Financial Performance - The Group's revenue increased by approximately 46% to HK$53,037,000 in 2023 compared to HK$36,381,000 in 2022[10] - The net loss attributable to the owners increased by 5% to HK$28,736,000 in 2023 from HK$27,266,000 in 2022[10] - Basic and diluted loss per share was HK$8.81 in 2023, a 5% increase from HK$8.36 in 2022[10] - Total equity decreased by 10% to HK$252,474,000 in 2023 from HK$280,928,000 in 2022[10] - Gross profit increased by approximately 24% to HK$21,711,000 in 2023, attributed mainly to the hospitality business segment[21] - Other income decreased by 67% to HK$4,491,000, primarily due to the absence of prior year gains on property disposal and government subsidies[22] - The group's net loss increased by 6% to approximately HK$28,900,000, influenced by various factors including a gross profit increase of about HK$4,250,000 and a property sale loss of HK$900,000[25] - Revenue for the year rose by approximately 46% to HK$53,037,000, with gross profit increasing by about 24% to HK$21,711,000, primarily driven by the hospitality sector[25] Assets and Liabilities - As of December 31, 2023, the Group's total assets were approximately HK$417,747,000 and total liabilities were approximately HK$165,273,000[24] - The net asset value per share was approximately HK$0.77 in 2023, down from HK$0.86 in 2022, reflecting a 10% decrease[10] - The Group's total equity as of December 31, 2023, was HK$252,474,000, with a gearing ratio of approximately 4%[75] - The Group's cash and bank balance as of December 31, 2023, was HK$11,690,000, with net current liabilities of HK$80,842,000, resulting in a current ratio of approximately 0.47[72] - As of December 31, 2023, the total borrowings of the Group amounted to HK$129,403,000, a decrease from HK$208,891,000 in 2022[133] Expenses and Costs - Finance costs increased by HK$5,244,000 due to rising HIBOR interest rates since July 2022[23] - Administrative expenses decreased by HK$6,520,000 to HK$29,849,000, mainly due to the absence of unrealized exchange loss on RMB deposits[23] - The finance cost nearly doubled during the year due to high capital costs, despite some bank loans being repaid upon maturity[30] - The segment net loss for the hair styling business increased to HK$1,275,000 compared to a net loss of HK$295,000 the previous year, primarily due to impairment losses and increased costs[42] Hospitality and Tourism - The group's turnover in the hospitality service business increased by 117% to HK$31,393,000, with a segment profit of HK$3,540,000[47] - Average daily rates for the Sheung Wan guesthouse and North Point hostel increased by 73% and 46% respectively compared to 2022, while maintaining a high occupancy rate of about 90%[49] - The overall average daily rate for the hospitality segment increased by 99% year on year, despite the absence of government subsidies received during the pandemic[47] - The hospitality industry's recovery is hindered by staffing shortages, rising energy costs, and high travel costs, despite government initiatives to promote tourism[52][54] - The Group's hospitality service business in Hong Kong is expected to benefit from the resurgence of tourism and government initiatives aimed at boosting the sector[91] Market Conditions and Outlook - The ongoing high interest rate environment, with 11 US interest rate hikes totaling 5.25 percentage points from March 2022 to July 2023, has negatively impacted the real estate market and consumer confidence[29] - The Group anticipates geopolitical tensions and macroeconomic headwinds to impact the global market in 2024, with uncertainties stemming from ongoing conflicts and economic conditions[87][89] - Hong Kong's economy is expected to grow between 2.5% and 3.5% in 2024, while Macau's GDP growth is projected to reach about 10%, recovering to approximately 90% of 2019 levels[91] - The Group maintains a cautious outlook on market recovery due to macroeconomic uncertainties while exploring new business opportunities[94] Share Capital and Dividends - The Directors do not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with 2022 where no dividend was paid[82] - The distributable reserves available for dividend distribution as of December 31, 2023, were HK$14,177,000, after compensating accumulated losses of HK$199,801,000 against contributed surplus of HK$213,978,000[131] - The Company has maintained its authorized share capital without any changes during the review year, and no share options were granted under the approved scheme[118][120] Management and Governance - The Group's management team includes individuals with extensive experience in their respective fields, contributing to the overall strategic direction and operational efficiency[184] - The Group's financial controller and company secretary, Ms. Sze Tak On, has over 30 years of experience in accounting, auditing, and finance, primarily with public companies listed in Hong Kong[187] - The Group's independent non-executive director, Mr. Lau Pui Wing, has over 20 years of experience in accounting, auditing, taxation, and corporate finance[179] Investment Properties - Total rental income from investment properties in Hong Kong and Macau decreased by approximately 27% to HK$2,796,000, attributed to vacancies in a Macau retail shop and a Taikoo Shing property[34] - The valuation loss on investment properties amounted to HK$4,700,000, increasing the segment loss to HK$10,539,000 for the year, with total valuation dropping to HK$114,300,000 as of year-end 2023[34] - Rental income from Macau properties decreased by approximately 35% to HK$1,596,000, mainly due to the early termination of a retail shop lease[36] Strategic Initiatives - The Group plans to focus on attracting and retaining high-quality tenants to ensure a consistent flow of rental income amid uncertain property market recovery[41] - The Group will explore new business opportunities and expand revenue streams, particularly targeting higher-end middle-aged individuals seeking superior hair care services[46] - The Group aims to enhance its hair extension services and collaborate with strategic partners in the hair goods industry as opportunities arise[46]
世纪建业(00079) - 2023 - 年度财报