Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 561,011,000, a slight increase from RMB 556,679,000 in 2022, representing a growth of approximately 0.6%[33]. - Gross profit decreased to RMB 69,698,000 in 2023 from RMB 85,371,000 in 2022, indicating a decline of about 18.4%[33]. - The loss before tax for 2023 was RMB 33,519,000, compared to a loss of RMB 28,809,000 in 2022, reflecting a worsening of approximately 16.5%[33]. - The loss attributable to the owners of the parent increased to RMB 41,229,000 in 2023 from RMB 35,882,000 in 2022, marking an increase of about 14.3%[33]. - The company reported a stable growth in sales from its smart office software solutions, benefiting from market changes in 2023[23]. - The company anticipates continued revenue from the smart library system project in Hong Kong, which is expected to provide a stable income source[19]. - The loss per share attributable to owners for 2023 was RMB 28.90 cents, compared to RMB 26.69 cents in 2022, indicating a decline in shareholder value[33]. - Revenue for 2023 was RMB 561,011,000, a slight increase from RMB 556,679,000 in 2022, representing a growth of 0.2%[49]. - Gross profit margin decreased to 12.4% in 2023 from 15.3% in 2022, indicating a decline in profitability[42]. - Net loss for the year from continuing operations was RMB 35,421,000, compared to RMB 33,019,000 in 2022, reflecting an increase in losses of approximately 7.3%[49]. - The Group's total revenue increased by approximately RMB4.3 million or approximately 0.8% to approximately RMB561.0 million for the year ended 31 December 2023[54]. - The Group's gross profit decreased by approximately RMB15.7 million or approximately 18.4% to approximately RMB69.7 million for the year[54]. - A net loss for the year was recorded at approximately RMB35.4 million, compared to a net loss of approximately RMB33.0 million in 2022[54]. Market Conditions - The Group's core traditional IT infrastructure system integration business in Mainland China faced a decline due to intense competition and geopolitical uncertainties, leading to reduced customer demand and sales orders[16]. - The global economic environment in 2023 was challenging, with inflation, rising interest rates, and geopolitical tensions affecting markets and supply chains[15]. - The Group's performance was impacted by the overall economic slowdown in China, which affected customer demand[16]. - The Group is well-positioned to capture market opportunities arising from changes in the economy and market needs[17]. - The Group's financial performance reflects the ongoing challenges in the global business environment, but it continues to adapt and seek growth opportunities[15]. Strategic Initiatives - The Group maintained strategic partnerships with various tech giants to acquire new customers through alliances[16]. - The integration of Internet of Things (IoT) solutions is becoming increasingly important for companies in China, enhancing efficiency and competitiveness[17]. - The Group is focused on leveraging its core competitiveness to provide advanced and customized IT infrastructure solutions across diverse segments[16]. - The Group aims to maintain stable development in IT infrastructure and smart office software solutions, leveraging its enhanced customer base[147]. - The Group will continue to develop one-stop smart-space solutions to facilitate enterprises' digital transformation[147]. - The Group actively participates in tenders to secure income streams from both private and public sector customers[147]. - The company plans to explore new markets vigorously, particularly in the Asia Pacific region, to tap into emerging business opportunities[24]. Financial Position and Liquidity - Current ratio decreased to 1.0 in 2023 from 1.3 in 2022, suggesting a decline in short-term liquidity[42]. - Cash and cash equivalents increased to RMB 76,196,000 in 2023 from RMB 59,436,000 in 2022, showing improved cash position[45]. - Total liabilities increased, with current liabilities rising to RMB 467,012,000 in 2023 from RMB 382,620,000 in 2022, indicating higher financial obligations[45]. - Gearing ratio increased significantly to 31.2% in 2023 from 12.7% in 2022, suggesting a higher level of debt relative to equity[42]. - Net cash used in operating activities was RMB (36,906,000) in 2023, slightly worse than RMB (35,242,000) in 2022[47]. - Finance costs rose to RMB 10,704,000 in 2023 from RMB 4,249,000 in 2022, indicating increased borrowing costs[49]. - Equity attributable to owners of the parent decreased to RMB 266,833,000 in 2023 from RMB 309,236,000 in 2022, reflecting a decline in shareholder equity[45]. - The average turnover days for trade and bills receivables increased to 202 days in 2023 from 173 days in 2022, attributed to longer collection periods for certain customers[95]. - The cash conversion cycle for the Group increased from 37 days in 2022 to 73 days in 2023, influenced by the rise in average turnover days for trade and bills receivables[96]. Leadership and Governance - The company has a strong leadership team with diverse backgrounds in finance, technology, and management, enhancing its strategic capabilities[170]. - The board includes experienced non-executive directors who contribute to corporate governance and strategic oversight[172][179]. - The leadership team's extensive experience in their respective fields positions the company well for future growth and innovation[170]. - Mr. Lu has over 20 years of experience in the communication industry, including roles in base station software development and management of TD-SCDMA/TD-LTE production lines[165][168]. - Ms. Chung has over 20 years of experience in banking, finance, and investment, with a focus on strategic planning and business development[173][176]. - Mr. Tsoi has over 30 years of experience in accounting, auditing, and financial management, currently serving as a director at Alliott, Tsoi CPA Limited[180][181]. - Mr. Hon has over 15 years of experience in listed companies and financial institutions, with extensive expertise in corporate finance, mergers and acquisitions, investment, and financial management[189]. Investment Activities - The Group held equity securities listed in Hong Kong worth approximately RMB6.8 million as financial assets for trading as of 31 December 2023, down from approximately RMB13.5 million in 2022[62]. - The Group recorded a net fair value loss on equity investments of approximately RMB3.0 million during the year, compared to a fair value gain of approximately RMB5.1 million in 2022[62]. - Net fair value losses on investment properties amounted to approximately RMB6.8 million for the year, compared to approximately RMB3.2 million in 2022[62]. - The company recorded fair value losses on equity investments of approximately RMB3.0 million for the year, compared to gains of RMB5.1 million in 2022, due to geopolitical tensions and economic volatility affecting the Hong Kong stock market[124][127]. - The company aims to strengthen its financial position and enhance liquidity through the placement and subscription, expanding its shareholder base[123][126].
威讯控股(01087) - 2023 - 年度财报