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积木集团(08187) - 2023 - 年度业绩
JIMU GROUPJIMU GROUP(HK:08187)2024-03-21 14:56

Financial Performance - Revenue from the footwear and apparel segment decreased by 5.3% from approximately HKD 30.3 million in 2022 to approximately HKD 28.7 million in 2023[15] - Loss in the footwear and apparel segment increased from approximately HKD 3.9 million in 2022 to approximately HKD 5.3 million in 2023[15] - Sales of Canadian brand footwear and apparel products dropped from approximately HKD 14.6 million in 2022 to approximately HKD 9.1 million in 2023 due to anticipated economic slowdown[15] - Revenue from Hong Kong operations increased from approximately HKD 15.7 million in 2022 to approximately HKD 19.7 million in 2023, benefiting from consumption vouchers[15] - The total revenue from footwear and sports-related products was approximately HKD 28.7 million in 2023, a decrease of about 5.3% from approximately HKD 30.3 million in 2022[27] - For the twelve months ending December 31, 2023, the loss from continuing operations increased from approximately HKD 3.9 million to approximately HKD 5.3 million, primarily due to operational costs from retail business launched in Hong Kong and financing costs from loans[37] - The group reported a profit of approximately HKD 6.9 million from discontinued operations, compared to a loss of approximately HKD 1.4 million in the previous year, mainly due to proceeds from the sale of subsidiaries amounting to approximately HKD 7.1 million[37] - The net profit for the year increased to approximately HKD 1.5 million, recovering from a loss of approximately HKD 5.3 million in the previous year, primarily driven by gains from the sale of discontinued operations[37] Operational Costs - The cost of goods sold was approximately HKD 21.2 million in 2023, down from approximately HKD 27.5 million in 2022[30] - Employee benefits expenses rose from approximately HKD 1.8 million in 2022 to about HKD 6 million in 2023, mainly due to increased hiring in the retail business[32] - Other operating expenses increased from approximately HKD 3.7 million in 2022 to about HKD 5.6 million in 2023, attributed to legal and professional fees, depreciation of right-of-use assets, and rent[33] - Financing costs increased by 81.4% from approximately HKD 695,000 in 2022 to about HKD 1.26 million in 2023, primarily due to loans totaling approximately HKD 6 million obtained at interest rates between 8% and 12%[35] Business Strategy - The company has terminated its loan brokerage and credit assessment services in China as of December 31, 2023, after recognizing significant losses in this segment[29] - The company plans to focus on sustainable business segments and explore opportunities in sports-related peripheral products and online footwear trade[17] - The company remains optimistic about business prospects for 2024, anticipating a shift in consumer spending back to Hong Kong and the impact of the upcoming UEFA Euro 2024[16] - The company has sold its loan brokerage and credit assessment business for a nominal price of HKD 1 to an independent third party, aiming to concentrate on its core operations[28] Financial Position - As of December 31, 2023, the total borrowings of the group were approximately HKD 7.3 million, down from approximately HKD 14.5 million in the previous year[38] - The debt-to-asset ratio improved to 23.8% from 49.0% in the previous year, calculated as total borrowings divided by total assets[38] - The group maintained sufficient working capital with bank balances and cash of approximately HKD 1.5 million, compared to approximately HKD 2 million in the previous year[38] - The current ratio increased to approximately 2.1 times from 1.7 times in the previous year, indicating improved liquidity[38] - The net value of current assets rose to approximately HKD 15.3 million from approximately HKD 11 million in the previous year[38] Shareholder and Corporate Governance - The company completed a rights issue of 72,230,400 shares at a subscription price of HKD 0.2 per share, raising approximately HKD 13.3 million[60] - As of December 31, 2023, the company utilized HKD 11 million for loan repayment and HKD 1.553 million for business operations, leaving HKD 747,000 unutilized from the rights issue proceeds[62] - The company has complied with all relevant laws and regulations applicable to its business operations[74] - The company reported no final dividend for the year ending December 31, 2023, consistent with the previous year[84] - The company has not made any charitable donations during the year ending December 31, 2023, similar to the previous year[91] - The company has not entered into any management contracts involving the majority of its business as of December 31, 2023[111] - The company continues to engage in related party transactions, specifically providing loan brokerage services to external clients[108] Risk Management and Compliance - The board has established a risk management committee to monitor sanction risks and implement internal control procedures[137] - The company has established a risk management framework since 2016 to manage various risks faced by the group[192] - The board is responsible for continuously monitoring the effectiveness of the group's risk management and internal control systems[191] - The company has no internal audit function and will continue to review the need for such a function at least annually[197] - The company has implemented monitoring procedures to ensure unauthorized access and use of insider information is prohibited[197] Board and Management - The company appointed six directors during the reporting period, including one female director, and is actively seeking to enhance gender diversity on the board[178] - The company plans to appoint a director of a different gender by December 31, 2024, to improve board diversity[178] - The company has adopted a policy for board member diversity, focusing on various factors including gender, age, and professional experience[178] - The company has appointed a compliance officer to oversee compliance matters as of December 31, 2023[186] - The company encourages all directors to participate in relevant training courses, with costs covered by the company[182] - The company has a training record for directors, with all directors receiving training by December 31, 2023[182] Audit and Financial Reporting - The consolidated financial statements for the year ended December 31, 2023, were audited by BDO Limited[145] - The company incurred an audit fee of HKD 800,000 for statutory audit services provided by its auditor for the year ending December 31, 2023[188] - The Audit Committee held four meetings during the year ending December 31, 2023, to review the financial performance and ensure compliance with applicable accounting standards and regulations[166] - The Audit Committee reviewed the interim results for the six months ending June 30, 2023, and the quarterly results for the three months ending March 31, 2023, ensuring full disclosure[166]