Financial Performance - The Group's total revenue from continuing operations decreased by 22.8% from approximately HK$928.5 million in 2022 to approximately HK$716.7 million in 2023[12]. - The Group recorded a loss attributable to owners of the Company of approximately HK$163.9 million, compared to a profit of approximately HK$6.2 million in 2022, resulting in basic losses per share of approximately HK16.3 cents[18]. - Revenue from the printing and manufacturing of paper packages and related materials was approximately HK$683.6 million, down from HK$890.6 million in 2022, accounting for approximately 95.4% of total revenue[32]. - Other income from continuing operations decreased by 29.3% to approximately HK$23.1 million in 2023, down from approximately HK$32.7 million in 2022, mainly due to a reduction in government grants[34]. - Other losses from continuing operations amounted to HK$167.5 million in 2023, compared to other gains of HK$15.9 million in 2022, primarily due to impairment losses on interests in an associate and goodwill[39]. - The share of results of associates turned from a profit of approximately HK$1.6 million for the year ended 31 December 2022 to a loss of approximately HK$30.4 million for the year ended 31 December 2023[48]. - Loss attributable to owners of the Company was approximately HK$163.9 million for the year ended 31 December 2023, compared to a profit of approximately HK$6.2 million for the year ended 31 December 2022[59]. - The loss was primarily due to a decline in share of results of an associate of approximately HK$32.0 million and recognition of impairment losses totaling approximately HK$159.1 million on interests in associates and goodwill[60]. Cost Management and Efficiency - The Group implemented measures to enhance inventory management and improve decision-making efficiency in response to operating pressures from declining tender prices and rising raw material costs[13]. - The Group focused resources on centralized management and production at Bengbu Jinhuangshan Rotogravure Printing Co., Ltd. to improve cost control and production efficiency[17]. - The Group's measures included implementing a tendering system for raw material purchases to enhance bargaining power and control costs[13]. - Selling and distribution expenses decreased by 22.4% to approximately HK$17.7 million in 2023 from approximately HK$22.8 million in 2022[41]. - Administrative expenses decreased by 36.0% to approximately HK$70.3 million in 2023 from approximately HK$109.8 million in 2022[42]. - Finance costs from continuing operations decreased by 57.7% from approximately HK$10.0 million for the year ended 31 December 2022 to approximately HK$4.2 million for the year ended 31 December 2023[46]. - The Group's total remuneration cost for the year ended 31 December 2023 was approximately HK$84.8 million, a decrease from approximately HK$127.3 million in 2022[90]. Economic Environment - The GDP of the People's Republic of China increased by 5.2% in 2023, higher than the 3.0% increase in 2022[11]. - The economic outlook for the PRC remains uncertain due to global inflation and various geopolitical factors, which may adversely affect the Group's operating environment in 2024[19]. - The outlook for the global and Chinese economy remains uncertain, which may adversely affect the Group's operating environment in 2024[22]. Dividends and Shareholder Returns - The Board does not recommend the payment of a final dividend for the year ended 31 December 2023, compared to HK4 cents per share in 2022[18]. - As of December 31, 2023, the company's reserves available for distribution amounted to approximately HK$6,222.3 million[113]. Assets and Liabilities - The Group's current ratio improved to 2.2 times in 2023, up from 1.5 times in 2022[65]. - The quick ratio also improved to 2.0 times in 2023, compared to 1.3 times in 2022[65]. - As of December 31, 2023, the Group had net current assets of approximately HK$577.7 million, an increase from approximately HK$321.1 million in 2022[67]. - The Group's bank balances and cash amounted to approximately HK$345.8 million as of December 31, 2023, compared to approximately HK$313.3 million in 2022[67]. - Outstanding bank borrowings decreased to approximately HK$131.6 million in 2023 from approximately HK$266.6 million in 2022[68]. - The Group's net cash position improved to approximately HK$236.1 million in 2023, up from approximately HK$137.9 million in 2022[68]. - Capital commitments increased to approximately HK$39.6 million in 2023, compared to approximately HK$7.4 million in 2022, mainly related to the development of an industrial park[76]. Corporate Governance and Compliance - The Group has complied with all relevant rules and regulations in the PRC that significantly impact its operations[98]. - The company has complied with the disclosure requirements of Chapter 14A of the Listing Rules regarding related party transactions[157]. - The company has maintained liability insurance for Directors and officers throughout the year[162]. - All three independent non-executive Directors have confirmed their independence as per the Listing Rules[149]. - The company has taken steps to ensure that all Directors are indemnified against actions incurred in the execution of their duties[161]. - The company generally complies with the Corporate Governance Code, with exceptions noted in provisions B.2.4(b), C.1.6, and C.2.1[198]. Employee and Social Responsibility - As of 31 December 2023, the Group had 582 employees, down from 663 in 2022[90]. - The Group emphasizes workplace safety, employee relations, and efficient resource use as part of its corporate culture[192]. - The Board is responsible for the Company's ESG strategy and conducts regular reviews of ESG-related matters[194]. - The board regularly reviews the company's environmental, social, and governance (ESG) performance and risks, ensuring adequate resources and training programs are in place[197].
力图控股(01008) - 2023 - 年度财报