Revenue Performance - Revenue from the footwear and apparel segment decreased by 5.3% from approximately HKD 30.3 million in 2022 to approximately HKD 28.7 million in 2023, with losses increasing from HKD 3.9 million to approximately HKD 5.3 million[12]. - Sales of Canadian brand footwear and apparel products dropped from approximately HKD 14.6 million in 2022 to approximately HKD 9.1 million in 2023 due to an anticipated economic slowdown in Canada[12]. - Revenue from the Hong Kong business increased from approximately HKD 15.7 million in 2022 to approximately HKD 19.7 million in 2023, although many consumers chose to spend overseas, negatively impacting sales[12]. - The group recorded revenue of approximately HKD 28.7 million from footwear and sports-related products in 2023, a decrease of about 5.3% compared to HKD 30.3 million in 2022[24]. Loan Brokerage and Credit Assessment - The loan brokerage and credit assessment segment's revenue plummeted by 99.8% from approximately HKD 1.1 million in 2022 to approximately HKD 2,000 in 2023, resulting in a loss of approximately HKD 0.2 million[13]. - The loan brokerage and credit assessment business generated revenue of approximately HKD 2,000 in 2023, a decline of 99.8% from approximately HKD 1,057,000 in 2022, due to branch closures and layoffs since 2020[26]. - The group incurred a pre-tax loss of approximately HKD 214,000 from the loan brokerage and credit assessment business in 2023, compared to a pre-tax loss of approximately HKD 1,836,000 in 2022[26]. - The company sold its entire interest in the loan financing and credit assessment services business for HKD 1, allowing it to focus on sustainable business segments[13]. Financial Outlook and Strategy - The company remains optimistic about 2024, expecting a shift in consumer spending back to Hong Kong and anticipating increased sales due to the UEFA Euro 2024 event[13]. - Plans to retain and expand the footwear trade to online platforms while seeking partnerships with local and overseas companies to enhance retail operations for sports-related products[14]. - The group plans to focus on its core business of footwear and sports-related products while exploring suitable business opportunities and partnerships[20]. Employee and Financial Costs - Employee benefit expenses increased from approximately HKD 1.8 million in 2022 to approximately HKD 6 million in 2023, primarily due to increased hiring in the retail business[29]. - Financing costs rose by 81.4% from approximately HKD 695,000 in 2022 to approximately HKD 1,261,000 in 2023, mainly due to loans obtained at interest rates between 8% and 12%[32]. Debt and Borrowings - The group’s total borrowings amounted to approximately HKD 7.3 million as of December 31, 2023, down from approximately HKD 14.5 million in 2022[35]. - The group’s debt-to-asset ratio improved to 23.8% in 2023 from 49.0% in 2022[35]. Profitability and Other Income - The group achieved a net profit of approximately HKD 1.5 million in 2023, compared to a net loss of approximately HKD 5.3 million in 2022, primarily due to gains from the sale of discontinued operations[34]. - Other income (net) for 2023 was approximately HKD 0.3 million, compared to a net loss of approximately HKD 0.5 million in 2022, mainly due to foreign exchange gains[28]. Share Capital and Fundraising - The company completed a placement of 100,320,000 shares at a price of HKD 0.107 per share, raising approximately HKD 10.3 million net after expenses, increasing the total issued share capital from 501,600,000 to 601,920,000 shares[37]. - In a subsequent placement, the company issued 120,384,000 shares at HKD 0.0200 per share, raising approximately HKD 2.3 million net after expenses, increasing the total issued share capital to 722,304,000 shares[38]. - The company completed a rights issue of 72,230,400 shares at a price of HKD 0.2 per share, raising approximately HKD 14.45 million, with all shares fully subscribed[39]. - The net proceeds from the 2023 rights issue are allocated for loan repayment (HKD 11 million) and business operations (HKD 2.3 million), with HKD 747,000 remaining for future use[59]. Corporate Governance and Compliance - The company has complied with all relevant laws and regulations applicable to its business operations[71]. - The company has established a risk management committee to monitor sanction risks and implement internal control procedures[134]. - The company has maintained the required public float under GEM listing rules as of December 31, 2023[138]. - The company has adopted a stock option plan as part of its compensation policy for directors and eligible employees[136]. - The company has complied with all applicable corporate governance code provisions, except for the absence of a CEO, which has been addressed by the executive director performing similar functions[146]. Risk Management - The company established an enterprise risk management framework in 2016, with the board overseeing risk management and internal audit functions[189]. - The group employs a "three lines of defense" governance structure for risk management, involving operational management, financial and compliance teams, and independent internal audit[190]. - The risk register records all identified major risks and is updated at least annually based on risk assessments conducted by management[190]. Shareholder Communication - The company has established a corporate website to facilitate effective communication with shareholders and the public[196]. - The shareholder communication policy was adopted on May 11, 2016, to comply with corporate governance codes[196]. - The company welcomes feedback from investors and stakeholders to enhance communication and relationships[200].
积木集团(08187) - 2023 - 年度财报