Financial Performance - Revenue for the year ended December 31, 2023, was HKD 523,262,000, a decrease of 38.4% compared to HKD 849,096,000 in 2022[4] - Gross profit for the same period was HKD 39,266,000, down 60.0% from HKD 97,883,000 in the previous year[4] - The company reported a net loss of HKD 29,361,000 for the year, compared to a profit of HKD 8,079,000 in 2022[4] - Basic and diluted loss per share was HKD 6.36, compared to earnings of HKD 2.21 per share in the prior year[4] - The group reported a pre-tax loss of HKD 22.998 million in 2023, compared to a profit of HKD 11.769 million in 2022[26] - The net loss for the fiscal year 2023 was approximately HKD 29.4 million, compared to a net profit of HKD 8.1 million in fiscal year 2022, primarily due to a decrease in orders from a major customer[57] - The toy division's revenue decreased by approximately 38.4% to HKD 522.8 million, with a gross profit of about HKD 39.2 million, down from HKD 97.9 million in fiscal year 2022[60] - The toy division recorded a pre-tax segment loss of approximately HKD 7.26 million in fiscal year 2023, compared to a pre-tax profit of HKD 53.1 million in fiscal year 2022[60] - The agriculture division generated revenue of HKD 0.44 million in fiscal year 2023 and recorded a pre-tax segment loss of approximately HKD 3.3 million due to its developmental stage in Japan[61] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 291,907,000, an increase from HKD 218,596,000 in 2022[8] - The company had net current liabilities of HKD 185,184,000, compared to HKD 192,768,000 in the previous year[8] - Cash and cash equivalents amounted to HKD 119,335,000, up from HKD 49,765,000 in 2022[8] - The total loans increased to HKD 238,097,000 in 2023 from HKD 190,943,000 in 2022, reflecting an increase of 24.6%[38] - The company has a bank balance of approximately HKD 119,335,000, but total loans and convertible bonds amount to HKD 240,573,000, indicating significant financial uncertainty[52] - As of December 31, 2023, the company's net current liabilities were approximately HKD 185.2 million, with cash and cash equivalents of about HKD 119.3 million[62] Financing and Capital Raising - The company plans to raise approximately HKD 6,500,000 through the issuance of 101,964,566 shares at HKD 0.066 each[15] - A bank financing agreement was extended, with a total amount of RMB 160,000,000 (approximately HKD 176,561,000) due by December 13, 2024[15] - The company plans to issue 101,964,566 new shares at a net price of approximately HKD 0.066 per share, generating net proceeds of HKD 6,500,000[48] - The company aims to complete its capital raising activities by the end of 2024, assuming all plans proceed as intended[71] - The company issued 101,964,566 new shares at a net issue price of approximately HKD 0.066 per share on January 15, 2024[76] Cost Management - The group implemented cost-saving measures to improve cash flow and meet operational funding needs[19] - The company has implemented cost-cutting measures to reduce operating costs and improve financial stability[73] - Employee benefits expenses decreased to HKD 106,082,000 in 2023 from HKD 126,828,000 in 2022, representing a reduction of 16.4%[31] - The company has reduced its workforce from 1,696 employees in 2022 to 1,513 employees in 2023, resulting in employee costs decreasing from approximately HKD 126.8 million to HKD 106.1 million[75] Future Outlook - The company anticipates continued challenges in the toy sector, with significant pressure on product profitability and sales expected to persist into 2024[73] - The board is optimistic about future performance improvements in both the toy and agricultural sectors while exploring new business opportunities to increase market share[73] - The company plans to expand its agricultural business in Japan following the acquisition of 78.9% of Meishin Co., Ltd.[61] Governance and Compliance - The company has complied with all applicable corporate governance code provisions during the fiscal year ending December 31, 2023[74] - The audit opinion raised significant uncertainty regarding the company's ability to continue as a going concern, with the auditors not expressing an opinion on the financial statements for the fiscal year 2023[65] Shareholder Returns - No dividends were declared or proposed for both years, indicating a focus on retaining earnings for future growth[33] - The company does not recommend a final dividend for the fiscal year ending December 31, 2023[56] Acquisitions - The company acquired 100% of the issued share capital of Hengda Investment Group for a total cash consideration of HKD 1,700,000, enhancing its agricultural business in Japan[46] - The fair value of identifiable assets and liabilities acquired from Hengda Investment Group amounted to HKD 2,209,000, resulting in goodwill of HKD 740,000[47]
瀛晟科学(00209) - 2023 - 年度业绩