Financial Performance - Total revenue for the year ended December 31, 2023, decreased by approximately 33.6% to HKD 162.9 million, compared to HKD 245.2 million for the year ended December 31, 2022[5] - The net loss attributable to shareholders for the year ended December 31, 2023, was approximately HKD 37.8 million, compared to a net loss of approximately HKD 50.0 million for the year ended December 31, 2022[5] - Basic loss per share for the year ended December 31, 2023, was HKD 5.91, compared to HKD 7.81 for the year ended December 31, 2022[5] - The total revenue for the year ending December 31, 2023, was HKD 162,884,000, a decrease of 33.4% compared to HKD 245,176,000 for the year ending December 31, 2022[28] - The group reported a revenue of HKD 162.9 million for the year, down from HKD 245.2 million in the previous year, representing a decrease of approximately 33.4%[76] Profitability and Gross Margin - Gross profit for the year ended December 31, 2023, was HKD 21.7 million, an increase from HKD 18.9 million for the year ended December 31, 2022[5] - Gross profit increased by 15% to HKD 21.7 million, compared to HKD 18.9 million in the previous year, resulting in a gross margin of 13.3% (up from 7.7%)[76] Assets and Liabilities - Total assets as of December 31, 2023, were valued at HKD 284.6 million, down from HKD 326.0 million as of December 31, 2022[7] - Current assets as of December 31, 2023, totaled HKD 190.6 million, compared to HKD 230.9 million as of December 31, 2022[7] - Current liabilities as of December 31, 2023, were HKD 58.6 million, a decrease from HKD 68.4 million as of December 31, 2022[7] - The net asset value decreased to HKD 275,672,000 from HKD 313,472,000 year-over-year, reflecting a decline of 12.1%[13] - The total non-current liabilities decreased to HKD 8,928,000 from HKD 12,528,000, indicating a reduction of 28.5%[13] Cash Flow and Financing - As of December 31, 2023, cash and cash equivalents decreased by HKD 24.0 million to HKD 60.7 million, compared to HKD 84.7 million in 2022, primarily due to unsatisfactory operating performance[34] - The available bank financing as of December 31, 2023, was HKD 72.3 million, significantly lower than HKD 163.4 million in 2022[22] - The bank borrowings as of December 31, 2023, were approximately HKD 29.0 million, down from HKD 31.4 million in 2022[22] - The group’s bank borrowings had a floating annual interest rate of 6.7% to 6.9% as of December 31, 2023, an increase from 5.4% to 5.9% in 2022[112] Operational Highlights - The group is focusing on developing new types of elastic blended fabrics to meet changing customer demands[21] - The group plans to enhance production capacity and product quality by importing two large dyeing machines from Germany and Italy, expected to be operational by the end of 2024[56] - The group has established a partnership with a Vietnamese denim manufacturer to support production needs[55] - The group is responding to increasing demand for sustainable materials by integrating certified recycled materials into its products[54] Employee and Cost Management - The total employee benefits expense amounted to HKD 47.173 million, down from HKD 49.601 million in 2022[45] - The group employed 317 staff as of December 31, 2023, a decrease from 353 staff in the previous year[87] - The group has implemented strict cost control measures and various cost-saving practices in operations[103] Market and Sales Performance - Revenue from elastic blended denim fabric accounted for 85.9% of total revenue in 2023, slightly down from 86.0% in 2022[54] - The business development of the group remained sluggish for most of the year, primarily due to lockdown measures implemented in Shanghai, China, in Q2 2022 due to COVID-19, leading to a decrease in overall sales[103] - The group successfully secured orders from long-term customers, with products sold at the largest retail chain in the United States by the end of the year, enhancing its market position and overall profit margins[103] Dividends and Financial Recommendations - The group has no plans to declare dividends for the current year, consistent with the previous year[19] - The board does not recommend the payment of any dividends for the year ended December 31, 2023[99] Taxation - The company reported no provision for Hong Kong profits tax due to tax losses carried forward[125] - The company has not reported any taxable profits in Hong Kong for the year ended December 31, 2022[125]
兴纺控股(01968) - 2023 - 年度业绩