Financial Performance - For the year ended December 31, 2022, the Group reported a loss of HK$228,015,000, compared to a profit of HK$24,237,000 in 2018[11]. - Total equity decreased to HK$340,565,000 in 2022 from HK$790,604,000 in 2021, indicating a decline in the Group's net worth[11]. - Revenue from the Lithium Ion Motive Battery Business decreased from HK$157,691,000 to HK$93,791,000 due to reduced production scale caused by the pandemic[38]. - Gross profit for the Lithium Ion Motive Battery Business narrowed to HK$8,016,000 in 2022, down from HK$10,882,000 in 2021[42]. - Other income decreased to approximately HK$7,994,000 in 2022 from HK$11,467,000 in 2021, primarily due to fire insurance claims[39]. - Administrative expenses decreased to approximately HK$126,539,000 in 2022 from HK$143,465,000 in 2021, mainly due to reduced depreciation[45]. - Finance costs decreased to approximately HK$6,771,000 in 2022 from HK$7,936,000 in 2021, attributed to partial settlement of borrowings[46]. - Basic and diluted loss per share for continuing operations was HK7.87 cents in 2022, down from HK15.87 cents in 2021[47]. Asset and Liquidity Position - Non-current assets decreased to HK$353,441,000 in 2022 from HK$593,571,000 in 2021, indicating a significant reduction in long-term investments[11]. - Current assets dropped sharply to HK$343,413,000 in 2022 from HK$1,934,860,000 in 2021, reflecting liquidity challenges faced by the Group[11]. - The Group maintained net current assets of approximately HK$2,121,000 as of December 31, 2022, a significant decrease from HK$258,222,000 in 2021[49]. - The gearing ratio improved to about 15.50% as of December 31, 2022, compared to 26.25% in 2021[49]. Business Strategy and Focus - The Group discontinued its Property and Cultural Business to focus resources on the Lithium Ion Motive Battery Business, resulting in immaterial revenue from property unit sales during the year[15]. - The Group aims to enhance product efficiency, quality, and safety while diversifying battery applications for household and industrial use[16]. - The focus will be on cost control and optimal resource allocation to achieve production at the lowest possible cost while maintaining product quality[16]. - The Group plans to promote its battery products globally to sustain sales growth and maximize investment returns for shareholders[16]. - The Group aims to focus on research and development of new energy products, particularly small energy storage devices, to strengthen its position in the PRC new energy market[31]. - The Group plans to explore new overseas markets starting from Southeast Asia to diversify its customer base and establish a comprehensive global sales network[31]. Market Conditions - In 2022, the national lithium-ion battery output in China reached approximately 750 GWh, representing a year-on-year increase of 130% driven primarily by new energy vehicles, which saw a sales increase of 93.4%[22]. - The Group's revenue from its Lithium Ion Motive Battery Business declined due to COVID-19 disruptions, with production activities affected by temporary closures and logistics challenges[23]. - The Group's annual revenue from household battery applications increased slightly by only 1.1%, indicating weak market development in that sector[22]. - The real estate market in China faced significant challenges, with national real estate investment dropping by 10%, and sales area for commodity residential housing units decreasing by 26.8%[28]. Human Resources and Management - As of December 31, 2022, the Group had approximately 342 employees, a decrease from 589 employees in 2021, with total employee costs amounting to approximately HK$37,613,000, down from HK$45,806,000 in 2021[60]. - The Group has developed human resources policies that reward employees based on performance, including discretionary bonuses linked to both Group and individual performance[60]. - The Group has implemented training programs for management and employees to promote career advancement[60]. - The company has a strong management team with extensive experience in their respective fields, enhancing operational efficiency and innovation[87][88][89]. - The management team is committed to maintaining high-quality standards in battery products, ensuring compliance with industry regulations[89]. Corporate Governance - The Board will continue to review and improve corporate governance practices to ensure proper regulation of business activities and decision-making processes[198]. - The Company has complied with all applicable provisions of the Corporate Governance Code, except for the absence of two independent non-executive Directors from the annual general meeting[196]. - The roles of chairman and chief executive officer are currently held by the same individual, which deviates from the Corporate Governance Code, but the Board believes this provides strong leadership[197]. - Two independent non-executive directors were unable to attend the annual general meeting held on July 5, 2022, which is a deviation from the Corporate Governance Code[199]. Share Capital and Securities - The Company raised approximately HK$10,427,000 by placing 246,993,000 new shares at a price of HK$0.043 per share, completed on 25 November 2022[101]. - As of 31 December 2022, the Company's issued share capital is HK$148,348,670, with a total of 1,483,486,700 ordinary shares issued[102]. - Cheng Hung Mui holds 775,894,533 shares, representing 52.3% of the total issued share capital of the Company[121]. - The Company had no distributable reserves as of 31 December 2022[109]. - The Group did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2022[158]. Risk Management - The Group's overall risk management program addresses various risks including market risk, foreign currency risk, credit risk, and liquidity risk[162]. - The Company has maintained directors and officers liability insurance for its directors[173]. - The Group will continue to monitor foreign exchange exposure in the future[61].
天臣控股(01201) - 2022 - 年度财报