Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 94,213,000, a decrease of 6.5% compared to HKD 100,387,000 in 2022[5] - Gross profit for the same period was HKD 22,405,000, down 7.8% from HKD 24,297,000 in the previous year[5] - Operating loss decreased to HKD 7,066,000 from HKD 21,513,000, representing a 67.2% improvement year-over-year[5] - The net loss for the year was HKD 11,456,000, significantly reduced from HKD 26,796,000 in 2022, marking a 57.3% decrease[5] - The company reported a total comprehensive loss of HKD 11,558,000 for the year, compared to HKD 28,680,000 in 2022, indicating a 59.7% improvement[7] - Pre-tax loss for 2023 was HKD 11,456,000, an improvement from a loss of HKD 26,796,000 in 2022, indicating a reduction of 57.3%[24] - Basic loss per share for 2023 was HKD 0.0142, compared to HKD 0.0331 in 2022, showing a decrease of 57.3%[25] - The loss attributable to equity holders for the year ended December 31, 2023, was approximately HKD 11.5 million, compared to a loss of HKD 26.8 million in the previous year, indicating an improvement in financial performance[51] Revenue Breakdown - Total revenue for 2023 was HKD 94,213,000, a decrease of 6.5% from HKD 100,387,000 in 2022[19] - Sales of goods amounted to HKD 83,109,000 in 2023, down from HKD 88,775,000 in 2022, representing a decline of 6.5%[19] - Service income decreased slightly to HKD 11,104,000 in 2023 from HKD 11,612,000 in 2022, a reduction of 4.4%[19] - Other income netted HKD 548,000 in 2023, down from HKD 805,000 in 2022, reflecting a decrease of 31.9%[20] - Revenue from external customers in Asia (excluding China) was HKD 45,352,000 in 2023, down from HKD 49,436,000 in 2022, a decline of 8.4%[29] - Revenue from China was HKD 11,409,000 in 2023, a decrease from HKD 12,246,000 in 2022, representing a decline of 6.8%[29] Assets and Liabilities - Total assets decreased to HKD 184,270,000 from HKD 227,163,000, a decline of 19.0%[9] - Current liabilities were reduced to HKD 72,620,000 from HKD 97,081,000, a decrease of 25.2%[9] - The company's cash and cash equivalents stood at HKD 33,510,000, down from HKD 38,050,000, reflecting a 11.5% decline[9] - The company's equity decreased to HKD 107,173,000 from HKD 118,731,000, a reduction of 9.7%[9] - Trade receivables amounted to HKD 33,021,000 in 2023, with a provision for losses of HKD 11,464,000, resulting in a net receivable of HKD 21,557,000[31] - Trade payables decreased from HKD 10,346,000 in 2022 to HKD 9,914,000 in 2023, indicating a reduction in outstanding obligations[34] - The expected recoverable amount of deposits and prepayments within one year is HKD 1,073,000 in 2023, slightly down from HKD 1,086,000 in 2022[31] Cash Flow and Financing - As of December 31, 2023, the group held cash and bank balances of HKD 33.5 million, down from HKD 38.1 million in the previous year, while bank loans decreased to HKD 53.8 million from HKD 70.9 million[53] - The group's debt-to-equity ratio improved to approximately 0.7 as of December 31, 2023, compared to 0.9 in the previous year, reflecting a stronger financial position[53] - The current ratio remained stable at approximately 1.2 as of December 31, 2023, consistent with the previous year, while net current assets decreased to HKD 12.1 million from HKD 16.2 million[55] - As of December 31, 2023, the company has contingent liabilities amounting to HKD 88,279,000 related to bank financing guarantees for a subsidiary, a slight decrease from HKD 89,559,000 in 2022[74] - The company utilized HKD 53,828,000 of the aforementioned financing as of December 31, 2023, down from HKD 70,886,000 in 2022[74] Operational Focus and Strategy - The company continues to focus on the design, manufacturing, and marketing of residential furniture, including wooden furniture, sofas, and mattresses[18] - The overall strategy of the company remained unchanged during the year[43] - The group continues to promote green measures and environmental awareness in its operations, aiming to enhance sustainability through various initiatives[57] - The management actively monitors market risks, including currency and interest rate risks, to mitigate potential impacts on profitability[62][65] - The group maintains a focus on cash flow management to mitigate liquidity risks and ensure operational funding[66] Corporate Governance and Compliance - The company has complied with all corporate governance codes as per the listing rules, with the exception of the separation of roles between the Chairman and CEO[76][78] - The audit committee has reviewed the audited financial performance for the year ending December 31, 2023[83] - The company has complied with all relevant laws and regulations in both mainland China and Hong Kong, with no significant violations reported[58] Future Outlook - The economic outlook for 2024 remains uncertain due to high market interest rates and geopolitical factors, despite expectations of gradual recovery in mainland China and client countries[75] - The company emphasizes prudent capital management and liquidity risk management to maintain sufficient buffers against future challenges[75] Employee and Compensation - The group employed approximately 130 employees as of December 31, 2023, maintaining the same workforce level as the previous year[52] - The company has adopted an attractive compensation scheme and stock option plan to retain key personnel essential for achieving business objectives[69] Dividends - The company did not recommend any dividend payment for the year ending December 31, 2023, consistent with the previous year[37] - The company does not anticipate paying any final dividends for the year ending December 31, 2023, consistent with the previous year[84] Expenses - The group's administrative expenses for the year ended December 31, 2023, were approximately HKD 22.4 million, a decrease from HKD 42.1 million in the previous year, primarily due to a reduction in impairment provisions and foreign exchange losses[50] - Sales and distribution expenses increased to approximately HKD 7,700,000 in 2023 from HKD 4,500,000 in 2022, attributed to high levels of marketing activities following the lifting of pandemic measures[48] Customer Contributions - Major customers' revenue contributions showed a significant decline for Customer A from HKD 19,719,000 in 2022 to HKD 10,588,000 in 2023, a decrease of 46.5%[c]
兴利(香港)控股(00396) - 2023 - 年度业绩