Financial Performance - For the year ended December 31, 2023, the company reported a revenue of HKD 27,787,000, a decrease of 5.3% from HKD 29,331,000 in 2022[12] - The company recorded a net loss of HKD 47,092,000 for the year, compared to a profit of HKD 17,527,000 in the previous year[12] - The total comprehensive expense for the year amounted to HKD 53,272,000, significantly higher than HKD 4,635,000 in 2022[12] - Revenue from external customers for the year ended December 31, 2023, was HKD 27,787,000, a decrease from HKD 29,331,000 in 2022, representing a decline of approximately 5.3%[34] - The company reported a net loss attributable to equity holders of approximately HKD 47.1 million for the year ended December 31, 2023, compared to a profit of HKD 17.5 million in 2022[41] - The group recorded a net profit of approximately HKD 10.7 million for the year ended December 31, 2023, compared to approximately HKD 15.0 million in 2022, primarily due to decreased rental income and increased financial costs[62] Assets and Liabilities - The company's non-current assets, primarily investment properties, decreased to HKD 851,340,000 from HKD 908,010,000 in the previous year[14] - The net current liabilities increased to HKD 66,765,000, compared to HKD 13,088,000 in 2022, indicating a deterioration in liquidity[18] - The fair value of investment properties decreased to approximately HKD 851.3 million in 2023 from HKD 908.0 million in 2022, reflecting a net change of HKD (56.7) million[55] - The fair value of the group's investment properties decreased by approximately HKD 56.7 million in 2023, reflecting the overall market conditions in Hong Kong's commercial retail and residential investment property sectors[62] - The total equity of the group as of December 31, 2023, was approximately HKD 882.3 million, down from approximately HKD 934.5 million in 2022, reflecting a decrease of approximately HKD 52.2 million[72] - As of December 31, 2023, the group's current liabilities net amount was approximately HKD 66.8 million, an increase from approximately HKD 13.1 million in 2022, with a current ratio of approximately 0.40[72] Income and Expenses - The basic and diluted loss per share for the year was HKD (12.19), compared to earnings of HKD 4.54 in 2022[12] - The group reported a diluted loss per share of HKD (121.0) cents for 2023, compared to a diluted earnings per share of HKD 45.4 cents in 2022[43] - The group has adopted new and revised Hong Kong Financial Reporting Standards, including HKFRS 17 on insurance contracts, which did not have a significant impact on the financial statements as the group has no contracts within its scope[21] - Financing costs increased to HKD 6,330,000 in 2023 from HKD 3,065,000 in 2022, reflecting a significant rise of approximately 106.3%[36] - The group reported a total employee cost of HKD 6,771,000 for 2023, down from HKD 8,164,000 in 2022, indicating a decrease of about 17.0%[36] - The current tax provision for Hong Kong profits tax for the year was HKD 1,494,000, compared to HKD 2,344,000 in the previous year, a reduction of approximately 36.3%[37] - Deferred tax for the year was HKD 1,459,000, down from HKD 2,155,000 in 2022, representing a decrease of about 32.3%[37] Dividends and Capital Management - The company did not declare any dividends for the year ended December 31, 2023, consistent with the previous year[5] - The group did not recommend any dividend distribution at the end of the reporting period[40] - The group did not declare a final dividend for the year ending December 31, 2023, consistent with 2022[89] - The company plans to actively review its capital structure and may pursue new debt financing or property sales to enhance liquidity[19] - The group maintained a cautious financial management policy, with cash typically held in short-term deposits primarily in HKD[80] Operational Insights - The group’s operational business is primarily focused on property investment, with no significant changes in business segments reported[28] - Rental income from a single customer accounted for over 10% of the total revenue for the year ended December 31, 2023[30] - Rental income for the year ended December 31, 2023, was approximately HKD 27.8 million, a decrease of about 5.3% compared to 2022, primarily due to increased rental concessions granted to tenants[60] - The company continued to hold a 10% investment in Epic Capital Development Fund I, L.P., which is involved in property redevelopment in Hong Kong[60] - The company injected additional capital of approximately HKD 7.1 million into the fund during 2023, which was offset by a net decrease in the fund's fair value reserve of approximately HKD 6.2 million[61] - The group continues to maintain a high level of occupancy across its diversified tenant portfolio, closely monitoring economic trends and adjusting rental policies as necessary[64] Market Outlook - The management remains optimistic about the economic outlook for Hong Kong, anticipating a gradual recovery in retail property leasing activities despite ongoing inflationary pressures and geopolitical uncertainties[63] - The group has no major plans for significant investments or acquisitions due to an uncertain market outlook, maintaining a prudent financial policy when evaluating potential investment opportunities[66] Risk Management - The group has established sufficient risk management procedures to identify and control various risks in line with the best interests of the group and its shareholders[85] - As of December 31, 2023, the group had no significant contingent liabilities[82] Other Financial Information - The group recorded share-based payment expenses of approximately HKD 1.1 million for the year 2023, down from HKD 2.6 million in 2022[86] - The group had no capital commitments contracted but not provided for in the financial statements as of December 31, 2023, and 2022[81] - Capital expenditure for the year ending December 31, 2023, was approximately HKD 7.1 million, a decrease from HKD 14.9 million in 2022[77] - The group held approximately HKD 42.6 million in bank deposits and cash as of December 31, 2023, a decrease from approximately HKD 53.7 million in 2022[73]
永利地产发展(00864) - 2023 - 年度业绩