Financial Performance - For the year ended December 31, 2023, the total revenue was HKD 216,555,000, a decrease of 54.8% compared to HKD 479,424,000 in 2022[4] - The gross profit for the year was HKD 48,180,000, down 43.5% from HKD 85,408,000 in the previous year[4] - The company reported a loss before tax of HKD 17,415,000, compared to a loss of HKD 5,589,000 in 2022, indicating a significant increase in losses[4] - The total comprehensive loss for the year was HKD 19,095,000, compared to HKD 18,350,000 in 2022, reflecting a slight increase in overall losses[5] - Basic and diluted loss per share was HKD 0.36, compared to HKD 0.31 in the previous year, indicating a worsening of per-share performance[5] - The annual loss attributable to shareholders was HKD 18,537,000 in 2023, compared to a loss of HKD 15,949,000 in 2022[34] Asset and Liability Changes - Non-current assets decreased to HKD 238,655,000 from HKD 258,056,000, a decline of 7.5% year-over-year[7] - Current assets decreased significantly to HKD 149,678,000 from HKD 230,556,000, a drop of 35%[7] - Total liabilities decreased to HKD 99,198,000 from HKD 179,740,000, a reduction of 44.5%[7] - The company's net assets decreased to HKD 230,272,000 from HKD 249,367,000, a decline of 7.7%[7] - The total assets of the company as of December 31, 2023, were HKD 388,333,000, down from HKD 488,612,000 in 2022, representing a decrease of 20.5%[21] - The company’s total liabilities decreased to HKD 158,061,000 in 2023 from HKD 239,245,000 in 2022, a reduction of 33.9%[21] Revenue Breakdown - Total revenue for the year ended December 31, 2023, was HKD 219,708,000, a decrease of 54.5% from HKD 483,361,000 in 2022[18] - Revenue from external customers in Japan decreased to HKD 123,587,000 in 2023 from HKD 168,289,000 in 2022, a decline of 26.5%[24] - The company reported a significant drop in sales for golf equipment, with external sales of HKD 194,369,000 in 2023 compared to HKD 430,829,000 in 2022, a decline of 54.9%[18] - Revenue from golf equipment and related components was HKD 194,369,000 in 2023, down from HKD 430,829,000 in 2022, representing a decline of 54.9%[29] - The golf equipment business accounted for approximately 89.8% of the group's revenue, with sales dropping 54.9% to about HKD 194,369,000 from HKD 430,829,000 in 2022[44] - The golf bag segment's revenue decreased by 54.3% to approximately HKD 22,186,000, accounting for about 10.2% of the group's total revenue[49] Cost and Expense Management - The company incurred financial expenses of HKD 10,508,000 in 2023, a decrease from HKD 13,689,000 in 2022, indicating a reduction of 23.8%[27] - The company reported a total financial expense of HKD 10,508,000 in 2023, a reduction of 23.8% from HKD 13,689,000 in 2022[31] - Employee costs totaled HKD 68,324,000 in 2023, down 29.1% from HKD 96,377,000 in 2022[33] - The group faced a 66.3% decline in segment profit for golf equipment, down to approximately HKD 11,288,000 from HKD 33,459,000 in 2022[48] - The golf bag division experienced a significant decline in order volume, leading to a 84.6% decrease in segment profit to approximately HKD 1,066,000 for the year ending December 31, 2023, compared to HKD 6,930,000 in 2022[52] Operational Changes - The company has not reported any new product developments or market expansion strategies during this period[3] - The group has implemented cost optimization measures and streamlined operations in response to the challenging market conditions[42] - The group has reduced the workforce at its Shandong production facility from over 700 to approximately 500 employees to improve production efficiency[47] - The restructuring of the golf bag division incurred termination compensation and severance costs of approximately HKD 400,000 and HKD 2,792,000, respectively, with no such costs in 2022[52] Cash Flow and Financial Health - The group’s cash and bank balances as of December 31, 2023, were approximately HKD 111,965,000, down from HKD 141,165,000 in 2022[60] - The debt ratio decreased to approximately 2.0% as of December 31, 2023, down from 14.7% in 2022[61] - The group recognized a property revaluation loss of approximately HKD 52,000 for the Shandong production facility during the year[47] Governance and Compliance - The audit committee reviewed the group's financial statements for the year ended December 31, 2023, and confirmed that they were prepared in accordance with applicable accounting standards[71] - The company complied with all applicable code provisions of the Corporate Governance Code during the year ended December 31, 2023, with some deviations explained[74] - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers and confirmed compliance by all directors for the year ended December 31, 2023[75] Future Outlook - The group anticipates ongoing challenges in the golf equipment business due to cautious purchasing strategies from customers[48] - The management maintains a cautious outlook for the golf bag business in the coming year due to ongoing economic uncertainties[56] - The development plan for the hotel business in the Northern Mariana Islands has been delayed due to local labor shortages and visa uncertainties[54] Miscellaneous - The company did not declare any dividends for the year ending December 31, 2023, consistent with 2022[35] - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2023[73] - The group has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures for the year ending December 31, 2023[63] - The group has not entered into any derivative contracts to hedge foreign exchange risks in 2023[65] - As of December 31, 2023, the group had capital commitments of approximately HKD 75,000 for properties, plants, and equipment, a decrease from HKD 279,000 in 2022[69] - The group employed approximately 550 employees as of December 31, 2023, down from 910 employees in 2022[70] - The company announced the appointment of joint and several receivers for 2,861,000,000 shares, representing approximately 55.01% of the issued share capital as of the announcement date[67]
顺龙控股(00361) - 2023 - 年度业绩