Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of HKD 1,410,943,000, a decrease of 34.6% compared to HKD 2,162,440,000 in 2022[4] - The net loss for the year was HKD 201,293,000, significantly higher than the loss of HKD 25,329,000 reported in 2022, indicating a deterioration in financial performance[4] - The company’s total comprehensive loss for the year was HKD 194,786,000, compared to a loss of HKD 24,974,000 in the prior year[6] - The total reported segment revenue for 2023 was HKD 1,424,788,000, compared to HKD 2,166,027,000 in 2022, indicating a decrease of about 34.2%[31] - The total revenue for the fresh and frozen meat segment in 2023 was HKD 966,400,000, a decrease of 42% from HKD 1,666,115,000 in 2022[28] - The processed meat products segment generated revenue of HKD 444,543,000 in 2023, down from HKD 496,325,000 in 2022, representing a decline of approximately 10.4%[28] - The group reported other net losses of approximately HKD 105 million, primarily due to the write-off of non-productive assets and expected VAT recoveries[88] - The group reported an operating loss of approximately HKD 170 million, compared to a profit of approximately HKD 18 million in the previous year[91] Assets and Liabilities - As of December 31, 2023, the total equity attributable to the company's shareholders was HKD (689,379,000), a decline from HKD (494,593,000) in 2022[11] - The company’s current liabilities amounted to HKD 1,617,367,000, with a net current liability of HKD (979,241,000)[10] - The company’s non-current assets, including property, plant, and equipment, decreased to HKD 326,449,000 from HKD 449,037,000 in 2022[10] - The company’s total liabilities increased to HKD 1,170,268,000 in 2023 from HKD 1,122,566,000 in 2022, indicating a rise of approximately 4.2%[53] - The company’s accounts payable decreased to HKD 171,617,000 in 2023 from HKD 191,633,000 in 2022, a decline of about 10.5%[53] - The group’s total liabilities increased to HKD 1.701 billion as of December 31, 2023, up by HKD 30 million from HKD 1.672 billion on December 31, 2022[114] - The group’s property, plant, and equipment decreased to HKD 326 million from HKD 449 million the previous year, primarily due to an impairment loss of HKD 56 million[105] Cash Flow and Financing - The company’s cash and cash equivalents stood at HKD 39,298,000, an increase from HKD 33,210,000 in the previous year[10] - The company plans to actively negotiate with banks to update financing terms and seek additional funding sources to alleviate liquidity pressure[17] - The company had bank borrowings totaling HKD 437,069,000 as of December 31, 2023, slightly down from HKD 443,381,000 in 2022[55] - The group’s current and non-current bank borrowings amounted to HKD 446,196,000 and HKD 22,029,000, respectively, with cash and cash equivalents of only HKD 39,298,000[61] - The group is involved in a lawsuit with a bank for immediate repayment of HKD 437,069,000, with a judgment requiring repayment of HKD 506,208,000 including interest[62] - The group successfully negotiated a debt settlement with a bank for an outstanding debt of HKD 43,434,000 and interest of HKD 19,347,000, resulting in a debt settlement gain of HKD 12,713,000[60] - The group has two overdue bank loans from state-owned commercial banks in China and is negotiating for installment repayments and waivers on penalties[144] Shareholder Returns - The company did not recommend the distribution of dividends for the year ended December 31, 2023, consistent with the previous year[46] - The group will not declare a final dividend for the year ending December 31, 2023[66] Operational Insights - The group’s pig production volume for 2023 was 727 million heads, an increase of 3.8% year-on-year, while pork production reached 57.94 million tons, up 4.6% year-on-year[68] - The group is focusing on product quality and research and development to adapt to market changes[70] - The group anticipates steady growth in pork consumption driven by rising incomes and demand for processed meat products[68] - The group maintained an annual production capacity of approximately 3.35 million heads for upstream slaughtering and 56,000 tons for downstream deep-processed meat products as of December 31, 2023[79] Employee and Operational Costs - As of December 31, 2023, the group employed approximately 1,000 staff in mainland China and Hong Kong, a decrease from approximately 1,400 staff as of December 31, 2022[136] - Total employee costs for the year amounted to HKD 99 million, representing 7.0% of revenue, compared to HKD 106 million or 4.9% of revenue in 2022[136] Future Outlook and Strategic Plans - The board is optimistic about returning to a net asset position as the economic environment improves and management continues to enhance operational profitability[116] - The board anticipates that the "disclaimer of opinion" in the auditor's report may be removed by December 31, 2024, depending on the success of the action plan[121] - The company plans to exercise caution in capital expenditures for 2024, with an initial budget of approximately RMB 15 million primarily for ongoing projects and maintenance[132] - The group is committed to green low-carbon production methods and has increased investments in environmental protection and R&D[138] - The group aims to integrate energy-saving and green production concepts into its corporate culture for sustainable development[138] Audit and Compliance - The independent auditor's report indicated "unable to express an opinion" regarding the group's ability to continue as a going concern due to various uncertainties[139] - The audit committee has rigorously reviewed the financial statements and aligned its views with the board regarding the going concern basis[142] Challenges and Risk Management - The group is actively addressing challenges, including business losses and overdue bank loans, while maintaining regular communication with banks[141] - The communication process with banks involves multiple approval levels, which can extend the timeline for reaching a resolution[144]
雨润食品(01068) - 2023 - 年度业绩