Financial Performance - For the year ended December 31, 2023, the total revenue of Classified Group was approximately HKD 36.4 million, a decrease of 2.9% compared to HKD 37.5 million in 2022[17]. - The loss attributable to owners of the company for the year was HKD 15.3 million, reduced from HKD 20.4 million in 2022, primarily due to the closure of two loss-making restaurants and a decrease in impairment losses on right-of-use assets[17]. - Total revenue for the year 2023 was approximately HKD 36.4 million, a decrease of about 2.9% compared to HKD 37.5 million in 2022[27]. - The company reported a pre-tax loss of HKD 15.3 million for 2023, improved from a loss of HKD 20.4 million in 2022[23]. - The group reported a net loss of approximately HKD 15,346,000 as of December 31, 2023, with total current liabilities amounting to HKD 16,640,000 and cash reserves of only HKD 6,185,000, raising significant doubts about the Group's ability to continue as a going concern[195]. - Restaurant service revenue for the Group was approximately HKD 36,357,000 for the year ended December 31, 2023, which is considered a key audit matter due to its significance to the consolidated income statement[197]. - The Group recognized an impairment loss of approximately HKD 274,000 on property, plant, and equipment, and an impairment loss of approximately HKD 2,000,000 on right-of-use assets as of December 31, 2023[199]. Operational Overview - The group currently operates six restaurants under the Classified and Rise by Classified brands in Hong Kong, with four being Classified and two being Rise by Classified[18]. - Management believes that the restaurant industry will gradually recover as mainland China reopens its borders and COVID-19 restrictions are eased, although the operating environment remains challenging[18]. - Rising costs of food, rent, utilities, and labor are exerting persistent pressure on the group's profit margins[18]. - The company anticipates that the current challenges in the restaurant industry will continue to negatively impact its performance[18]. - The company plans to expand its takeaway product line and enhance promotional strategies to attract more customers[32]. - The company aims to improve existing restaurant facilities to increase customer attraction[32]. Assets and Liabilities - Non-current assets increased to HKD 2.9 million in 2023 from HKD 1.4 million in 2022[24]. - Total assets decreased to HKD 35.9 million in 2023 from HKD 38.9 million in 2022[24]. - Total liabilities decreased slightly to HKD 18.1 million in 2023 from HKD 18.6 million in 2022[24]. - As of December 31, 2023, the group's current assets were approximately HKD 33.0 million, down from HKD 37.5 million as of December 31, 2022[116]. - The group's current liabilities were approximately HKD 16.6 million, slightly up from HKD 16.2 million as of December 31, 2022[116]. - The debt ratio was 0% as of December 31, 2023, indicating no bank borrowings[116]. Corporate Governance - The company has complied with all provisions of the corporate governance code, except for specific deviations noted[52]. - The board is committed to achieving gender diversity and aims to appoint a female director by December 31, 2024[57]. - The board currently consists of three independent non-executive directors, ensuring over one-third of the board members are independent, reflecting adequate independence[54]. - The independent non-executive directors confirmed their independence for the year ending December 31, 2023[60]. - The company has a strong independent element within the board, with members possessing diverse management and industry experience[57]. - The board of directors held a total of six meetings during the year ending December 31, 2023, with attendance rates of 100% for most directors[74]. - The company has established three committees: remuneration, nomination, and audit, each with defined responsibilities[77]. Shareholder Matters - The company completed a rights issue on October 25, 2023, issuing 33,450,000 new shares and raising a net amount of HKD 12.81 million, which will be used to repay certain shareholder loans and increase the group's working capital[39]. - The company’s total issued shares as of December 31, 2023, amounted to 55,750,000[118]. - The company has no distributable reserves as of December 31, 2023, compared to HKD 14.1 million in 2022[131]. - The company did not recommend any dividend payment for the year ending December 31, 2023[112]. Compliance and Risk Management - The company has maintained its internal audit function, which was outsourced to an independent internal audit firm, ensuring effective risk management and internal control systems[90]. - The board has reviewed the effectiveness of the risk management system and continues to monitor its implementation regularly[88]. - The company’s internal control systems are designed to ensure effective and efficient operations, minimizing risks associated with financial reporting and compliance[88]. - The company confirms compliance with the relevant disclosure requirements for related party transactions as per GEM listing rules[154]. Employee and Social Responsibility - The company has achieved a gender diversity ratio of 33.9% for males and 66.1% for females among its employees, indicating a male-to-female ratio of 1:2[58]. - The company is committed to promoting environmental and social sustainability in Hong Kong[184]. - The group employed 59 staff in Hong Kong as of December 31, 2023, an increase from 58 in 2022[183].
CLASSIFIED-NEW(08232) - 2023 - 年度业绩