Financial Performance - The company reported revenue of approximately HKD 74,031,000 for the year ended December 31, 2023, a decrease of 61.6% compared to HKD 192,741,000 for the year ended December 31, 2022[3]. - The net loss for the reporting period increased to approximately HKD 74,915,000 from HKD 58,178,000 in the previous year[6]. - The gross loss for the year was HKD 10,317,000, compared to a gross profit of HKD 4,885,000 in the previous year[6]. - Revenue from external customers for the year ended December 31, 2023, was HKD 74,031,000, a decrease from HKD 192,741,000 in 2022, representing a decline of approximately 61.5%[23]. - Major customer A contributed HKD 67,500,000 to total revenue in 2023, down from HKD 134,534,000 in 2022, indicating a reduction of about 50%[24]. - The company reported a loss of approximately HKD 74,915,000 for the year ended December 31, 2023, compared to a loss of HKD 58,178,000 in 2022, indicating an increase in losses of about 28.8%[30]. - The cost of inventory recognized as expenses decreased significantly to HKD 71,660,000 in 2023 from HKD 176,668,000 in 2022, representing a reduction of approximately 59.5%[6]. - The group recorded a gross loss of approximately HKD 10.3 million and an inventory impairment of about HKD 12.9 million during the reporting period[52]. - The net loss for the group during the reporting period was approximately HKD 74.9 million, with current liabilities net amounting to about HKD 23.1 million[56]. Liquidity and Financial Position - The company’s current liabilities exceeded current assets by approximately HKD 23,112,000 as of December 31, 2023[13]. - The company recorded a cash balance of HKD 7,182,000 as of December 31, 2023, compared to HKD 6,449,000 in the previous year[13]. - The total liabilities of the company amounted to approximately HKD 175,849,000 as of December 31, 2023[13]. - The net current liabilities amounted to approximately HKD 23,112,000, indicating significant uncertainty regarding the company's ability to continue as a going concern[49]. - The company has plans and measures in place to alleviate liquidity pressure and improve financial performance, but these are subject to multiple uncertainties[49]. - The current ratio as of December 31, 2023, was 0.4, down from 1.3 in 2022, indicating a decline in liquidity[66]. - The group believes it can meet its short-term obligations with the support of shareholder loans and proposed equity financing[57]. Financing and Shareholder Support - Major shareholder Mr. Li provided approximately HKD 5,879,000 in shareholder loans for the year ended December 31, 2023, with an additional HKD 1,943,000 loaned post-reporting period for operational funding[17]. - The company is actively seeking alternative financing through capital markets, including potential share placements[17]. - The company plans to continue seeking additional financing from Mr. Li and other sources as necessary to meet operational cash flow requirements[18]. - The maturity date of the shareholder loans has been extended by an additional two years to March 30, 2026[53]. - Loans from a major shareholder amounted to approximately HKD 28,812,000 as of December 31, 2023, up from HKD 25,863,000 in 2022[66]. Auditor's Opinion and Going Concern - The independent auditor expressed an inability to issue an opinion on the consolidated financial statements due to uncertainties related to going concern[48]. - The auditor expressed a disclaimer of opinion on the consolidated financial statements due to significant uncertainties regarding the group's ability to continue as a going concern[56]. Market Conditions and Economic Outlook - The operating loss was primarily due to a decrease in revenue caused by rapid industry development and a weak global economic environment, leading to order losses[3]. - The International Monetary Fund projects global economic growth of 3.1% in 2024 and 3.2% in 2025, which is below the historical average of 3.8%[76]. - Global inflation is expected to decrease to 5.8% in 2024 and 4.4% in 2025, reflecting a faster-than-expected decline in inflation rates across most regions[76]. - China's economy grew by 5.2% in 2023, surpassing the official target of around 5% and outperforming the 3.0% growth in 2022[77]. - The economic growth rate is expected to slow to 4.6% in 2024 and further to 4.0% in 2025 due to ongoing weakness in the real estate sector and low external demand[77]. Business Strategy and Future Prospects - The company is actively seeking and exploring business opportunities in Vietnam to improve its prospects amid high uncertainty in the electronic products sector[77]. - The company has not proposed any new product launches or market expansions during the reporting period[29]. - There were no significant mergers or acquisitions reported in the current financial year[29]. - The group is exploring equity financing options to improve its financial situation and support future development, with discussions ongoing with potential investors[60].
瑞鑫国际集团(00724) - 2023 - 年度业绩