Financial Performance - Revenue for the year ended December 31, 2023, was HKD 691,143,000, a decrease of 25.3% from HKD 925,663,000 in 2022[1] - Gross profit for 2023 was HKD 179,673,000, down 9.7% from HKD 198,985,000 in the previous year[1] - The net loss for the year was HKD 13,581,000 compared to a profit of HKD 28,963,000 in 2022, indicating a significant decline in profitability[1] - The group reported a loss attributable to equity shareholders of HKD 14,829,000 in 2023, compared to a profit of HKD 23,248,000 in 2022[71] - The company experienced a loss attributable to shareholders of approximately HKD 14.8 million for the year, a decrease of about 163.8% from a profit of HKD 23.2 million in 2022, primarily due to increased other losses and financing costs[139] Assets and Liabilities - Total assets decreased to HKD 804,312,000 in 2023 from HKD 872,214,000 in 2022, reflecting a reduction of 7.8%[3] - Current assets amounted to HKD 514,021,000, down from HKD 557,131,000 in 2022, a decrease of 7.7%[3] - The company’s equity decreased to HKD 604,596,000 in 2023 from HKD 653,730,000 in 2022, a decline of 7.5%[4] - The company’s debt-to-equity ratio as of December 31, 2023, was approximately 21.0%, compared to 20.6% in 2022, and excluding lease liabilities, the ratio was about 15.5% in 2023 versus 14.9% in 2022[145] Cash Flow and Financing - Cash and bank balances decreased significantly to HKD 155,791,000 from HKD 229,623,000, a decline of 32.1%[3] - The financing costs rose to HKD 7,660,000 in 2023 from HKD 2,560,000 in 2022, an increase of 199.2%[1] - Interest expenses increased significantly to HKD (7,660,000) in 2023 from HKD (2,560,000) in 2022, reflecting a rise of 199.2%[32] - The company’s share dividend was reduced to HKD 21,000,000 in 2023 from HKD 42,000,000 in 2022, a decrease of 50%[95] Inventory and Trade Receivables - The company reported an increase in inventory to HKD 109,813,000, up 12.3% from HKD 97,722,000 in 2022[3] - Trade receivables increased to HKD 137,786,000 in 2023 from HKD 127,904,000 in 2022, marking an increase of approximately 7.3%[98] - The group’s trade receivables from three major customers accounted for 64.0% of total trade receivables as of December 31, 2023[60] Expenses and Impairments - The cost of goods sold for the year was HKD 487,329,000, down 29.7% from HKD 693,331,000 in 2022[64] - Goodwill impairment for the year 2023 was HKD (7,925,000), with no impairment recorded in 2022[32] - Research expenses decreased slightly to HKD (5,058,000) in 2023 from HKD (5,891,000) in 2022, a reduction of 14.1%[32] - Administrative expenses increased by approximately 3.1% to about HKD 127.9 million, primarily due to impairment provisions for trade receivables[109] Accounting Standards and Governance - The company has adopted the new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the group's performance and financial position[17] - The audit committee has reviewed the financial performance for the year ended December 31, 2023, ensuring compliance with financial reporting processes[169] - The company has maintained a high level of corporate governance and has adhered to the corporate governance code throughout the review year[167] Future Outlook and Strategy - The group anticipates ongoing challenges due to global inflation, tightening monetary policies, and geopolitical tensions affecting the operational environment[105] - The company plans to launch new product lines in 2024 and 2025, focusing on diversifying its product portfolio to enhance market penetration and revenue sources[140] - The global business outlook for 2024 remains challenging and uncertain, with inflation and tightening monetary policies continuing to pressure economic activities[157] Employee and Operational Changes - As of December 31, 2023, the group employed approximately 154 staff, a decrease from 171 in 2022, with total employee costs amounting to about HKD 57.8 million[113] - The company is committed to providing competitive compensation packages to retain talented employees, including salaries, medical insurance, and discretionary bonuses[159] - The company has relocated its production line to a new advanced manufacturing center to enhance production capacity and product functionality for its nano-fiber products[158]
科劲国际(06822) - 2023 - 年度业绩