Revenue and Profitability - The company's revenue for the year ended December 31, 2023, was approximately HKD 332.2 million, an increase of about 25.5% compared to the previous year[14]. - The wine business was the largest revenue segment, with earnings rising from approximately HKD 262.0 million in 2022 to about HKD 332.2 million in 2023[15]. - The food business revenue decreased from HKD 2.7 million in 2022 to zero in 2023, but the company remains optimistic about potential opportunities in the food market[14]. - The gross profit margin decreased from approximately 9.2% in 2022 to about 6.1% in 2023 due to discounts and sales promotions for the wine brand[15]. - The wine trade business recorded a segment profit of approximately HKD 0.8 million in 2023, down from HKD 10.8 million in 2022[15]. - The company reported a loss of approximately HKD 8.7 million in 2023, compared to a profit of about HKD 6.6 million in 2022[34]. - The company reported a loss before tax of HKD 8,556,000 for 2023, compared to a profit of HKD 6,842,000 in the previous year[180]. - The net loss for the year was HKD 8,699,000, a significant decline from a profit of HKD 6,550,000 in 2022[180]. - Basic and diluted loss per share for 2023 was HKD 0.85, compared to earnings of HKD 0.85 per share in 2022[182]. Expenses and Financial Costs - Total sales costs increased by approximately 29.9% to about HKD 312.0 million in 2023, up from approximately HKD 240.2 million in 2022[27]. - Other income decreased from approximately HKD 1.3 million in 2022 to about HKD 0.5 million in 2023, mainly due to reduced miscellaneous income and the cessation of government subsidies[28]. - Administrative expenses decreased by approximately 15.8% to about HKD 9.6 million in 2023, down from approximately HKD 11.4 million in 2022[31]. - Financial costs increased by approximately 41.7% to about HKD 6.8 million in 2023, up from approximately HKD 4.8 million in 2022[32]. - Employee benefit expenses decreased to HKD 2,823,000 from HKD 3,062,000 in 2022, reflecting a reduction of 7.8%[180]. - Administrative expenses were reduced to HKD 9,603,000 from HKD 11,375,000, indicating a decrease of 15.6%[180]. Market and Operational Challenges - The Australian subsidiary faced challenges due to grape virus diseases and market oversupply, impacting profitability[15]. - The company is optimistic about future harvests and is enhancing vineyard management skills in response to challenges[15]. - The company is actively seeking opportunities in the food market despite the decline in food business revenue[14]. - The board remains optimistic about the food business and is actively seeking potential opportunities in the market despite recent challenges[24]. - The group faces significant market risks, including currency fluctuations and potential impacts from political and trade tensions between China and Australia[57]. - The group acknowledges the competitive nature of the Hong Kong wine industry, which has seen reduced entry barriers since the 2008 zero import tariff policy[65]. Assets and Liabilities - As of December 31, 2023, the group's net current assets were approximately HKD 320.2 million, an increase from HKD 300.0 million in 2022[37]. - The group's cash and bank balances as of December 31, 2023, were approximately HKD 3.2 million, down from HKD 4.0 million in 2022[37]. - The debt-to-equity ratio as of December 31, 2023, was approximately 34%, compared to 24% in 2022[39]. - The total revenue from the group's five largest customers accounted for approximately 51% of total revenue in the current year, down from 54% in the previous year[82]. - The largest supplier accounted for 36% of the group's total procurement in 2023, a significant increase from 14% in 2022[84]. - The company’s total equity increased from HKD 355,841,000 to HKD 366,167,000, a growth of approximately 2.9% year-over-year[186]. - The company issued new shares raising HKD 19,938,000 during the year, contributing to the increase in equity[187]. Corporate Governance and Compliance - The company has adopted a communication policy to ensure shareholders and potential investors receive timely and understandable information[154]. - The board comprises three independent non-executive directors, with Mr. Su Yichuan serving as the chairman of both the remuneration and nomination committees[141][144]. - The company has fully complied with the corporate governance code applicable during the year[118]. - The independent non-executive directors have confirmed their independence according to GEM listing rules[122]. - The audit committee reviewed the annual performance of the group, ensuring compliance with applicable accounting standards and GEM listing rules[116]. - The company has adopted a board diversity policy to enhance board effectiveness by considering various factors such as gender, age, and professional experience[127]. - The company confirmed compliance with corporate governance codes regarding director training and has provided training records[133]. - The company has no internal audit department due to its relatively simple corporate structure, with the board fully responsible for assessing risks[150]. Strategic Initiatives - The company is expanding its distribution and wholesale channels for the wine trade business[15]. - The company is promoting its wine brand "Palinda" through discounts and diverse sales strategies to develop local markets[15]. - The company has established several agreements constituting continuing connected transactions, disclosed in Note 26 of the financial statements[108]. - The company has amended its articles of association to increase its authorized share capital from 1,000,000,000 shares to 10,000,000,000 shares, approved at the annual general meeting held on June 8, 2023[162]. Future Outlook - The company is optimistic about future harvests and is enhancing vineyard management skills in response to challenges[15]. - The company has not early adopted any new standards that have been issued but are not yet effective, indicating no expected significant impact on future financial statements[198]. - The Hong Kong government has introduced a new directive regarding the offset mechanism for long service payments, effective from May 1, 2025, which may affect the company's accounting practices[199].
百利达集团控股(08179) - 2023 - 年度业绩