Financial Performance - Revenue for the year ended December 31, 2023, was HKD 291,929 thousand, a decrease of 14% compared to HKD 341,241 thousand in 2022[31] - Adjusted EBITDA for 2023 was HKD 33,240 thousand, down 55% from HKD 74,463 thousand in the previous year[31] - The company reported a pre-tax loss of HKD 114,281 thousand, an increase of 59% from a loss of HKD 71,971 thousand in 2022[33] - The basic loss per share attributable to ordinary equity holders was HKD (14.8 cents), compared to HKD (12.2 cents) in the prior year, reflecting a 22% increase in loss per share[33] - Total assets decreased by 5% to HKD 847,343 thousand from HKD 894,676 thousand in 2022[31] - Cash and bank balances decreased by 14% to HKD 27,190 thousand from HKD 31,470 thousand in the previous year[31] - The company’s debt reduced by 25% to HKD 213,564 thousand from HKD 285,007 thousand in 2022[31] - The gross profit for 2023 was HKD 96,821 thousand, down from HKD 119,962 thousand in 2022[33] - The landscape design segment reported a significant decline in revenue, down 21% to HKD 97,000 thousand from HKD 122,856 thousand[31] - The graphene product segment also saw a revenue decrease of 9%, totaling HKD 194,929 thousand compared to HKD 214,614 thousand in the previous year[31] - The company recorded a loss attributable to equity holders of HKD 113,168,000 for the year ended December 31, 2023[71] - Current liabilities totaled HKD 320,168,000 as of December 31, 2023, compared to HKD 288,194,000 in 2022[68] - The company has a negative net current liabilities position of HKD 73,669,000 as of December 31, 2023[68] - For the fiscal year ending December 31, 2023, the loss attributable to ordinary equity holders of the parent was approximately HKD 113.2 million, compared to a loss of HKD 69.7 million for the fiscal year ending December 31, 2022, representing an increase in loss of about 62.5%[106] - Trade receivables and notes receivable amounted to HKD 220.7 million as of December 31, 2023, up from HKD 162.5 million as of December 31, 2022, reflecting an increase of approximately 35.7%[93] - Selling, marketing, and administrative expenses increased to approximately HKD 166.6 million, up about 3.5% from HKD 160.9 million for the same period in 2022[105] Investments and Expansion Plans - The company plans to invest in expanding production capacity and R&D for new battery systems as part of a five-year plan[2] - The company has established a strategic investment cooperation agreement with the Jixi City government to set up a deep processing production facility for graphite, targeting an annual production of 30,000 tons of high-purity spherical graphite and 10,000 tons of battery anode materials[14] - The first phase of the graphite deep processing project is estimated to require an investment of no less than RMB 200 million, with funding sourced from internal resources, bank loans, or future fundraising activities[14] - The company has signed a cooperation agreement with the government of Nanshu Town to develop a lithium-ion battery negative material project in Laixi City, Shandong Province, with an estimated total investment of RMB 1 billion[15] - The company plans to expand its negative electrode material production capacity to meet the growing demand for lithium-ion batteries, particularly in the electric vehicle and energy storage markets[98] - The group plans to expedite the expansion project in Laixi City, Shandong Province, China, to enhance production capabilities[124] Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules and regularly reviews its governance practices[4] - The independent auditor's report confirms that the consolidated financial statements fairly reflect the company's financial position as of December 31, 2023[10] - The company has confirmed compliance with the standard code of conduct for securities trading by all directors as of December 31, 2023[21] - The company has been granted high-tech enterprise status, allowing it to enjoy a preferential corporate income tax rate of 15% until December 31, 2025[113] Employee and Talent Management - The group employed approximately 287 employees as of December 31, 2023, with compensation determined based on job nature, market trends, and individual performance[18] - Employee benefits include mandatory provident fund contributions, retirement plans, medical coverage, insurance, and training programs[28] - The company has implemented a series of share plans to reward contributions from directors, senior personnel, employees, and service providers, aimed at attracting suitable talent[19] Financial Position and Liabilities - The group’s current ratio as of December 31, 2023, was approximately 0.77, down from 0.82 as of December 31, 2022[134] - The group’s capital debt ratio was approximately 58% as of December 31, 2023, compared to 77% as of December 31, 2022[135] - The impairment loss on trade receivables was HKD 72.7 million for the fiscal year ending December 31, 2023, compared to HKD 59.5 million for the fiscal year ending December 31, 2022, indicating an increase of approximately 22.1%[93] - The impairment losses on financial and contract assets increased to approximately HKD 22.3 million, a rise of about 17% compared to HKD 19.0 million in the same period of 2022[132] - The group reported a net loss from joint ventures of HKD 582, compared to a profit of HKD 249 in the previous year[86] - The group reported a net loss of approximately HKD 7.5 million from the sale of subsidiaries, including Yummy Food Holdings Limited and Thai Lang Hong Kong Limited[138] - The company has no significant or contingent liabilities as of December 31, 2023[148] Revenue Breakdown - Total revenue for the current year reached HKD 291.93 million, with graphene product sales contributing HKD 194.93 million and landscape design services contributing HKD 97 million[77] - Revenue from the Chinese mainland accounted for HKD 265.56 million, while revenue from Hong Kong was HKD 25.32 million[77] - The total revenue of the group decreased to approximately HKD 291.9 million, a year-on-year decrease of about 14.4% from HKD 341.2 million in 2022[139] - Revenue from the graphene products segment decreased by 9% year-on-year to approximately HKD 194.9 million, accounting for 67% of the group's total revenue, with a maintained gross profit margin of 28% compared to 25% in 2022[124] - The landscape design segment contributed revenue of approximately HKD 97 million, accounting for about 33% of total group revenue, which decreased by HKD 25.9 million or 21% compared to HKD 122.9 million for the fiscal year ending December 31, 2022[99] Leasing and Capital Commitments - The company has entered into a 10-year lease agreement for a factory in Laixi, Shandong Province, China, with a total rental payment of approximately RMB 58,871,806.82 (about HKD 65,936,423.64) over the lease term[1] - A leasing agreement for a factory has been established with a total duration of 10 years and a total rental amount of RMB 58,871,860.82 (approximately HKD 65,936,423.64)[15] - As of December 31, 2023, the company has capital commitments of HKD 5,760,000 for the purchase of properties, plants, and equipment, down from HKD 7,523,000 in 2022[14] Future Outlook and Funding - The company expects to have sufficient operating funds to meet its financial obligations for at least the next twelve months[71] - The board is in discussions with potential investors regarding raising new funds through the issuance of new shares and/or debt securities[54] - The group secured a short-term loan of HKD 20 million for operational funding[72] - The project company received a letter of intent from a major Chinese bank for a proposed loan of RMB 400 million[73] - The company plans to apply for relevant policy subsidies under the "Laixi City Investment Promotion Certain Preferential Measures (Trial)" after obtaining all necessary government approvals[15]
烯石电车新材料(06128) - 2023 - 年度业绩