Financial Performance - The company reported a total loss of approximately HKD 99.8 million for the period, primarily due to expenses related to equity-settled share payments associated with the SPAC merger transaction[37]. - The company incurred a net loss of approximately HKD 99.8 million during the reporting period, which is mainly attributed to costs related to the SPAC merger transaction[37]. - For the fiscal year ending December 31, 2023, the company reported a total revenue of HKD 0, with an operating loss before tax expenses of HKD (99,849,000), compared to an operating loss of HKD (72,134,000) for the period from April 11, 2022, to December 31, 2022[95][96][98]. - The company incurred administrative expenses of HKD (98,861,000) for the year ending December 31, 2023, significantly higher than HKD (2,373,000) for the previous period[96]. - The company reported a net loss of HKD (99,849,000) for the year ending December 31, 2023, compared to a net loss of HKD (72,134,000) for the previous period, resulting in a basic and diluted loss per share of HKD (3.994) compared to HKD (3.823)[96][98]. Assets and Liabilities - As of December 31, 2023, the company's current liabilities amounted to approximately HKD 1,094.7 million, which includes accrued expenses and other payables of about HKD 91.2 million and the book value of redeemable Class A shares of HKD 1,001.0 million[38]. - The company recorded net current liabilities of HKD 1,091.9 million and net liabilities of HKD 35.67 million as of December 31, 2023[12]. - As of December 31, 2023, the company's non-current assets amounted to approximately HKD 1,056.2 million, all of which are restricted bank deposits[52]. - The company’s total liabilities as of December 31, 2023, were HKD 1,094,713,000, compared to HKD 1,070,734,000 in the previous year, indicating a slight increase in liabilities[97]. - The company’s net current liabilities were HKD (1,091,909,000) as of December 31, 2023, compared to HKD (1,030,813,000) in the previous year, reflecting an increase in net liabilities[97]. Revenue Generation and Business Strategy - The company has not generated any operational revenue prior to the completion of the SPAC merger transaction, and it expects to earn non-operational income from interest generated from the proceeds of Class B shares and warrants[36]. - The company has not generated any revenue during the reporting period and expects to generate operating income only after the completion of its special purpose acquisition company transaction[51]. - The company plans to focus on technology companies in the new economy sectors, such as innovative technologies, advanced manufacturing, healthcare, life sciences, entertainment, consumer goods, e-commerce, green energy, and climate action industries in China[33]. - The company will continue to focus on its business strategy as outlined in its listing documents, with no significant investment or capital asset plans other than for the special purpose acquisition company transaction[40]. - The company is currently in discussions regarding potential business combination opportunities but has not entered into any binding agreements for specific transactions[49]. Cash Flow and Financing - The company’s cash and operating capital are currently insufficient, and management plans to address this issue through loan financing provided by joint sponsors[12]. - The company has a loan facility providing up to HKD 10.0 million in working capital, with no amounts drawn as of December 31, 2023[55]. - The total amount raised from the listing is HKD 1,001,000,000, which has been deposited into a segregated trust account in Hong Kong[105]. - The company has confirmed share-based payment expenses related to Class B share conversion rights and founder warrants of approximately HKD 83,256,000 and HKD 10,736,000 respectively[44]. - The company anticipates significant costs in evaluating potential SPAC merger targets and negotiating transactions, funded through various sources including proceeds from the issuance of shares and investments from third-party investors[177]. Corporate Governance and Compliance - The company maintains a high standard of corporate governance to protect shareholder interests and enhance corporate value[61]. - The company anticipates continuing to incur expenses related to compliance with listing requirements, including legal, financial reporting, accounting, and audit compliance costs[36]. - The company has no independent reportable segments and was established to facilitate the completion of SPAC merger transactions[25]. - The company’s financial statements are prepared in accordance with all applicable International Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance[149]. - The company has not declared or proposed any dividends for the year ended December 31, 2023[132]. Future Outlook - The expected SPAC merger date is between December 2023 and December 2024, with an anticipated expiration date five years after the merger date[194]. - The company will continue to monitor global and Chinese economic conditions closely, aiming to identify potential SPAC merger targets while managing risks prudently[196]. - The company has a 36-month period to complete the special purpose acquisition company merger transaction, which began upon listing[146]. - The company is still in the process of selecting and negotiating potential business combination opportunities as of December 31, 2023[115]. - There is no significant foreign currency risk exposure as the company does not hold major financial assets or liabilities denominated in currencies other than its functional currency[182].
TECHSTARACQ-Z(07855) - 2023 - 年度业绩