Revenue Performance - For the year ended December 31, 2023, the Group's revenue decreased by 52.2% from approximately HK$281.5 million in 2022 to approximately HK$134.6 million in 2023[13] - Total revenue for construction and engineering services decreased by approximately 55.1% to HK$122.8 million for the year ended December 31, 2023, compared to HK$273.4 million in the previous year[26] - The completion of certain major slope works projects significantly impacted the revenue decline, as newly awarded projects were still in the early stages[13] - Revenue from property-related services grew by 4.0%, increasing from approximately HK$8.1 million in 2022 to approximately HK$8.4 million in 2023[13] - Revenue from property-related services was approximately HK$8.4 million, a slight increase from HK$8.0 million in 2022, with property management consultancy services contributing approximately HK$4.6 million[35] - The Group recorded revenue of approximately HK$3.4 million from luxury product sales in 2023, accounting for approximately 2.5% of total revenue[51] Profitability and Gross Profit - The Group's total gross profit for 2023 amounted to approximately HK$3.6 million, representing a decrease of 5.1% compared to approximately HK$3.8 million in 2022[57] - The gross profit margin for 2023 was approximately 2.7%, an increase from approximately 1.3% in 2022[57] - Gross profit from construction and engineering services for the year ended 31 December 2023 was approximately HK$0.2 million, a decrease of approximately 68% compared to HK$0.8 million for the year ended 31 December 2022[58] - Gross profit from property-related services for the year ended 31 December 2023 was approximately HK$2.4 million, down approximately HK$0.6 million from HK$3 million for the year ended 31 December 2022, with a gross profit margin of 28.2% compared to 37.3% in the previous year[59] - Gross profit from sales of luxury products amounted to approximately HK$1 million with a gross profit margin of 28.6%[60] Strategic Focus and Future Outlook - The Group anticipates challenging prospects for its construction and engineering services and property-related services in the coming years[14] - The Group will focus on improving profitability and formulating long-term business strategies, particularly for site formation and ground investigation works[14] - The Group aims to optimize and diversify its business operations while exploring other appropriate business opportunities to strengthen its revenue base[15] - The Group's new business segment for luxury products was launched in the fourth quarter of 2023, indicating a strategic shift to capture market growth opportunities[12] - The luxury product market in Hong Kong is expected to create long-term opportunities following the easing of COVID-19 restrictions and the reopening of borders[37] - The Group is focusing on the luxury watches segment, targeting mid-to-high-end customers while maintaining a high-quality service commitment[38] - The Group aims to expand its market presence by diversifying its product offerings and collaborating with various suppliers[39] Financial Position and Cash Flow - As of 31 December 2023, the Group had total cash and bank balances of approximately HK$137.2 million, down from approximately HK$167.2 million as of 31 December 2022[81] - The Group's total borrowings as of December 31, 2023, were approximately HK$1.4 million, with a gearing ratio of approximately 0.8%, up from 0.3% as of December 31, 2022[89] - Other income for the year ended 31 December 2023 was approximately HK$4.9 million, a decrease from approximately HK$5.9 million in 2022, primarily due to the absence of a government grant of approximately HK$1.8 million[61] - The planned use of net proceeds for the acquisition of site facilities and equipment was HK$9.649 million, with actual usage at HK$4.359 million, leaving HK$5.290 million unused as of December 31, 2023[113] Governance and Management - The company has adopted and complied with the Corporate Governance Code during the year ended December 31, 2023[140] - The Board consists of five members, including two executive Directors and three independent non-executive Directors[151] - The company has established Board committees, including the Audit Committee, Nomination Committee, and Remuneration Committee[150] - The company aims to achieve board diversity by considering factors such as gender, age, and experience[153] - The company has a dividend policy that considers the general financial condition, capital and debt levels, future cash requirements, and market conditions before proposing dividends[167] - The independent non-executive directors have confirmed their independence and are free from any relationships that could interfere with their judgment[177] Employee and Staff Information - As of December 31, 2023, the Group had a total of 65 full-time employees, comprising 47 males and 18 females, resulting in a male to female ratio of approximately 2.6:1[165] - The total staff costs for the year ended December 31, 2023, amounted to approximately HK$30.6 million, an increase from approximately HK$28.7 million for the year ended December 31, 2022[101] Legal and Compliance - The company believes that ongoing legal claims will not have a significant adverse impact on its operations and financial condition, and no provisions are required in the consolidated financial statements[108] - The company has confirmed compliance with the Model Code for Securities Transactions by Directors during the year ended December 31, 2023[142]
致浩达控股(01707) - 2023 - 年度财报