Financial Performance - For the year ended December 31, 2023, the group recorded a net loss of HKD 106.1 million, compared to a net loss of HKD 120.2 million in the previous year, indicating an improvement in financial performance [14]. - The total loss before tax for the group was HKD 119.2 million, with a breakdown of losses from Mainland China at HKD 88.2 million, Hong Kong at HKD 3.0 million, and others at HKD 27.9 million [28]. - The basic loss per share attributable to ordinary shareholders for the year ended December 31, 2023, was HKD (26.85), compared to HKD (30.47) for the previous year [30]. - The adjusted net loss for the group was HKD 106,081,000, with a pre-tax loss of HKD 102,312,000 [188]. - The company reported a net loss of HKD 120,214,000 for the year, compared to a loss of HKD 119,182,000 before tax [199]. Revenue and Sales - Total revenue for 2023 is HKD 406,859 thousand, a decrease of 9.2% from HKD 448,069 thousand in 2022 [51]. - Revenue from sales of concentrated Chinese medicine formula granules is HKD 298,634 thousand in 2023, down from HKD 343,715 thousand in 2022 [51]. - The total sales revenue of Chinese medicine health products in the US, Japan, Hong Kong, and mainland China was HKD 82.0 million, an increase of HKD 3.1 million or 4.0% from last year's HKD 78.9 million [93]. - Revenue from product sales in Hong Kong amounted to HKD 290,989,000, while revenue from mainland China was HKD 62,832,000 [196]. - The concentrated Chinese medicine health products segment in the US recorded sales of HKD 30.1 million, accounting for 36.7% of total sales, representing an increase of HKD 3.3 million or 12.2% from last year [99]. Expenses and Costs - The cost of goods sold for 2023 is HKD 185,881 thousand, an increase from HKD 181,518 thousand in 2022 [55]. - Employee benefits expenses increased significantly to HKD 130,766 thousand in 2023 from HKD 91,351 thousand in 2022 [55]. - Selling and distribution expenses decreased by 41.8% to HKD 91.7 million from HKD 157.4 million, with the percentage of revenue dropping from 35.1% to 22.5% [110]. - Administrative expenses increased by 8.6% to HKD 171.5 million from HKD 157.9 million, driven by higher employee costs and new office leasing in Shenzhen [112]. - Financing costs increased by 13.2% to HKD 27.4 million from HKD 24.2 million, consistent with the increase in average bank borrowings [116]. Assets and Liabilities - As of December 31, 2023, the group's current liabilities net amount was HKD 221.5 million, an increase of 23.5% from HKD 179.4 million in 2022 [15]. - Cash and cash equivalents decreased by 73.5%, from HKD 75.8 million in 2022 to HKD 20.1 million in 2023 [15]. - The group had undrawn bank financing of HKD 105.5 million, which increased by 24.3% from HKD 84.8 million in 2022 [15]. - The company reported a total of HKD 304,023,000 in current borrowings due within one year or on demand, compared to HKD 410,140,000 in the previous year, indicating a reduction of about 26% [74]. - The total value of trade receivables pledged as collateral for bank loans was HKD 55,620,000, down from HKD 58,255,000 in the previous year [67]. Cash Flow - The net cash flow from operating activities for the year ended December 31, 2023, was HKD 79.6 million, a decrease of HKD 8.9 million compared to the previous year [123]. - The net cash used in financing activities increased to HKD 122.4 million, up HKD 86.8 million from the previous year, primarily due to a net decrease in bank loans and other borrowings [125]. - The net cash used in investment activities for the year ended December 31, 2023, was HKD 18.2 million, a decrease from HKD 31.2 million in the previous year, primarily due to a reduction in pledged time deposits and the purchase of property, plant, and equipment [16]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring compliance with all applicable provisions [160]. - The audit committee consists of three independent non-executive directors, ensuring proper oversight [163]. - The company believes that the current structure facilitates robust and consistent leadership for effective decision-making [160]. - The independent auditor agreed that the preliminary performance announcement figures for the year ending December 31, 2023, are consistent with the consolidated financial statements [169]. Future Plans and Strategies - The company plans to continue diversifying its business and expanding into the Greater Bay Area, focusing on modernizing and smartening traditional Chinese medicine clinics over the next two years [88]. - The company plans to utilize approximately HKD 282.0 million of the net proceeds from its IPO for various purposes, including expanding production facilities and establishing new TCM clinics in Hong Kong and China [141]. - The company anticipates that the demand for health products will rise due to increased consumer health awareness, providing more opportunities for its Chinese medicine health products segment [100]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth [196].
培力农本方(01498) - 2023 - 年度业绩