Revenue Growth - The group's revenue increased by approximately HKD 136.8 million or 23.6% from about HKD 580.8 million in FY2022 to about HKD 717.6 million in FY2023, driven by an increase in revenue from enterprise IT solutions and distribution and resale businesses[1]. - The group's revenue increased from approximately HKD 580.8 million in FY2022 to approximately HKD 717.6 million in FY2023, representing a growth of about 23.6%[40]. - Revenue from customer contracts for 2023 reached HKD 707,172 thousand, an increase from HKD 580,833 thousand in 2022[80]. - The group reported a total income of HKD 717,595 thousand for 2023, compared to HKD 580,833 thousand in 2022, reflecting a significant growth[80]. - Revenue contributions from Macau, Hong Kong, and China were HKD 439.6 million, HKD 145.6 million, and HKD 122.0 million respectively in 2023[53]. - The company's revenue from China increased from approximately HKD 41.1 million in FY2022 to approximately HKD 122.0 million in FY2023, showing significant growth[104]. - Distribution and resale revenue rose from approximately HKD 223.3 million in FY2022 to approximately HKD 251.0 million in FY2023, attributed to an increase in resale order volume in Macau, Hong Kong, and China[106]. Profitability - Gross profit increased by approximately HKD 15.2 million or 15.1% from about HKD 100.4 million in FY2022 to about HKD 115.6 million in FY2023, while the gross profit margin decreased from 17.3% to 16.1% due to a higher weight of lower-margin contracts from China[3]. - The group's net profit increased by approximately HKD 1.3 million or 40.6% from about HKD 3.2 million in FY2022 to about HKD 4.5 million in FY2023[11]. - Net profit for the year increased from approximately HKD 3.2 million in FY2022 to approximately HKD 4.5 million in FY2023, reflecting a growth of about 40.6%[40]. - Total comprehensive income for the year amounted to HKD 5,005,000, significantly up from HKD 806,000 in 2022[152]. - Basic earnings per share attributable to shareholders rose from approximately HKD 0.78 to approximately HKD 0.90, an increase of about 15.4%[40]. - Net profit attributable to shareholders for 2023 was HKD 4,502,000, compared to HKD 3,252,000 in 2022, reflecting a significant increase[166]. Expenses and Costs - The cost of sales and services rose by approximately HKD 121.4 million or 25.3% from about HKD 480.5 million in FY2022 to about HKD 601.9 million in FY2023, with the increase outpacing revenue growth due to lower gross margins from significant contracts in China[2]. - Distribution and selling expenses increased by approximately HKD 7.7 million or 31.3% from about HKD 24.6 million in FY2022 to about HKD 32.3 million in FY2023, mainly due to increased revenue and an expanded marketing team in Hong Kong[6]. - Administrative expenses rose by approximately HKD 13.2 million or 22.5% from about HKD 58.6 million in FY2022 to about HKD 71.8 million in FY2023, driven by business development and expansion in Macau, Hong Kong, and China[7]. - The company's total operating expenses for employee benefits increased to HKD 112,149 thousand in 2023 from HKD 90,221 thousand in 2022[85]. - The company incurred research and development expenses of HKD 10,037,000, which is a 50.5% increase from HKD 6,688,000 in the previous year[142]. Financial Position - As of December 31, 2023, the group's cash and cash equivalents were approximately HKD 28.7 million, a decrease from about HKD 105.5 million as of December 31, 2022, primarily due to increased contract assets and other receivables[13]. - The group's capital debt ratio was approximately 3.3% as of December 31, 2023, with total borrowings of about HKD 11.1 million, including secured bank borrowings and financial liabilities related to discounted notes[14]. - Total equity and liabilities amounted to approximately HKD 583.4 million as of December 31, 2023, compared to HKD 573.1 million in the previous year[44]. - The company's total assets as of December 31, 2023, were HKD 583,403,000, a slight increase from HKD 573,060,000 in 2022[145]. - Cash and cash equivalents decreased to HKD 28,733,000 from HKD 105,519,000 in the previous year, indicating a liquidity contraction[145]. - Trade receivables increased from HKD 147.4 million in 2022 to HKD 179.9 million in 2023, after accounting for credit loss allowances[90]. - Trade receivables totaled HKD 181,513,000 in 2023, up from HKD 149,253,000 in 2022[168]. - Trade payables increased to HKD 174,165,000 in 2023 from HKD 116,385,000 in 2022[172]. Strategic Initiatives - The company plans to allocate approximately 43.8% of the net proceeds, or HKD 40.7 million, towards two IT solution projects in the Greater Bay Area[34]. - The company aims to leverage opportunities in the Greater Bay Area through IT solutions projects, with an estimated cost of HKD 28.3 million for the second quarter of 2024[70]. - The company is focusing on expanding its market share in Macau, Hong Kong, and China, leveraging post-pandemic recovery demand[125]. - The company plans to diversify and expand its existing business in China through a proposed investment in an internet data center in Beijing[102]. - The company aims to enhance its IT solutions by incorporating AI elements and digital content, responding to the anticipated demand for IT solutions in the coming years[105]. - The company has established a new subsidiary, Xiao Zhou Technology Limited, focusing on AIoT and BCI technology development[178]. - The company signed a contract in Guilin for a project related to virtual scenery using BCI technology, enhancing immersive travel experiences[179]. Market and Industry Trends - The demand for IT solutions in the Greater Bay Area is expected to continue growing due to government support and the end of COVID-19 impacts[174]. - The company anticipates increased demand for IT solutions driven by the development of smart cities and IoT networks in Macau[176]. - The Macau government has introduced a five-year development plan (2024-2028) focusing on high-tech industry and traditional industry transformation, which is expected to benefit local IT companies[69]. Corporate Governance - The audit committee has reviewed the annual performance for FY2023 and confirmed that the financial statements fairly reflect the company's financial position and performance[132]. - The company did not recommend the declaration of a final dividend for the fiscal year 2023, compared to no dividend declared for the fiscal year 2022[26]. - The company has not engaged in any buybacks, redemptions, or sales of its listed securities since the start of the fiscal year 2023[25]. - The company maintained a public float of at least 25% of issued shares as required by the Hong Kong Stock Exchange[28]. - There were no significant events after the reporting period that required adjustments to the financial statements[24].
博维智慧(01204) - 2023 - 年度业绩