Financial Performance - The company reported revenue of approximately HKD 383.9 million for the fiscal year ending December 31, 2023, a decrease of about 8.8% compared to HKD 420.9 million in 2022[3]. - Gross profit increased to HKD 165.8 million, representing a growth of 5.6% from HKD 157.0 million in the previous year[3]. - The profit attributable to shareholders was approximately HKD 37.2 million, a significant increase of about HKD 96.7 million from a loss of HKD 59.5 million in 2022, marking a 162.52% improvement[3]. - Basic earnings per share for the year were HKD 0.3906, compared to a loss of HKD 1.1744 per share in 2022, reflecting a 133.26% increase[3]. - The herbal medicine business generated revenue of approximately HKD 121,500,000, a decrease from HKD 127,900,000 in 2022[24]. - Revenue from North America was approximately HKD 262,000,000, down from HKD 292,000,000 in the previous year, accounting for about 68.2% of total revenue[24]. - Revenue from China (including Hong Kong) was approximately HKD 122,100,000, down from HKD 128,800,000, representing about 31.8% of total revenue[24]. - The company reported a significant increase in other income to HKD 8,458,000, up from HKD 1,244,000 in the previous year[149]. - Net profit for the year was HKD 65,701,000, compared to a loss of HKD 38,501,000 in 2022, indicating a significant turnaround[149]. - Total comprehensive income for the year was HKD 52,431,000, compared to a loss of HKD 58,662,000 in the previous year[151]. Assets and Liabilities - The total assets decreased by 12.46% to HKD 770.3 million from HKD 879.9 million in the previous year[3]. - The total equity increased by 19.29% to HKD 340.0 million, up from HKD 285.0 million in 2022[3]. - Non-current assets increased to HKD 454,819,000 in 2023 from HKD 486,629,000 in 2022, with property, plant, and equipment rising to HKD 107,820,000 from HKD 93,934,000[153]. - Current assets decreased to HKD 315,462,000 in 2023 from HKD 393,310,000 in 2022, primarily due to a reduction in other receivables[153]. - The company recorded a decrease in total liabilities from HKD 473,536,000 in 2022 to HKD 277,349,000 in 2023, showcasing a reduction in financial obligations[153]. - The company’s equity attributable to owners increased to HKD 214,208,000 in 2023 from HKD 185,734,000 in 2022, indicating growth in shareholder value[154]. Cash Flow and Financing - Operating cash flow for the year ended December 31, 2023, was HKD 27,543,000, a significant improvement from a cash outflow of HKD 146,700,000 in 2022[158]. - Net cash generated from financing activities was HKD 5,647,000, a decrease from HKD 43,416,000 in 2022[159]. - Total cash and cash equivalents at the end of 2023 increased to HKD 111,867,000 from HKD 99,058,000 at the beginning of the year[159]. - The company incurred interest expenses of HKD 27,068,000, down from HKD 46,812,000 in the previous year[158]. Investments and Acquisitions - The company is committed to developing planting facilities in China as part of its strategy to explore profitable investment opportunities[8]. - The acquisition of 49% equity in Jiangxi Jiua Food Co., Ltd. for HKD 45,750,000, with HKD 15,250,000 paid in shares and HKD 30,500,000 in convertible bonds, is still pending completion[33]. - The company recorded a loss of HKD 2.0 million from its investment in the fruit planting business, an improvement from a loss of HKD 5.8 million in 2022[16]. - Impairment losses on investments in associates amounted to HKD 34,314,000, with no such losses reported in 2022[149]. Administrative and Operational Expenses - The group’s administrative expenses increased by approximately 9.6% to about HKD 86,400,000 from HKD 78,800,000 in the previous year[26]. - Financial costs decreased by approximately 42.1% to HKD 27,100,000 from HKD 46,800,000 in the previous year[27]. - The total cost for retirement benefit plans was approximately HKD 2.765 million, an increase from about HKD 2.512 million in the previous year[66]. Corporate Governance and Compliance - The company is committed to achieving excellence in corporate governance and has complied with all applicable codes during the year[100]. - The board consists of three executive directors and three independent non-executive directors as of December 31, 2023[103]. - The independent non-executive directors are appointed for a designated term of two years, ensuring shareholder interests are protected[104]. - The company has not made appropriate insurance arrangements for directors since 2019 due to market availability issues[104]. - The audit committee held two meetings in 2023, with all members being independent non-executive directors[113]. Environmental and Social Responsibility - The company emphasizes environmental responsibility by implementing measures to reduce carbon footprint and energy consumption[89]. - The company has implemented various paper-saving measures to minimize waste and promote recycling[92]. - The group made charitable donations totaling approximately HKD 450,000, significantly up from HKD 28,000 in the previous year[64]. Shareholder Information - The company has proposed a share consolidation where every two existing shares of HKD 0.05 will be consolidated into one share of HKD 0.1, effective January 18, 2024[35]. - The public shareholding ratio exceeds 25% of the company's issued shares as of the report date[85]. - The company has no significant contingent liabilities or capital commitments as of December 31, 2023[38][39]. - No final dividend has been recommended for the year ending December 31, 2023[40]. Risk Management and Internal Controls - The company has engaged MOSS Valuation & Advisory Limited as an independent consultant to review the internal control system, covering financial, operational, and compliance controls[123]. - The risk management framework includes identifying significant risks, assessing their impact, and implementing necessary measures to manage those risks[124]. - The board has reviewed the risk management and internal control systems for the year ended December 31, 2023, and considers them effective[125].
侨雄国际(00381) - 2023 - 年度财报