Financial Performance - Revenue for the twelve months ended December 31, 2023, was HK$632,874,000, a decrease of 10.8% compared to HK$709,306,000 for the year ended December 31, 2022[4] - Gross profit for the same period was HK$35,721,000, down from HK$42,506,000, reflecting a gross margin decline[4] - Operating loss improved significantly to HK$11,346,000 from HK$129,667,000 in the previous year, indicating a reduction in operational inefficiencies[4] - Loss for the period attributable to owners of the Company was HK$8,787,000, a substantial decrease from HK$197,471,000 in the prior year[6] - Total comprehensive expense for the period was HK$17,168,000, compared to HK$210,859,000 for the previous year, showing a significant reduction in overall losses[8] - The Group reported a loss before tax of HK$11,309,000 for the twelve months ended December 31, 2023, compared to a loss of HK$204,316,000 in 2022[50] - The Group recorded a loss attributable to owners of the Company of approximately HK$8.8 million, a significant decrease of approximately 95.6% compared to a loss of HK$197.5 million in the previous year[180] Assets and Liabilities - Non-current assets increased to HK$45,784,000 from HK$33,514,000, indicating growth in long-term investments[10] - Current assets rose to HK$446,482,000, up from HK$281,024,000, driven by an increase in carbon-credit assets and cash equivalents[10] - Total assets increased to HK$492,266,000 as of December 31, 2023, from HK$314,538,000 in 2022, representing a growth of 56.5%[52] - Total liabilities slightly increased to HK$369,080,000 in 2023 from HK$364,307,000 in 2022[52] - Total non-current liabilities decreased from HK$207,399,000 in 2022 to HK$96,929,000 in 2023, a reduction of approximately 53.3%[12] - Net assets increased significantly from a deficit of HK$49,769,000 in 2022 to HK$123,186,000 in 2023, marking a turnaround of HK$172,955,000[12] Cash Flow and Liquidity - Cash and cash equivalents improved to HK$106,225,000 from HK$76,117,000, enhancing liquidity position[10] - For the twelve months ended December 31, 2023, the net cash flows generated from operating activities were HK$187,000, a significant decrease from HK$133,261,000 in the previous year[20] - Cash and cash equivalents at the end of the period increased to HK$106,225,000 from HK$77,612,000 in the previous year[20] - The net cash flows used in investing activities totaled HK$20,940,000, up from HK$3,901,000 in the previous year[20] Share Capital and Equity - The company's share capital rose from HK$3,205,000 in 2022 to HK$5,358,000 in 2023, reflecting an increase of 67.1%[12] - The total equity attributable to owners of the company increased from a deficit of HK$49,146,000 in 2022 to HK$126,946,000 in 2023, a significant improvement of HK$176,092,000[12] - The company issued new shares amounting to HK$49,645,000 during the year, enhancing its capital structure[15] - The company raised HK$15,000,000 from the issuance of 6,000,000 ordinary shares at HK$2.5 per share on April 4, 2023, increasing the issued share capital by HK$60,000 and share premium by HK$14,940,000[139] Research and Development - Research and development costs increased to HK$10,547,000 from HK$4,018,000, reflecting a commitment to innovation[4] Acquisitions and Investments - The Group acquired a 73% equity interest in Shenzhen Jianxin Zhuhe Technology Company Limited, contributing to the goodwill recognized in the financials[108] - The acquisition of subsidiaries resulted in a cash outflow of HK$19,408,000, indicating active expansion efforts[20] - The Group's acquisition of China Carbon Green Credit Technology Shenzhen Co., Ltd. in 2023 has enabled the use of blockchain technology to enhance its business momentum[186] Segment Performance - Segment revenue from the Global Carbon Neutral segment was HK$152,621,000 in 2023, down 27% from HK$209,178,000 in 2022[50] - Segment revenue from the Ecological Governance segment was HK$480,253,000 in 2023, a decrease of 3.9% from HK$500,128,000 in 2022[50] - The Group's adjusted profit before tax for the Global Carbon Neutral segment was HK$21,478,000 in 2023, compared to a loss of HK$30,789,000 in 2022[50] Financial Management - The Group's finance costs decreased to HK$34,636,000 for the twelve months ended December 31, 2023, down 41.7% from HK$59,420,000 in 2022[66] - The Group's corporate and unallocated expenses decreased to HK$5,645,000 in 2023 from HK$13,479,000 in 2022[50] - The Group will carefully monitor and control administrative and selling expenses as well as future capital expenditures[39] Market and Strategic Initiatives - The Group's focus remains on global carbon neutral business and ecological governance, with a unique market position in carbon credit asset development and management[171] - The European Parliament approved a Carbon Border Adjustment Mechanism (CBAM) in February 2023, which will trial in October 2023, impacting carbon emissions pricing for imported commodities[199] - The Group established a task force to help Chinese enterprises address the European carbon tariff mechanism, enhancing its international strategy in carbon neutrality[200]
中国碳中和(01372) - 2023 - 中期财报