Financial Performance - For the year ended December 31, 2023, the group's revenue decreased by 16% to HKD 79.2 million, compared to HKD 94.2 million in 2022[4] - The group's gross profit for the same period fell by 13% to HKD 42.3 million, down from HKD 48.6 million in the previous year[4] - The company recorded an annual loss of HKD 19.2 million for the year ended December 31, 2023, compared to a profit of HKD 1.1 million in 2022[4] - The total comprehensive loss for the year amounted to HKD 19.7 million, compared to a loss of HKD 3.5 million in 2022[7] - The company reported a basic loss per share of HKD 6.012, compared to earnings per share of HKD 0.352 in the previous year[5] - The net loss for the year amounted to HKD 19.2 million, a significant decline from a profit of HKD 1.1 million in 2022[41] - The total operating expenses increased by 27% to HKD 62.7 million, up from HKD 49.4 million in the previous year[44] Dividend and Shareholder Returns - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023[4] - The board of directors does not recommend the payment of a final dividend for the year ending December 31, 2023[39] Assets and Liabilities - Total assets decreased to HKD 59.6 million from HKD 86.7 million in the previous year, indicating a decline in liquidity[9] - Current liabilities decreased to HKD 15.1 million from HKD 22.9 million, reflecting improved management of short-term obligations[9] - The company's net assets decreased to HKD 58.2 million from HKD 77.9 million, indicating a significant reduction in equity[9] - The company's net asset value as of December 31, 2023, was HKD 58.2 million, down from HKD 77.9 million in 2022, primarily due to the net loss[44] - Cash and cash equivalents decreased from HKD 40.0 million to HKD 20.2 million as of December 31, 2023, reflecting the company's strategic allocation towards development projects and business improvements[65] - The company reported cash and cash equivalents of HKD 20,227,000 as of December 31, 2023, which may not be sufficient to meet future operational funding and financial requirements[82] Cash Flow and Going Concern - As of December 31, 2023, the group's cash and cash equivalents amounted to HKD 20,227,000, with a net cash outflow of HKD 19,742,000 for the fiscal year[13] - The group faces significant uncertainty regarding its ability to continue as a going concern due to the cash flow situation[13] - Management has assessed the group's ability to continue as a going concern based on current cash balances and expected operational cash flows for at least the next twelve months[15] - The net cash outflow for the year ending December 31, 2023, was HKD 19,742,000, indicating significant uncertainty regarding the company's ability to continue as a going concern[85] Research and Development - Research and development expenses increased to HKD 17.5 million from HKD 12.9 million, highlighting a focus on innovation despite financial losses[5] - The development costs for new products and services amounted to HKD 2.9 million for the year ending December 31, 2023, down from HKD 6.6 million in 2022, indicating a reduction in capital expenditure[63] - The company successfully launched new products such as PocketKey and USB NFC Reader IV, enhancing its product portfolio[48] - The company aims to capture the rapidly growing contactless payment solutions market, showcasing its commitment to innovation in the fintech and smart living industries[52] - The company’s WalletMate Mobile Wallet NFC Reader was nominated for the Best New Product category at the 2023 RFID Journal Awards, highlighting its innovative capabilities[52] Market and Customer Base - Revenue from Europe decreased significantly from HKD 55,766,000 in 2022 to HKD 35,812,000 in 2023, representing a decline of 35.8%[26] - The group has no single customer contributing more than 10% of total revenue, indicating a diversified customer base[23] - Sales to the top five customers accounted for 23% of the company's revenue for the year ending December 31, 2023, down from 25% in 2022, indicating a reduced reliance on a limited number of customers[57] - The group has no expected revenue from existing customer contracts to be recognized in the future as of the report date[24] Employee and Operational Efficiency - The total cost of employee benefits increased to HKD 42,953,000 in 2023 from HKD 39,711,000 in 2022, an increase of 5.6%[29] - Employee costs rose by HKD 6.8 million due to hiring for overseas market expansion[45] - The total number of full-time employees decreased from 122 to 113, with employee costs rising to HKD 40.2 million from HKD 33.3 million in the previous year[75] - As of the end of 2023, 37% of the company's full-time employees are engineers, with 60% having served for over five years, indicating a strong engineering team[59] Corporate Governance - The company has complied with the corporate governance code except for the separation of the roles of Chairman and CEO, which are held by the same individual[81] - The board believes that having the same person serve as both Chairman and CEO enhances strategic continuity and effective operation of the board[81] - The company has a diverse board with more than one-third independent non-executive directors, ensuring power balance and accountability[81] - The audit committee has reviewed the annual performance and recommended the board to adopt the related performance metrics[81] - The annual report detailing corporate governance principles and procedures will be disclosed in the 2023 annual report[78] Challenges and Strategic Responses - The company faced challenges due to geopolitical tensions and the ongoing impact of the COVID-19 pandemic on operational efficiency[48] - The company has implemented measures to mitigate global adverse factors, including market diversification, pricing strategy adjustments, and cost reduction[50] - The global IC chip shortage has significantly challenged the company's production capacity, prompting a diversification of suppliers to enhance future supply flexibility[60] - The company continues to seek suitable partners to stabilize its manufacturing of smart cards and readers, relying on external manufacturers in mainland China[58] Compliance and Accounting - The group has not applied any new accounting standards or interpretations that have not yet become effective during the reporting period[18] - The Hong Kong Institute of Certified Public Accountants has issued several new and revised financial reporting standards that are effective for the group during the reporting period[19] - The group has to consider the impact of the new regulations regarding the cancellation of the Mandatory Provident Fund on its long service payment accounting[20] - The accounting policy changes have not had a significant impact on the group's financial performance or position for the current or prior periods[21] - The company has effectively managed its foreign exchange risk through regular reviews of its foreign currency net positions, with no significant financial impact from currency fluctuations[71] - The company has not pledged any significant assets as collateral as of December 31, 2023, maintaining a clean balance sheet[72]
高维科技(02086) - 2023 - 年度业绩