Financial Performance - The Group's revenue decreased by HK$56.2 million to HK$191.0 million for the year ended 31 December 2022, down from HK$247.2 million in 2021, representing a decline of approximately 22.7%[12]. - Overall gross profit decreased by HK$12.3 million to HK$34.9 million in FY2022, compared to HK$47.2 million in FY2021, indicating a reduction of about 26.0%[12]. - The Group recorded a loss of HK$1.4 million for FY2022, a decrease of approximately HK$8.3 million compared to a profit of HK$6.9 million in FY2021[13]. - The decrease in revenue was primarily attributed to reduced income from construction and ancillary services, alongside a decline in gross profit margin from these services[12]. - The construction and ancillary services segment generated revenue of HK$106.3 million in FY2022, a decrease of HK$62.4 million from HK$168.7 million in FY2021, marking a decline of approximately 37%[31]. - The financial business segment's revenue dropped to HK$342,000 in FY2022, down from HK$4.8 million in FY2021, a decline of approximately 92.9%[30]. - The consumer goods business revenue increased to HK$84.3 million in FY2022, up from HK$73.7 million in FY2021, representing a growth of approximately 14.3%[30]. - The Group recorded an annual loss of HK$1.4 million in FY2022, compared to a profit of HK$6.9 million in FY2021, primarily due to decreased gross margins and increased financing costs[28]. - Finance costs increased by HK$4.6 million from HK$0.4 million in FY2021 to HK$5.0 million in FY2022, mainly due to higher interest on other borrowings[86][92]. Business Segments - The Group operates in three major segments: construction and ancillary services, financial business, and consumer goods business[26]. - The Group's consumer goods business focuses on producing and selling yellow wine products targeting young and middle-aged middle to high-class consumers[77]. - The Group's yellow wine production capacity is approximately 3,000 tons per annum, based in Jiangxi, a popular area for Chinese yellow wine[77]. Strategic Focus and Future Outlook - The economic environment in Hong Kong and mainland China is expected to recover, which may enhance business performance and lead to more construction projects in 2023[14]. - The anticipated reopening of the border between Hong Kong and mainland China is expected to positively impact business activities[14]. - The Group aims to maximize shareholder value by exploring new business opportunities, particularly in the consumer goods sector, to broaden its revenue and profit base[15]. - The Group's strategic focus will remain on pragmatic and enterprising approaches to executing business strategies[15]. Financial Position and Risk Management - As of December 31, 2022, the Group had total cash and bank balances of HK$52.5 million, up from HK$21.9 million in 2021[97][101]. - The Group maintained a current ratio of approximately 3.4 times as of December 31, 2022, compared to 3.9 times in 2021[98][101]. - The gearing ratio was approximately 16.8% as of December 31, 2022, slightly up from 16.4% in 2021[99][101]. - The Group is exposed to foreign exchange risk mainly related to Renminbi, which may impact performance, and currently does not have a foreign currency hedging policy[103]. - The management is closely monitoring the impact of currency fluctuations on the Group's performance to determine if any hedging strategies are necessary[107]. Loan Portfolio and Financial Services - As of December 31, 2022, the loan portfolio consisted of 86.7% personal loans and 13.3% corporate loans, a significant shift from the previous year where corporate loans made up 88.6%[42]. - The effective interest rate for the active and outstanding loans in the group's money lending business ranged from approximately 6% to 7% per annum as of December 31, 2022[47]. - The majority of loans granted by Greater Bay are short-term loans aimed at affluent individuals and well-established companies requiring short-term financing[50][52]. - The loan approval process includes a credit risk assessment, which involves obtaining credit assessment reports and conducting background checks on potential clients[58]. - The Group's expected credit loss (ECL) allowance for loans and interest receivables was approximately HK$10.1 million for the financial year ended December 31, 2022, compared to HK$11.0 million in FY2021[70]. - The Group's ECL assessment is based on historical credit loss experience and adjusted for specific debtor factors and economic conditions[69]. Shareholder and Corporate Governance - The Group's distributable reserves as of December 31, 2022, amounted to approximately HK$47.6 million, an increase from HK$38.0 million as of December 31, 2021, representing a growth of 25.8%[140][146]. - The Directors do not recommend any payment of final dividend for the year ended December 31, 2022[131][137]. - The Group has complied with relevant laws and regulations that significantly impact its operations, with no important events affecting the Group reported since the end of the financial year[130][135]. - The Group's financial risk management objectives and policies are detailed in note 29(b) to the consolidated financial statements[129][134]. - The Group's principal activities include construction and ancillary services, consumer goods business, and financial services, as outlined in the consolidated financial statements[128][133].
旷逸国际(01683) - 2022 - 年度财报