Revenue Performance - Revenue for the year ended December 31, 2023, was approximately HK$697.5 million, a decrease of approximately HK$446.4 million or 39.0% from HK$1,143.9 million for the year ended December 31, 2022[3]. - Revenue from the integrated plastic solutions segment was approximately HK$572.4 million, accounting for approximately 82.1% of total revenue, representing a decrease of approximately HK$14.7 million or 2.5% from HK$587.1 million in 2022[4]. - Revenue from the e-cigarettes products segment was approximately HK$122.7 million, accounting for approximately 17.6% of total revenue, a decrease of approximately HK$430.5 million or 77.8% from HK$553.2 million in 2022[9]. - Revenue from the medical consumable products segment was approximately HK$2.4 million, accounting for approximately 0.3% of total revenue, a decrease of approximately HK$1.2 million or 33.3% from HK$3.6 million in 2022[11]. Profitability and Margins - Gross profit for the year ended December 31, 2023, was approximately HK$135.9 million, with a gross profit margin of 19.5%, down from HK$260.1 million and 22.7% in 2022[14]. - Segment gross profit for integrated plastic solutions was approximately HK$122.9 million, with a gross profit margin of 21.5%, down from HK$146.9 million and 25.0% in 2022[14]. - Segment gross profit for e-cigarettes products was approximately HK$15.2 million, with a gross profit margin of 12.4%, down from HK$113.0 million and 20.4% in 2022[15]. - Segment gross loss for medical consumable products was approximately HK$2.2 million, with a gross loss margin of 91.7%, compared to a gross profit of HK$0.2 million and a margin of 5.6% in 2022[16]. - Profit attributable to equity holders of the company for the year ended December 31, 2023, was approximately HK$23.5 million, representing a decrease of approximately HK$82.4 million or approximately 77.8% from approximately HK$105.9 million for the year ended December 31, 2022[31][37]. Costs and Expenses - Selling and distribution costs for the year ended December 31, 2023, were approximately HK$4.6 million, a decrease of approximately HK$1.2 million or 20.7% from HK$5.8 million in 2022[21]. - Administrative and other operating expenses were approximately HK$114.8 million, a decrease of about HK$15.9 million or approximately 12.2% from approximately HK$130.7 million for the year ended December 31, 2022, mainly due to a reduction in discretionary bonuses paid to directors and senior management[26]. Financial Position - As of December 31, 2023, the group had bank balances and cash of approximately HK$132.6 million, compared to HK$128.4 million in 2022[32][38]. - Interest-bearing borrowings as of December 31, 2023, were approximately HK$61.9 million, down from HK$128.8 million in 2022, with a weighted average effective interest rate of approximately 3.91% per annum[32][38]. - The group's gearing ratio as of December 31, 2023, was 8.8%, down from 18.9% in 2022, indicating improved financial stability[32][38]. Dividends and Shareholder Returns - The board recommended a final dividend of HK$1.5 cents per share for the year ended December 31, 2023, down from HK$2.0 cents per share in 2022[51][54]. ESG and Sustainability - The ESG Report covers the Group's activities from January 1, 2023, to December 31, 2023, focusing on environmental, social, and governance initiatives[62]. - The Group conducted a materiality assessment to identify key issues for the ESG Report, ensuring relevant topics are prioritized[64]. - The Board oversees the ESG strategy and ensures integration of environmental considerations into decision-making processes[77]. - The Group is committed to promoting sustainable development and actively monitors ESG challenges and opportunities[77]. Market and Operational Insights - The e-cigarettes segment faced adverse effects due to the removal of exclusivity terms with a major customer, impacting sales orders[86]. - High inflation and interest rates negatively impacted consumer confidence and overall business performance in 2023[86]. - The Group aims to enhance its core technologies and competitive advantages through a newly established research and development center, contributing to the expansion of its product range, including e-cigarettes and medical consumables[94]. Financial Reporting and Accounting Policies - The Group's financial statements are prepared for the year ended December 31, 2023[190]. - The Group's revenue recognition policy includes rental income from operating leases recognized on a straight-line basis over the lease term[141]. - Revenue is recognized when the Group satisfies a performance obligation by transferring a promised good or service to a customer[142]. - The Group recognizes lease liabilities at the present value of lease payments not paid at the commencement date, which includes fixed payments, variable payments based on an index, and amounts expected under residual value guarantees[152]. Corporate Governance and Compliance - The Group did not experience any personal data breaches or leakage cases during the Reporting Period[156]. - The Group provided anti-corruption training 13 times a year, totaling 118 hours, to enhance ethical practices among employees[159]. - There were no concluded legal cases regarding corrupt practices against the Group or its employees during the Reporting Period[166].
天长集团(02182) - 2023 - 年度财报