Financial Performance - For FY2023, the Group's revenue increased by approximately HK$136.8 million, or 23.6%, from approximately HK$580.8 million in FY2022 to approximately HK$717.6 million[35]. - Revenue from the PRC increased significantly from approximately HK$41.1 million in FY2022 to approximately HK$122.0 million in FY2023[35]. - Revenue from Enterprise IT Solutions rose from approximately HK$356.8 million in FY2022 to approximately HK$456.2 million in FY2023, driven by an increase in Professional IT Services contracts[35]. - Gross profit rose by approximately HK$15.2 million or 15.1% to approximately HK$115.6 million for FY2023, compared to approximately HK$100.4 million for FY2022[69]. - Gross profit margin decreased from 17.3% in FY2022 to 16.1% in FY2023, primarily due to an increase in revenue from lower-margin contracts in the PRC[69]. - Distribution and resale revenue increased from approximately HK$223.3 million in FY2022 to approximately HK$251.0 million in FY2023, reflecting a recovery in the economy post-COVID-19[66]. - Cost of sales and services increased by approximately HK$121.4 million, or 25.3%, to approximately HK$601.9 million in FY2023, outpacing revenue growth due to lower gross profit margins on significant contracts in the PRC[38]. - Administrative expenses rose by approximately HK$13.2 million, or 22.5%, to approximately HK$71.8 million in FY2023, attributed to higher business development costs and increased depreciation[43]. - The Group's profit for FY2023 increased by approximately HK$1.3 million or 40.6% to approximately HK$4.5 million from approximately HK$3.2 million in FY2022[1]. Use of Proceeds - The actual net proceeds received by the company were approximately HK$93.0 million, which is a revision from the previously estimated HK$104.8 million[5]. - The company plans to allocate the net proceeds according to the original funding application proportions, adjusting for a difference of approximately HK$1.1 million[6]. - The upfront costs for two enterprise IT solution projects accounted for 30.4% of the total net proceeds allocation[4]. - General working capital usage was reported at 10.0% of the total net proceeds allocation[4]. - As of December 31, 2023, the unutilized net proceeds amount to approximately HK$37.7 million[153]. - The expected utilization timeline for the unutilized net proceeds includes HK$6.5 million for upfront costs of two Enterprise IT solution projects in Q1 2024 and HK$28.3 million for strengthening product development capabilities in Q2 2024[153]. - The total expected utilization in Q1 and Q2 2024 sums up to HK$37.7 million[154]. - The company plans to use the unutilized net proceeds in accordance with the disclosed purposes in the prospectus, subject to market conditions[155]. - The Group has no other updates on the use of net proceeds as of the date of the annual report[156]. Strategic Initiatives - The group expects improved profitability of contracts in the Greater Bay Area due to the increasing popularity of its high-quality IT solutions[11]. - The R&D team achieved a breakthrough in AIoT and BCI technologies during FY2023, integrating BCI headbands into their offerings[15]. - The Group plans to enhance existing IT solutions with AI elements and digital content to meet the expected demand from non-IT industries[35]. - The government of Macau SAR is promoting the integration of IT with traditional industries, which is anticipated to drive demand for IT solutions in the coming years[35]. - The Group has established a new wholly-owned subsidiary in China focused on developing brain-computer interaction and related technologies for the Web 3.0 era[28]. - A joint laboratory was established with Beihang University in FY2023 to advance AIoT, BCI, and AI technologies, enhancing the Group's innovation capabilities[61]. - The Group signed a contract with a gaming operator to develop a SaaS platform and related mobile applications, aimed at fostering the digital economy among SMEs in Macau[19]. - The Group is investing in strategic hiring and business expansion in the PRC, leading to a slight increase in the usage of net proceeds[2]. Governance and Management - The Board consists of eight Directors, including four executive Directors, one non-executive Director, and three independent non-executive Directors[162]. - The company has a diverse board with members possessing extensive experience in various fields, enhancing its strategic decision-making capabilities[175]. - The board includes independent directors who provide oversight and independent advice, ensuring compliance and governance standards are met[174]. - Ms. Lei has over 21 years of experience in the IT industry, contributing to the overall development of product solutions and marketing strategies[166]. - Mr. Ng, with over 10 years of experience in the IT industry, is responsible for overall business development and consultation[167]. - Mr. Li Haodong was appointed as a Director on April 1, 2021, and re-designated as a non-executive Director on April 20, 2021, providing strategic and development advice to the Board[170]. - Mr. Man Wing Pong has over 20 years of experience in investment banking, asset management, and corporate management, currently serving as the chief risk officer of Silverstone Investments Limited[174]. - Mr. Suen Chi Wai has over 20 years of experience in corporate finance, focusing on IPOs, mergers, and compliance with listing rules[178]. - Mr. U has been a member of the Economic Development Council since August 2021 and has held various committee positions related to technology and talent development in Macau[176]. - Mr. U has received multiple awards for his contributions to academic research and industry development, highlighting his influence in the sector[177]. Financial Position - As of December 31, 2023, the Group had cash and cash equivalents of approximately HK$28.7 million, a decrease from approximately HK$105.5 million as of December 31, 2022[1]. - The Group's gearing ratio as of December 31, 2023, was approximately 3.3%, with total borrowings in RMB of approximately HK$11.1 million[1]. - The Group had capital commitments of approximately HK$1,252,000 as of December 31, 2023, related to capital expenditure for property, plant, and equipment[1]. - The Group's liquidity position remained healthy throughout FY2023, with a conservative treasury policy in place[1]. - The Group's bank deposit of approximately HK$53.3 million was restricted for securing banking facilities and a bank guarantee requested by a supplier[1]. - The Group's total lease liabilities as of December 31, 2023, were approximately HK$11.2 million, down from approximately HK$12.2 million in the previous year[1]. - The Group's financing costs decreased by approximately HK$1.5 million or 65.2% to approximately HK$0.8 million in FY2023, due to the expiration of certain redeemable financial liabilities[77]. - The foreign exchange risk is considered minimal as the majority of monetary assets and liabilities are denominated in HK$, MOP, and US$[80]. - The Group's sales and service costs increased by approximately HK$121.4 million or 25.3% from about HK$480.5 million in FY2022 to approximately HK$601.9 million in FY2023[99]. - Total staff costs incurred by the Group for FY2023 were approximately HK$112.1 million compared to approximately HK$90.2 million for FY2022[114]. - The Group employed a total of 287 employees as of December 31, 2023, up from 249 employees as of December 31, 2022[114]. Dividend Policy - The Board has resolved not to recommend the declaration of a final dividend for FY2023, consistent with FY2022[122].
博维智慧(01204) - 2023 - 年度财报