Financial Performance - The consolidated loss for the year increased by approximately 42% compared to the same period in 2022, primarily due to a 45% decrease in revenue attributed to the sluggish property market in China [5]. - External customer revenue from the prestressed high-strength concrete pile business was HKD 246,531,000, down from HKD 451,115,000 in the previous year, reflecting a decrease of about 45% [9]. - The company reported a total revenue of HKD 50,648,000 for the year ending December 31, 2023, compared to HKD 51,036,000 in 2022, indicating a slight decrease of approximately 0.76% [56]. - The company reported a loss from continuing operations of HKD 64,262,000 for the year ended December 31, 2023, compared to a loss of HKD 45,384,000 in 2022, representing an increase of 41.5% [61]. - Gross profit for 2023 was HKD 37,556,000, down 64.5% from HKD 105,597,000 in the previous year [167]. - The company reported a total comprehensive loss of HKD 47,824,000 for the year ended December 31, 2023, compared to a loss of HKD 40,673,000 in the previous year, reflecting an increase in losses of approximately 17.7% [175]. Financial Position - The group's cash and cash equivalents stood at HKD 27,749,000, while interest-bearing borrowings amounted to HKD 18,511,000, with an interest rate ranging from 3.65% to 7.50% [12]. - The equity attributable to owners of the company decreased by approximately 34% to HKD 91,961,000 as of December 31, 2023 [12]. - Total assets decreased to HKD 330,938,000 in 2023 from HKD 409,537,000 in 2022, a decline of 19.2% [63]. - The company's net asset value fell to HKD 135,674,000 in 2023, down 33.3% from HKD 203,435,000 in 2022 [63]. - The total liabilities decreased to HKD 195,264,000 in 2023 from HKD 206,102,000 in 2022, a reduction of 4.1% [63]. - The company's total equity decreased to HKD 135,674,000 in 2023 from HKD 203,435,000 in 2022, a decline of 33.3% [173]. Cash Flow and Investments - The company has a cash reserve of HKD 50,648,000 available for distribution as of December 31, 2023, which is a slight decrease from the previous year's reserve [56]. - Operating cash flow for the year was HKD 27,690,000, a slight increase from HKD 26,518,000 in 2022, indicating a year-over-year growth of about 4.4% [177]. - The company invested HKD 2,981,000 in property, plant, and equipment during the year, a decrease from HKD 5,710,000 in 2022, indicating a reduction in capital expenditures of about 47.8% [179]. - The company reported a net cash outflow from investing activities of HKD 973,000, an improvement from HKD 5,450,000 in the previous year, reflecting a decrease in cash used for investments [179]. - The company’s financing activities resulted in a net cash outflow of HKD 5,013,000, slightly improved from HKD 5,532,000 in 2022, indicating better management of financing costs [179]. Market and Economic Conditions - The Chinese economy is expected to benefit from increased infrastructure investment, which will support the group's business in the coming years [6]. - The GDP of China increased by 5.2% in 2023, surpassing the previous year's target of around 5% [5]. - The People's Bank of China announced a reduction in the reserve requirement ratio by 0.5% starting February 5, 2024, providing approximately RMB 1 trillion in long-term liquidity to the market [24]. - The central bank will lower the 5-year Loan Prime Rate (LPR) by 25 basis points to 3.95% on February 20, 2024, marking the largest cut since the LPR was introduced in 2019, aimed at boosting the real estate sector [25]. - Guangdong province has introduced 30 measures to support the private economy, encouraging financial institutions to provide more financing support to private enterprises [26]. Corporate Governance and Compliance - The board of directors confirmed their independence in accordance with the listing rules, ensuring compliance with governance standards [69]. - The audit committee has reviewed the financial statements for the year ending December 31, 2023, ensuring compliance with applicable accounting standards [88]. - The company has established appropriate liability insurance for its directors and senior officers [87]. - The board is responsible for maintaining an effective risk management and internal control system, ensuring reasonable assurance against significant misstatements or losses [117]. - The company has adopted a zero-tolerance policy towards bribery and corruption, ensuring compliance with ethical standards in all business dealings [126]. Risk Management - The company faces significant risks in the construction materials industry, including rising raw material prices and intensified competition, which could impact future performance [44]. - The company continues to monitor and manage foreign exchange risks associated with its currency assets and liabilities, primarily denominated in RMB and HKD [44]. - The internal control auditor conducts annual audits to assess the effectiveness of the internal control system and identifies risk areas [121]. - The audit committee believes that the group's risk management and internal control systems are sufficient and effective for the reviewed year [122]. Shareholder Engagement - The company encourages shareholders to attend general meetings and express their opinions, with external auditors present to assist in addressing shareholder inquiries [136]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months of the request [139]. - Shareholders can propose resolutions at general meetings if they represent at least 5% of the total voting rights or at least 100 shareholders [140]. Environmental and Social Responsibility - The company has a strong focus on environmental responsibility and aims to create economic value for stakeholders [68]. - The company emphasizes a culture of integrity and anti-corruption policies to guide employee conduct [92]. - The company has established a whistleblowing policy to allow employees and third parties to report misconduct confidentially [128].
新威国际(00058) - 2023 - 年度财报