Financial Performance - The group's revenue for 2023 was HKD 765 million, a decrease of HKD 47 million or 5.8% compared to 2022, primarily due to a slowdown in the antique car market[16]. - The 2023 total revenue was HKD 765 million, a decrease of 5.8% compared to HKD 812 million in 2022[43]. - Gross profit for 2023 was HKD 172 million, representing a significant increase of 67.0% from HKD 103 million in 2022[43]. - The company reported a loss of HKD 575 million for the year, which is a 23.1% increase from a loss of HKD 467 million in 2022[43]. - Approximately 86.1% of the group's total revenue came from Hong Kong, Macau, and mainland China, with revenue from these regions amounting to HKD 659 million, an increase of 6.5% from the previous year[49]. Assets and Liabilities - As of December 31, 2023, the group's total borrowings amounted to HKD 1,617 million, representing 68.9% of total capital, compared to HKD 1,742 million or 59.9% in 2022[22]. - Current assets increased to HKD 1,173 million in 2023 from HKD 909 million in 2022, while current liabilities rose to HKD 1,234 million from HKD 807 million[23]. - The group's total assets included net book value assets of approximately HKD 1,814 million as of December 31, 2023, down from HKD 1,917 million in 2022[26]. - The capital-to-debt ratio increased from 59.9% as of December 31, 2022, to 68.9% as of December 31, 2023, primarily due to a decrease in shareholder equity[50]. Business Operations - The antique car and investment-grade vehicle business continued to be affected by a global market slowdown, but management remains cautiously optimistic about long-term developments in the antique car trading environment[8]. - The revenue from other businesses, including antique car repair services and multimedia operations, increased by 32.0% to HKD 66 million in 2023, although it recorded an operating loss of HKD 48 million[21]. - The Ferrari business continues to perform well, with the launch of the new Roma Spider GT and a significant number of orders received during the launch event in October 2023[6]. - The company plans to launch a fully electric vehicle series under the Folgore brand in 2024, expanding its product offerings[35]. - The new SUV model Grecale has started deliveries in the first half of 2023, receiving positive feedback from customers in Hong Kong[35]. Governance and Compliance - The company has established a remuneration committee consisting of five members, including three independent non-executive directors, to review and provide recommendations on the remuneration policies for the senior management[77]. - The company has maintained compliance with listing rules regarding the appointment of independent non-executive directors, ensuring that at least one possesses appropriate professional qualifications or financial management expertise[73]. - The company has implemented a management action plan to enhance corporate governance and compliance with relevant codes[98]. - The company’s governance practices have been updated and approved by shareholders to enhance compliance with corporate governance codes[96]. - The company has committed to continuous professional development for its directors to enhance their knowledge and skills in compliance with regulatory updates[74]. Risk Management - The company’s risk management framework helps identify current and emerging risks that could significantly impact financial performance, reputation, or business model[141]. - Major risks identified include the ongoing trade war between China and the U.S., geopolitical risks, inflation and rising interest rates, and significant changes in government policies affecting operations[161]. - The company has not used any financial instruments to hedge interest rate risks but will consider hedging significant interest rate risks as needed[83]. - The company’s treasury policy aims to minimize risks associated with foreign currency exchange and interest rate fluctuations, indicating a proactive approach to financial risk management[83]. Shareholder Information - The company has not declared any final dividends for the year 2023, nor any interim dividends for 2022[192]. - The board's discretion determines any proposed dividend payments, with final dividends requiring shareholder approval[168]. - The group plans to conserve cash reserves to address future challenges, thus the board does not recommend a final dividend for 2023[174]. - The company has a total of 87,311,145 share options available for grant under the 2021 plan, representing 5.44% of the currently issued shares of 1,604,361,452[181]. - The company aims to increase customer loyalty and order volume through the 2021 plan[183]. Sustainability and Corporate Responsibility - The company emphasizes sustainability as a core strategy for long-term development and aims to enhance corporate social responsibility to contribute to the long-term value of the company and the communities in which it operates[88]. - The group made charitable donations totaling HKD 50,000 during the year, compared to HKD 30,000 in 2022[177]. - The company encourages all business partners to adhere to its anti-corruption and bribery policy, applicable to all directors, senior officers, and employees[151]. Future Outlook - The outlook for 2024 remains uncertain and challenging due to geopolitical instability, interest rate hikes, and persistent inflation affecting local and global economic recovery[10]. - The company is focusing on cash preservation and cost-saving measures to lay the foundation for future recovery amid challenging conditions[38].
中建富通(00138) - 2023 - 年度财报