Financial Performance - For the fiscal year ending December 31, 2023, the company reported revenue from continuing operations of HKD 716,658,000, a decrease of 22.8% compared to HKD 928,475,000 in the previous year[11]. - The company recorded a loss from continuing operations of HKD 156,143,000, compared to a loss of HKD 1,290,000 in the previous year, indicating a significant decline in performance[11]. - The company reported a net loss before tax of HKD 139,784,000, compared to a profit of HKD 7,351,000 in the previous year, highlighting a substantial downturn[11]. - The total comprehensive loss for the year amounted to HKD 255,767,000, compared to HKD 196,510,000 in the previous year, representing an increase of 30%[2]. - The company’s basic and diluted loss per share from continuing operations was HKD (0.100), compared to HKD (0.001) in the previous year[2]. - The company reported a significant loss attributable to shareholders, mainly due to a decrease in the share of joint venture performance by approximately HKD 32,000,000 and goodwill impairment losses of approximately HKD 92,700,000[113]. - The group reported a loss attributable to shareholders of approximately HKD 163.9 million for the year ended December 31, 2023, compared to a profit of HKD 6.2 million in 2022[140]. Revenue and Income - Other income for the year was HKD 23,146,000, down from HKD 32,743,000, reflecting a decrease of 29.3%[11]. - The company’s total revenue for the year ended December 31, 2023, was HKD 729,221 thousand, compared to HKD 683,145 thousand in 2022, reflecting a growth of approximately 6.7%[30]. - The total revenue from continuous operations was HKD 762,322 thousand, down from HKD 1,022,402 thousand, a decrease of 25.4%[44]. - The revenue from the printing and manufacturing of paper packaging and related materials was approximately HKD 683.6 million, accounting for about 95.4% of total revenue in 2023[130]. - Total revenue for the year ended December 31, 2023, was HKD 683,557,000, compared to HKD 607,056,000 in 2022, representing an increase of approximately 12.6%[190]. Costs and Expenses - The cost of sales for the year was HKD 589,519,000, down from HKD 828,810,000, resulting in a gross profit of HKD 127,139,000, an increase of 27.7% from HKD 99,665,000[11]. - Employee costs for continuing operations amounted to HKD 78.353 million in 2023, down 32.6% from HKD 116.216 million in 2022[88]. - The cost of inventory for continuing operations was HKD 452.558 million in 2023, a decrease of 24.1% from HKD 596.720 million in 2022[88]. - Sales and distribution expenses for the year ending December 31, 2023, decreased by 22.4% to approximately HKD 17,700,000 from HKD 22,800,000 for the year ending December 31, 2022, primarily due to reduced transportation and hospitality costs[107]. - Administrative expenses for the year ending December 31, 2023, decreased by 36.0% to approximately HKD 70,300,000 from HKD 109,800,000 for the year ending December 31, 2022[108]. Assets and Liabilities - Total assets decreased from HKD 2,554,213 thousand in 2022 to HKD 2,218,066 thousand in 2023, a decline of approximately 13.2%[14]. - Current liabilities decreased from HKD 640,448 thousand in 2022 to HKD 495,461 thousand in 2023, a reduction of about 22.7%[14]. - Trade receivables decreased from HKD 363,892 thousand in 2022 to HKD 242,576 thousand in 2023, a drop of approximately 33.3%[14]. - The company reported a net asset value of HKD 2,156,655 thousand in 2023, down from HKD 2,475,137 thousand in 2022, a decrease of about 12.9%[14]. - The group’s current ratio improved to 2.2 times in 2023 from 1.5 times in 2022, and the quick ratio improved to 2.0 times from 1.3 times[143]. Strategic Plans and Future Outlook - The company plans to focus on new product development and market expansion strategies to improve future performance[11]. - The company aims to enhance operational efficiency and reduce costs in response to the challenging market conditions[11]. - The company plans to expand its market presence in Brazil, India, Turkey, Portugal, and South Korea[55]. - The group aims to optimize its asset portfolio by selling non-core assets and focusing on core business development to enhance profitability and shareholder returns[155]. - The group plans to continue expanding its market presence in packaging while seeking maximum returns from investment properties[155]. Governance and Management - The company is committed to maintaining a clear division of responsibilities between the Chairman and the CEO, as per governance guidelines[182]. - The company has not yet appointed an individual to fill the vacancy of the Chief Executive Officer since the resignation of the previous CEO on April 22, 2022[183]. - The company is currently undergoing a review by the audit committee, indicating a focus on financial oversight and compliance[184]. Market Conditions and Challenges - The company has faced operational pressure due to increased competition and rising raw material costs in the tobacco industry[100]. - The economic outlook for China remains uncertain due to global inflation, competition between the US and China, and ongoing geopolitical tensions, which may adversely affect the Group's business environment in 2024[176].
力图控股(01008) - 2023 - 年度业绩