Financial Performance - Total revenue for the year ended December 31, 2023, was $21,504,000, representing a 30.5% increase from $16,429,000 in 2022[2] - Gross profit for the year was $19,202,000, up from $13,855,000, indicating a gross margin improvement[2] - Operating profit increased to $12,534,000 from $8,263,000, reflecting a growth of 51.7%[2] - Net profit for the year was $7,185,000, compared to $5,494,000 in the previous year, marking a 30.8% increase[2] - Basic and diluted earnings per share rose to 0.96 cents from 0.92 cents[2] - Pre-tax profit for 2023 was $8,458,000, compared to $6,411,000 in 2022, marking a 32% increase[17] - Basic earnings per share rose to $7,185,000 in 2023 from $5,494,000 in 2022, indicating a strong performance[19] - Revenue increased from $16.4 million in 2022 to $21.5 million in 2023, representing a growth of approximately 31%[37] - Net profit increased by 30.8% from $5.5 million in 2022 to $7.2 million in 2023, maintaining a stable net profit margin of 33.4%[49] Assets and Liabilities - Total assets as of December 31, 2023, were $35,340,000, up from $9,094,000 in 2022[3][5] - The company's equity increased significantly to $29,518,000 from $6,313,000, showing strong financial health[5] - Trade and other receivables amounted to $197,602,000, while cash and cash equivalents were $21,814,000[4] - The company reported a significant increase in financial assets measured at fair value, rising to $2,765,000 from $1,527,000[3] - The company’s bank loans secured by assets amounted to $61,022,000 as of December 31, 2023, up from $29,021,000 in 2022[29] - The company’s total liabilities related to bank loans were $61,022,000 as of December 31, 2023, with no covenant violations reported[30] - The debt-to-equity ratio increased from 20.7% as of December 31, 2022, to 132.8% as of December 31, 2023, mainly due to the rise in bank loan balances[56] Trade Receivables and Payables - Trade receivables from third parties amounted to $196,971,000 in 2023, compared to $108,023,000 in 2022, reflecting a growth of approximately 82%[22] - The amount of trade receivables under factoring arrangements increased to $69,294,000 in 2023 from $27,088,000 in 2022, representing a growth of about 156%[23] - The total trade payables to third parties were $128,361,000 in 2023, compared to $96,986,000 in 2022, indicating an increase of approximately 32%[25] - The company’s trade receivables aging analysis showed that $75,349,000 was due within one month in 2023, compared to $44,696,000 in 2022, reflecting a growth of approximately 68%[24] Expenses - Financial costs increased significantly, with bank loan interest rising to $4,107,000 from $1,894,000, a 116% increase[14] - Research and development costs were $1,134,000 in 2023, slightly down from $1,246,000 in 2022[15] - Administrative expenses rose from $4.7 million in 2022 to $5.0 million in 2023, primarily due to increased policy costs and property lease depreciation[45] - Expected credit losses on trade receivables increased from $0.3 million in 2022 to $1.5 million in 2023 due to longer collection periods from certain clients[46] Share Capital and IPO - The company issued 200 million shares at a price of HK$0.70 per share during its IPO, raising a net amount of $15.943 million[35] - The company's authorized share capital increased from $50,000 to $20 million following the issuance of 1,995 million shares[34] - The net proceeds from the initial public offering (IPO) amounted to approximately HKD 96.8 million[61] Future Outlook and Strategy - Future outlook includes continued focus on market expansion and potential new product development strategies[1] - The company aims to expand its marketing reach and enhance brand reputation while seeking strategic partnerships and investment opportunities[42] - The company plans to continuously optimize and upgrade its Adorado and Powershopy platforms using evolving AI technology to enhance its SaaS solutions for cross-border e-commerce[42] - The company is seeking strategic partnerships or investment opportunities with upstream and downstream industry participants to enhance existing business functions, allocating 10.0% (HKD 9.7 million) for this purpose, fully utilized by the end of 2024[63] Employee and Client Information - The company provided services to over 2,800 marketing clients as of December 31, 2023, across various verticals including e-commerce and online gaming[38] - Employee costs totaled $3.7 million for the year ending December 31, 2023, down from $4.0 million in the previous year[41] - As of December 31, 2023, the company had a total of 86 full-time employees, an increase from 83 employees in the previous year[41] Dividends and Financial Reporting - The company did not declare any dividends for the year ended December 31, 2023, compared to $7,800,000 declared in 2022[31] - The company did not recommend any final dividend for the year ended December 31, 2023, consistent with the previous year[54] - The audit committee has reviewed the group's financial performance for the year ending December 31, 2023, confirming consistency with the draft financial statements[68] - The company plans to hold an annual general meeting, with the date to be determined by the board[69] - The annual report for the year ending December 31, 2023, will be published on the company's and the stock exchange's websites in due course[70]
力盟科技(02405) - 2023 - 年度业绩