连达科技控股(00889) - 2023 - 年度业绩

Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income In 2023, Landa Technology Holdings reported a net loss of HK$24,227 thousand, a significant shift from the previous year's net profit, with turnover decreasing by 15.2% and basic earnings per share turning negative Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Indicator | 2023 (Thousand HKD) | 2022 (Thousand HKD) | | :--- | :--- | :--- | | Turnover | 222,427 | 262,424 | | Cost of sales | (148,694) | (181,751) | | Gross profit | 73,733 | 80,673 | | (Loss)/Profit before tax | (23,664) | 28,177 | | (Loss)/Profit for the year and attributable to owners of the Company | (24,227) | 27,875 | | Basic and diluted (loss)/earnings per share | (HK$0.076) | HK$0.087 | - Turnover decreased by 15.2% year-on-year in 2023, from HK$262,424 thousand in 2022 to HK$222,427 thousand[3] - The company shifted from a profit before tax of HK$28,177 thousand in 2022 to a loss before tax of HK$23,664 thousand in 2023[3] Consolidated Statement of Financial Position As of December 31, 2023, total assets less current liabilities decreased, net assets declined by 4.35%, while cash and cash equivalents increased, reflecting shifts in the company's financial structure Consolidated Statement of Financial Position Summary | Indicator | 2023 (Thousand HKD) | 2022 (Thousand HKD) | | :--- | :--- | :--- | | Non-current assets | 605,345 | 633,258 | | Current assets | 272,031 | 293,823 | | Current liabilities | 22,670 | 21,783 | | Non-current liabilities | 41,424 | 55,020 | | Net assets | 813,282 | 850,278 | | Cash and cash equivalents | 145,176 | 136,772 | - As of the end of 2023, net assets decreased by 4.35% year-on-year to HK$813,282 thousand[7][8] - Cash and cash equivalents increased by 6.14% to HK$145,176 thousand[7] Financial Statement Notes Compliance Statement The company's consolidated financial statements adhere to Hong Kong Financial Reporting Standards, HKEX Listing Rules, and Hong Kong Companies Ordinance disclosure requirements - Financial statements comply with Hong Kong Financial Reporting Standards, Listing Rules, and Hong Kong Companies Ordinance disclosure requirements[10] Basis of Preparation The consolidated financial statements are primarily prepared under the historical cost convention, with certain assets measured at valuation or fair value - Financial statements are primarily prepared under the historical cost convention, but specific assets (e.g., investment properties) are measured at fair value[11] Functional and Presentation Currency The company's functional and presentation currency is HKD, aligning with its listing on the Hong Kong Stock Exchange - The company's functional and financial statement presentation currency is HKD, suitable for its Hong Kong listing status[12] Adoption of Hong Kong Financial Reporting Standards The Group adopted new/revised HKFRS effective January 1, 2023, impacting presentation but not significantly affecting financial position or performance, while also assessing other new standards and the MPF-LSP offsetting mechanism - Adoption of new/revised HKAS 1 and HKFRS Practice Statement 2 impacted the presentation of accounting policy disclosures but did not materially affect financial position or performance[13][14][16] - The Group is evaluating the impact of new accounting standards and amendments issued but not yet effective[16] - The abolition of the MPF-LSP offsetting mechanism in Hong Kong had no material impact on 2022 and 2023 results or financial position, as assessed by the directors[17] Segment Information The Group operates as a single segment in electronic component manufacturing and trading, with revenue primarily from the US market, experiencing shifts in geographical and major customer sales in 2023 - The Group is considered a single operating segment, primarily engaged in the manufacturing and trading of electronic components[19][23] External Sales and Designated Non-current Assets by Geographical Location | Region | 2023 External Sales (Thousand HKD) | 2022 External Sales (Thousand HKD) | 2023 Designated Non-current Assets (Thousand HKD) | 2022 Designated Non-current Assets (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 660 | 522 | 334,964 | 340,356 | | China | 10,925 | 16,176 | 206,048 | 222,682 | | United States | 189,534 | 230,248 | 12,545 | 11,771 | | Vietnam | - | - | 51,788 | 58,449 | | European Union | 2,913 | 4,778 | - | - | | Other Countries | 18,395 | 10,700 | - | - | | Total | 222,427 | 262,424 | 605,345 | 633,258 | - In 2023, sales from US customers were HK$189,534 thousand, a 17.68% year-on-year decrease; sales from other countries increased by 71.92% to HK$18,395 thousand[21] Sales to Major Customers | Major Customer | 2023 (Thousand HKD) | 2022 (Thousand HKD) | | :--- | :--- | :--- | | Customer A | 39,490 | 42,029 | | Customer B | 35,613 | 54,538 | | Customer C | - | 58,301 | - Customer C was no longer a major customer of the Group in 2023 (revenue less than 10% of total revenue)[26] Other Income and Gains Total other income and gains decreased to HK$6,432 thousand in 2023, driven by increased bank interest and dividend income, offset by reduced government grants and exchange gains Other Income and Gains Summary | Indicator | 2023 (Thousand HKD) | 2022 (Thousand HKD) | | :--- | :--- | :--- | | Bank interest income | 3,072 | 1,234 | | Rental income under operating leases | 2,160 | 1,969 | | Exchange gain, net | - | 1,857 | | Government grants | 101 | 2,546 | | Dividend income | 996 | 256 | | Total | 6,432 | 8,983 | - Bank interest income increased by 149% year-on-year, and dividend income increased by 289%[27] - Government grants significantly decreased by 96.0%, and exchange gains turned from HK$1,857 thousand in 2022 to no gain in 2023[27] Loss / Profit Before Tax The 2023 loss before tax of HK$23,664 thousand was primarily due to a HK$15,600 thousand fair value loss on investment properties, alongside increased operating expenses - The loss before tax of HK$23,664 thousand in 2023 was primarily due to a fair value loss on investment properties of HK$15,600 thousand[3][28] Selected Expenses | Indicator | 2023 (Thousand HKD) | 2022 (Thousand HKD) | | :--- | :--- | :--- | | Cost of inventories recognized as expense | 148,694 | 181,751 | | Depreciation expense | 18,502 | 13,101 | | Research and development expenses | 7,164 | 5,092 | - Depreciation expense increased by 41.2% year-on-year, and research and development expenses increased by 40.7%[28] Income Tax Expense Income tax expense increased to HK$563 thousand in 2023, mainly due to under-provision of overseas current tax, with varying tax rates applied across different jurisdictions Income Tax Expense Summary | Indicator | 2023 (Thousand HKD) | 2022 (Thousand HKD) | | :--- | :--- | :--- | | Current tax – Hong Kong Profits Tax | 432 | 530 | | Current tax – Overseas | 2,789 | 1,052 | | Deferred tax credit | (2,658) | (1,280) | | Total Income Tax Expense | 563 | 302 | - Overseas current tax increased by 165% year-on-year, primarily due to under-provision in prior years[29] - Mainland China subsidiaries are taxed at 25%, US subsidiaries at 21%, and the Vietnam subsidiary incurred no tax due to no assessable profits[30][31] Loss / Earnings Per Share Basic and diluted loss per share was HK$0.076 in 2023, a reversal from the HK$0.087 earnings per share in 2022, with no dilutive effects Loss / Earnings Per Share Summary | Indicator | 2023 | 2022 | | :--- | :--- | :--- | | (Loss)/Profit attributable to owners of the Company (Thousand HKD) | (24,227) | 27,875 | | Number of ordinary shares in issue | 320,000,000 | 320,000,000 | | Basic and diluted (loss)/earnings per share | (HK$0.076) | HK$0.087 | - Basic and diluted (loss)/earnings per share are identical as there were no dilutive potential ordinary shares in either reporting period[33] Trade and Other Receivables Total trade and other receivables slightly decreased to HK$31,783 thousand by end-2023, with shifts in aging profiles and credit terms of 30-90 days maintained Trade and Other Receivables Aging Analysis | Aging | 2023 (Thousand HKD) | 2022 (Thousand HKD) | | :--- | :--- | :--- | | Within 30 days | 13,643 | 15,034 | | 31 to 60 days | 13,414 | 9,728 | | 61 to 90 days | 2,921 | 5,118 | | Over 90 days | 3,287 | 4,720 | | Less: Loss allowance | (1,482) | (831) | | Total | 31,783 | 33,769 | - The Group generally grants credit terms of 30 to 90 days to customers and closely monitors overdue receivables[35] Trade and Other Payables Current trade and other payables slightly increased to HK$20,605 thousand by end-2023, driven by higher accrued expenses for production plants, while non-current retention payables were eliminated Trade and Other Payables Summary | Indicator | 2023 (Thousand HKD) | 2022 (Thousand HKD) | | :--- | :--- | :--- | | Trade payables | 7,132 | 8,618 | | Other payables and accrued expenses | 11,204 | 10,604 | | Accrued expenses for production plants | 2,269 | 559 | | Total Current Liabilities | 20,605 | 19,781 | | Non-current retention payables | - | 3,608 | - Accrued expenses for production plants significantly increased from HK$559 thousand in 2022 to HK$2,269 thousand in 2023[37] - Non-current retention payables were reduced to zero in 2023, compared to HK$3,608 thousand in 2022[37] Dividends The Board did not recommend a final dividend for 2023, and no interim dividend was paid during the year, contrasting with 2022's interim dividend - No final dividend is recommended for 2023, and no interim dividend was paid during the year (2022: interim dividend of HK$0.01 per share)[38][40] Annual General Meeting and Closure of Register of Members The Annual General Meeting is scheduled for June 5, 2024, with a temporary closure of the register of members from May 31 to June 5 to determine voting eligibility - The 2024 Annual General Meeting will be held on June 5, with the register of members closed from May 31 to June 5[41] Scope of Work by BDO Limited The auditor, BDO Limited, agreed to the preliminary results announcement's financial statements and notes, but their work does not constitute an assurance engagement - The auditor has agreed to the financial statements and notes in the preliminary announcement, but their work is not an assurance engagement, providing no specific assurance on the announcement[42] Management Discussion and Analysis Overall Review In 2023, the company faced a slow global economic recovery, resulting in a 15.2% revenue decrease and a shift to net loss, primarily due to investment property revaluation, yet maintained a stable financial position with ample cash - In 2023, global economic recovery was slow and uneven, impacted by high inflation and geoeconomic fragmentation[44] Key Financial Performance Indicators | Indicator | 2023 (Million HKD) | 2022 (Million HKD) | | :--- | :--- | :--- | | Revenue | 222.4 | 262.4 | | Gross profit | 73.7 | 80.7 | | Gross profit margin | 33.1% | 30.7% | | Operating (loss)/profit | (23.7) | 28.2 | | Net (loss)/profit | (24.2) | 27.9 | - Operating loss was primarily due to a fair value loss on investment properties of HK$15.6 million, partially offset by investment income[44] - As of December 31, 2023, the company had HK$145.2 million in cash and no bank debt, maintaining a stable financial position[45] Market Review In 2023, sales declined across most segments, but the Data Processing segment achieved a 20% growth, contributing 19% to total turnover - The Data Processing segment's sales grew by 20% against the trend, contributing 19% of total turnover[47] Sales by Segment | Segment | 2023 Sales (Million HKD) | 2022 Sales (Million HKD) | % of Total Turnover (2023) | | :--- | :--- | :--- | :--- | | Communications & Networking | 45.1 | 50.7 | 20% | | Data Processing | 41.7 | 34.75 (Estimated) | 19% | | Industrial Applications | 70.4 | 93.7 | 32% | | High Reliability Products | 65.2 | 83.2 | 29% | - Communications & Networking segment sales decreased by 11%, Industrial Applications segment by 25%, and High Reliability Products segment by 22%[46][48][49] Achievements and Awards Landa Technology has received 42 customer awards, recognizing the Group's excellence in product, service, and performance quality - Landa Technology has received 42 awards from customers, recognizing its product, service, and performance quality[50] Future Outlook The company aims to enhance performance through revenue diversification and cost improvements, with its Vietnam factory increasing efficiency and plans to expand into consumer electronics to broaden its market reach - The company is committed to improving performance through revenue diversification and cost improvement measures[51] - The Vietnam factory continues to enhance efficiency to mitigate trade war and tariff impacts[51] - The Group is expanding into consumer electronics, including energy-saving products, to broaden its product lines and geographical business footprint[51] Business and Financial Review Business and Financial Performance In 2023, turnover decreased by 15.2% to HK$222.4 million, while gross profit margin improved to 33.1%, leading to a shift from operating profit to loss attributable to owners Key Business and Financial Performance | Indicator | 2023 (Million HKD) | 2022 (Million HKD) | | :--- | :--- | :--- | | Turnover | 222.4 | 262.4 | | Gross profit margin | 33.1% | 30.7% | | Operating (loss)/profit | (23.7) | 28.2 | | (Loss)/Profit attributable to owners | (24.2) | 27.9 | - In 2023, gross profit margin improved by 2.4 percentage points to 33.1%[53] Liquidity, Financial Resources and Capital Structure By end-2023, total equity was HK$813.3 million, cash and cash equivalents increased, and the Group maintained a robust financial position with no bank debt and limited foreign exchange risk Liquidity and Financial Resources | Indicator | 2023 (Million HKD) | 2022 (Million HKD) | | :--- | :--- | :--- | | Total equity | 813.3 | 850.3 | | Cash and cash equivalents | 145.2 | 136.8 | - The Group has no bank credit or other financing arrangements, maintaining a robust financial position with sufficient cash for working capital needs[54][55] - The Group primarily conducts business transactions in USD, exposing it to limited foreign exchange fluctuation risk[56] Employees and Remuneration Policy As of end-2023, the Group employed approximately 910 people globally, providing training and reviewing remuneration policies based on performance and market conditions - As of December 31, 2023, the Group had approximately 910 employees globally, distributed across Hong Kong, China, and overseas[57] - The Group offers employee training sponsorship programs and courses, and reviews remuneration policies based on performance, market levels, and individual contributions[57] Contingent Liabilities As of December 31, 2023, the Group reported no significant contingent liabilities - As of December 31, 2023, the Group had no significant contingent liabilities[58] Capital Commitments Capital commitments for property, plant, and equipment significantly decreased to HK$1.6 million by end-2023, a substantial reduction from the previous year Capital Commitments for Property, Plant and Equipment | Indicator | 2023 (Million HKD) | 2022 (Million HKD) | | :--- | :--- | :--- | | Property, plant and equipment capital commitments | 1.6 | 6.9 | - Capital commitments decreased significantly by 76.8% year-on-year[59] Purchase, Redemption or Sale of the Company's Listed Securities Neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities during the reporting year - During the year, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities[60] Corporate Governance and Other Information Audit Committee The Audit Committee reviewed the Group's 2023 audited financial statements and discussed financial reporting procedures and internal control systems with the Board - The Audit Committee reviewed the 2023 audited financial statements and discussed financial reporting procedures and internal control systems[61] Corporate Governance The company generally complied with the Corporate Governance Code, noting two deviations regarding the Chairman and CEO roles and the Chairman's retirement by rotation, which the Board deems to have sufficient power balance - The company generally complied with the Corporate Governance Code, but had two deviations during the reporting period[62] - Mr. Siu Po Paul serves as both Chairman and Chief Executive Officer, with the Board believing this arrangement provides sufficient balance of power[62] - According to the company's articles, the Chairman is not required to retire by rotation or be counted in the number of directors subject to annual retirement[64][65] Standard Code for Securities Transactions by Directors The company adopted the Standard Code for Securities Transactions by Directors, with all directors confirming full compliance throughout the year - The company adopted the Standard Code for Securities Transactions by Directors, and all directors confirmed full compliance throughout the year[66] Publication of Results Announcement and Annual Report This results announcement is published on the HKEX and company websites, with the 2023 Annual Report to be dispatched to shareholders and published later - The results announcement is published on the HKEX and company websites, and the annual report will be dispatched and published later[67] Board of Directors As of the announcement date, the Board comprises five executive directors, including Mr. Siu Po Paul as Chairman, and three independent non-executive directors - The Board of Directors consists of five executive directors and three independent non-executive directors, with Mr. Siu Po Paul as Chairman[68]