Financial Performance - The total revenue for Wai Chi Holdings Company Limited for the year ended December 31, 2023, was HKD 1,985,768, a decrease of 10.4% from HKD 2,216,352 in 2022[3]. - Gross profit increased to HKD 268,601, with a gross margin of 13.5%, up from 11.9% in the previous year[3]. - The profit attributable to owners of the company was HKD 36,417, down 39.2% from HKD 59,912 in 2022[3]. - Basic earnings per share decreased to HKD 0.168 from HKD 0.276, reflecting a decline of 39.1%[3]. - The total comprehensive income for the year was HKD 35,522, significantly higher than HKD 4,396 in 2022[6]. - The group reported a total segment profit of HKD 69,978,000 for 2023, compared to HKD 105,947,000 in 2022, reflecting a decline of 34%[31][33]. - The group’s pre-tax profit for the year was HKD 38,895,000, down from HKD 59,173,000 in 2022[31][33]. - The total annual profit after deducting various expenses was HKD 321,748,000 in 2023, compared to HKD 293,116,000 in 2022, reflecting a growth of 9.8%[39]. Revenue Breakdown - Revenue from LED backlighting was HKD 1,656,359,000, showing an increase of 2.3% from HKD 1,620,565,000 in 2022[25][31][33]. - Revenue from LED lighting increased significantly to HKD 120,442,000, up 31.7% from HKD 91,470,000 in 2022[25][31][33]. - Semiconductor storage chip revenue decreased sharply to HKD 208,967,000, down 58.6% from HKD 504,317,000 in 2022[25][31][33]. - Core business revenue, which includes LED backlighting and LED lighting products, was approximately HKD 1,776,801,000, an increase of 3.8% from HKD 1,712,035,000 in the previous year[58]. - The automotive display backlighting segment continued to be the main growth driver, contributing approximately 90.0% of total LED backlighting sales, up from 83.4% in 2022[61]. Assets and Liabilities - Current assets decreased to HKD 1,979,440 from HKD 2,140,806, a decline of 7.5%[8]. - The net asset value increased to HKD 868,204 from HKD 826,401, reflecting a growth of 5.1%[9]. - The company reported a decrease in bank and other borrowings to HKD 271,400 from HKD 444,408, a reduction of 38.9%[8]. - The company's inventory as of December 31, 2023, was HKD 265,803,000, a decrease of 3.9% from HKD 276,763,000 in 2022[40]. - Accounts receivable increased to HKD 880,858,000 in 2023, up 17.4% from HKD 749,923,000 in 2022[41]. - Accounts payable increased to HKD 539,744,000 in 2023, up 37.2% from HKD 393,639,000 in 2022[47]. - The total amount of accounts payable and other payables decreased to HKD 1,244,516,000 in 2023 from HKD 1,407,034,000 in 2022, a reduction of 11.5%[47]. Other Income and Expenses - Other income rose to HKD 72,543, compared to HKD 52,335 in the previous year, indicating a growth of 38.6%[5]. - The group's bank interest income decreased to HKD 29,162,000 from HKD 34,815,000 in 2022, a decline of 16.5%[27]. - Government grants received increased significantly to HKD 37,913,000 from HKD 10,981,000 in 2022, marking a growth of 245.5%[27]. - The total financial costs decreased to HKD 37,848,000 in 2023, compared to HKD 40,189,000 in 2022, indicating a reduction of 5.8%[36]. - The company recognized a provision for inventory of HKD 18,226,000 in 2023, which is an increase from HKD 7,196,000 in 2022[35]. Corporate Governance and Future Plans - The company plans to continue investing in research and development, with R&D expenses amounting to HKD 77,172, down from HKD 86,044 in the previous year[5]. - The company plans to implement the revised Hong Kong Accounting Standard No. 1 starting from January 1, 2024, which will clarify the classification of liabilities[20]. - The group plans to expand mini-LED production capacity and invest in technological innovation to meet future demand for high-end display products[75]. - The group continues to invest in rapid product development to maintain its market leadership position amid increasing competition[75]. - The board of directors is committed to maintaining high standards of corporate governance, having adopted the corporate governance code effective as of December 31, 2023[96]. Shareholder Information - The company did not declare or recommend any dividends for the year ended December 31, 2023, consistent with 2022[51]. - The company granted 800,000 incentive shares and 400,000 stock options under the share incentive plan, which was approved at the extraordinary general meeting on February 9, 2023[90]. - The company plans to hold its annual general meeting on May 29, 2024[99]. - The annual report containing all applicable information as per listing rules will be sent to shareholders and published on the company's website at an appropriate time[100]. - The board expressed gratitude to shareholders for their trust in the management team and to all business partners and banking enterprises for their support[101].
伟志控股(01305) - 2023 - 年度业绩