Market Performance - The company reported a decline in the Hang Seng Index by 10% in the first nine months of 2023, reflecting a weak capital market environment [19]. - There were 44 IPOs in Hong Kong during the first three quarters of the year, raising HKD 24.6 billion, which represents a 65% decrease in transaction volume compared to the same period last year [19]. Financial Performance - The group's revenue for the fiscal year 2023 was approximately HKD 46.5 million, an increase from HKD 45.4 million in 2022, primarily driven by revenue from printed periodic reports [30]. - The service cost for 2023 was approximately HKD 23.9 million, up from HKD 22.7 million in 2022, aligning with the increase in revenue [31]. - The gross profit for 2023 was HKD 22.6 million, with a gross margin of 48.5%, compared to a gross profit of HKD 22.7 million and a margin of 50.0% in 2022 [29][32]. - The net loss for 2023 was approximately HKD 7.7 million, compared to a net loss of HKD 2.8 million in 2022, mainly due to increased impairment losses [37]. - The top five customers accounted for approximately 16.9% of total revenue in 2023, up from 14.7% in 2022, indicating a slight increase in customer concentration [26]. - The sales expenses decreased by approximately 20.4% to HKD 2.6 million in 2023 from HKD 3.3 million in 2022, primarily due to reduced marketing and employee costs [33]. - Administrative and other operating expenses increased by approximately 12.9% to HKD 28.5 million in 2023 from HKD 25.3 million in 2022, mainly due to increased impairment losses on trade receivables [34]. - The total asset return rate improved to 8.5% in 2023 from 2.6% in 2022, reflecting better asset utilization [40]. - The equity return rate also improved to 13.4% in 2023 from 4.3% in 2022, indicating enhanced profitability relative to equity [41]. - The group has not recommended a final dividend for the fiscal year 2023, consistent with the previous year [42]. Operational Strategy - The company has maintained prudent cost control and enhanced operational capabilities despite facing severe pressures from global political instability and rising interest rates [16]. - The company aims to explore opportunities in emerging innovative industries to achieve better performance in the future [20]. - The company is committed to providing high-end financial printing services and creating long-term value for shareholders [20]. - The company plans to leverage any recovery in demand for high-end financial printing services as the Hong Kong government establishes a dedicated team to promote stock market liquidity [20]. - The company has strengthened its sales team and improved competitiveness in non-IPO related printing services, which has proven to be a wise move during challenging times [19]. - The company emphasizes the integration of sustainable development principles into its business operations [16]. - The company is positioned to capitalize on opportunities as the demand for high-end financial printing services is expected to recover in the long term [16]. - The company’s mission for 2024 is to break out of its comfort zone, take risks, and explore new areas for growth [7]. Cash and Assets - As of September 30, 2023, the group's cash and cash equivalents amounted to approximately HKD 60.6 million, a decrease from HKD 68.5 million in 2022 [48]. - The current ratio as of September 30, 2023, was 2.6 times, compared to 2.9 times in 2022 [48]. - The total employee count increased to 69 as of September 30, 2023, up from 66 in 2022 [54]. - Total employee costs for the year were approximately HKD 22.2 million, slightly down from HKD 22.9 million in 2022 [54]. - The company did not engage in any acquisitions or disposals of subsidiaries or joint ventures during the fiscal year 2023 [52]. - There were no significant investments or capital asset plans as of September 30, 2023 [57]. - The company has no outstanding debts, resulting in a capital debt ratio that is not applicable [49]. - The management expects to maintain the current capital structure without foreseeable adverse conditions [51]. Governance and Compliance - The company has complied with all applicable code provisions of the GEM Listing Rules Appendix 15 on corporate governance during the year [158]. - The company has adopted a board diversity policy and discussed measurable targets for its implementation [179]. - The board consists of five members, with independent non-executive directors making up 60% of the board [171]. - All directors confirmed compliance with the securities trading standards during the year [167]. - The company held four regular board meetings during the year, approving the audited consolidated financial statements for the year ended September 30, 2022 [177]. - The independent auditor, Da Xin Liang Xue Lian, will be proposed for reappointment at the upcoming 2024 annual general meeting [163]. - The company has established a strong internal control and risk management framework to ensure effective accountability [165]. - The chairman of the board held a meeting with independent non-executive directors without the presence of other executive directors during the year [174]. - The company emphasizes the importance of board diversity and ensures a balance of skills, experience, and diverse perspectives among board members [181]. - The roles of the Chairman and CEO are distinct, held by different individuals to ensure balanced power distribution [182]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting revenue growth of BB% and an increase in user engagement metrics [71]. - New product launches are expected to contribute to revenue, with an estimated impact of CC million in the upcoming quarter [71]. - The company is investing in new technology development, allocating DD% of its budget towards R&D initiatives to enhance product offerings [71]. - Market expansion plans include entering EE new regions, aiming to increase market share by FF% over the next two years [71]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the industry [71]. - A new marketing strategy has been implemented, focusing on digital channels, which is expected to increase customer acquisition by GG% [71]. - The company has achieved a cost reduction of HH% through operational efficiencies, positively impacting profit margins [71]. - The management team emphasized the importance of sustainability initiatives, aiming for a reduction in carbon footprint by II% over the next five years [71].
钜京控股(08450) - 2023 - 年度财报