Financial Performance - The company's revenue decreased by 26.0% to approximately HK$66,328,000 in 2023, down from HK$89,620,000 in 2022[5] - Gross profit for 2023 was HK$11,233,000, compared to HK$14,060,000 in 2022[26] - The loss before income tax was HK$94,639,000 in 2023, an increase from a loss of HK$58,403,000 in 2022[26] - Revenue from the apparel operation decreased by 24.0% to approximately HK$56,488,000 for the year ended 31 December 2023, accounting for 85.2% of the Group's total revenue[30] - Revenue from the money lending operation decreased to approximately HK$8,199,000 for the year ended 31 December 2023, representing a decrease of approximately 39.9% and accounting for 12.4% of the Group's total revenue[33] - Revenue from IP application and products operation decreased slightly by approximately 0.7% to approximately HK$1,641,000 for the year ended 31 December 2023, accounting for 2.4% of the Group's total revenue[33] - The Group incurred losses of approximately HK$447,000 in other gains and losses for the year ended 31 December 2023, a significant decrease from gains of HK$66,221,000 in 2022[87] - The Group recognized a net fair value loss on financial assets at fair value through profit or loss of approximately HK$1,895,000 in 2023, down from HK$10,111,000 in 2022[87] - The Group incurred an impairment loss on goodwill of approximately HK$13,000,000 for the year ended 31 December 2023, compared to HK$34,632,000 in 2022[87] - The Group's total staff costs for the year ended December 31, 2023, were approximately HK$42,816,000, down from approximately HK$50,719,000 in 2022[101] - The Group's total borrowings and lease liabilities amounted to approximately HK$32,908,000 as of December 31, 2023, up from HK$31,457,000 in 2022[100] Economic Environment - The company faced a challenging economic environment in 2023, continuing from a stagnant 2022[20] - The economic recovery of Mainland China in 2023 was moderate, influenced by sluggish external demand and concerns over the economic outlook[29] - The global economic outlook for 2024 is expected to remain challenging, with high inflation and interest rates continuing to impact economic growth[33] - The economic environment in Hong Kong for 2023 faced pressure due to changes in local consumption patterns and a weak financial and property market, impacting growth[58] - The overall economic environment in Mainland China has been challenging, impacting consumer spending and demand for apparel products[112] - The company anticipates a recovery in 2024 alongside economic growth in Mainland China and Hong Kong[64] Corporate Governance and Management - Mr. Li Yang has over 20 years of experience in investment activities and business management, holding directorships in several companies listed on the Hong Kong Stock Exchange[36] - Mr. Chan Ming Leung Terence has over 13 years of experience in the IT industry, particularly in sales and marketing, having worked at Tencent[40] - Mr. Wong Wai Kai Richard holds a dual degree in International Relations and Economics from Brown University, completed in 2020[46] - Mr. Tang Shu Pui Simon is the chairman of the Remuneration Committee and has extensive legal experience, being a partner at a law firm with over 70 years of service in Hong Kong[47] - The Company is focused on expanding its market presence and enhancing its corporate governance through experienced directors[38] - The Company aims to leverage the expertise of its directors to drive strategic initiatives and improve operational efficiency[39] - The management team includes individuals with diverse backgrounds in healthcare, IT, and legal sectors, enhancing the Company's strategic capabilities[40][44] - The Company is committed to maintaining high standards of corporate governance and compliance with regulatory requirements[47] - The appointment of new directors reflects the Company's strategy to strengthen its leadership and adapt to market changes[39] Operational Changes and Strategies - The company plans to transform its apparel focus from women's apparel to sports and leisure apparel, targeting the young market[35] - The company will gradually scale down its money lending business due to a difficult business environment[35] - The gaming industry is expected to maintain innovation and healthy development, supported by various measures from regulators in Mainland China[35] - The company aims to explore more business opportunities with renowned gaming platforms to boost the trendy cultural product industry[35] Financial Position and Ratios - Total assets decreased to HK$214,185,000 in 2023 from HK$288,373,000 in 2022[18] - Shareholders' equity fell to HK$148,113,000 in 2023, down from HK$208,432,000 in 2022[18] - The current ratio for 2023 was 4.17, slightly down from 4.42 in 2022[18] - The return on equity for 2023 was (63.3%), worsening from (31.6%) in 2022[18] - Inventory turnover days increased to 56 days in 2023, compared to 32 days in 2022[18] - Trade receivables turnover days rose to 174 days in 2023, up from 159 days in 2022[18] - The gearing ratio increased to approximately 22.1% as of December 31, 2023, from 15.0% in 2022[153] - The Group's receivables (net of impairment) were approximately HK$44,560,000 as of December 31, 2023, down from HK$98,163,000 in 2022[152] Shareholder Information - As of December 31, 2023, the company had 2,137,076,324 shares issued[1] - Value Convergence Holdings Limited owned 155,334,000 shares, including 66,844,919 underlying shares from convertible instruments[3] - Anli Investment Fund SPC-Anli Greater China Opportunity Fund held 193,590,887 shares[4] - Mr. Zeng Ge is the beneficial owner of 100% shareholding in Dreamtoys Ltd., which owns 114,000,000 shares[5] Other Financial Information - The Group recognized a net fair value loss on financial assets at fair value through profit or loss of approximately HK$8,760,000 in 2023, compared to HK$10,111,000 in 2022[96] - The Group will continue to adopt a conservative investment approach in its trading of listed securities in the Hong Kong stock market[97] - The Group plans to use HK$9.1 million of the net proceeds for repayment of outstanding liabilities and the remaining HK$1.8 million for general working capital[160] - The Board of Directors did not recommend any payment of a final dividend for the year ending December 31, 2023[162]
天机控股(01520) - 2023 - 年度财报