Financial Performance - The profit attributable to the owners of the Company decreased by 28.1% from approximately HK$8.6 million for the year ended 31 December 2021 to approximately HK$6.2 million for the year ended 31 December 2022[7]. - Total revenue declined by 15.0% from approximately HK$1,158.9 million in 2021 to approximately HK$984.5 million in 2022, with a gross profit margin decreasing from 13.9% to 10.5%[13]. - Gross profit decreased by 36.2% from approximately HK$161.5 million in 2021 to approximately HK$103.1 million in 2022, primarily due to decreased revenue and increased raw material prices[15]. - Profit attributable to owners decreased by 28.1% from approximately HK$8.6 million in 2021 to approximately HK$6.2 million in 2022, with basic earnings per share at approximately HK$0.4 cents[80]. - The share of results from associates decreased by 97.8% from approximately HK$70.1 million in 2021 to approximately HK$1.6 million in 2022, primarily due to the decline in profitability of Changde Gold Roc Printing Co., Ltd.[94]. - The effective tax rate increased from 34.8% in 2021 to 50.1% in 2022, primarily due to a decrease in overprovision of enterprise income tax in prior years[118]. Revenue and Customer Concentration - The Group's five largest customers accounted for approximately 63.1% of total revenue, with the largest customer contributing about 35.9%[24]. - Revenue from the printing and manufacturing of paper packages and related materials was approximately HK$888.1 million in 2022, down from HK$1,053.5 million in 2021, accounting for approximately 90.2% of total revenue[87]. - Aggregate sales to the Group's five largest customers accounted for approximately 63.1% of total revenue, with the largest customer contributing approximately 35.9%[168]. Assets and Liabilities - As of 31 December 2022, the Group's net current assets were approximately HK$321.1 million, down from approximately HK$398.1 million in 2021[9]. - The Group's cash and bank balances were approximately HK$313.3 million as of 31 December 2022, compared to approximately HK$440.4 million in 2021[9]. - As of December 31, 2022, the Group's outstanding bank borrowings were approximately HK$266.6 million, down from approximately HK$342.4 million in 2021[128]. - The Group's net cash position improved to approximately HK$137.9 million in 2022 from approximately HK$106.9 million in 2021[129]. - The current ratio remained stable at 1.5 times for both 2021 and 2022, while the quick ratio decreased slightly from 1.4 times in 2021 to 1.3 times in 2022[127]. - The Group's gearing ratio as of December 31, 2022, was –5.6%, compared to –4.0% in 2021, indicating a net cash position relative to total equity[129]. Operational Changes and Strategies - The Group plans to explore new investments and divest subsidiaries to achieve sustainable growth and enhance profitability[4]. - The Group plans to focus resources on Bengbu Jinhuangshan Rotogravure Printing Co., Ltd. to improve cost control and production efficiency[59]. - The Group completed the acquisition of Eagle Swift Limited on January 26, 2022, which is expected to provide stable rental income and potential long-term appreciation in property value[84]. - The Group aims to explore new investment opportunities and diversify into other profitable businesses for sustainable growth[60]. - The Group plans to centralize production at its subsidiary in Bengbu to improve cost control and production efficiency[85]. Economic Outlook - The outlook for the global and PRC economy remains uncertain due to factors such as global inflation and geopolitical tensions, which may adversely affect the Group's operating environment in 2023[3]. - The Group anticipates challenges in 2023 due to global inflation and geopolitical tensions affecting the operating environment[58]. - The GDP of the PRC increased by 3.0% in 2022, lower than the 8.1% growth in 2021[77]. Employee and Remuneration - As of December 31, 2022, the Group employed 663 staff, down from 978 in 2021, with total remuneration costs of approximately HK$127.3 million in 2022 compared to HK$155.5 million in 2021[136]. - The total remuneration cost incurred by the Group for the year ended December 31, 2022, was approximately HK$127.3 million, a decrease from approximately HK$155.5 million in 2021[162]. - The Group had 663 employees as of December 31, 2022, down from 978 in 2021[162]. Dividends and Commitments - The Board recommended a final dividend of HK$0.04 per share for the year ended December 31, 2022, compared to no dividend in 2021[140]. - The proposed final dividend for the year ended December 31, 2022, is HK$0.04 per share, compared to no dividend in 2021[169]. - The Group had capital commitments of approximately HK$7.4 million as of December 31, 2022, significantly down from approximately HK$268.6 million in 2021[131]. - The Group's capital commitments for property, plant, and equipment as of December 31, 2022, were approximately HK$7.4 million, significantly reduced from approximately HK$268.6 million in 2021[158]. Other Financial Metrics - Other income increased by 24.6% from approximately HK$41.6 million in 2021 to approximately HK$51.8 million in 2022[64]. - Finance costs decreased by 29.3% from approximately HK$14.4 million in 2021 to approximately HK$10.2 million in 2022[67]. - The average bank borrowings rate and balance decreased in 2022, leading to improved bank loan portfolio management[90]. - The Group's return on equity decreased from 0.3% in 2021 to 0.2% in 2022, while return on total assets remained stable at 0.2%[102]. - The Group's treasury policy focuses on prudent financial management to ensure liquidity and meet funding requirements[157]. - The Group maintained a healthy liquidity position throughout 2022, with ongoing credit assessments to manage credit risk[157]. - The Group made charitable and other donations amounting to HK$0.018 million during the year, compared to HK$0.016 million in 2021[173].
力图控股(01008) - 2022 - 年度财报