Financial Performance - The Group's consolidated revenue for the year ended December 31, 2023, was approximately HK$22,011,000, representing a year-on-year decrease of approximately 20% from HK$27,348,000 in 2022[37]. - The smart retail business generated revenue of approximately HK$22,011,000 for the year ended December 31, 2023, down from approximately HK$27,071,000 in 2022, with an operating loss of approximately HK$3,316,000[29]. - Loss attributable to owners of the Company amounted to approximately HK$10,108,000 for the year ended December 31, 2023, an increase of approximately 4% compared to HK$9,746,000 in 2022[44]. - The Group's discontinued operations incurred a loss of approximately HK$1,620,000 for the year ended December 31, 2023, compared to a loss of approximately HK$669,000 in 2022[38]. - The decrease in revenue was primarily due to reduced data usage as enterprises returned to normal operations post-COVID-19, leading to decreased demand for cloud services[29]. - The Group recorded a loss attributable to owners of approximately HK$10,108,000 for the year ended December 31, 2023, which is an increase of about 4% compared to a loss of approximately HK$9,746,000 in 2022[49]. - The Group's total liabilities increased to approximately HK$15,657,000, up from approximately HK$13,637,000 in 2022, representing an increase of about 15%[47]. - The capital structure consisted of equity attributable to owners of approximately HK$18,382,000, a decrease of about 33% from HK$27,396,000 in 2022[55]. - The current ratio as of December 31, 2023, was approximately 2, down from approximately 3 in 2022[47]. - The Group had no bank borrowings or facilities as of December 31, 2023, maintaining a gearing ratio of nil[48]. - Total staff costs, including Director's remuneration, amounted to approximately HK$11,850,000 for the year ended December 31, 2023, down from approximately HK$14,168,000 in 2022, representing a decrease of about 16%[69]. Business Strategy and Operations - The Group is committed to monitoring market trends and formulating flexible business strategies to seize emerging opportunities[22]. - The Group is focusing its resources on the smart retail business, which has become the focal point of development[28]. - The Group's business growth is expected to be driven by its smart retail business, with a focus on cloud services and system development, anticipating a resurgence in demand due to advancements in artificial intelligence and augmented reality[68]. - The Group ceased its lottery, sports training, and financial technology services businesses due to long-term losses, aiming to streamline operations[22]. - The financial technology services business was ceased in the first half of 2023, resulting in no revenue generated for the year ended December 31, 2023[30]. - The lottery business was also ceased during the year, recording an operating loss of approximately HK$462,000 for the year ended December 31, 2023, with no revenue generated[35]. Employee and Management Relations - The management expressed gratitude to employees, customers, and partners for their continued support, emphasizing a focus on steady business growth[23]. - As of December 31, 2023, the Group employed approximately 21 employees, a significant decrease from 55 employees in 2022[69]. - The Group maintained good relationships with employees, customers, and suppliers, with no significant disputes reported during the year ended December 31, 2023[119][124]. - The remuneration committee regularly monitors and recommends appropriate compensation levels for directors to attract and retain talent[178]. - The Company ensures that the compensation levels for directors are aligned with industry standards and business development[178]. Governance and Compliance - The Audit Committee reviewed the financial statements and accounting principles prior to recommending them to the Board for approval for the year ended December 31, 2023[117][123]. - The Group's principal risks and uncertainties, as well as future business developments, are discussed in the "CHAIRMAN'S STATEMENT" and "MANAGEMENT DISCUSSION AND ANALYSIS" sections of the report[107][111]. - The Company has not disclosed any material interests in transactions involving directors or their connected entities throughout the year[180]. - No significant transactions or contracts were entered into between the Company and any controlling shareholders during the year[177]. - The Company has no provision for pre-emptive rights regarding the offering of new shares to existing shareholders[132]. Environmental and Social Responsibility - The Group's commitment to environmental protection was reflected in its efforts to reduce greenhouse gas emissions during the year ended December 31, 2023[108][112]. - The Group encourages eco-friendly practices among employees and implements green office measures to promote sustainability[108][112]. Shareholder Information - No dividend was recommended for the year ended December 31, 2023[46]. - A dividend policy was adopted by the Board to allow shareholders to participate in profits while preserving liquidity for future growth opportunities[100]. - The Board does not recommend to pay any dividend for the year ended 31 December 2023, consistent with the previous year where no dividend was paid[102][106]. - As of 31 December 2023, the Company did not have any reserves available for distribution, similar to the situation in 2022[130][136]. - The largest customer accounted for 21% of the Group's total sales, while the five largest customers combined represented 50%[157]. - The largest supplier contributed to 32% of the Group's total purchases, and the five largest suppliers combined accounted for 75%[157]. Share Capital and Ownership - The total number of issued shares of 51 Credit Card as of December 31, 2023, is 1,358,320,188 shares[191]. - The total number of issued shares as of December 31, 2023, is 4,686,048,381 shares[197]. - 51 Credit Card holds a substantial interest in controlled corporations, owning approximately 1,834,963,213 shares, representing 39.16% of the issued shares[195]. - Mr. Sun Haitao holds a long position of 108,159,464 shares in 51 Credit Card, representing approximately 7.96% of the issued shares[186]. - Additionally, Mr. Sun holds 50,355,000 shares through other entities, contributing to a total of 301,222,736 shares, which is about 22.18% of the issued shares[186]. - Mr. Wang Yonghua has a beneficial interest in 365,000,000 shares, accounting for 7.79% of the total issued shares[195]. - Mr. Zuo Lei is a beneficial owner of 483,600,000 shares, which is 10.32% of the total issued shares[197]. - Rising Sun Limited, controlled by Mr. Sun, beneficially holds 108,159,464 shares, with a portion charged in favor of Hangzhou Zhenniu[191]. - The ownership structure indicates that 51RENPIN.COM INC. is wholly owned by Shanghai Wuniu, which is in turn wholly owned by Hangzhou Jiahao[197]. - The contractual arrangements between Hangzhou Zhenniu and Hangzhou Jiahao allow for control over the latter by the former[197].
中彩网通控股(08071) - 2023 - 年度业绩