Financial Performance - Revenue for the year ended December 31, 2023, was approximately HKD 107.6 million, a decrease of about 9.2% compared to HKD 118.5 million in 2022[5] - Net loss for the year ended December 31, 2023, was approximately HKD 9.1 million, compared to a net loss of HKD 2.7 million in 2022[5] - Total comprehensive loss for the year ended December 31, 2023, amounted to approximately HKD 9.9 million, compared to HKD 3.6 million in 2022[6] - The group reported a significant increase in total liabilities, with net liabilities reaching approximately HKD 10.8 million compared to HKD 0.8 million in 2022[10] - The group’s operational loss for the year was approximately HKD 1.9 million, compared to an operational profit of HKD 3.4 million in 2022[6] - The company reported a loss of HKD 9,773,000 for the year, slightly improved from a loss of HKD 10,329,000 in 2022[49] - The loss attributable to owners of the company was approximately HKD 9,800,000, a decrease of about HKD 500,000 compared to HKD 10,300,000 in the fiscal year 2022[80] Earnings Per Share - Basic and diluted loss per share for the year ended December 31, 2023, was approximately HKD 0.97, slightly improved from HKD 1.02 in 2022[7] - Basic loss per share was HKD 0.0097 in 2023, compared to HKD 0.0103 in 2022, indicating a marginal improvement[49] - The basic loss per share adjusted for accounting policy changes was HKD 0.97, compared to an adjusted loss of HKD 0.70 before adjustments[28] Revenue Breakdown - Revenue from Hong Kong was HKD 68,036,000, down 1.9% from HKD 69,377,000 in 2022, while revenue from China decreased by 19.4% to HKD 39,570,000 from HKD 49,156,000[44] - Revenue from concrete demolition services was HKD 68.036 million in FY2023, a slight decrease from HKD 69.377 million in FY2022[72] - Revenue from prefabricated construction decreased from HKD 49.156 million in FY2022 to HKD 39.570 million in FY2023[72] Assets and Liabilities - Trade and other receivables decreased to HKD 59 million from HKD 71.3 million in 2022, reflecting a reduction of approximately 17.3%[9] - Current liabilities decreased to HKD 83.4 million from HKD 98.7 million in 2022, a reduction of about 15.4%[9] - The company’s non-current assets decreased to HKD 23.3 million from HKD 26.3 million in 2022, a decline of about 11.4%[9] - Trade receivables decreased to HKD 64,994,000 in 2023 from HKD 70,573,000 in 2022, a decline of 7.9%[52] - Trade payables decreased significantly to HKD 15,570,000 in 2023 from HKD 22,774,000 in 2022, a reduction of 31.2%[57] - The total assets for the construction segment as of December 31, 2023, were HKD 82,109,000, a decrease from HKD 98,465,000 in 2022[41] - The total liabilities for the construction segment decreased to HKD 38,071,000 in 2023 from HKD 48,369,000 in 2022[41] Cost and Expenses - The cost of sales increased by HKD 2,074,000, and administrative and other operating expenses rose by HKD 600,000, contributing to a total impact of HKD 2,702,000 on the net loss for the year[28] - Administrative and other operating expenses increased from approximately HKD 35,900,000 in the fiscal year 2022 to about HKD 36,700,000, an increase of HKD 800,000[79] - Other income and net other gains decreased from approximately HKD 8,500,000 in the fiscal year 2022 to about HKD 5,000,000, a reduction of HKD 3,500,000[77] Cash Flow and Financing - The board has reviewed the cash flow forecast, confirming sufficient operating funds for at least 12 months from December 31, 2023, to meet financial obligations without significant operational reductions[14] - A lender has agreed not to demand repayment of HKD 40,000,000 in other loans until the company can fulfill all other financial responsibilities[14] - Bondholders have agreed not to demand repayment of HKD 5,800,000 in bonds and accrued interest until the company can meet all other financial obligations[14] - The group had cash and bank deposits of approximately HKD 36,200,000 as of December 31, 2023, compared to HKD 36,300,000 in 2022[82] - The group’s total borrowings amounted to approximately HKD 76,200,000, with an interest rate ranging from 4.6% to 12.0% per annum[87] Accounting Policies and Standards - The adoption of new and revised Hong Kong Financial Reporting Standards has been applied without significant impact on the financial condition and performance of the group[16] - The company will retrospectively apply new accounting policies for lease transactions occurring on or after January 1, 2022[22] - The group has made accounting policy changes due to the cancellation of the offset mechanism for mandatory provident fund and long service payments, effective May 1, 2025[24] - The company has adjusted its accounting treatment for long service payments due to the cancellation of the MPF offsetting mechanism, affecting its financial statements[27] - The company has begun evaluating the impact of new and revised Hong Kong Financial Reporting Standards but cannot yet determine their significant effects on operational performance and financial position[28] Corporate Governance - The company has confirmed that during the reporting period, no directors or their close associates held any positions or interests in any competing businesses[96] - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the reporting period[98] - The company has adhered to the corporate governance code as per GEM Listing Rules, with exceptions explained regarding insurance arrangements for directors[99] - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2023, including accounting principles and internal controls[103] - The preliminary announcement of the consolidated financial position and results for the year ending December 31, 2023, has been agreed upon by the auditors, but no assurance opinion was issued[104] - The annual report for the year ending December 31, 2023, will be published on the company's website and the Hong Kong Stock Exchange website[105] - The board of directors has confirmed that all information in the announcement is accurate and complete, with no misleading statements[106] Operational Developments - The group established its own production facilities in Huizhou, China, to manufacture and develop precast concrete components[71] - The group aims to expand its services in the Greater Bay Area and Hong Kong through its manufacturing and R&D efforts in prefabricated construction[71] - The group recognized impairment losses of approximately RMB 19.1 million (equivalent to HKD 20.937 million) related to other receivables[61] - The company recognized revenue based on the percentage of completion method for construction contracts, which is deemed the most reliable estimate[32] - The company reported a net impairment loss of HKD 3,968,000 on trade receivables for the construction segment in 2023[40] - Gross profit decreased from HKD 35,400,000 in the fiscal year 2022 to approximately HKD 33,700,000, a reduction of about HKD 1,700,000 or 4.8%[76] - Gross profit margin increased from 29.9% in the fiscal year 2022 to 31.4% in the reporting period, primarily due to an increase in the gross profit margin of concrete dismantling services from 32.0% to 33.8%[76]
朝威控股(08059) - 2023 - 年度业绩