Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 697,514,000, a decrease of 38.9% compared to HKD 1,143,941,000 in 2022[3] - Gross profit for the year was HKD 135,914,000, down 47.7% from HKD 260,073,000 in the previous year[3] - Profit attributable to equity holders for the year was HKD 23,457,000, a decline of 77.9% from HKD 105,945,000 in 2022[3] - Basic earnings per share decreased to HKD 3.78 from HKD 17.09, representing a drop of 77.9%[3] - Total comprehensive income attributable to equity holders was HKD 13,438,000, down 65.9% from HKD 39,338,000 in 2022[4] - The company reported a pre-tax profit of HKD 25,921,000, down 77.8% from HKD 116,826,000 in the previous year[23] - Other income for the year was approximately HKD 16.1 million, an increase of about 103.8% from HKD 7.9 million in 2022, primarily due to rental income from leasing new premises[47] - Income tax expense for the year ended December 31, 2023, was approximately HKD 2.5 million, a decrease of about HKD 8.4 million or approximately 77.1% compared to HKD 10.9 million for the year ended December 31, 2022, primarily due to a decrease in profit before tax[51] Segment Performance - For the fiscal year ending December 31, 2023, total segment revenue was HKD 697,514,000, a decrease of 38.9% from HKD 1,143,941,000 in 2022[19] - The electronic cigarette product segment generated revenue of HKD 122,726,000, down 77.8% from HKD 553,226,000 in the previous year[19] - The integrated injection molding solutions segment reported revenue of HKD 572,400,000, a decrease of 2.5% from HKD 587,126,000 in 2022[19] - The medical consumables segment earned revenue of HKD 2,388,000, down 33.5% from HKD 3,589,000 in 2022[19] - Revenue from the integrated injection molding solutions segment was approximately HKD 572.4 million, accounting for about 82.1% of total revenue, a decrease of approximately 2.5% from HKD 587.1 million in 2022[45] - Revenue from the e-cigarette products segment was approximately HKD 122.7 million, accounting for about 17.6% of total revenue, a significant decrease of approximately 77.8% from HKD 553.2 million in 2022 due to the cancellation of exclusivity agreements[45] - Revenue from the medical consumables segment was approximately HKD 2.4 million, accounting for about 0.3% of total revenue, a decrease of approximately 33.3% from HKD 3.6 million in 2022 due to the lifting of mask mandates in Hong Kong[45] Assets and Liabilities - Non-current assets decreased to HKD 647,253,000 from HKD 701,024,000, a reduction of 7.7%[6] - Current assets decreased significantly to HKD 327,128,000 from HKD 503,589,000, a decline of 35%[6] - Current liabilities decreased to HKD 173,686,000 from HKD 391,231,000, a reduction of 55.6%[6] - Trade receivables from third parties decreased to HKD 107,788,000 in 2023 from HKD 216,137,000 in 2022, reflecting a reduction of 50.2%[29] - Trade payables to third parties decreased to HKD 55,512,000 in 2023 from HKD 159,696,000 in 2022, a decline of 65.3%[33] - As of December 31, 2023, the group had cash and bank balances of approximately HKD 132.6 million, an increase from HKD 128.4 million in 2022, while interest-bearing borrowings were approximately HKD 61.9 million, down from HKD 128.8 million in 2022[54] - The group's debt-to-equity ratio as of December 31, 2023, was 8.8%, a decrease from 18.9% in 2022, indicating improved financial stability[54] Expenses - The company incurred total administrative and other operating expenses of HKD 114,780,000, a decrease from HKD 130,714,000 in 2022[17] - Administrative and other operating expenses were approximately HKD 114.8 million, a decrease of about 12.2% from HKD 130.7 million in 2022, mainly due to reduced discretionary bonuses for directors and senior management[49] - Research and development expenses for the year were HKD 29,491,000, down from HKD 32,957,000 in the previous year[23] - Financial costs for the year were approximately HKD 5.4 million, a decrease of about 25.0% from HKD 7.2 million in 2022, primarily due to the repayment of secured bank loans[50] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 1.5 cents per share for the year ended December 31, 2023, totaling HKD 9,300,000, down from HKD 2.0 cents per share and HKD 12,400,000 in 2022[27] - The board proposed a final dividend of HKD 0.015 per share for the year ended December 31, 2023, down from HKD 0.020 per share in 2022[70] - The proposed final dividend is subject to approval at the annual general meeting scheduled for May 30, 2024[71] - The company will suspend share transfer registration from June 14 to June 18, 2024, to determine eligibility for the proposed final dividend[71] Strategic Initiatives - The company continues to focus on the manufacturing and sales of electronic cigarette products and medical consumables, with plans for market expansion in Hong Kong and China[7] - The company established a research and development center in Shenzhen to enhance e-cigarette technology, including atomization and heating wire technologies[39] - The group plans to seek new customers for high-quality electronic cigarette and plastic products, and will gradually expand into other areas with the assistance of a newly established R&D center[53] Employee and Corporate Governance - The group had a total of 936 employees as of December 31, 2023, with a compensation policy based on performance, qualifications, and the group's operating results[60] - The group has adopted a share option scheme to reward selected participants, with a total of 32.77 million share options remaining exercisable as of December 31, 2023[61] Compliance and Certifications - The company has obtained the Certified Operator certificate from Chinese Customs in 2023, enhancing its operational credibility[38] - The group has no significant acquisitions or disposals of subsidiaries or associates for the year ended December 31, 2023[56] - As of December 31, 2023, the group had no significant contingent liabilities[57] - The group has no plans for significant investments or increases in capital assets as of December 31, 2023[63] Reporting and Transparency - The annual performance announcement for the year ended December 31, 2023, will be available on the Hong Kong Stock Exchange and the company's website[72]
天长集团(02182) - 2023 - 年度业绩