Financial Performance - The company reported a loss attributable to owners of the company of HKD 27,909,000 for the year ended December 31, 2023, compared to a loss of HKD 18,936,000 in 2022, representing an increase in loss of approximately 47.5%[6]. - Revenue from external customers decreased to HKD 30,298,000 in 2023 from HKD 56,042,000 in 2022, reflecting a decline of about 46.0%[21]. - The manufacturing and distribution of leather products generated revenue of HKD 29,547,000 in 2023, down from HKD 54,542,000 in 2022, a decrease of approximately 45.1%[23]. - The retail segment for fashion, footwear, and leather accessories reported revenue of HKD 751,000 in 2023, compared to HKD 1,500,000 in 2022, indicating a decline of about 50.0%[23]. - The company incurred a significant loss of approximately HKD 27,909,000 for the year ending December 31, 2023, with current liabilities netting approximately HKD 53,131,000 and asset deficits of about HKD 59,325,000[35]. - The company reported a pre-tax loss of HKD 27,641,000 for the year, compared to a loss of HKD 18,936,000 in the previous year, reflecting an increase in losses of about 46%[45]. - The total assets of the company decreased to HKD 14,033,000 in 2023 from HKD 30,582,000 in 2022, representing a decline of approximately 54%[45]. - The company recorded a net loss attributable to shareholders of approximately HKD 27,909,000, compared to a loss of HKD 18,936,000 for the fiscal year ending December 31, 2022[149]. Customer Concentration - The company’s major customers are highly concentrated, with Customer A contributing HKD 16,618,000 in 2023, down from HKD 34,424,000 in 2022, a decrease of approximately 51.7%[22]. - The leather belt segment contributed HKD 27,968,000, accounting for 94.7% of the leather manufacturing revenue[124]. Asset and Liability Management - Non-current assets in Hong Kong decreased to HKD 1,014,000 in 2023 from HKD 7,950,000 in 2022, a decline of about 87.3%[21]. - The company has cash and cash equivalents of only about HKD 997,000 as of December 31, 2023, raising significant uncertainty regarding its ability to continue as a going concern[35]. - The total current liabilities as of December 31, 2023, were approximately HKD 66,383,000, an increase from approximately HKD 56,740,000 as of December 31, 2022[129]. - The current ratio decreased to approximately 0.20 times as of December 31, 2023, from approximately 0.31 times as of December 31, 2022[129]. - The company has a net liability of HKD 59,325,000, worsening from HKD 46,016,000 in the previous year[193]. Financing and Liquidity - The company has received a loan commitment from its executive director, ensuring liquidity support of HKD 8,000,000 until repayment is requested[11]. - The company has an external financing limit of up to HKD 40,000,000, with an interest rate of 20% per annum, which has not been utilized as of the announcement date[37]. - The company has a loan agreement with Mr. Qin for HKD 8,000,000, which is unsecured, interest-free, and has no fixed repayment term[78]. - The company has received financial support from Mr. Zhao, confirming that he will not demand repayment of approximately HKD 10,897,000 until the company is able to repay[93]. - The company completed a placement of new shares on November 6, 2023, raising approximately HKD 13,000,000[35]. Operational Efficiency - The company plans to continue seeking other financing sources and implement strict cost management measures to optimize operational efficiency[94]. - The company is actively taking measures to control operating costs and inventory levels to maintain healthier cash flow and liquidity[105]. - The company plans to focus on strict cost control measures and optimize operational and financial management to improve long-term profitability[155]. - The company is committed to strict cost management measures to optimize operational efficiency and minimize unnecessary cash outflows[198]. Impairment and Asset Valuation - The impairment loss on property, plant, and equipment amounted to HKD 2,964,000 for the year ended December 31, 2023, while the impairment loss on right-of-use assets was HKD 5,198,000, totaling HKD 8,162,000, compared to HKD 1,822,000 in 2022[53]. - The recoverable amount of the company's right-of-use assets was estimated to be zero, leading to no need for reversal of previous impairment losses[68]. - The group recorded significant impairment losses of approximately HKD 4,302,000 and HKD 896,000 for the leather manufacturing and retail businesses, respectively, for the year ended December 31, 2023[106]. Future Outlook - The group anticipates a recovery in business operations, aiming to expand its customer base and revenue sources beyond leather belts, with ongoing negotiations with several new potential clients, mainly in the US, Europe, and Asia[104]. - The group expects an increase in customer orders for the year ending December 31, 2024, compared to the year ending December 31, 2023, as negotiations with new clients progress successfully[104]. - The company has initiated a diversification plan into industrial hemp cultivation and hemp fabric production, having obtained relevant permits and leased land in Yunnan for trial cultivation[127]. Corporate Governance - The company has complied with the corporate governance code, except for a specific internal audit provision[173]. - The audit committee has reviewed and discussed financial reporting matters with management and external auditors for the year ended December 31, 2023[176]. - The board does not recommend the distribution of any dividends for the year ended December 31, 2023[140].
中联发展控股(00264) - 2023 - 年度业绩