Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 1,227,190, a decrease of 8.1% compared to HKD 1,335,549 in 2022[2] - Gross profit increased by 8.0% to HKD 210,646, with a gross margin of 17.2%, up 260 basis points from 14.6% in 2022[2] - Operating profit decreased by 33.4% to HKD 21,370 from HKD 32,107 in the previous year[2] - Profit attributable to equity holders of the company fell by 91.8% to HKD 1,245, down from HKD 15,134 in 2022[2] - Basic and diluted earnings per share dropped to 1.2 HK cents, a decline of 92.1% from 15.1 HK cents in 2022[2] - Revenue from the United States was HKD 460,323 in 2023, down from HKD 496,838 in 2022, a decrease of approximately 7.4%[25] - The company's profit attributable to equity holders for the year ended December 31, 2023, was HKD 1,245,000, a significant decrease of 91.8% compared to HKD 15,134,000 in 2022[37] - The basic and diluted earnings per share for 2023 were HKD 1.2, down from HKD 15.1 in 2022, reflecting the impact of a share consolidation that took place on September 16, 2022[37] - Net profit attributable to equity holders for fiscal year 2023 was HKD 1.2 million, a significant decrease of HKD 13.9 million or 92.1% from HKD 15.1 million in 2022[59] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 965,631, a slight decrease from HKD 977,516 in 2022[5] - Total liabilities decreased to HKD 815,338 from HKD 821,481 in the previous year[7] - Cash and cash equivalents increased to HKD 274,572 from HKD 209,823 in 2022[5] - Trade receivables decreased to HKD 297,822 from HKD 368,267 in the previous year[5] - Contract liabilities decreased to HKD 12,495 in 2023 from HKD 25,354 in 2022, indicating a reduction of approximately 50.8%[27] - Non-current assets in mainland China increased to HKD 124,081 in 2023 from HKD 82,758 in 2022, reflecting a growth of approximately 50.0%[29] - As of December 31, 2023, total bank borrowings were HKD 292.6 million, up from HKD 275.3 million in 2022, while cash and cash equivalents were HKD 274.6 million, an increase from HKD 242.2 million[62] - The net debt-to-equity ratio improved to 12.0% as of December 31, 2023, down from 21.2% in 2022[62] Financial Costs and Expenses - The company reported a net finance cost of HKD 15,885, up from HKD 10,794 in 2022[4] - The income tax expense for 2023 was HKD 4,240, slightly higher than HKD 4,179 in 2022[35] - The weighted average effective interest rate on bank borrowings increased to 6.8% in 2023 from 6.4% in 2022[49] - The company incurred total capital expenditures of HKD 13.8 million in fiscal year 2023, slightly down from HKD 14.6 million in 2022[64] Dividends and Shareholder Information - The company did not recommend any final dividend for the year ended December 31, 2023, compared to a final dividend of HKD 0.05 per share totaling HKD 5,000,000 for the previous year[40] - The company did not recommend any final dividend for fiscal year 2023, compared to HKD 5.0 million in 2022[61] - The annual general meeting for shareholders is scheduled for June 3, 2024[89] - The annual report for 2023 will be sent to shareholders and published on the company's website and the Hong Kong Stock Exchange website[90] Operational Changes and Future Outlook - The company anticipates monitoring its business performance closely while addressing ongoing challenges in the market[54] - The group is currently evaluating the impact of new accounting standards effective from January 1, 2024, with no significant impact expected on financial performance[20] - The group has adopted new accounting policies, resulting in a cumulative impact on long service liabilities as of December 31, 2022, which is not significant[16] Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code, except for the separation of roles between the Chairman and CEO, which is held by the same individual since September 30, 2021[81] - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and practices adopted by the group, discussing audit, internal control, risk management, and financial reporting matters[86] - The financial statements for the fiscal year 2023 have been verified by the auditor, confirming consistency with the audited consolidated financial statements[88] Joint Ventures and Investments - The company has entered into a joint venture agreement with Giken Sakata (S) Limited to promote electronic manufacturing services, leveraging production capabilities in Indonesia[55] - The company recorded a fair value impairment of HKD 29.4 million on convertible bonds issued by its joint venture, Talentone Technology Limited, affecting the profit before tax[54] Employee and Operational Metrics - The employee count decreased to approximately 1,600 as of December 31, 2023, from 1,700 in 2022, attributed to the 8.1% decline in revenue[75] - The company established derivative instruments to hedge its foreign exchange risks during fiscal year 2023[71] - There were no significant legal proceedings or contingent liabilities that could adversely affect the business as of December 31, 2023[65] Utilization of Proceeds - The net proceeds from the global offering amounted to approximately HKD 74.0 million after deducting underwriting fees and other related listing expenses[78] - As of December 31, 2023, the utilization of the net proceeds included HKD 8.9 million for increasing manufacturing capacity in Southeast Asia and China, and HKD 2.3 million for enhancing marketing capabilities in North America and Europe, totaling HKD 11.2 million utilized[79]
丽年国际(09918) - 2023 - 年度业绩