.0[6] - Gross profit for the year was around HK$4.3 million, a significant decline from HK$37.8 million in 2022[20] - The Group's profit before interest and tax was HK$40.7 million, significantly lower than HK$236.0 million in the previous year[37] - Profit before tax for the same period was HK$40,841,000, down 82.7% from HK$236,034,000 in 2022[174] - The profit for the year attributable to owners of the company was HK$40,718,000, a decline of 82.4% compared to HK$231,021,000 in 2022[174] Assets and Liabilities - Total assets increased to HK$1,753.6 million in 2023 from HK$1,745.5 million in 2022[9] - Total equity decreased slightly to HK$1,613.3 million in 2023 from HK$1,622.0 million in 2022[9] - Cash and cash equivalents decreased to HK$121.4 million in 2023 from HK$152.2 million in 2022[9] - Total debt to total equity ratio increased to 1.2% in 2023 from 0.5% in 2022[9] - Current assets to current liabilities ratio decreased to 164.3% in 2023 from 239% in 2022[9] - Current assets decreased to HK$206.6 million in 2023 from HK$258.6 million in 2022, a reduction of approximately 20.1%[94] - The Group's net current assets fell to HK$80.9 million in 2023 from HK$150.2 million in 2022, representing a decline of about 46.1%[94] - Financial assets at fair value through profit or loss were approximately HK$38.2 million as of March 31, 2023, down from HK$53.9 million in 2022, a decrease of around 29.1%[96] - Total liabilities increased to HK$140,253,000 from HK$123,426,000 in 2022, resulting in net assets of HK$1,613,336,000[176] Market Trends and Economic Outlook - The global semiconductor revenue is projected to decline by 11.3%, from US$599.6 billion in 2022 to US$532.0 billion in 2023[23] - The International Monetary Fund predicts a decrease in global economic growth from 3.4% in 2022 to 2.8% in 2023, with advanced economies expected to slow from 2.7% to 1.3%[20] - The ongoing geopolitical instability and inflationary pressures are expected to dampen growth in the short term[25] - Global smartphone sales declined by 11.3% in 2022, totaling 1.21 billion units, impacting the semiconductor market[39] - The overall economic environment remains uncertain, with geopolitical tensions and inflation continuing to pose risks to growth[36] - The ongoing pandemic and geopolitical tensions have contributed to a deteriorating outlook for global economic growth, prompting the Group to invest resources in addressing these challenges[80][83] Business Strategy and Operations - The Group is focusing on expanding its e-commerce operations, particularly in Southeast Asia, to align with emerging consumer market trends[24] - Marketing and sales operations in Indonesia have been strengthened, with a wider range of products tailored to local requirements[24] - The Group aims to enhance internal management and efficiency to adapt to market fluctuations and capitalize on opportunities[25] - The Group is committed to developing a diverse array of high-quality, tech-savvy consumer products and introducing premium brand partners[24] - The Group aims to consolidate its market position and maintain competitive advantages while delivering reasonable returns to shareholders[81][84] - The Group is committed to focusing on the development of its core semiconductor distribution business and will monitor industry trends to identify new growth opportunities[74][76] - The Group has been expanding its e-commerce presence in Southeast Asia, particularly in Indonesia, which is expected to yield substantial advantages for its consumer product business[79][82] - The Group's operational foundation in e-commerce is gradually stabilizing, indicating potential for future growth in the consumer product and sourcing business[79][82] Governance and Management - The management team includes Mr. Chan Chi Hang as Chief Financial Officer since August 2015, with extensive experience in accounting and auditing[120] - Mr. Lai Yat Hung Edmund has been an Independent Non-executive Director since 2019, with over 30 years of experience in finance and treasury management[119] - Dr. Lui Ming Wah has served as an Independent Non-executive Director since 1996, contributing significant industrial experience[113] - The management team emphasizes the importance of risk management and financial oversight in its operations[121] - The company continues to strengthen its governance structure with experienced directors and management[118] Shareholder Information - A final dividend of HK$0.01 per share has been recommended for the year ended March 31, 2023, down from HK$0.04 in 2022[152] - The total proposed dividend amounts to approximately HK$9.1 million based on 908,663,302 shares in issue[153] - Distributable reserves as of March 31, 2023, were approximately HK$443,885,000, down from HK$467,317,000 in 2022[164] - The Company has adopted a share option scheme for its subsidiary, 830 Lab, which includes interests in share options granted to Mr. Sunny So[196] - The Company provides a competitive remuneration package to eligible employees, including medical and retirement benefits[186] - The remuneration of Directors is recommended by the remuneration committee and approved by the Board, considering their skills and contributions[186] Risk Management - The Group has implemented monitoring procedures to minimize credit risk and ensure adequate impairment losses for irrecoverable amounts[138] - The Group is exposed to interest rate risk due to floating interest rates on bank borrowings and monitors this exposure closely[140] - The Group maintains a level of cash and cash equivalents deemed adequate to finance operations and mitigate cash flow fluctuations[139] - The Group is committed to environmental sustainability and complies with all relevant laws and regulations regarding environmental protection[142] - There were no material disputes with key stakeholders during the year under review, indicating effective communication and relationships[151]
AV CONCEPT HOLD(00595) - 2023 - 年度财报