Financial Performance - The company reported a net loss of $1,619,000 for the year ending December 31, 2023, compared to a profit of $4,575,000 in 2022[4]. - Adjusted net profit (non-IFRS measure) for 2023 was $892,000, down from $4,587,000 in 2022, reflecting a significant decline[4]. - Total revenue for 2023 was $101,008,000, a decrease of 20.2% from $126,560,000 in 2022[5]. - Gross profit for the year was $23,311,000, down from $27,618,000 in the previous year, indicating a decline of 15.5%[5]. - Basic loss per share for the year was $0.32, compared to earnings per share of $0.91 in 2022[5]. - The company reported a decrease in administrative expenses to $12,026,000 in 2023 from $10,869,000 in 2022, reflecting a rise of 10.6%[5]. - The company incurred restructuring and redundancy costs of $2,511,000 in 2023, which impacted the adjusted net profit[4]. - The company reported a total tax expense of $56,000 for 2023, significantly lower than $1,560,000 in 2022[25]. - The company recorded a pre-tax loss of approximately $1.6 million for 2023, compared to a pre-tax profit of about $6.1 million in 2022[61]. - Net loss for the year ended December 31, 2023, was approximately $1.6 million, a decrease of about $4.6 million from a net profit of $6.2 million in 2022[63]. Revenue Breakdown - Revenue from North America in 2023 was $34,836,000, down 8.5% from $38,044,000 in 2022[18]. - Revenue from Europe decreased by 30.4% to $32,605,000 in 2023 from $46,813,000 in 2022[18]. - Major customer 1 contributed $18,435,000 to revenue in 2023, down from $26,092,000 in 2022[20]. - North America revenue decreased by 8.4% to $34.8 million, while Europe saw a significant decline of 30.4% to $32.6 million[51]. Assets and Liabilities - Total assets decreased from $80,367 thousand in 2022 to $70,736 thousand in 2023, representing a decline of approximately 12.9%[6]. - Current assets decreased from $63,892 thousand in 2022 to $58,227 thousand in 2023, a reduction of about 8.9%[6]. - Non-current liabilities decreased significantly from $17,053 thousand in 2022 to $11,562 thousand in 2023, a decrease of approximately 32.2%[7]. - Total equity decreased from $24,304 thousand in 2022 to $22,811 thousand in 2023, reflecting a decline of about 6.1%[7]. - Current liabilities decreased from $39,010 thousand in 2022 to $36,363 thousand in 2023, a reduction of approximately 6.8%[6]. Cash Flow and Investments - Operating cash flow for the year ended December 31, 2023, was $1.4 million, a significant decrease from $14.1 million in 2022[67]. - The net cash used in investing activities was approximately $0.7 million, primarily due to the purchase of property, plant, and equipment amounting to about $0.8 million[70]. - The net cash used in financing activities was approximately $11.9 million, mainly due to repayment of interest-bearing bank loans of about $17.1 million[71]. - The net current assets decreased from approximately $24.9 million as of December 31, 2022, to about $21.9 million as of December 31, 2023, primarily due to a decrease in inventory and trade receivables[72]. - Cash and cash equivalents increased from $15,317 thousand in 2022 to $16,872 thousand in 2023, an increase of approximately 10.2%[6]. Corporate Governance - The board of directors is committed to maintaining good corporate governance practices to enhance transparency and accountability[94]. - The company believes that effective corporate governance is essential for creating greater value for shareholders[94]. - The board structure includes a separation of roles between the chairman and the CEO, although currently, Alain Perrot holds both positions[95]. - The company has two independent non-executive directors following the resignation of Edmond Ming Siang JAUW on February 3, 2023, which does not comply with the listing rules requiring at least three independent non-executive directors[97]. - The audit committee is now composed of three independent non-executive directors, including Dr. Chen Shou Kang (Chairman), Mr. Werner Peter VAN ECK, and Ms. Keet Yee LAI, after the appointment of Ms. Keet Yee LAI on February 10, 2023[100]. Strategic Plans and Challenges - The company plans to optimize its cost structure to maintain competitiveness in the current business environment[4]. - The company plans to continue investing in research and development, expanding its sales team, and improving its supply chain to support existing and upcoming diversification efforts[48]. - The company is facing challenges due to global economic conditions, including inflation and high interest rates, which may hinder customer project recovery and consumer purchasing[47]. - The company has implemented cost management measures, including automation, to safeguard shareholder value amid macroeconomic challenges[46]. Employee and Shareholder Information - As of December 31, 2023, the group had 150 employees, a decrease from 178 employees as of December 31, 2022[83]. - Employee benefits expenses for the year amounted to approximately $12.6 million, compared to $12.9 million in 2022, reflecting a decrease of about 2.3%[83]. - A total of 5,016,337 shares were granted under the share incentive plan, representing approximately 1.00% of the total issued shares as of the announcement date[85]. - The company has not proposed any final dividends for the fiscal year ending December 31, 2023[92]. Initial Public Offering (IPO) and Use of Proceeds - The net proceeds from the initial public offering were approximately HKD 84.93 million (equivalent to about $10.83 million)[87]. - The company plans to fully utilize the proceeds from the initial public offering (IPO) by 2024, with a total of HKD 84.93 million allocated for various strategic investments[89]. - A total of HKD 23.01 million is earmarked for strategic investments or acquisitions in the OTT system and smart home security products[89]. - HKD 21.12 million is allocated for repaying bank loans, with HKD 14.27 million designated for R&D and development of the OTT segment[89]. - The company aims to expand its professional sales team with an investment of HKD 13.8 million to support business growth[89]. - HKD 6.57 million is planned for expanding the supply chain outside of China to enhance supply chain management[89].
HOME CONTROL(01747) - 2023 - 年度业绩