Financial Performance - Total revenue for Perfect Optronics Limited in 2023 amounted to approximately HK$124.3 million, representing a 59% decrease compared to 2022[21]. - Loss attributable to equity holders of the Company for the Year amounted to approximately HK$19.1 million, compared to a profit of approximately HK$4.0 million in 2022[21]. - The Group's total revenue for the year was approximately HK$124.3 million, representing a significant decrease of 59% compared to approximately HK$301.3 million in 2022[24][34]. - The Group recorded a loss attributable to equity holders of approximately HK$19.1 million for the year, compared to a profit of approximately HK$4.0 million in 2022[24][34]. - Gross profit for the Group was approximately HK$15,294,000, down by approximately HK$54,375,000 compared to approximately HK$69,669,000 in 2022[68]. - Revenue for the year was HK$124,255,000, representing a decrease of 59% from HK$301,318,000 in 2022[87]. - Gross profit decreased by 78% to HK$15,294,000, with a gross profit margin of 12.3%, down from 23.1% in 2022[87]. - Total cost of sales for the Group was approximately HK$108,961,000, a decrease of approximately 53% from approximately HK$231,649,000 in 2022[67]. Sales Performance - Sales of health-related products, including COVID-19 rapid antigen test kits, decreased significantly from approximately HK$87.9 million in 2022 to approximately HK$18.2 million in 2023[19]. - Sales of thin film transistor liquid crystal display (TFT-LCD) panels and modules dropped from approximately HK$155.9 million in 2022 to approximately HK$84.0 million in 2023[20]. - The decline in sales was attributed to reduced demand for display products and health-related items due to the easing of the COVID-19 pandemic[19][20]. - Sales of health-related products dropped sharply from approximately HK$87.9 million in 2022 to about HK$18.2 million in the current year[23]. - Sales of TFT-LCD panels and modules decreased from approximately HK$155.9 million in 2022 to about HK$84.0 million in the current year[23]. - Sales of polarisers dropped significantly by approximately 98%, totaling approximately HK$782,000 compared to HK$36,554,000 in 2022[38]. - Revenue from electronic signage products decreased by approximately 14%, reaching approximately HK$14,029,000 compared to HK$16,396,000 in 2022[39]. - Sales of optics products increased significantly by approximately HK$4,404,000, totaling approximately HK$4,994,000 compared to HK$590,000 in 2022[40]. - Sales of health-related products fell by approximately 79%, amounting to approximately HK$18,209,000 compared to HK$87,876,000 in 2022[44]. Investment and Fair Value - The Group recorded a fair value gain on its investment in Mobvoi Inc. of approximately HK$10.6 million, which was offset by the significant decrease in revenue[21]. - The Group recognized a fair value gain of approximately HK$10.6 million on its investment in Mobvoi during the year[24][26]. - The fair value of the Group's investment in Mobvoi increased by approximately 42%, reaching approximately HK$35,848,000 as of December 31, 2023, compared to HK$25,201,000 in 2022[45]. - The Group's investment in Mobvoi, classified as a financial asset at fair value through profit or loss, had a fair value of approximately HK$35,848,000 as of December 31, 2023, representing about 30.9% of the Group's total assets[122]. - A fair value gain of approximately HK$10,647,000 was recognized on the investment in Mobvoi during the year[122]. Strategic Initiatives - The Group introduced new health-related products, such as supplements, to diversify its product portfolio in response to changing market demands[22]. - The Group's strategy includes continuing to diversify its product offerings to adapt to market changes and consumer health awareness[22]. - The Group is expanding its product portfolio by launching health-related products to leverage increased health awareness post-pandemic[24][29]. - The Group plans to pursue a diversified business strategy to navigate ongoing challenges posed by the global economic environment[27][30]. - The Group plans to explore product diversity and new business opportunities to adapt to market challenges and ensure stability[50]. Economic and Market Conditions - The sluggish display panels market and global inflation significantly affected the Group's sales performance[20]. - The Group's financial performance may be adversely affected by a slowdown in the global economy and reduced market demand[51]. - The Group's inventory risk is heightened due to potential obsolescence as technology evolves quickly[56]. Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code during the Year[138]. - The Board comprises four executive Directors and five independent non-executive Directors, with several Directors currently suspended[140]. - The management is responsible for implementing strategies and reporting on the Group's operations to the Board regularly[148]. - The Company has arranged appropriate insurance coverage for Directors' and officers' liabilities, reviewed annually[150]. - All minutes of the Board meetings were recorded in sufficient detail regarding matters considered and decisions made[151]. - The Company held four regular board meetings during the year, with all directors attending all meetings[157]. - The Company has appointed five independent non-executive directors, representing more than one-third of the Board, ensuring compliance with GEM Listing Rules[170]. - The audit committee consists of three independent non-executive directors, with Ms. Hsu Wai Man Helen serving as chairperson, possessing appropriate accounting expertise[172]. - The Company has established three Board committees: audit committee, remuneration committee, and nomination committee, to oversee specific aspects of the Company's affairs[171]. - The Company provides sufficient resources to its Board committees to effectively discharge their duties[171]. Legal and Compliance Matters - The legal proceedings involving certain Directors are ongoing, with allegations of breach of duties related to a subsidiary holding approximately 50.14% of Shinyoptics Corporation[130]. - The Director Respondents have been suspended from their duties since September 25, 2020, pending the outcome of the legal proceedings[131]. - The Company has received annual independence confirmation from each independent non-executive director, affirming their independence as per GEM Listing Rules[170]. Financial Position - Cash and cash equivalents decreased by 45% to approximately HK$47,372,000 from HK$85,709,000 in 2022[91]. - Total assets decreased by 24% to HK$116,131,000 from HK$153,750,000 in 2022[90]. - Total liabilities decreased by 38% to HK$27,355,000 from HK$44,412,000 in 2022[90]. - The current ratio increased to 3.2 times from 3.0 times in 2022, while the quick ratio decreased to 2.4 times from 2.5 times[90]. - Bank borrowings decreased to approximately HK$4,519,000 from HK$5,206,000 in 2022[92]. - The Group's total staff costs for the year were approximately HK$24,713,000, down from HK$26,495,000 in 2022, with an employee headcount of 67 as of December 31, 2023, compared to 65 in 2022[101].
圆美光电(08311) - 2023 - 年度财报