Company Overview - The company successfully listed on the Hong Kong Stock Exchange on July 15, 2022, marking a significant milestone with the stock code 1204.HK[22]. - The company has adhered to corporate governance practices since its listing, with the chairman also serving as the CEO, which the board believes enhances leadership continuity[89]. - The company is currently evaluating new accounting standards and their impact on existing standards after initial application[161]. Financial Performance - Total revenue increased from approximately HKD 534.3 million in FY2021 to approximately HKD 580.8 million in FY2022, representing an increase of about HKD 46.5 million or 8.7%[28]. - Net profit for FY2022 decreased by approximately HKD 20.8 million or 86.7% to approximately HKD 3.2 million from approximately HKD 24.0 million in FY2021[34]. - Basic earnings per share for FY2022 were calculated based on the profit attributable to shareholders divided by the weighted average number of ordinary shares issued[114]. - Basic earnings per share dropped to HKD 0.78 in 2022 from HKD 6.97 in 2021, indicating a decrease of about 88.8%[177]. - The net profit margin declined from approximately 4.5% in the fiscal year 2021 to approximately 0.6% in the fiscal year 2022, a decrease of about 3.9 percentage points[150]. - The effective tax rate for FY2022 was approximately 51.3%, down from 20.0% in FY2021, due to a decrease in pre-tax profits[125]. - The group reported a profit attributable to shareholders of HKD 3,252,000 in 2022, a significant decrease from HKD 24,003,000 in 2021, representing a decline of approximately 86.5%[177]. Revenue Breakdown - Revenue from customer contracts was HKD 580.1 million, compared to HKD 517.6 million in the previous year[111]. - Revenue from enterprise IT solutions decreased by approximately HKD 37.5 million, while revenue from distribution and resale increased by approximately HKD 84.0 million[28]. - Distribution and resale revenue increased from approximately HKD 139.3 million in FY2021 to approximately HKD 223.3 million in FY2022, driven by a higher volume of resale orders in China[121]. - Revenue from China increased significantly from approximately HKD 0.2 million in FY2021 to approximately HKD 41.1 million in FY2022, reflecting successful business expansion efforts[123]. - Revenue from Macau was HKD 371,777,000, accounting for 64% of total revenue, while Hong Kong contributed HKD 167,944,000 (29%) and China contributed HKD 41,112,000 (7%) in 2022[167]. Research and Development - The company established an AIoT team and a BCI team in China, focusing on developing brain-computer interaction technologies and related scenarios, with 57 employees in the R&D department as of December 31, 2022[19]. - The company anticipates continued growth in its R&D team in fiscal year 2023 and is considering fundraising from market investors and financial institutions in China for R&D purposes[19]. - R&D expenses rose by approximately HKD 6.7 million in FY2022, primarily due to the establishment of AIoT and BCI teams in China[132]. - The company is actively developing BCI technology and metaverse applications, which are expected to become significant profit drivers in the future[122]. Operational Highlights - The company continued to maintain its leading position in the IT solutions market in Macau while expanding its distribution and resale business in Hong Kong and China[51]. - The group has not made significant investments or acquisitions during FY2022, maintaining a conservative approach to capital expenditure[40]. - The company is developing a new technology platform with BCI functionality, which can synergize with existing IT solutions and be integrated into various sectors including healthcare and smart devices[46]. - The company plans to commercialize the BCI headset when the technology and operational environment mature[47]. Cost and Expenses - In the fiscal year 2022, the company's sales cost increased by approximately HKD 58.3 million or 13.8% to about HKD 480.5 million, which was higher than the revenue growth due to a reduction in high-margin projects and delays in contract signings caused by COVID-19 in Macau[56]. - Gross profit decreased by approximately HKD 11.7 million or 10.4% to about HKD 100.4 million, attributed to fewer high-margin projects and delays in signing contracts for high-margin projects[56]. - Sales and distribution expenses rose by approximately HKD 5.9 million or 31.5% to about HKD 24.6 million, driven by increased revenue and expansion of sales and marketing teams in Macau and China[58]. - General and administrative expenses increased by approximately HKD 5.5 million or 8.9% to about HKD 67.2 million, primarily due to higher salaries, travel expenses, and professional fees[59]. Cash Flow and Assets - Cash and cash equivalents as of December 31, 2022, were approximately HKD 105.5 million, up from HKD 14.5 million as of December 31, 2021[35]. - Total assets increased from HKD 436.1 million in the fiscal year 2021 to HKD 573.1 million in the fiscal year 2022[143]. - The group’s total liabilities decreased to HKD 242,037,000 in 2022 from HKD 267,234,000 in 2021, a reduction of approximately 9.4%[182]. - The group’s total equity and liabilities increased to HKD 573,060,000 in 2022 from HKD 436,117,000 in 2021, representing an increase of about 31.5%[182]. Future Outlook - The Macau government is promoting a diversification strategy, which is expected to increase demand for IT solutions in various emerging industries, including healthcare and modern financial services[15]. - The company expects to benefit from the investment needs of operators in the gaming industry, following the issuance of a new 10-year gaming license in December 2022[14]. - The development of 5G networks and advancements in data analytics are expected to drive ongoing demand for IT solutions in Macau[15]. - The company aims to diversify revenue sources from different geographical locations by exploring new business opportunities in the Greater Bay Area[123].
博维智慧(01204) - 2022 - 年度业绩