Financial Performance - For the year ended December 31, 2023, the Group's turnover increased by approximately 3% to approximately HK$146 million, compared to approximately HK$142 million for the year ended December 31, 2022[14]. - The gross profit margin for the Reporting Year was approximately 41%, compared to approximately 37% in the Corresponding Year[15]. - The overall loss attributable to owners of the Company was approximately HK$135 million, compared to HK$54 million in the Corresponding Year[15]. - Revenue for the year ended 31 December 2023 was approximately HK$146 million, a 3% increase from approximately HK$142 million in FY22, driven by improved performance in the investment financial instruments and traditional Chinese medicine segments[80]. - The Group recorded a loss attributable to shareholders of approximately HK$135 million in the Reporting Year, compared to approximately HK$54 million in FY22[87][90]. Revenue Segmentation - Revenue from the Chinese health product segment increased from approximately HK$128 million in FY22 to approximately HK$130 million in the Reporting Year[20]. - The Chinese herbal health products segment generated revenue of approximately HK$130 million in the reporting year, an increase from HK$128 million in FY22, with segment profit rising to approximately HK$3 million from HK$2 million in FY22[26]. - Revenue from the money lending segment decreased from approximately HK$15 million in FY22 to approximately HK$11 million in the Reporting Year[20]. - Revenue from the investment in financial instruments improved from a loss of approximately HK$1 million in FY22 to a gain of approximately HK$6 million in FY23[75]. Impairment and Losses - Impairment loss recognized for loan receivables increased from approximately HK$25 million in FY22 to approximately HK$107 million in FY23[21]. - The increase in segment loss was mainly due to an increase of approximately HK$82 million in expected credit loss (ECL) allowance, attributed to loan receivables totaling HK$124 million being reclassified to stage 3 (credit-impaired) during the year[29]. - The total allowance for ECL on loan receivables was approximately HK$294 million, an increase of approximately HK$107 million compared to HK$187 million in FY22[36]. - Impairment loss under the expected credit loss model increased significantly to approximately HK$107 million for the Reporting Year, compared to approximately HK$25 million in FY22, mainly due to the reclassification of 5 loan receivables to stage 3 (credit-impaired)[86][90]. Cash Flow and Assets - As of December 31, 2023, the Group's cash and bank balances were approximately HK$14 million, down from approximately HK$17 million as of December 31, 2022[69]. - Total current assets were approximately HK$140 million, while total current liabilities were approximately HK$143 million, resulting in a current ratio of approximately 0.98[115][116]. - Shareholders' funds decreased significantly from approximately HK$139 million as of December 31, 2022, to approximately HK$4 million as of December 31, 2023, primarily due to operating losses[115][116]. - The value of inventories increased by approximately 2% from approximately HK$55 million as at 31 December 2022 to approximately HK$56 million as at 31 December 2023, with inventory turnover days slightly decreasing to 236 days[100]. Corporate Governance - The Board is committed to high standards of corporate governance, ensuring compliance with all code provisions throughout the year ended December 31, 2023[144]. - The Company has established three committees: Audit, Remuneration, and Nomination, each with defined terms of reference[182]. - The Board comprises six Executive Directors and three Independent Non-executive Directors, with no relationships among members[166]. - All independent non-executive directors have confirmed their independence in accordance with Rule 3.13 of the Listing Rules for the year ended December 31, 2023[187]. Strategic Initiatives - The Group aims to diversify revenue sources through investments and acquisitions of promising businesses or projects[67]. - The Group plans to enhance online sales channels, particularly through platforms like "HKTVmall," which has contributed stable turnover during FY23[55]. - The Group aims to optimize operations using technology and data, including the potential implementation of a Customer Relationship Management System (CRM)[57]. - The Group will participate in shopping promotions and consider live commerce platforms to expand its customer base[57]. Market Outlook - The retail market in Hong Kong is expected to benefit from the full resumption of normal travel between Hong Kong and Mainland China, positively impacting sales[55]. - The demand for health care products, especially Chinese medicine, is expected to grow due to increasing health awareness and an aging population in Hong Kong[54].
中国智能健康(00348) - 2023 - 年度财报