Financial Performance - The group's revenue decreased by 6.2% year-on-year to HKD 94,200,000 for the year ended December 31, 2023, compared to HKD 100,400,000 for the year ended December 31, 2022[2]. - The net loss for the year ended December 31, 2023, was HKD 11,500,000, an improvement from a net loss of HKD 26,800,000 for the previous year[23]. - The company's revenue for the fiscal year ending December 31, 2023, was HKD 94,213,000, a decrease from HKD 100,387,000 in 2022, representing a decline of approximately 2.2%[161]. - The gross profit margin for the company decreased to 23.8% in 2023 from 24.2% in 2022, primarily due to the clearance of outdated inventory[166]. - The company reported a net loss of HKD 11,456,000 for the fiscal year 2023, compared to a net loss of HKD 26,796,000 in 2022, indicating an improvement in financial performance[161]. - Operating loss for the year was HKD 7,066,000, a significant reduction from the operating loss of HKD 21,513,000 in the previous year[161]. Expenses and Cost Management - Sales and distribution expenses increased to approximately HKD 7,700,000 for the year ended December 31, 2023, up from HKD 4,500,000 in the previous year, primarily due to heightened marketing activities following the relaxation of pandemic measures[21]. - For the year ended December 31, 2023, the group's administrative expenses were approximately HKD 22,400,000, a decrease from HKD 42,100,000 for the year ended December 31, 2022, primarily due to asset impairment and reduced foreign exchange losses[37]. - As of December 31, 2023, the group employed approximately 130 employees, with total employee costs around HKD 15,800,000, down from HKD 16,800,000 in 2022[38]. Cash Flow and Financial Position - The group faces risks related to cash flow management, ensuring sufficient cash and cash equivalents to support operations and mitigate cash flow volatility[16]. - As of December 31, 2023, the group's bank loans amounted to HKD 53,800,000, a decrease from HKD 70,900,000 in 2022, with a debt-to-equity ratio of approximately 0.7 compared to 0.9 in the previous year[42]. - The current ratio as of December 31, 2023, was approximately 1.2, unchanged from 2022, while net current assets decreased to HKD 12,100,000 from HKD 16,200,000[42]. - The group held cash and bank balances of HKD 33,500,000 as of December 31, 2023, down from HKD 38,100,000 in 2022[52]. - The company reported a significant decline in net current assets, which fell to HKD 12,075,000 in 2023 from HKD 16,171,000 in 2022, a decrease of approximately 25.9%[173]. Market Environment and Strategic Initiatives - Despite the easing of pandemic restrictions, the overall operating environment remains challenging, with a noted decline in demand for professional services in the second half of 2023[9]. - Ongoing economic factors, including US-China trade tensions and rising global interest rates, have negatively impacted consumer demand and, consequently, the demand for the group's products[19]. - The group anticipates that the economic recovery in mainland China and the countries where its customers are located will continue, although the outlook remains highly uncertain due to high market interest rates and geopolitical factors[55]. - The company plans to continuously evaluate its business strategies to streamline operations and enhance overall performance and outlook[163]. - The company is focusing on enhancing its product offerings and exploring market expansion opportunities[174]. - Future outlook includes strategic initiatives aimed at improving financial performance and operational efficiency[174]. Corporate Governance and Compliance - The board consists of five members, including one female director and three independent non-executive directors, reflecting a diverse composition[65]. - The company has adopted a board diversity policy effective from May 16, 2014, aiming for diversity based on various factors including gender, age, and professional experience[73]. - The board is responsible for reviewing the company's compliance with corporate governance codes and regulatory requirements[80]. - The company has complied with the Securities and Futures Ordinance and listing rules, ensuring timely public disclosure of inside information while maintaining confidentiality[117]. - The audit committee reviewed the group's accounting policies and internal control systems, affirming their effectiveness[90]. Risk Management and Internal Controls - The internal audit department is responsible for establishing the internal control framework and conducting regular independent checks to identify risks[126]. - The board will continue to review the effectiveness of the internal control systems and risk management policies[127]. - The board and audit committee will regularly review the anti-corruption policy to ensure its effectiveness[147]. - The company has adopted a whistleblowing policy to allow employees and relevant third parties to report any actions that may harm the company's interests[146]. Shareholder Engagement - The company held an annual general meeting in 2023, with all executive directors present, ensuring shareholder engagement and communication[129]. - The company is committed to enhancing communication and relationships with shareholders and investors, as evidenced by the review of engagement activities[119]. - The company has a dedicated website to facilitate effective communication with shareholders and the public[129].
兴利(香港)控股(00396) - 2023 - 年度财报