Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue increased by 6.2% to RMB 278,286,000 from RMB 262,153,000 in the previous year, primarily due to an increase in the volume of completed and delivered properties [12]. - The company's gross profit decreased by 55.7% to RMB 37,006,000, with a gross profit margin dropping from 31.9% to 13.3%, attributed to market price adjustments in the property sector [12]. - For the year ended December 31, 2023, the group reported a net profit attributable to owners of the company of RMB 4,507,000, a decrease of 85.6% from RMB 31,321,000 for the year ended December 31, 2022 [14]. - The group reported a total net loss of approximately RMB 24.98 million due to fund misappropriation from 2019 to 2022 [94]. - Revenue from property sales for the year ended December 31, 2023, was RMB 278,286,000, an increase of 6.5% compared to RMB 262,153,000 in 2022 [157]. - Gross profit decreased to RMB 37,006,000 in 2023 from RMB 83,593,000 in 2022, representing a decline of 55.7% [157]. - Net profit for the year was RMB 7,590,000, down 76.5% from RMB 32,226,000 in the previous year [159]. - Basic and diluted earnings per share decreased to RMB 0.08 from RMB 0.54, a decline of 85.2% [159]. - Total comprehensive income for the year was RMB 7,810,000, down 76.0% from RMB 32,445,000 in 2022 [159]. Project Development - The company is focusing on four residential and commercial property projects in China, including the Xixian Kangqiao Academy in Henan and the Wugang Kangqiao Academy in Hunan, with ongoing deliveries starting from July 2023 [6]. - The company has several ongoing projects with expected completion dates ranging from 2024 to 2026, including residential and commercial developments in Hunan and Henan provinces [8]. - The total area of ongoing property development projects is approximately 1,107,000 square meters, with a significant portion already completed or under development [8]. Economic Outlook - The Chinese economy is projected to grow by 5.2% in 2023, with the real estate market facing challenges, including a 6.5% year-on-year decrease in commodity housing sales to approximately RMB 11.7 trillion [5]. - The company anticipates more supportive policies from the government to stabilize and promote the real estate market in 2024, emphasizing high-quality development [6]. Management and Governance - The company maintains a cautious management approach to balance growth, efficiency, and risk, aiming to develop high-quality properties and living communities [6]. - The board of directors includes Mr. Che Tak Chung as Chairman and Mr. Choi Kin Sze as CEO [34]. - The board consists of six members, with three executive directors and three independent non-executive directors, ensuring a balanced composition [67]. - The company emphasizes the importance of corporate governance and has established a clear division of responsibilities between the chairman and the CEO [75]. - The independent non-executive directors play a crucial role in ensuring high levels of financial and statutory reporting [72]. - The company has established internal control measures and training to ensure compliance with applicable laws and regulations [57]. Financial Position - As of December 31, 2023, the group's total assets amounted to RMB 1,201,801,000, with total liabilities of RMB 804,334,000 and total equity of RMB 397,467,000 [15]. - The current ratio as of December 31, 2023, was 2.93 times, compared to 2.45 times as of December 31, 2022 [15]. - The group had secured bank borrowings of RMB 36,000,000 as of December 31, 2023, unchanged from the previous year [15]. - The group pledged approximately RMB 135,787,000 of development properties as collateral for bank borrowings as of December 31, 2023 [31]. Expenses and Costs - The group's sales expenses increased by 13.3% from RMB 7,349,000 for the year ended December 31, 2022, to RMB 8,324,000 for the year ended December 31, 2023, primarily due to additional sales agent commissions incurred from property deliveries [13]. - The group's administrative expenses decreased by 27.4% from RMB 20,914,000 for the year ended December 31, 2022, to RMB 15,182,000 for the year ended December 31, 2023, mainly due to additional cost control measures implemented in response to a challenging business environment [13]. - The total employee cost for the year ended December 31, 2023, was RMB 8,013,000, down from RMB 9,484,000 in the previous year [17]. Shareholder Information - The group did not recommend the payment of any dividends for the year, consistent with the previous year [23]. - The company reported a total of 1,517,896,394 shares held by Fame Build Holdings Limited, representing approximately 26.00% of the issued share capital [42]. - Talent Connect Investments Limited holds 1,780,596,394 shares, accounting for approximately 30.50% of the issued share capital [42]. Compliance and Regulations - The company has confirmed compliance with a non-competition agreement, ensuring no direct or indirect competition in the residential and commercial property development sector in China [50]. - The company has adhered to all relevant laws and regulations that significantly impact its operations during the year ending December 31, 2023 [57]. - The company maintains sufficient public float as per the requirements of the Listing Rules [53]. - The company has a clear insider information policy to ensure timely and fair disclosure of material information to the public [95]. Risk Management - The board has established a risk management and internal control system, which is reviewed annually by an external consultant to ensure its effectiveness [92]. - The company employs a three-tier risk management approach to identify, assess, mitigate, and manage risks associated with its operations [91]. - The board believes that the existing risk management and internal control system is effective in preventing future fund misappropriation incidents [94]. Audit and Financial Reporting - The independent auditor has confirmed that the financial statements reflect the group's financial position accurately as of December 31, 2023 [136]. - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2023, including the accounting principles and practices adopted [118]. - The audit fees for the year ended December 31, 2023, amounted to RMB 905,000 for statutory audit services and RMB 290,000 for non-audit services [96]. - The auditor communicated with the audit committee regarding the planned audit scope, timing, and significant audit findings, including any identified deficiencies in internal controls [154]. Environmental Commitment - The company is committed to minimizing its environmental impact and has implemented measures such as using eco-friendly materials and monitoring construction processes to comply with environmental regulations [56].
建德国际控股(00865) - 2023 - 年度财报