Financial Performance - The total contract value reached HKD 597,300,000, a year-on-year increase of approximately 4% compared to 2022[2] - Total revenue grew to HKD 528,066,000, representing a year-on-year increase of 7.43% from HKD 491,567,000 in 2022[4] - Profit for the year was HKD 5,392,000, up from HKD 3,412,000 in 2022[4] - The gross profit margin increased from 18.31% in 2022 to 20.16% in the current year, reflecting a two percentage point rise[2] - The cost of goods sold for the group in 2023 was HKD 307,029,000, an increase from HKD 278,355,000 in 2022[28] - Employee benefits expenses, excluding directors' remuneration, social security, and retirement costs, amounted to HKD 69,147,000 in 2023, up from HKD 64,273,000 in 2022[28] - The group reported a tax expense of HKD 312,000 for the current year, compared to HKD 53,000 in the previous year[30] - The group reported a profit of HKD 5,392,000 for the year, compared to HKD 3,412,000 in 2022, despite a total impairment of HKD 3,909,000 on certain bonds[77] Contract and Revenue Details - The total contract value for Macau operations surged by 64.7% to HKD 437,600,000, driven by strong business momentum in the gaming industry[2] - The total value of contracts obtained in Hong Kong was HKD 42,700,000, a decrease of 9.0% from 2022[47] - The total value of contracts obtained from the Macau government and non-gaming vertical markets decreased by approximately 25%, from HKD 221,000,000 in 2022 to HKD 165,000,000 in 2023[67] - The group achieved new contracts worth HKD 191,300,000 in the fourth quarter, accounting for nearly 44% of the total contract value obtained from the Macau market this year[43] - The group secured approximately HKD 266,000,000 in information technology and monitoring contracts from four key gaming clients this year[45] - The total value of data network infrastructure contracts in mainland China was HKD 64,300,000, but this represented a decline of over 60% compared to the previous year[49] - The value of contracts for the software-defined wide area network business in mainland China was HKD 38,700,000, down over 38% from 2022[50] Dividend and Shareholder Information - The company proposed a final dividend of HKD 0.01 per share, marking the tenth consecutive year of dividend payments[2] - The proposed final dividend is HKD 0.01 per share, totaling HKD 6,161,000, consistent with the previous year's dividend[35] - The company does not guarantee the continuation of dividend payments in the coming years as it evaluates new business opportunities[59] Assets and Liabilities - The cash and cash equivalents, along with financial instruments, totaled HKD 84,244,000 as of December 31, 2023[2] - Non-current assets totaled HKD 69,557,000, down from HKD 79,467,000 in the previous year[8] - The total trade receivables for the group were HKD 165,752,000 in 2023, down from HKD 183,554,000 in 2022[39] - Contract liabilities and trade payables increased from HKD 134,356,000 on December 31, 2022, to HKD 182,050,000 on December 31, 2023, showing a rise in obligations[78] - The group’s total equity as of December 31, 2023, is HKD 209,815,000, with cash and cash equivalents totaling HKD 84,244,000[107] Accounting and Financial Reporting - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and the Companies Ordinance, with values presented in thousands of HKD[18] - The group has adopted the revised Hong Kong Accounting Standards, which do not have any significant impact on the financial statements for the year ended December 31, 2022[20] - Revenue recognition for customer contracts occurs when control of goods or services is transferred to customers, reflecting the expected consideration[21] - For contracts with variable consideration, the estimated amount is recognized at the contract's inception and is subject to constraints until uncertainty is resolved[22] - The group recognizes revenue for service sales generally on a straight-line basis over the contract term, which typically ranges from less than one year to three years[26] - The group confirms revenue based on the completion stage of contracts, ensuring that the total contract value can be reliably measured[24] - Deferred tax assets and liabilities must be recognized for temporary differences arising from transactions, with sufficient taxable profits required[20] - The revised standards clarify the distinction between changes in accounting estimates and changes in accounting policies, ensuring consistency in application[16] Market Outlook and Strategic Initiatives - The company plans to maintain a cautious outlook for the Hong Kong market in 2024 and beyond due to ongoing challenges[47] - Management emphasized the importance of prudent financial management, ensuring liquidity and flexibility to explore new business opportunities[79] - The current capital structure and available bank loans are expected to support the company in overcoming unexpected challenges[79] - The group has actively supported its major clients in establishing new data centers overseas, contributing to the rapid growth of the mainland China market since 2016[70] - The Macau government is exploring the long-term impact of the new ten-year gaming license on the local economy and tourism industry[66] Miscellaneous - The group does not fall under the regulatory scope of the OECD's Pillar Two framework, thus the related amendments do not impact the group[17] - The financial statements have been verified by auditors, ensuring consistency with the group's draft consolidated financial statements[110] - The group holds bonds amounting to HKD 2,748,000 from Hysan Development Company Limited and HKD 2,593,000 from Chuangxing Bank Limited, among others[107] - The group restructured its debt instruments with interest rates ranging from 0% to 2.5%[107] - The group wrote off HKD 2,471,000 of additional tier 1 bonds following the announcement by the Swiss Financial Market Supervisory Authority[107] - No shares were repurchased or sold by the company or its subsidiaries during the year[110]
爱达利网络(08033) - 2023 - 年度业绩