Financial Performance - For the year ended December 31, 2023, the group's revenue from continuing operations decreased by approximately HKD 357.2 million or about 45.7% to approximately HKD 193.8 million[5]. - The loss before tax from continuing operations for the year was approximately HKD 59.3 million, compared to a loss of approximately HKD 1.6 million for the year ended December 31, 2022, indicating a significant deterioration in performance[5]. - The group's gross loss for the year was HKD 7.15 million, compared to a gross profit of HKD 7.33 million in the previous year, reflecting a negative shift in profitability[3]. - The group reported a continuous loss of approximately HKD 59,284,000 for the year ending December 31, 2023, with current liabilities net worth of about HKD 4,853,000 and bank borrowings of HKD 9,000,000[28]. - The group reported a net loss attributable to owners of approximately HKD 59.3 million for the year, compared to a net loss of HKD 1.0 million in 2022[75]. - The company reported a loss attributable to owners of the company from continuing operations of HKD 59,284,000 for 2023, compared to a loss of HKD 1,552,000 in 2022[45]. Dividend and Shareholder Returns - The board does not recommend the payment of a final dividend for the year ended December 31, 2023[4]. - The group has not declared or proposed any dividends for the year ending December 31, 2023, consistent with the previous year[43]. - The company did not recommend any final dividend for the year ended December 31, 2023, consistent with the previous year[95]. Cost Management and Expenses - Total administrative expenses for the year were HKD 16.5 million, down from HKD 21.4 million in the previous year, indicating cost management efforts[7]. - The total employee costs for the year 2023 amounted to HKD 34,424,000, down from HKD 46,611,000 in 2022, reflecting a cost control strategy[42]. - Administrative expenses decreased by approximately HKD 4.9 million or 22.9% to about HKD 16.5 million, down from HKD 21.4 million in 2022[69]. Asset and Liability Management - The group's total assets decreased from HKD 225.6 million in 2022 to HKD 192.1 million in 2023, reflecting a decline in asset base[11]. - The net current liabilities increased to HKD 4.85 million in 2023 from a net current asset position of HKD 47.6 million in 2022, indicating a worsening liquidity position[11]. - The company’s total liabilities decreased from HKD 168,196,000 in 2022 to HKD 144,635,000 in 2023, indicating a stronger balance sheet[52]. - The current ratio as of December 31, 2023, was 0.98, down from 1.27 as of December 31, 2022[79]. - The capital debt ratio was negative as of December 31, 2023, due to total losses for the year, compared to approximately 16.4% as of December 31, 2022[79]. Credit Risk and Impairment - The company reported an expected credit loss of HKD 35.9 million for the year, significantly higher than HKD 6.3 million in the previous year, suggesting increased credit risk[7]. - Impairment losses under the expected credit loss model increased by approximately HKD 29.6 million or 469.8% to about HKD 35.9 million, compared to HKD 6.3 million in 2022[63]. - The company’s expected credit loss provision for other receivables increased from HKD 169,000 in 2022 to HKD 38,000 in 2023[47]. Liquidity and Cash Flow - The group has a cash flow forecast indicating sufficient liquidity to meet operational and contractual obligations for at least the next twelve months[29]. - The company’s overdue trade receivables amounted to HKD 30,444,000 in 2023, with HKD 18,879,000 overdue for more than 90 days[50]. - The company’s cash and cash equivalents from the terminated subsidiary amounted to HKD 3,662,000[56]. - As of December 31, 2023, cash and bank balances increased by approximately HKD 6.1 million to about HKD 58.6 million, compared to HKD 52.5 million in 2022[77]. Business Strategy and Future Outlook - The group plans to explore various business and investment opportunities to enhance long-term growth potential, including asset sales, acquisitions, and business restructuring[59]. - The group has initiated several new projects supported by a total contract value of approximately HKD 566.5 million, expecting improved financial performance in the coming years[59]. - The group has identified a total of HKD 566,508,000 in remaining performance obligations as of December 31, 2023, compared to HKD 336,232,000 in 2022[34]. Accounting Policies and Standards - The group has adopted the revised Hong Kong Accounting Standard No. 1, which replaces "significant accounting policies" with "significant accounting policy information" without major impact on the financial position or performance[18]. - The consolidated financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards, with historical cost as the basis for measurement, except for certain financial instruments measured at fair value[25]. - The group has not early adopted any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[24]. Employment and Workforce - The company employed a total of 69 employees as of December 31, 2023, down from 88 employees in the previous year, with employee costs around HKD 34.4 million compared to HKD 46.6 million in 2022[88]. - The company’s average weighted ordinary shares outstanding remained stable at 1,332,000 shares for both 2023 and 2022[45]. Legal and Regulatory Matters - The company has not experienced any significant litigation that would adversely affect its financial condition during the reporting period[89]. - The group has several subsidiaries in Hong Kong that are required to pay long service payments to employees, with the recent legislative changes affecting the offset mechanism for mandatory provident fund contributions[19]. - The group has implemented accounting policy changes in response to the abolition of the offset mechanism for long service payments, which will take effect on May 1, 2025[20].
丰展控股(01826) - 2023 - 年度业绩