Financial Performance - The company reported a loss attributable to owners of HK$275.15 million in 2023, a 1% increase compared to the previous year[13]. - The loss was primarily due to a HK$59.14 million decrease in gains from disposals of residential serviced apartments and a HK$22.98 million increase in impairment loss on goodwill[13]. - The group reported a loss attributable to owners of HK$275,152,000, a slight increase from HK$272,772,000 in the previous year[39]. - The share of losses from associates increased by 80% to HK$31.91 million in 2023, primarily due to the financial performance deterioration of China Healthwise Holdings Limited[30]. - The company recognized a one-off gain of HK$33.45 million on the modification of terms of guaranteed secured notes due 2023[13]. - The company anticipates an uncertain global macroeconomic environment in 2024 and will adjust its equity securities portfolio accordingly[14]. Segment Performance - The money lending business reported a segment loss of HK$124.12 million, a 17% improvement from HK$148.85 million last year, attributed to a HK$34.28 million decrease in allowance for expected credit losses[19]. - The sale of financial assets business achieved a segment loss of HK$6.51 million, a 92% improvement compared to the previous year, due to a trading gain of HK$4.17 million[14]. - The jewelry products business reported a segment profit of HK$2.73 million, a 72% increase from HK$1.59 million last year, driven by increased selling prices due to rising gold prices[20]. - The property investment business reported a segment loss (before taxation) of HK$52.45 million in 2023, compared to a profit of HK$13.32 million last year, mainly due to a HK$59.14 million decrease in gains from disposals of residential serviced apartments[24]. - The newly expanded golf club operation business reported a segment loss (before taxation) of HK$7.24 million, with expectations for improved performance in 2024[25]. Revenue and Profitability - Total revenue for the year ended December 31, 2023, was HK$196.69 million, a 16% increase from HK$169.93 million in the previous year, attributed to a trading gain of HK$4.17 million and HK$29.43 million from the golf club operation[36]. - The gross profit from the jewelry products business increased by 22% to HK$13,712,000, with the gross profit margin rising from 14% to 16%[42][45]. - The gross profit from the property investment business increased by 5% to HK$35,246,000, with the gross profit margin increasing from 65% to 73%[43][45]. - The newly expanded golf club operation generated a gross profit of HK$13,306,000, achieving a gross profit margin of 45%[44][45]. Expenses and Liabilities - Selling and distribution expenses increased by 20% to HK$4,578,000, primarily due to higher overseas travel and exhibition expenses[49][50]. - Administrative expenses increased by 11% from HK$116,382,000 in 2022 to HK$129,153,000 in 2023, primarily due to a HK$6,600,000 increase in salaries and a HK$13,075,000 increase in general administration expenses related to the golf club operations[54]. - Finance costs rose by 9% from HK$61,072,000 in 2022 to HK$66,603,000 in 2023, attributed to an increase in interest rates from 13% to 17% per annum[56]. - The Group's net current liabilities are HK$305,985,000, with a current ratio of 0.66 as of December 31, 2023, compared to 0.78 in 2022[76]. Market and Product Development - The company plans to expand its product categories by developing budget jewelry products to meet consumer demand and launched new stone-type jewelry products in Q4 2023[20]. - The company aims to cultivate new markets for its jewelry products, targeting Japan and other Southeast Asian countries in 2024[20]. - The Group is expanding its product categories by developing budgeted jewelry products to meet consumer demand and launched other stone-type jewelry products in Q4 2023[150]. - The Group is cultivating new markets for its jewelry products, targeting Japan and other Southeast Asian countries in 2024[150]. Asset Management - The carrying amount of the Shun Tak Property was HK$328,455,000, down from HK$333,951,000 in 2022, with HK$164,755,000 classified as property, plant, and equipment[89]. - The fair value of the Group's Hong Kong-listed equity securities was HK$104,012,000, down from HK$132,920,000 in 2022[89]. - The fair value of the investment in an unlisted investment holding company decreased from HK$11,259,000 at the end of 2022 to HK$5,535,000 at the end of 2023, resulting in a loss of HK$5,724,000[199]. - The Group's outstanding loan receivables amounted to HK$248,614,000 as of December 31, 2023, down from HK$412,069,000 in 2022[143]. Legal and Compliance - A civil claim was filed against Bayhood No. 9 Co. for an unsettled legal fee of RMB31,000,000 (approximately HK$34,209,000) related to a property transaction[91][93]. - The Group's management noted that the possibility of Bayhood No. 9 Co. being required to pay the unsettled legal fee is remote, and no provision for liability has been made[91][93].
永恒策略(00764) - 2023 - 年度财报