Financial Performance - For the year ended December 31, 2023, the company's revenue increased to HKD 24,493,000 from HKD 21,436,000, representing a growth of approximately 9.5%[5] - The gross profit for the same period rose to HKD 15,642,000, compared to HKD 12,700,000, indicating a gross margin improvement[5] - Operating loss decreased to HKD 11,594,000 from HKD 21,878,000, reflecting a reduction of approximately 47%[5] - The net loss attributable to the owners of the company from continuing operations was HKD 11,591,000, down from HKD 21,945,000, a decrease of about 47%[6] - The total comprehensive loss for the year was HKD 9,335,000, compared to HKD 21,971,000 in the previous year, showing a significant improvement[8] - The company reported a total loss before tax from continuing operations of HKD 12,484,000 for the year ended December 31, 2023, compared to a loss of HKD 22,152,000 in 2022, indicating an improvement in financial performance[39] - The group reported a loss before tax from continuing operations of HKD 12,484,000 in 2023, an improvement from a loss of HKD 22,152,000 in 2022, reflecting a 43.9% reduction in losses[56] - The group incurred a net loss attributable to owners of HKD 8,542,000 in 2023, a decrease from a loss of HKD 21,869,000 in 2022, indicating improved financial performance[59] Cash Flow and Liquidity - The company's cash and cash equivalents decreased to HKD 3,198,000 from HKD 4,445,000, a decline of approximately 28%[10] - The group recorded a net cash outflow of HKD 4,898,000 during the year[18] - As of December 31, 2023, the group's current liabilities net amount was HKD 3,183,000, with total current liabilities at HKD 11,886,000, and total cash and cash equivalents amounting to HKD 3,198,000[18] - Other payables decreased to HKD 846,000 in 2023 from HKD 2,154,000 in 2022, indicating improved liquidity management[67] Expenses and Cost Management - Research and development expenses increased to HKD 11,396,000 from HKD 8,585,000, representing a rise of approximately 33%[5] - Administrative and other operating expenses increased by approximately HKD 6,640,000 or 38.3% to about HKD 23,998,000, primarily due to increased employee costs and professional fees[78] - Financing costs for the year were approximately HKD 890,000, up from HKD 274,000 in the previous year, mainly due to increased borrowing interest[80] - The total sales cost for the year was approximately HKD 8,851,000, an increase of about HKD 115,000 or 1.3% compared to HKD 8,736,000 in 2022[76] Assets and Liabilities - The total liabilities decreased from HKD 13,926,000 to HKD 11,886,000, a reduction of about 15%[10] - The total assets of the continuing operations reported as of December 31, 2023, were HKD 8,703,000, a significant decrease from HKD 19,570,000 in 2022[41] - The total liabilities for continuing operations as of December 31, 2023, were HKD 13,264,000, down from HKD 14,796,000 in 2022, indicating a reduction in financial obligations[42] Business Strategy and Future Plans - The company plans to continue expanding its software platform services and mobile game development in the upcoming year[13] - The company plans to focus on expanding high-growth areas while maintaining operations in slower growth sectors to adapt to post-pandemic challenges[88] - The newly launched advertising e-commerce platform aims to enhance advertising efficiency for SMEs, leveraging data-driven advertising solutions[89] Corporate Governance and Compliance - The company has adopted a securities trading code that complies with GEM Listing Rules, with no known violations reported[102] - The company has maintained high standards of corporate governance, adhering to the GEM Listing Rules, except for a specific provision regarding the separation of roles between the chairman and CEO[103] - The board consists of experienced members who ensure balanced power and authority within the company's operations[103] Shareholder Actions and Capital Management - The board proposed a rights issue at a subscription price of HKD 0.12 per share, aiming to raise up to approximately HKD 30,543,000 before expenses by issuing a maximum of 254,528,000 rights shares[20] - The board proposed a capital reorganization involving a share consolidation where every 10 existing shares of HKD 0.04 each will be consolidated into 1 share of HKD 0.4[100] - Following the capital reduction, the company plans to issue up to 254,528,000 rights shares at a subscription price of HKD 0.12 per share, potentially raising up to approximately HKD 30.54 million before expenses[100] Employee and Operational Metrics - Employee costs, including director remuneration, increased to HKD 18,074,000 in 2023 from HKD 17,438,000 in 2022, representing a rise of 3.7%[52] - As of December 31, 2023, the group employed 55 staff in Hong Kong and China, an increase from 52 staff in 2022[98] Impairment and Write-offs - The company reported a goodwill impairment loss of HKD 1,728,000, down from HKD 18,508,000, indicating a significant reduction in impairment[5] - The company recognized a write-off of HKD 1,969,000 for deposits related to mobile game development, which were deemed unrecoverable[61]
悟喜生活(08148) - 2023 - 年度业绩