Financial Performance - Revenue decreased by approximately 14.5% from about $51.9 million in the year ended December 31, 2022, to approximately $44.4 million in the year ended December 31, 2023[3] - Profit for the year ended December 31, 2023, was approximately $2 million, representing a growth of about 93.7% compared to approximately $1 million for the year ended December 31, 2022[3] - Gross profit for the year ended December 31, 2023, was approximately $17.1 million, with a gross margin of about 38.5%[4] - For the fiscal year ending December 31, 2023, total revenue from external customers was $44.355 million, a decrease from $51.878 million in the previous year, representing a decline of approximately 14.3%[26] - The adjusted profit before tax for the trade and supply chain management segment was $1.269 million, while the online social platform segment reported an adjusted loss of $1.157 million, leading to a total adjusted profit before tax of $2.161 million[26] - The company reported a net profit of $1.978 million for the fiscal year ending December 31, 2023, compared to $1.021 million in the previous year, reflecting a significant increase[26] - The total tax expense for the year was $183,000, a decrease from $240,000 in 2022, representing a decline of 23.8%[40] - The company's gross profit slightly decreased by about 0.3% to approximately $17.1 million[54] - Operating expenses decreased by approximately 6.5% from about $17 million to approximately $15.9 million, primarily due to reduced employee costs[56] - The company achieved a net profit of approximately $2 million, nearly double the profit from the previous year[56] Assets and Liabilities - Total assets increased from approximately $27.3 million in 2022 to approximately $29.4 million in 2023[8] - Current liabilities rose from approximately $14.1 million in 2022 to approximately $15.2 million in 2023[8] - The net asset value increased from approximately $11.3 million in 2022 to approximately $13.3 million in 2023[10] - The total assets as of December 31, 2023, amounted to $29.416 million, with classified assets contributing $29.297 million and unallocated assets at $119 thousand[26] - The total liabilities were reported at $16.087 million, with classified liabilities at $12.144 million and shareholder loans contributing $3.856 million[26] - The group's non-current assets totaled $2,009,000 in 2023, an increase of 55.5% from $1,291,000 in 2022[31] - The total accounts receivable increased from $3.87 million to $4.6 million, with significant increases in the 30 days and 31-60 days categories[49] - The total accounts payable rose from $885,000 to $1.5 million, with a notable increase in the 31-60 days category[50] - The group has no significant liabilities or guarantees as of December 31, 2023, and has not pledged any assets[69] Dividends - The company does not recommend the payment of a final dividend for the year ended December 31, 2023[3] - The group did not recommend a final dividend for the year ending December 31, 2023, compared to no dividend in 2022[41] Accounting Policies - The group has adopted the revised Hong Kong Accounting Standard No. 1 and the revised Practice Note No. 2, which impacts the disclosure of significant accounting policies[14] - The group has implemented the revised Hong Kong Accounting Standard No. 12, narrowing the scope of initial recognition exemptions related to temporary differences arising from transactions such as leases[16] - The changes in accounting policies due to the revised standards have no significant impact on the group's financial position and performance for the years ended January 1, 2022, December 31, 2022, and December 31, 2023[17] - The company has adjusted its accounting treatment for employer contributions to the long-term service fund in accordance with new guidelines from the Hong Kong Institute of Certified Public Accountants[21] Market Performance - Revenue from the Chinese market was $29.014 million for 2023, an increase from $27.834 million in 2022, indicating a growth of approximately 4.2%[30] - Revenue from customer A, a major client accounting for over 10% of the group's revenue, decreased to $6,552,000 in 2023 from $9,937,000 in 2022, representing a decline of 34.5%[32] - Revenue from trade and supply chain management services fell by approximately 34.1% from about $26.7 million to approximately $17.6 million[53] - Revenue from the online social platform business increased by approximately 6.3% from about $25.1 million to approximately $26.7 million[64] Employee and Operational Insights - The total employee cost for the year was approximately $11 million, down from $12.2 million in 2022, with 261 employees as of December 31, 2023[70] - The group plans to enhance user acquisition through collaborations with popular social media platforms, aiming to expand its user base[74] - The group intends to upgrade its gaming systems and online games to improve user engagement and satisfaction, which is expected to attract new users[74] - The group is focused on cost control and capacity enhancement as primary tasks to improve profitability[73] Governance and Compliance - The audit committee consists of three independent non-executive directors, with Liu Shuren as the chairman[81] - The company has complied with all applicable corporate governance code provisions as of December 31, 2023[83] - The company has adopted the standard code for securities trading by directors and confirmed compliance by all directors for the year ending December 31, 2023[84] - The annual report for 2023 will be sent to shareholders and published on the company's website in due course[85] - The executive directors are Huang Qingnian and Long Liping, with independent non-executive directors Wang Minxiang, Liu Shuren, and Zhang Huijun[87]
道和环球(00915) - 2023 - 年度业绩