Financial Performance - Revenue for 2022 was HK$89,620,000, a decrease of 36% from HK$139,818,000 in 2021[12] - Gross profit for 2022 was HK$14,060,000, down from HK$38,699,000 in 2021, representing a decline of 64%[12] - Loss before income tax increased to HK$58,403,000 in 2022 from HK$46,020,000 in 2021[12] - The Group's revenue decreased by 35.9% to approximately HK$89,620,000 in 2022, down from HK$139,818,000 in 2021[108] - Revenue from the apparel operation decreased by 42.5% to approximately HK$74,337,000 for the year ended 31 December 2022, accounting for 82.9% of the Group's total revenue[111] - The money lending operation's revenue increased by approximately 29.0% to HK$13,631,000 in 2022, up from HK$10,564,000 in 2021, representing 15.2% of the Group's total revenue[116] - Loss attributable to owners of the Company increased by 42.4% to approximately HK$65,895,000, driven by decreased revenue, impairment losses on money lending operations, and increased administrative expenses[168] Assets and Liabilities - Total assets as of December 31, 2022, were HK$288,373,000, an increase from HK$234,832,000 in 2021[14] - Total liabilities rose to HK$79,073,000 in 2022, compared to HK$38,575,000 in 2021[14] - Shareholders' equity increased to HK$208,432,000 in 2022 from HK$196,257,000 in 2021[14] - Loans and interest receivables (net of allowances) decreased by approximately 14.4%, from HK$114,667,000 as of December 31, 2021, to HK$98,163,000 as of December 31, 2022[117][120] - Trade receivables increased by 42.1% to approximately HK$39,065,000, with trade receivables turnover days rising from 72 to 159 days due to longer credit periods requested by customers[176] - Inventory increased by 9.1% to approximately HK$6,564,000, with inventory turnover days increasing from 22 to 32 days[175] Financial Ratios - The current ratio for 2022 was 4.42, slightly down from 4.87 in 2021[14] - The gearing ratio increased to approximately 15.0% as of December 31, 2022, from 4.1% in 2021[191] - The gross profit margin decreased from approximately 27.7% in 2021 to 15.7% in 2022[125][130] Acquisitions and Business Development - The company completed the acquisition of Dreamtoys Group, which focuses on trendy cultural products and has partnerships with a major gaming provider[20] - The Group completed the acquisition of DREAMTOYS INC. to enhance its product offerings in trendy cultural products[24] - The acquisition of Dreamtoys Inc. was completed on July 15, 2022, with a total consideration including HK$4,400,000 promissory note and 120,000,000 consideration shares[149] Management and Governance - Mr. Cheung has over 20 years of experience in banking and finance, managing a portfolio with assets over USD 300 million in the Greater China region[71] - Mr. Chan has extensive experience in international trading, sales, marketing, and business development in various industries since 1999[73] - Mr. Gong has over 13 years of experience at Tencent, where he held senior positions and received multiple awards for his contributions[78] - Mr. Hon has over 14 years of experience in corporate finance, mergers and acquisitions, and financial management in listed companies and financial institutions[87] - The company has a strong board with members holding various key positions in finance and law, enhancing corporate governance and strategic planning[79][81][85] - The company is committed to maintaining high standards of corporate governance and compliance, as evidenced by its board structure and committee memberships[81][87] Future Outlook - The Group expects economic activities to gradually return to normal in 2023, driven by domestic demand in Mainland China and Hong Kong[38] - The company anticipates a rebound in business in 2023, driven by the economic recovery in mainland China and Hong Kong[50] - The company plans to expand its apparel portfolio, focusing on sportswear and children's clothing, leveraging trend-related intellectual property[50] - The easing of regulatory pressure in the gaming sector presents new opportunities for the Group's gaming and animated character-related products[48] - The company aims to explore more business opportunities with established gaming platforms, capitalizing on the improved regulatory environment[51] Expenses and Financial Management - Administrative expenses increased by 49.4% to approximately HK$76,290,000 in 2022, compared to HK$51,070,000 in 2021, due to layoff expenses and increased share-based compensation[160] - Finance costs surged by 990.4% to approximately HK$3,991,000 in 2022, up from HK$366,000 in 2021, mainly due to interest expenses from convertible bonds[161] - Selling and distribution expenses decreased by 89.2% to approximately HK$1,865,000 in 2022, down from HK$17,197,000 in 2021, primarily due to a shift in target markets[159] Credit and Risk Management - The expected credit loss allowance on loans and interest receivables increased by 17.5% to approximately HK$21,196,000 for the year ended December 31, 2022[117][120] - Ongoing credit assessments and evaluations of customers' financial status are performed to reduce exposure to credit risk[200] - The Board closely monitors the Group's liquidity position to ensure it meets funding requirements[200]
天机控股(01520) - 2022 - 年度财报