Financial Performance - The revenue for the year ended December 31, 2023, was approximately HKD 393,328,000, representing a 23.0% increase compared to the previous year[5]. - The profit attributable to the company's owners was approximately HKD 304,179,000, a significant increase from a loss of HKD 32,727,000 in the previous year[8]. - The gross profit margin improved to 19.2%, up from approximately 9.3% in the previous year due to cost control measures[22]. - Basic earnings per share for the year were HKD 0.77, compared to a basic loss per share of HKD 0.08 in the previous year[20]. - Other income amounted to approximately HKD 93,919,000[39]. - The estimated tax expense related to deferred consideration was approximately HKD 109,458,000, significantly higher than HKD 27,661,000 in the previous year[53]. - The net reversal of impairment losses for deferred consideration was approximately HKD 395,911,000, compared to HKD 58,900,000 in the previous year[47]. - The company recorded a decrease in interest income from bank deposits to approximately HKD 2,635,000 from HKD 11,333,000 in the previous year[41]. - The company reported a significant increase in contract assets, with a net amount of (HKD 5,233,000) compared to HKD 209,000 in the previous year[35]. - The total equity of the company increased to HKD 1,469,033,000 in 2023, up from HKD 1,184,245,000 in 2022, representing a growth of approximately 24.2%[71]. - The company's non-current liabilities decreased from HKD 102,127,000 in 2022 to HKD 31,902,000 in 2023, a reduction of about 68.7%[71]. - The company has cash on hand of approximately HKD 138.1 million as of December 31, 2023, down from HKD 515.6 million as of December 31, 2022[145]. - The company reported a total reserve available for distribution to shareholders of approximately HKD 53,197,000, which includes retained earnings of about HKD 46,879,000 and other reserves of approximately HKD 6,318,000[194]. Revenue Composition - Revenue from the printed circuit board business accounted for approximately 61.9% of total revenue, while surface treatment business contributed about 38.1%[9]. - Revenue composition by region showed that China accounted for 42.3%, South Korea 14.4%, and Mexico 13.6%[21]. - Revenue from the surface treatment business increased by 123.3% to approximately 121,676,000, with 42.7% of sales directed to China[112]. - Approximately 43.5% of the surface treatment business revenue was generated from sales to Mexico[112]. Investment Activities - The fair value change of investment properties was approximately HKD 28,459,000, compared to none in the previous year[14]. - The company has acquired several retail stores and offices in Longhua, China, and various office units and parking spaces in Hong Kong, classified as investment properties[26]. - The company has entered into a loan financing agreement for a revolving loan of HKD 80 million, effective until October 20, 2025[133]. - The company plans to lease properties to generate stable income, with no immediate cash outflow due to the acquisition being settled through interest-free promissory notes[78]. - The company has pledged several investment properties to a licensed bank in Hong Kong to obtain mortgage loans as of December 31, 2023[148]. - The fair value of investments in listed equity securities was HKD 175,700,000 as of December 31, 2023, with a significant increase in dividend income received amounting to HKD 8,352,000[81][91]. Expenses and Costs - Administrative expenses for the review period were approximately HKD 78,713,000, a decrease of 8.4% compared to HKD 85,795,000 in the previous year[33]. - Sales and distribution costs were approximately HKD 12,597,000, an increase of 27.9% compared to the previous year due to increased sales activities post-pandemic[44]. - The total financial costs were approximately HKD 3,923,000, with a notable decrease in the provision for performance-related rewards[51]. - The company recognized impairment losses of approximately HKD 5,421,000 for property, plant, and equipment, and HKD 7,561,000 for right-of-use assets related to its factory in China[35]. Market Trends and Outlook - The overall decline in the printed circuit board industry in 2023 was attributed to reduced demand for smartphones and other electronic products, reflecting broader market trends[98]. - Global smartphone shipments in Q4 2023 increased by 8.5% year-on-year, totaling approximately 326.1 million units, although annual shipments saw a decline of 3.2%[108][109]. - The fastest-growing market in 2023 was Mexico, with light vehicle sales increasing by 25% to 1,360,100 units[115]. - The company expects a slight rebound in the global smartphone market in 2024, driven by rising demand in emerging markets and new technology developments[111]. - The automotive sales in 2023 reached 75.3 million units, reflecting an 11.9% growth compared to the previous year[113]. Corporate Governance and Community Engagement - The company’s board of directors includes experienced professionals with extensive backgrounds in finance and management, contributing to strategic planning and operations[180][183][184]. - The company has been actively involved in community initiatives, including the establishment of the Hong Kong Charity Foundation to support youth education and development[179]. Risks and Liabilities - The company is subject to foreign currency risk, as its assets and liabilities are primarily settled in USD and HKD[191]. - The company has a liquidity risk related to its ability to meet its obligations as they come due[191]. - The company has a contingent liability related to the properties, with a total secured liability of approximately RMB 1.55 billion, excluding accrued interest and penalties[134]. - The company provided guarantees of approximately HKD 1,034,100,000 for bank credit facilities granted to its subsidiaries as of December 31, 2023, up from HKD 345,000,000 as of December 31, 2022[172]. Employee and Operational Metrics - The group employed a total of 327 employees as of December 31, 2023, down from 431 employees as of December 31, 2022[155]. - The group has no significant capital commitments as of December 31, 2023[154]. - The company has not granted any share options during the review period, similar to the previous year[174]. - The top five customers accounted for approximately 47.2% of the total revenue, with the largest customer representing about 13.4%[195]. - The company has a significant reliance on its top suppliers, with the total purchases from the five largest suppliers making up less than 29.8% of total purchases[195]. - The company operates in key markets including Taiwan, the United States, and Europe, and is exposed to economic conditions in these regions which could impact sales and performance[188]. - The company has not experienced any major changes in the nature of its business during the reporting year[192].
亚洲联网科技(00679) - 2023 - 年度财报