Financial Performance - Total revenue for the fiscal year 2023 was HKD 33,778,000, slightly up from HKD 33,678,000 in 2022, representing a year-on-year increase of 0.3%[2] - Other income increased significantly to HKD 3,326,000 in 2023 from HKD 1,097,000 in 2022, marking a growth of 203.5%[2] - The operating loss for the year was HKD 25,485,000, an improvement from a loss of HKD 37,182,000 in the previous year, indicating a reduction in losses by 31.3%[2] - The total comprehensive loss for the year amounted to HKD 72,739,000, compared to HKD 52,135,000 in 2022, reflecting an increase in losses of 39.4%[3] - Basic and diluted loss per share was HKD 6.48, worsening from HKD 5.63 in the previous year, which is an increase of 15.1%[3] - The group reported a net loss from fair value of investment properties of HKD 50,400,000 in 2023, compared to HKD 45,800,000 in 2022, indicating a worsening of approximately 11.5%[6] - The loss attributable to the company's owners for fiscal year 2023 was approximately HKD 72.9 million, compared to a loss of approximately HKD 63.4 million in fiscal year 2022, mainly due to a fair value loss of investment properties of about HKD 50.4 million and financing costs of approximately HKD 43.4 million[64] Assets and Liabilities - Non-current assets decreased to HKD 1,732,616,000 in 2023 from HKD 1,783,991,000 in 2022, a decline of 2.9%[5] - Current liabilities rose to HKD 886,633,000 in 2023 from HKD 805,931,000 in 2022, an increase of 10.0%[7] - The net asset value decreased to HKD 953,534,000 in 2023 from HKD 1,026,273,000 in 2022, a decline of 7.1%[7] - The debt-to-asset ratio as of December 31, 2023, was approximately 48.7%, compared to 44.6% as of December 31, 2022[68] - The group’s net current liabilities as of December 31, 2023, were approximately HKD 760.6 million, slightly up from approximately HKD 738.2 million as of December 31, 2022[68] Cash Flow and Financing - Cash and cash equivalents increased significantly to HKD 123,047,000 in 2023 from HKD 63,268,000 in 2022, representing a growth of 94.7%[5] - As of December 31, 2023, the group had outstanding bank and other borrowings of approximately HKD 870.9 million, an increase from approximately HKD 790.5 million as of December 31, 2022[65] - The group held cash and bank balances of approximately HKD 123.0 million as of December 31, 2023, up from approximately HKD 63.3 million as of December 31, 2022, primarily due to a loan of HKD 100 million provided by the controlling shareholder[66] - The group has a loan agreement with its controlling shareholder, providing a credit facility of up to HKD 130 million at an annual interest rate of 12%[65] Operational Highlights - The group has a single business operation focused on leasing investment properties in Hong Kong, with no segment analysis presented[27] - The occupancy rate of the investment property portfolio as of December 31, 2023, was approximately 84.6%, down from 89.7% as of December 31, 2022, indicating a decline due to weak market conditions[46] - The average rental adjustment rate for renewals and new leases remained similar to the previous year, indicating stability in rental pricing despite market challenges[46] - The total rental income from investment properties in Hong Kong for 2023 was HKD 33,778,000, compared to HKD 33,678,000 in 2022, reflecting a slight increase[24] Employee and Operational Costs - Total employee costs decreased to HKD 3,956,000 in 2023 from HKD 5,155,000 in 2022, representing a reduction of approximately 23.3%[6] - Other operating expenses were approximately 7.3 million HKD in fiscal year 2023, a reduction of about 62.8% from 19.6 million HKD in fiscal year 2022[60] - Employee costs decreased by approximately 23.1% to about 4.0 million HKD in fiscal year 2023 from 5.2 million HKD in fiscal year 2022[59] Governance and Compliance - The company has adopted the latest corporate governance code and complied with it throughout the reporting period[92] - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, confirming full compliance by all directors during the reporting period[93] - The audit committee consists of two independent non-executive directors and one non-executive director, who reviewed the accounting standards, risk management, and financial reporting matters[95] Future Outlook - The company remains cautious about its performance outlook for 2024 due to ongoing external pressures on the Hong Kong economy[55] - The company plans to continue optimizing its diverse tenant mix and strengthen relationships with tenants to capture potential growth opportunities during the recovery of the tourism and retail sectors in Hong Kong[55]
中昌国际控股(00859) - 2023 - 年度业绩