Jewellery Business Performance - The Group's Jewellery Business experienced an increase in sales orders for the year ended December 31, 2022, compared to the previous year, despite the impact of Covid-19[13]. - The performance of the Jewellery Business is expected to improve with the relaxation of Covid-19 measures starting from Q4 2022, allowing for more frequent visits to overseas customers[19]. - The Group is optimistic about the Jewellery Business in the coming months and plans to focus on developing overseas markets[19]. - The Group's sales team was able to generate more sales orders during the year due to increased visits to overseas customers[13]. - Revenue from the Jewellery Business decreased from approximately HK$338.5 million to approximately HK$326.6 million, a decrease of approximately HK$11.9 million or 3.5%[30]. - Sales to Hong Kong increased by approximately HK$47.0 million or 26.0%, from approximately HK$180.5 million to approximately HK$227.5 million[31]. - Sales to the PRC decreased significantly by approximately HK$58.8 million or 65.4%, from approximately HK$89.9 million to approximately HK$31.1 million[32]. - The gross profit margin for the Jewellery Business in Hong Kong and Dubai was approximately 28.1%, an increase from approximately 24.6% in the previous year[37]. Property Business Performance - The leasing of properties and management services in the Perfect Group Jewellery Industry Park has generated stable income for the Group[18]. - Revenue from the Property Business decreased significantly from approximately HK$68.4 million to approximately HK$47.5 million, a decrease of approximately HK$20.9 million or 30.6%[38]. - Rental income for the Property Business increased from approximately HK$14.3 million to approximately HK$15.9 million, an increase of approximately HK$1.6 million or 11.2%[38]. - The rental and management fee income from the Property Business will continue to contribute steadily to the Group's overall performance[19]. Financial Performance Overview - Overall revenue decreased from approximately HK$407.0 million to approximately HK$374.0 million, representing a decrease of approximately HK$33.0 million or 8.1%[26]. - Overall gross profit increased from approximately HK$101.8 million to approximately HK$114.7 million, an increase of approximately HK$12.9 million or 12.7%[42]. - Gross profit increased from approximately HK$66.1 million to approximately HK$85.1 million, an increase of approximately HK$19.0 million or 28.7%[37]. - Other income increased from approximately HK$1.9 million to approximately HK$3.5 million, a significant increase of approximately HK$1.6 million or 84.2%[43]. - Profit after taxation for the year ended 31 December 2022 was approximately HK$27.4 million, a decrease of approximately HK$10.9 million or 28.5% compared to 2021[58]. Expenses and Liabilities - General and administrative expenses increased from approximately HK$42.6 million in 2021 to approximately HK$49.3 million in 2022, representing an increase of approximately HK$6.7 million or 15.7%[52]. - Selling and distribution costs increased from approximately HK$10.6 million in 2021 to approximately HK$10.8 million in 2022, representing an increase of approximately HK$0.2 million or 1.9%[51]. - Current assets decreased from approximately HK$526.5 million as at 31 December 2021 to approximately HK$482.6 million as at 31 December 2022, a decrease of approximately HK$43.9 million or 8.3%[61]. - Current liabilities decreased from approximately HK$186.7 million as at 31 December 2021 to approximately HK$158.2 million as at 31 December 2022, a decrease of approximately HK$28.5 million or 15.3%[67]. - Trade and other payables amounted to approximately HK$60.7 million as at 31 December 2022, an increase from approximately HK$57.3 million as at 31 December 2021[68]. Credit Risk and Guarantees - The Group's maximum exposure to credit risk is the carrying amount of financial assets stated in the consolidated statement of financial position[86]. - Impairment losses under the expected credit loss model included provisions of approximately HK$16.9 million for trade receivables in the PRC and approximately HK$3.8 million for a loan receivable from an associate[53]. - The Group provided guarantees amounting to approximately RMB13.0 million (equivalent to approximately HK$14.7 million) as of 31 December 2022, a decrease from RMB45.7 million (equivalent to approximately HK$55.9 million) in 2021[102]. Corporate Governance and Management - The Board intends to maintain a balance between dividend distribution and adequate cash flow to create long-term value for shareholders[91]. - The Group's financial position as of 31 December 2022 reflects its investment holding activities[143]. - The Directors are pleased to present the annual report to all shareholders, highlighting the Group's performance[141]. - The independent non-executive Directors confirmed that the continuing connected transactions under the Hong Kong Tenancy Agreement are conducted in the ordinary course of business and in the interests of the Company and shareholders[191]. - The company has received annual confirmation of independence from all independent non-executive directors, who are considered independent[173]. Employee and Operational Insights - The Group's total salaries and related costs for the year ended 31 December 2022 amounted to approximately HK$29.7 million, an increase from HK$28.2 million for the year ended 31 December 2021[100]. - As of 31 December 2022, the Group had approximately 150 employees, up from 128 employees as of 31 December 2021[100]. - The executive directors regularly review revenue analysis from the sales and manufacturing of jewellery products and property development, identifying two main operating activities[149]. Dividends and Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2022, and proposed a final dividend of HK$0.02 per share for the year ended December 31, 2022[144]. - As of December 31, 2022, the company had approximately HK$327,486,000 in distributable reserves, down from approximately HK$355,502,000 as of December 31, 2021[158]. - The company will close its register of members from June 9, 2023, to June 14, 2023, for the proposed final dividend payment[146].
保发集团(03326) - 2022 - 年度财报