Financial Performance - The company's revenue decreased by approximately 54.5%, from about HKD 140.1 million for the year ended December 31, 2022, to about HKD 63.8 million for the year ended December 31, 2023[18]. - The design and renovation business generated total revenue of HKD 63.8 million for the year ended December 31, 2023, compared to HKD 140.1 million for the year ended December 31, 2022[21]. - The securities investment business did not generate any realized revenue for the year ended December 31, 2023[19]. - The loss for the year ended December 31, 2023, was approximately HKD 17.6 million, compared to a loss of HKD 20.8 million for the year ended December 31, 2022[24]. - The group's cost of sales and services decreased by approximately 61.1% to about HKD 48.6 million for the year ended December 31, 2023, compared to the previous year[22]. - Selling and administrative expenses increased to approximately HKD 34.1 million for the year ended December 31, 2023, up from HKD 31.5 million in 2022, primarily due to equity-settled share-based payments of about HKD 4.2 million[23]. - The group's cash and cash equivalents increased by approximately 114.8% to about HKD 26.2 million as of December 31, 2023, compared to HKD 12.2 million in 2022[28]. - The debt-to-asset ratio increased to approximately 64.5% as of December 31, 2023, from 30.2% in the previous year, primarily due to the issuance of bonds and convertible bonds[29]. Business Outlook and Strategy - The management remains optimistic about the long-term prospects of the design and renovation business despite economic uncertainties[16]. - The company plans to continue seeking new orders and clients to strengthen its customer base in the design and renovation sector[16]. - The board is optimistic about the prospects of the Hong Kong listed equity securities market, believing that the new business will enhance the company's financial performance and shareholder value[16]. - The company will actively monitor its performance and implement appropriate strategies in response to adverse economic conditions[16]. - The securities investment business was established during the year ended December 31, 2023, with a focus on seeking capital appreciation and cash flow returns in the Hong Kong equity securities market[15]. Corporate Governance and Compliance - The management is committed to ensuring the accuracy and completeness of the information provided in the financial report[5]. - The company has maintained compliance with relevant laws and regulations, with no significant violations reported during the year[80]. - The independent auditor expressed a qualified opinion on the consolidated financial statements for the year ended December 31, 2023, due to insufficient audit evidence regarding the cessation of consolidation of ACE[44]. - The board of directors is seeking legal advice to determine actions to be taken regarding the liquidation order to protect the interests of the company and its shareholders[50]. - The audit committee has reviewed the details of the qualified opinion and agrees with the management's position regarding the cessation of consolidation[47]. - The company has adopted a code of conduct for securities trading, ensuring compliance with GEM listing rules[153]. - The company has established a written procedure for directors to seek independent professional advice, with costs covered by the company[142]. - The company has implemented a disclosure policy to ensure timely handling of inside information and to provide guidance for directors and senior management in managing confidential data[199]. Employee and Management Changes - The group employed approximately 39 employees as of December 31, 2023, compared to 38 employees in the previous year[39]. - Mr. Zhong Jiahao was appointed as an executive director on December 6, 2023, with an annual director's fee of HKD 240,000[105]. - Mr. Wang Jianyang resigned as an executive director and CEO on January 3, 2024[106]. - The company is actively seeking a suitable candidate to fill the CEO position following the resignation of Mr. Wang Jianyang on January 3, 2024[135]. Risk Management - The company faces risks related to contract acquisition, management team reliance, and supplier performance[91]. - The company has established a risk management system with key features including risk assessment to evaluate the nature and extent of risks associated with achieving strategic goals[192]. - The board of directors confirmed the effectiveness of the risk management and internal control systems, which meet the current business environment's needs and comply with GEM listing rules[196]. - The company conducts annual risk assessments to identify potential strategic, operational, financial, and compliance risks[195]. Shareholder Information - The company has not declared a final dividend for the year, consistent with the previous year[88]. - The company has zero distributable reserves as of December 31, 2023, unchanged from the previous year[96]. - The major shareholders accounted for 29.1% of total purchases, with the largest supplier contributing 9.5%[99]. - The major customers represented 39.1% of total sales, with the largest customer contributing 11.5%[99]. - As of December 31, 2023, Mr. Chen Hongkai holds 16,469,200 shares and 3,600,000 options, totaling 20,069,200 shares, representing 5.57% of the company[117]. - As of December 31, 2023, the major shareholder, Mr. Lu Yujian, holds 68,496,000 shares, representing 19.01% of the company's issued shares[121]. - The company has maintained a public float of at least 25% of its issued shares as required by GEM listing rules[126]. Charitable Contributions - The company made charitable donations totaling HKD 10,000 during the year, down from HKD 17,000 in the previous year[97].
简朴新生活(08360) - 2023 - 年度业绩