Financial Performance - The total revenue for the year ended December 31, 2023, was HKD 69,059,000, a decrease of 9.5% compared to HKD 76,274,000 in 2022[6] - The gross loss for the year was HKD 3,300,000, compared to a gross profit of HKD 13,381,000 in the previous year[6] - The net loss for the year was HKD 46,825,000, which is a significant increase from the net loss of HKD 22,904,000 in 2022, representing a 104% increase in losses[6] - The basic and diluted loss per share for the year was HKD 11.44, compared to HKD 5.60 in the previous year, indicating a 104.3% increase in loss per share[6] - The company reported a total loss before tax of HKD 46,567,000 for the year ended December 31, 2023[40] - The group recorded a loss before tax of approximately HKD 46,600,000 for the year ended December 31, 2023, compared to a loss of approximately HKD 22,900,000 for the year ended December 31, 2022, an increase of about 103.1%[83] - The company reported a loss attributable to owners of approximately HKD 46,825,000 and a gross loss of about HKD 3,300,000 for the year ended December 31, 2023[31] - The company incurred a net loss of HKD 8,984,000 from other gains and losses in 2023, compared to a gain of HKD 2,023,000 in 2022[42] Assets and Liabilities - Total assets decreased from HKD 97,874,000 in 2022 to HKD 47,539,000 in 2023, reflecting a decline of 51.5%[7] - The total liabilities decreased from HKD 67,973,000 in 2022 to HKD 58,070,000 in 2023, a reduction of 14.6%[7] - The company’s non-current assets decreased from HKD 38,646,000 in 2022 to HKD 31,790,000 in 2023, a decline of 17.8%[7] - The company’s equity decreased from HKD 67,928,000 in 2022 to HKD 19,388,000 in 2023, representing a decrease of 71.5%[8] - Current liabilities exceeded current assets by approximately HKD 10,531,000, with other borrowings due within one year amounting to HKD 33,445,000 and cash and cash equivalents of only HKD 4,123,000[31] - The group’s net current liabilities amounted to approximately HKD 10,500,000 as of December 31, 2023, compared to net current assets of approximately HKD 29,900,000 as of December 31, 2022[89] Revenue Segments - Reportable segment revenue for the year ended December 31, 2023, totaled HKD 69,059,000, with external customer revenue from sewing thread production and sales at HKD 21,196,000, interior design and renovation at HKD 16,450,000, and horse services at HKD 31,413,000[40] - Revenue from the sewing thread production and trading segment decreased to approximately HKD 21,200,000, down about 58.4% from approximately HKD 51,000,000 in 2022[69] - Revenue from the interior design and decoration segment decreased to approximately HKD 16,500,000, a decline of about 6.5% from approximately HKD 17,600,000 in 2022[70] - Revenue from the horse services segment increased to approximately HKD 31,400,000, up about 307.9% from approximately HKD 7,700,000 in 2022[72] Expenses and Costs - The total sales cost for the group increased by 15.1% to approximately HKD 72,359,000 in 2023 from HKD 62,893,000 in 2022[73] - The sales cost for the sewing thread production and trading segment decreased to approximately HKD 19,000,000, down 55.5% from approximately HKD 42,800,000 in 2022[74] - The sales cost for the horse services segment increased significantly by 372.1% to approximately HKD 41,100,000 from approximately HKD 8,700,000 in 2022[76] - Selling and distribution expenses decreased from approximately HKD 5,200,000 for the year ended December 31, 2022, to approximately HKD 3,300,000 for the year ended December 31, 2023, a decline of about 35.8%[79] - Administrative expenses decreased from approximately HKD 29,500,000 for the year ended December 31, 2022, to approximately HKD 21,500,000 for the year ended December 31, 2023, a reduction of about 27.0%[81] Cash Flow and Financing - The company's cash and cash equivalents increased to HKD 4,123,000 from HKD 2,166,000, marking an increase of 90.2%[7] - The company received loan extension letters from three lenders to extend approximately HKD 22,300,000 of utilized loan financing and HKD 13,200,000 of unutilized loan financing for one year until 2025[34] - A shareholder loan agreement was established for HKD 19,171,000, which is interest-free and unsecured, with repayment required in cash[129] - A loan agreement for RMB 16,760,277 (approximately HKD 18,603,907) was made, with an interest rate of 2% per annum, to be repaid within three years[131] Corporate Governance and Compliance - The board emphasizes the importance of good corporate governance to ensure accountability to shareholders[124] - The company is committed to adhering to the GEM Listing Rules and has adopted the corporate governance code[124] - The company confirmed compliance with the trading standards for directors as per GEM Listing Rules from January 1, 2023, to December 31, 2023[127] - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the fiscal year ending December 31, 2023[137] - The independent auditor verified the financial figures for the fiscal year ending December 31, 2023, ensuring consistency with the consolidated financial statements[140] Future Outlook - The board anticipates that the company's business performance will improve in 2024, focusing on interior design, renovation, and decoration services, which are increasingly popular in Hong Kong and the Greater Bay Area[34] - The company expects to record a gross profit for the year ending December 31, 2024[34] - The group anticipates that ongoing trade conflicts between China and the United States will continue to impact its business in the coming year[110] - The group expects the new business line in interior design and decoration services to enhance revenue sources and diversify its current business portfolio[110] - The group plans to review its existing operations to improve business performance and financial condition, seeking suitable investment and divestment opportunities[113]
维港育马(08377) - 2023 - 年度业绩