Financial Performance - The group's revenue for the year ended December 31, 2023, was HKD 493.1 million, a decrease of 1.8% from HKD 499.0 million in 2022[4] - Gross profit for the year was HKD 63.0 million, down from HKD 80.2 million in 2022, primarily due to a reduction in customer orders and sales volume[4] - The loss attributable to equity holders was HKD 8.9 million, compared to a loss of HKD 7.6 million in 2022, with basic and diluted loss per share at HKD 1.01[4] - Total revenue for the year ended December 31, 2023, was HKD 493,060, a decrease of 1.9% compared to HKD 499,024 in 2022[32] - Gross profit for 2023 was HKD 62,951, down 21.5% from HKD 80,223 in 2022[32] - The company reported a pre-tax loss of HKD 8,917 for 2023, compared to a loss of HKD 7,625 in 2022, indicating a worsening financial performance[32] - The group reported a pre-tax loss of HKD 8,917,000 for the year, compared to a pre-tax loss of HKD 7,625,000 in the previous year[56] - The group recognized government subsidies of approximately HKD 6,000,000 in 2023, significantly lower than HKD 208,000,000 in 2022[76] - The group reported a loss attributable to equity holders of HKD 8,917,000 in 2023, compared to a loss of HKD 7,625,000 in 2022[81] Revenue Breakdown - The garment manufacturing and trading segment's revenue decreased by 1.3% to HKD 493.0 million, while the contribution from the US and Europe accounted for 82.7% of segment revenue[6][7] - Revenue from external customers in the United States was HKD 240,450,000, down from HKD 313,947,000 in 2022, a decrease of 23.3%[61] - In 2023, total revenue from the US market was HKD 240,450,000, a decrease of 23.4% from HKD 313,947,000 in 2022[67] - Revenue from the European market increased by 58.5% to HKD 167,402,000 in 2023, compared to HKD 105,690,000 in 2022[67] - The external sales from the garment manufacturing and trading segment were HKD 492,974,000, while the securities investment segment contributed HKD 86,000[64] Expenses and Costs - Administrative and other operating expenses decreased by 29.4% to HKD 54.0 million, mainly due to reduced employee compensation[12] - Financing costs increased by 91.1% to HKD 8.6 million, primarily due to rising borrowing rates[14] - Employee benefits expenses decreased to HKD 46,877,000 in 2023 from HKD 81,917,000 in 2022, a reduction of 42.8%[79] - Total financing expenses rose to HKD 8,573,000 in 2023, up from HKD 4,489,000 in 2022, representing an increase of 91.5%[79] - The management will continue to adjust cost control measures in response to unavoidable financial costs due to high inflation and interest rates[26] Assets and Liabilities - Current assets increased to HKD 216,025 in 2023 from HKD 185,739 in 2022, reflecting a growth of 16.3%[33] - Cash and bank balances rose significantly to HKD 120,151 in 2023, up from HKD 95,686 in 2022, marking an increase of 25.6%[33] - Total equity increased to HKD 177,844 in 2023, compared to HKD 136,421 in 2022, representing a growth of 30.4%[35] - The company’s inventory increased to HKD 63,292 in 2023, up from HKD 43,791 in 2022, indicating a rise of 44.6%[33] - Trade and other receivables decreased to HKD 32,582 in 2023 from HKD 44,933 in 2022, a decline of 27.5%[33] - The company’s total liabilities decreased to HKD 83,465 in 2023 from HKD 100,420 in 2022, a reduction of 16.9%[33] - The total assets of the group increased to HKD 279,297,000 in 2023 from HKD 254,726,000 in 2022, marking an increase of 9.7%[60] - The total liabilities decreased to HKD 101,453,000 in 2023 from HKD 118,305,000 in 2022, a reduction of 14.3%[60] Employee and Management Changes - The total number of full-time employees decreased to 400 as of December 31, 2023, from 488 in 2022, primarily due to the downsizing of the Heshan factory[22] - The management plans to further reduce production scale in mainland China, which may lead to additional downsizing of the Heshan manufacturing facility[26] - The company aims to attract and retain high-quality employees by offering performance-based bonuses and stock options[22] - The executive director has been temporarily fulfilling the responsibilities of the CEO position since the resignation of the previous CEO on February 1, 2023[95] Corporate Governance and Strategy - The company is committed to maintaining strong corporate governance practices and has adhered to all relevant guidelines during the year[94] - The management will continue to monitor macroeconomic factors and adjust the business strategy accordingly to seek sustainable long-term growth[27] - The group will closely monitor foreign currency exchange rate fluctuations and establish forward foreign exchange contracts as necessary to mitigate risks[18] - The group adopted a cautious investment strategy, recording a fair value gain of HKD 0.1 million in its securities investment business[11] Accounting and Reporting Standards - The application of the revised Hong Kong Accounting Standard No. 8 did not have a significant impact on the consolidated financial statements for the year[44] - The group first applied the revised Hong Kong Accounting Standard No. 1, which replaced "major accounting policies" with "significant accounting policy information" in financial statement presentation[45] - The revised Practice Note No. 2 clarifies how an entity applies its "four-step process for assessing materiality" to accounting policy disclosures[46] - The board believes that the changes in accounting policies for the year did not have a significant impact on the consolidated financial statements[51] - The group did not apply any new or revised Hong Kong Financial Reporting Standards that are not yet effective, expecting no significant impact on the consolidated financial statements[52] - The company anticipates that the application of all other new Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future[52] Other Information - The company does not recommend the payment of a final dividend for the year ending December 31, 2023, compared to no dividend in 2022[29] - The group had no contingent liabilities as of December 31, 2023, and December 31, 2022[21] - The group recognized a realized gain of approximately HKD 86,000,000 from the sale of all listed equity securities, compared to a fair value loss of HKD 418,000,000 in the previous year[87] - There were no significant events after the reporting period up to the announcement date[91] - The annual results announcement is available on the Hong Kong Stock Exchange website and the company's website[99]
恒富控股(00643) - 2023 - 年度业绩