Financial Performance - For the year ended December 31, 2023, the Group reported a loss of HK$101,013,000, a decrease of HK$23,668,000 compared to the previous year[13]. - The gross profit narrowed to approximately HK$2,192,000, indicating challenges in maintaining profitability amidst market competition[13]. - The Group's revenue increased from HK$93,791,000 to HK$129,159,000, reflecting a growth of approximately 37.6% due to increased sales to existing customers[32]. - Gross profit narrowed from HK$8,016,000 to HK$2,192,000, indicating a significant decline of about 72.6% primarily due to price adjustments[32]. - Basic and diluted loss per share for the year ended December 31, 2023, was HK$6.05 cents, compared to HK$15.54 cents in 2022, with no final dividend recommended due to funding needs for the Lithium Ion Motive Battery Business[44]. - The Company did not recommend any dividend for the year ended 31 December 2023, consistent with the previous year[187]. - The Board does not recommend any dividend for the year ended December 31, 2023, consistent with the previous year[190]. Sales and Market Trends - Sales of lithium-ion battery products increased by HK$34,760,000 to HK$129,159,000, reflecting a growth of approximately 38%[13][16]. - The new energy market in the PRC experienced a growth of more than 34%, despite overall demand growth being lower than expected[15]. - A total of 6.69 million pure electric vehicles were sold in China in 2023, marking a year-on-year increase of 24.6%[24]. - The overall value of the lithium ion battery industry surpassed RMB 1.4 trillion, with total exports increasing by over 33% to RMB 457.4 billion[23]. - Total lithium ion battery production in China exceeded 940 GWh, representing a year-on-year increase of 25%[23]. - The price of lithium ion batteries dropped by more than 50% during the year, driven by increased production capacity and weaker-than-expected market demand[25]. Cost Management and Expenses - The Group's efforts in cost-control policies contributed to a reduction in losses from continuing operations[13]. - Distribution and selling expenses decreased to approximately HK$4,760,000 from HK$5,934,000, reflecting cost control measures[34]. - Administrative expenses dropped from HK$126,539,000 to HK$117,525,000, mainly due to the inactivity of the Internet Sales Business and other cost-control policies[35]. - Financing costs reduced to approximately HK$4,777,000 in 2023 from HK$6,771,000 in 2022, attributed to the repayment of certain borrowings during the year[42]. - Total employee costs, including Directors' emoluments, were approximately HK$31,129,000 in 2023, down from HK$37,613,000 in 2022, with the number of employees decreasing from 341 to 294[46]. Assets and Liabilities - Non-current assets decreased from HK$353,441,000 in 2022 to HK$264,594,000 in 2023[10]. - Current liabilities increased from HK$341,292,000 in 2022 to HK$361,126,000 in 2023[10]. - Total equity decreased from HK$340,565,000 in 2022 to HK$227,521,000 in 2023[10]. - The Group's bank and cash balances were approximately HK$2,598,000 as of December 31, 2023, down from HK$6,252,000 in 2022, with a gearing ratio of 21.15% compared to 15.50% in the previous year[45]. Corporate Governance and Management - The management team includes experienced professionals with over 36 years and 16 years of experience in the lithium-ion battery sector[83][84]. - The company has appointed independent non-executive directors with extensive backgrounds in corporate management and engineering, enhancing governance and oversight[70][71][73][74]. - The management team is actively involved in product design and technical management, indicating a strong focus on innovation in battery technology[82]. - The Company has complied with all applicable provisions of the Corporate Governance Code, except for the absence of two independent non-executive Directors at the annual general meeting held on June 23, 2023[195]. - The Company will continue to review and improve its corporate governance practices to ensure proper regulation of business activities and decision-making processes[197]. Share Capital and Options - As of December 31, 2023, the Company's issued share capital is HK$148,348,670, with a total of 1,483,486,700 ordinary shares issued[92]. - The Company has adopted a new share option scheme valid for 10 years to incentivize eligible participants[123]. - The total number of shares that may be granted to any individual under the Scheme is limited to 1% of the issued share capital of the Company[129]. - As of December 31, 2023, the total number of shares available for issue under the Scheme was 123,649,370 shares, representing 10% of the total number of ordinary shares in issue[129]. - No share options have been granted by the Company under the Scheme as of the report date[134]. Risks and Compliance - The Group's financial conditions are subject to various risks including market risk, foreign currency risk, credit risk, and liquidity risk[167]. - There were no material breaches of applicable laws and regulations that significantly impacted the Group's business during the year[170]. - Related party transactions did not constitute connected transactions or were exempt from disclosure requirements under the Listing Rules[166]. Strategic Focus - The Group aims to enhance its product portfolio by focusing on innovation in new energy storage products and improving production technologies[16]. - The Group plans to focus on R&D for 18650 lithium ion battery products and explore the feasibility of producing other battery types to diversify its product portfolio[31]. - The company is focused on expanding its presence in the lithium-ion battery market, leveraging the expertise of its senior management[81].
天臣控股(01201) - 2023 - 年度财报