Financial Performance - The company's profit for the year ended December 31, 2023, was HKD 33,243,000, a decrease of 29% from HKD 46,965,000 in 2022[2]. - Total revenue for the year was HKD 257,504,000, down from HKD 268,719,000 in the previous year, representing a decline of approximately 4.5%[18]. - Gross profit decreased to HKD 135,841,000 from HKD 145,000,000, reflecting a decline of about 6.9%[18]. - The company reported a net income before tax of HKD 37,783,000, down from HKD 51,432,000, indicating a decrease of approximately 26.6%[18]. - The total comprehensive income for the year amounted to HKD 33,270,000, compared to HKD 42,824,000 in 2022, reflecting a decline of 22.2%[34]. - Basic earnings per share for the parent company's ordinary shareholders was HKD 13.50, down from HKD 19.02 in the previous year[32]. - The group reported a basic earnings per share of HKD 0.055, down from HKD 0.065 in the previous year[114]. - Net profit attributable to shareholders decreased by HKD 13.7 million, or 29.1%, to HKD 33.4 million, compared to HKD 47 million in 2022[124]. Dividends - The proposed final and special dividend for the year is HKD 13,493,000, significantly lower than HKD 30,882,000 in the previous year[3]. - The proposed final dividend for the year is HKD 0.055 per share, down from HKD 0.075 in 2022, resulting in a total annual dividend of HKD 0.11 per share for 2023[98]. - The board recommends a final dividend of HKD 0.055 per share for the year ending December 31, 2023, down from HKD 0.075 in the previous year[196]. Assets and Liabilities - The company's total equity attributable to shareholders decreased to HKD 505,999,000 from HKD 523,091,000, a decline of about 3.3%[24]. - The total assets of the company as of December 31, 2023, were HKD 654,508,000, a decrease from HKD 678,490,000 in 2022[68]. - The company’s total liabilities decreased slightly to HKD 271,353,000 from HKD 273,421,000[24]. - The company’s total liabilities decreased to HKD 148,509,000 in 2023 from HKD 155,399,000 in 2022, a reduction of 4.5%[68]. - The group’s total liabilities decreased by HKD 6.9 million, or 4.4%, to HKD 148.5 million (2022: HKD 155.4 million)[169]. Revenue Sources - Revenue from external customers in Hong Kong and Mainland China was HKD 241,148,000 in 2023, down from HKD 259,510,000 in 2022, representing a decline of 7.1%[53]. - Income from customer contracts was HKD 255,615,000 in 2023, compared to HKD 266,735,000 in 2022, reflecting a decrease of 4.2%[56]. - Total revenue from customer contracts reached HKD 255,615,000, with HKD 152,781,000 from application services and HKD 102,834,000 from solutions and integration services[104]. Operating Expenses - The company’s operating expenses, including selling and distribution expenses, were HKD 34,423,000, up from HKD 32,153,000, indicating an increase of about 7%[18]. - Total operating expenses increased by HKD 5.6 million to HKD 111.2 million (2022: HKD 105.7 million) due to rising employee costs and deferred development cost amortization[167]. Segment Performance - The company operates three reportable segments, focusing on IT solutions implementation, application software development, and related outsourcing services[45]. - The company’s segment performance showed a decline in operating profit to HKD 58,626,000 in 2023 from HKD 68,726,000 in 2022, a decrease of 14.7%[68]. - The enterprise software business showed an overall improvement in contribution to the group, with recurring software as a service and maintenance revenue increasing by over 28% year-on-year despite limited resources[100]. - The enterprise procurement management software business benefited from sustainable demand in compliance procurement processes, contributing significantly to the group's profitability[100]. - The enterprise information management software maintained its profit contribution due to stable recurring maintenance income and new contracts driven by digital transformation and compliance initiatives[100]. - The solutions and integration services business saw a revenue decrease of HKD 6.5 million, or 6.0%, to HKD 1.028 billion, but improved operational efficiency led to better profit performance[128]. Cash Flow and Financial Position - The company generated positive cash flow from operating activities and maintained a strong financial position[98]. - As of December 31, 2023, the company's current ratio is 3.0, and the debt-to-asset ratio is 22.7%[173]. - Cash and cash equivalents increased to HKD 31.61 million (2022: HKD 30.98 million)[147]. Strategic Initiatives - The company plans to continue its focus on enterprise application software and e-commerce services, aiming for market expansion in Hong Kong and other regions[13]. - The company plans to launch a new cloud-native human capital management software as a service platform in the first half of 2024, leveraging generative AI and large language models[127]. - The company has expanded its software development center in mainland China to address resource shortages and rising employee costs in Hong Kong[132]. - The group is actively exploring new applications in artificial intelligence and natural language processing, expanding into commercial sectors such as finance and construction[155]. Governance and Compliance - The company maintains a high level of corporate governance, emphasizing integrity, transparency, and accountability[181]. - The company has established a share incentive plan to reward employees contributing to its business success[192]. - The company is currently reviewing tax matters related to additional deductions for R&D expenses as per inquiries from the Hong Kong tax authority[111].
科联系统(00046) - 2023 - 年度业绩