Financial Performance - The group reported revenue of approximately HKD 139.2 million for the year ended December 31, 2023, representing a significant increase of approximately HKD 44.8 million or 47.5% compared to the previous year[5]. - Gross profit for the year was approximately HKD 21.8 million, a substantial increase of approximately 223.9% from a gross loss of HKD 17.6 million in the previous year[5]. - The net loss for the year was approximately HKD 12.4 million, a significant reduction of approximately 76.8% compared to a net loss of approximately HKD 53.5 million in the previous year[5]. - The total comprehensive loss for the year was approximately HKD 12.9 million, down from HKD 57.9 million in the previous year[9]. - The group reported a net loss attributable to owners of the company of approximately HKD 12.4 million, compared to HKD 53.5 million in the previous year[9]. - The group reported a net loss attributable to owners of the company of HKD 12,369,000 for the year ended December 31, 2023, compared to a loss of HKD 53,529,000 in 2022, indicating an improvement in financial performance[37]. - The group reported a net loss of approximately HKD 12.4 million for the reporting period, a significant decrease of about HKD 41.1 million compared to a loss of HKD 53.5 million for the year ended December 31, 2022[67]. Dividends and Shareholder Returns - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023[6]. - The company did not declare or pay any dividends for the years ending December 31, 2023, and December 31, 2022[41]. - The board of directors did not recommend the payment of any final dividend for the reporting period[85]. Assets and Liabilities - Total assets decreased from HKD 246,157 million in 2022 to HKD 240,883 million in 2023, a decline of approximately 2.3%[11]. - Current liabilities exceeded current assets by approximately HKD 10,950 million as of December 31, 2023, indicating significant liquidity concerns[20]. - Non-current liabilities increased from HKD 20,824 million in 2022 to HKD 32,896 million in 2023, representing a rise of approximately 57.9%[13]. - Cash and cash equivalents decreased from HKD 12,853 million in 2022 to HKD 7,344 million in 2023, a reduction of approximately 42.5%[11]. - The total equity decreased from HKD 71,263 million in 2022 to HKD 58,350 million in 2023, a decline of approximately 18.1%[11]. - As of December 31, 2023, the group's current liabilities net amount was approximately HKD 10.9 million, down from HKD 17.4 million in 2022[68]. - The group's current ratio as of December 31, 2023, was approximately 0.9, unchanged from 2022, while the debt-to-equity ratio increased to 187.4% from 139.2% in 2022[68]. Revenue Sources - The group reported revenue from services of HKD 139,243,000 for the year ended December 31, 2023, compared to HKD 94,374,000 in 2022, representing a growth of approximately 47.4%[30]. - Revenue from Hong Kong was HKD 64,155,000 in 2023, up from HKD 48,864,000 in 2022, while revenue from China increased to HKD 74,929,000 from HKD 44,219,000[32]. - Revenue from exhibitions accounted for approximately 62.0% of total revenue, up from 54.2% in the previous year[49]. - Customer A contributed HKD 44,269,000 to total revenue in 2023, a significant increase from HKD 15,778,000 in 2022, while Customer B's contribution was not applicable in 2023[32]. Operational Efficiency - The group experienced a decrease in operating loss to approximately HKD 8.8 million from HKD 53.0 million in the previous year[8]. - The company plans to implement strategies to improve profitability and operational efficiency in Hong Kong, China, and Macau[20]. - The company aims to improve profitability and create long-term value for shareholders by seeking potential business opportunities to expand revenue sources[44]. - The company expects financial performance to gradually recover to pre-pandemic levels as public activities normalize following the easing of the pandemic in early 2023[81]. - The company aims to further improve profitability and create long-term value for stakeholders as the economies of Hong Kong, China, and Macau are projected to recover[81]. Financial Management - Financial income increased to HKD 2.2 million from HKD 1.0 million in the previous year, while financial expenses rose to HKD 9.1 million from HKD 5.5 million[8]. - The weighted average effective interest rate on bank borrowings increased to 8.7% in 2023 from 4.5% in 2022[69]. - The total available bank financing amounted to approximately HKD 102.1 million as of December 31, 2023, down from HKD 117.6 million in 2022[69]. - The company is seeking additional financing options to strengthen liquidity and manage operational costs[22]. - The company has committed to maintaining communication with major banks to ensure continued access to financing[22]. Employee and Operational Costs - Employee costs totaled approximately HKD 53.1 million during the reporting period, slightly up from HKD 52.5 million in 2022, with a total of 152 employees as of December 31, 2023[80]. - The group's employee benefit expenses increased slightly to HKD 53,052,000 in 2023 from HKD 52,538,000 in 2022, reflecting stable workforce costs[35]. - Total service costs increased to HKD 117,468,000 in 2023 from HKD 111,998,000 in 2022, primarily due to increases in employee benefits, depreciation of property, plant, and equipment, and materials costs[53]. - Employee benefits accounted for 27.6% of total service costs in 2023, up from 26.7% in 2022, with costs rising to HKD 32,367,000[55]. - Depreciation of property, plant, and equipment represented 22.5% of total service costs in 2023, significantly increasing from 14.0% in 2022, attributed to changes in accounting estimates[56]. Risk Factors - The company faces various risks and uncertainties, including market risk, credit risk, and liquidity risk, which may impact its financial condition and operational performance[46]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[91]. - The audit committee expressed satisfaction with the remuneration and independence of the auditor, recommending the reappointment of the auditor for the fiscal year ending December 31, 2024, subject to shareholder approval[92]. - The annual general meeting is scheduled for May 31, 2024, to address various corporate matters[93]. - The company has maintained sufficient public float as required by GEM Listing Rules[94]. - The company will suspend share transfer registration from May 28, 2024, to May 31, 2024, to determine voting rights at the upcoming annual general meeting[96]. - The announcement includes the appointment of executive directors Mr. Huang Wenbo and Mr. Huang Zhibo, as well as independent non-executive directors Dr. Leung Wai Cheung, Mr. Cheung Wai Lun, and Mr. Chan Wing Kee[98].
AV策划推广(08419) - 2023 - 年度业绩