Jewellery Business Performance - The Jewellery Business was significantly impacted by geopolitical tensions, rising interest rates, and declining economic growth expectations, which weakened customer sentiment [18]. - In Q1 2024, the Group expects the Jewellery Business to continue facing challenges due to the ongoing macroeconomic environment [23]. - The Group remains cautiously optimistic about the Jewellery Business in the coming months, with a focus on overseas market development [24]. - Revenue from the Jewellery Business decreased by approximately HK$40.1 million, while the Property Business increased by approximately HK$11.8 million and the Photovoltaic Power Generation Business increased by approximately HK$3.0 million [54]. - Revenue from the Jewellery Business decreased from approximately HK$326.6 million for the year ended 31 December 2022 to approximately HK$286.4 million for the year ended 31 December 2023, representing a decrease of approximately HK$40.2 million or 12.3% [70]. - Gross profit from the Jewellery Business decreased from approximately HK$85.1 million for the year ended 31 December 2022 to approximately HK$80.5 million for the year ended 31 December 2023, a decrease of approximately HK$4.6 million or 5.4% [71]. - The Group aims to enhance the deployment of jewellery fairs and exhibitions to attract new customers and consolidate the Jewellery Business [23]. - The Group will focus on developing competitive jewellery styles in the market to improve customer acquisition [23]. - The Group's strategy includes diversifying revenue streams to improve overall profitability amid challenges in the jewellery market [30][36]. Property Business Performance - In Q1 2024, the occupancy rate of executive dormitories significantly improved, contributing to stable rental and management fee income for the Property Business [29][32]. - The Group aims to enhance profitability in the Property Business by optimizing the car park leasing business in the Perfect Group Jewellery Industry Park [29][32]. - Revenue from the Property Business increased from approximately HK$47.5 million for the year ended 31 December 2022 to approximately HK$59.3 million for the year ended 31 December 2023, representing an increase of approximately HK$11.8 million or 24.8% [76]. - Property management fee income increased from approximately HK$6.5 million for the year ended 31 December 2022 to approximately HK$11.0 million for the year ended 31 December 2023, an increase of approximately HK$4.5 million or 68.5% [79]. Photovoltaic Power Generation Business - The Group completed the grid connection of eight photovoltaic projects in China with a total capacity of approximately 5,882 kW, generating about 3.6 million units of electricity in 2023 [31][34]. - The acquisition of Guangdong Kaisi for approximately RMB 7.15 million was completed in August 2023, marking the entry into the photovoltaic power generation business [41][42]. - Guangdong Kaisi charges users approximately 70% to 90% of the official electricity rate, with unutilized electricity sold to the local electricity bureau at a reduced rate [30][33]. - Revenue from the Photovoltaic Power Generation Business was approximately HK$3.0 million for the year ended 31 December 2023, with a gross profit of approximately HK$1.7 million and a gross profit margin of 56.2% [82]. Financial Performance Overview - Overall revenue decreased from approximately HK$374.0 million in 2022 to approximately HK$348.7 million in 2023, representing a decrease of approximately HK$25.3 million or 6.8% [54]. - Overall gross profit decreased from approximately HK$114.7 million in 2022 to approximately HK$102.2 million in 2023, a decrease of approximately HK$12.5 million or 10.9% [66]. - The overall gross profit margin decreased from approximately 30.7% for the year ended 31 December 2022 to approximately 29.3% for the year ended 31 December 2023, a decrease of approximately 1.4 percentage points or 4.6% [69]. - The profit attributable to shareholders for the year ended December 31, 2023, was approximately HK$29.4 million, unchanged from the previous year [47]. - Profit after taxation for the year ended December 31, 2023, was approximately HK$34.2 million, representing an increase of approximately HK$6.8 million or 24.8% from approximately HK$27.4 million in the previous year [96][99]. Assets and Liabilities - Non-current assets increased to approximately HK$93.4 million as of December 31, 2023, up from approximately HK$60.1 million as of December 31, 2022, primarily due to the installation of photovoltaic equipment [101][104]. - Current assets rose significantly to approximately HK$734.3 million as of December 31, 2023, an increase of approximately HK$246.3 million or 50.5% from approximately HK$488.0 million as of December 31, 2022 [103][105]. - Current liabilities decreased to approximately HK$162.5 million as of December 31, 2023, down by approximately HK$9.1 million or 5.3% from approximately HK$171.6 million as of December 31, 2022 [107][110]. - The Group's cash and cash equivalents rose to approximately HK$76.0 million as of December 31, 2023, compared to approximately HK$53.9 million as of December 31, 2022, with RMB-denominated cash increasing to approximately HK$49.9 million from HK$16.7 million [114][118]. Governance and Management - The company has a strong governance structure with independent non-executive directors serving on key committees, ensuring oversight and strategic direction [171]. - The management team is well-qualified, with members holding advanced degrees and professional certifications in finance and accounting [172]. - The company aims to leverage the extensive experience of its directors to navigate market challenges and capitalize on growth opportunities [171]. - The independent non-executive directors bring diverse international experience, contributing to the company's strategic decision-making processes [178]. Risk Management - The Group faces currency risk primarily from transactions in HKD, USD, RMB, and AED, with sales mainly in USD and expenses in both USD and HKD [142]. - The Group's exposure to currency risk is not significant due to the pegging of HKD and AED to USD, minimizing the impact of USD fluctuations on operational performance [144]. - The Group is exposed to cash flow interest rate risk from variable interest rates on bank balances and borrowings, with no current hedging policy in place [147]. - The Group's maximum exposure to credit risk is the carrying amount of financial assets, with measures in place to minimize this risk through credit limit determinations and monitoring [152]. Dividend Policy - The Group's dividend policy aims to balance dividend distribution with adequate cash flow and reserves to meet working capital requirements and growth opportunities [139]. - The Directors propose a final dividend of HK$0.02 per share, totaling HK$26,820,180 for the year ended 31 December 2023, consistent with the previous year's proposal [190]. - The board plans to maintain dividend distribution to create long-term value for shareholders, balancing cash flow and reserves [141].
保发集团(03326) - 2023 - 年度财报