Financial Performance - For the year ended December 31, 2023, the total revenue was HKD 809,107,000, a decrease of 9.5% from HKD 894,062,000 in 2022[3] - Gross profit for the year was HKD 471,292,000, down 7% from HKD 506,221,000 in the previous year[3] - The company reported a loss from continuing operations of HKD 61,115,000, compared to a loss of HKD 109,744,000 in 2022, indicating an improvement of 44.2%[3] - The total comprehensive loss for the year was HKD 77,636,000, a reduction from HKD 110,907,000 in 2022[4] - Basic loss per share from continuing operations was HKD 0.52, improved from HKD 1.52 in the previous year[6] - The company reported a pre-tax loss of HKD 43,919,000 for 2023, compared to a loss of HKD 117,736,000 in 2022, indicating an improvement in financial performance[25] - The net loss for the fiscal year was approximately HKD 61.1 million, a decrease of about HKD 48.6 million from a net loss of HKD 109.7 million in the previous year[41] Revenue Breakdown - Revenue from the pharmaceutical business was HKD 607,131,000 in 2023, down 16.0% from HKD 722,903,000 in 2022[25] - Revenue from the fitness business increased to HKD 201,976,000 in 2023, up 17.0% from HKD 171,159,000 in 2022[25] - The pharmaceutical segment reported revenue and gross profit of approximately HKD 607.1 million and HKD 467.2 million for the year ending December 31, 2023, representing a year-on-year decline of about 16.0% and 10.5% respectively[44] - Chongqing Kangle's revenue and gross profit decreased by approximately 38.0% and 69.7%, amounting to RMB 72.7 million and RMB 9.0 million respectively, due to reduced customer demand amid a weak macroeconomic environment[48] - The fitness segment's revenue increased to approximately HKD 202.0 million for the year ending December 31, 2023, compared to HKD 171.2 million in 2022, despite a loss of approximately HKD 81.5 million[51] - Shaanxi Chenji's revenue and gross profit fell by approximately 65.4% and 63.6%, amounting to RMB 21.6 million and RMB 9.7 million respectively, prior to its sale[50] Assets and Liabilities - Non-current assets decreased to HKD 1,139,578,000 from HKD 1,430,941,000, reflecting a decline of 20.4%[8] - Current assets decreased to HKD 587,757,000 from HKD 689,502,000, a decline of 14.8%[8] - The company's total equity attributable to shareholders decreased to HKD 1,057,289,000 from HKD 1,101,107,000, a decrease of 4%[9] - The asset-liability ratio improved to 3.0% as of December 31, 2023, down from 12.4% in the previous year, with total borrowings decreasing from HKD 261.9 million to HKD 52.3 million[55] - As of December 31, 2023, the group's bank borrowings amounted to approximately HKD 28,824,000, a decrease from HKD 206,555,000 in 2022[59] Cash Flow and Financing - The company reported a significant reduction in financing costs to HKD 15,250,000 from HKD 23,278,000, a decrease of 34.4%[3] - The cash and cash equivalents decreased to HKD 77,659,000 from HKD 122,595,000, a decline of 36.6%[8] - The company held cash reserves of approximately HKD 77.7 million as of December 31, 2023, down from HKD 122.6 million in the previous year[54] Employee and Operational Costs - The total employee costs for the year were HKD 178.3 million, an increase from HKD 163.6 million in the previous year[32] - The fitness business faced challenges from increased salaries and commissions, reduced government subsidies, and increased expected credit losses on receivables[51] Government Grants and Subsidies - Government grants and subsidies totaled HKD 24,469,000 in 2023, down from HKD 37,928,000 in 2022[28] - The company received government subsidies amounting to approximately HKD 1.335 million, down from HKD 1.568 million in the previous year[30] Corporate Governance and Shareholder Information - The company did not recommend any final dividend for the fiscal year ending December 31, 2023, consistent with the previous year[35] - The board has decided not to recommend any final dividend for the year ended December 31, 2023[65] - The group has complied with all applicable corporate governance codes during the year ended December 31, 2023[67] - The group did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2023[71] Strategic Initiatives and Future Outlook - The company has restructured its internal reporting framework, leading to changes in the composition of reportable segments[21] - The company is actively seeking new customers and markets to improve performance in the Chongqing Kangle segment for 2024[48] - The pharmaceutical business is expected to face intensified price competition in 2024, prompting the group to enhance product development and marketing strategies[62] - The fitness business aims for sustainable year-on-year growth through innovative marketing and personalized services, capitalizing on emerging trends[63] - The group has implemented strategies to address macro market changes, including online marketing and a new selection plan[62] One-time Gains - The company recorded a one-time gain of approximately HKD 110.5 million from the sale of its entire equity interest in Shaanxi Chenji, contributing to the improvement in performance despite declines in revenue and gross profit[41] - The sale of 66% equity in Shaanxi Chenji Pharmaceutical Group on May 9, 2023, resulted in a one-time gain of approximately HKD 110.5 million, which offset some of the declines in revenue and gross profit[44] Employee Count - The group had 720 employees as of December 31, 2023, down from 922 in 2022[61] Meeting and Share Transfer Information - The group will hold its annual general meeting on June 7, 2024, with a suspension of share transfer registration from June 3 to June 7, 2024[66]
华控康泰(01312) - 2023 - 年度业绩