Financial Performance - For the year ended December 31, 2023, total revenue decreased to HKD 393,284,000 from HKD 465,430,000, representing a decline of approximately 15.5%[4] - Gross profit for the same period was HKD 56,979,000, down from HKD 76,017,000, indicating a decrease of about 25.1%[4] - Operating profit fell to HKD 3,831,000 compared to HKD 11,396,000 in the previous year, a decline of approximately 66.4%[4] - The net profit attributable to shareholders decreased significantly to HKD 1,388,000 from HKD 9,183,000, reflecting a drop of around 84.9%[4] - Basic and diluted earnings per share decreased to HKD 0.28 cents from HKD 1.84 cents, a reduction of approximately 84.8%[6] - The annual profit for the group in 2023 was HKD 1,388,000, compared to HKD 9,183,000 in 2022, reflecting a significant decrease[37] - The net profit for the year decreased by approximately HKD 7.8 million or 84.8% to about HKD 1.4 million, mainly due to reduced marketing revenue and profit margins from eyewear products[74] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 212,668,000, slightly down from HKD 221,846,000 in the previous year[8] - The company's cash and cash equivalents decreased to HKD 20,334,000 from HKD 46,403,000, a decline of about 56.3%[8] - Non-current liabilities increased significantly to HKD 12,670,000 from HKD 983,000, indicating a rise of approximately 1,287.4%[9] - The company's asset-liability ratio increased to 8.3% as of December 31, 2023, up from 1.1% in 2022, primarily due to an increase in lease liabilities[56] - As of December 31, 2023, the company's total assets were approximately HKD 264 million, with a net asset value of about HKD 183.2 million[76] Revenue Sources - Revenue from the sale of eyewear products for the year ended December 31, 2023, was reported at HKD 393,284,000, a decrease from HKD 465,430,000 in 2022, representing a decline of approximately 15.5%[23] - Revenue contributions from major customers included Customer A at HKD 102,432,000, Customer B at HKD 50,763,000, and Customer C at HKD 45,541,000 for 2023[26] Costs and Expenses - The cost of goods sold for 2023 was HKD 331,349,000, down from HKD 384,128,000 in 2022, indicating a reduction of approximately 13.8%[35] - The group’s employee costs for 2023 were HKD 123,118,000, down from HKD 128,282,000 in 2022, reflecting a decrease of approximately 4.0%[35] - The company recorded a net finance cost increase of approximately HKD 1 million or 142.9% to about HKD 1.7 million, attributed to the use of higher interest trade receivable factoring[72] Other Income and Expenses - Other income increased to HKD 18,212,000 in 2023 from HKD 9,256,000 in 2022, primarily due to a one-time economic compensation of HKD 10,932,000 received from the demolition of leased property[27] - The income tax expense for 2023 was HKD 790,000, compared to HKD 1,498,000 in 2022, reflecting a decrease of approximately 47.3%[30] Inventory and Receivables - Inventory levels increased to HKD 74,764,000 from HKD 71,183,000, reflecting a rise of about 5.5%[8] - Trade receivables increased to HKD 109,558,000 in 2023 from HKD 96,373,000 in 2022, representing a growth of about 13.7%[38] - The group reported a decrease in impairment losses on trade receivables, with a loss of HKD 491,000 in 2023 compared to HKD 601,000 in 2022[38] Accounting Standards and Policies - The group adopted the revised Hong Kong Accounting Standard No. 12, which narrowed the scope of initial recognition exemptions, excluding transactions that generate equal and offsetting temporary differences related to leases[15] - The impact of the revised standard on deferred tax assets and liabilities is minor, with no significant effect on the overall deferred tax balance presented in the consolidated financial position[17] - The group expects that the adoption of other new accounting standards will not have a significant impact on the consolidated financial statements in the foreseeable future[19] - The group has not early adopted any new or revised accounting standards that are not yet effective, with the next set of standards effective from January 1, 2024[19] Market and Strategic Outlook - The global eyewear market value reached USD 159.6 billion in 2023, reflecting a year-on-year growth of 6.9%[59] - The company faced an 84.9% decline in profitability in 2023 due to challenges such as decreased consumer purchasing power and rising labor costs[59] - The company is actively implementing cost-saving measures and optimizing its supply chain to mitigate adverse financial impacts[59] - The company remains vigilant regarding market trends and consumer behavior, planning to adopt strategies to mitigate potential risks and capitalize on opportunities for business diversification[61] Corporate Governance - The executive directors of the company are Mr. Guo Junhui and Mr. Guo Junyu[109] - The non-executive directors include Mr. Guo Maoqun and Ms. Chen Yanhua[109] - The independent non-executive directors are Mr. Kang Shilong, Mr. Zhu Jianming, and Mr. Chen Hanhua[109] Dividends and Shareholding - The board does not recommend the payment of a final dividend for the year ended December 31, 2023[101] - The company has a public shareholding of 44.8% as of December 31, 2023, meeting the requirement to maintain at least 25% public float for its listing[47] - The company has no declared or paid dividends for the years ending December 31, 2022, and December 31, 2023[48]
恒发光学(01134) - 2023 - 年度业绩