Financial Performance - Revenue for the year ended December 31, 2023, decreased by approximately RMB 32.7 million or 50.8% to RMB 31.7 million compared to RMB 64.4 million for the year ended December 31, 2022[17]. - Cost of sales for the year ended December 31, 2023, decreased by approximately RMB 33.5 million or 56.2% to RMB 26.1 million compared to RMB 59.6 million for the year ended December 31, 2022[18]. - Gross profit for the year ended December 31, 2023, was RMB 5.6 million, an increase from RMB 4.8 million in the previous year[7]. - The company reported a net loss of RMB 39.5 million for the year ended December 31, 2023, compared to a net loss of RMB 48.2 million in 2022[7]. - Loss before tax decreased from approximately RMB 48.3 million for the year ended December 31, 2022, to approximately RMB 39.5 million for the year ended December 31, 2023, a reduction of about RMB 8.8 million[22]. - The company reported a loss before tax of RMB 39,536,000, an improvement from a loss of RMB 48,247,000 in 2022, representing a 17.3% reduction in losses[167]. - The total comprehensive income for the year was RMB (36,184) thousand, compared to RMB (35,999) thousand in 2022, showing a slight increase in overall losses[176]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 113.6 million, down from RMB 155.2 million in 2022[9]. - Total liabilities as of December 31, 2023, were RMB 31.4 million, a decrease from RMB 36.8 million in 2022[9]. - Current liabilities decreased significantly to RMB 9,581,000 from RMB 26,348,000, a reduction of 63.6%[170]. - The company's net asset value dropped to RMB 82,191,000 from RMB 118,375,000, a decrease of 30.5%[172]. - Cash and cash equivalents fell to RMB 1,998,000 from RMB 9,559,000, indicating a decline of 79.1%[170]. - Cash and bank balances totaled approximately RMB 2.0 million as of December 31, 2023, down from approximately RMB 9.6 million as of December 31, 2022[27]. Inventory and Receivables - The company held inventory valued at RMB 59,654,000 as of December 31, 2023, with significant judgments applied to assess the net realizable value due to long-aging inventory from recent pandemic impacts[153]. - Trade receivables decreased to RMB 21,440,000 from RMB 51,710,000, a decline of 58.6%[170]. - As of December 31, 2023, the company reported trade receivables with a total book value of RMB 55,775,000 and an expected credit loss provision of RMB 34,335,000[150]. - The credit period granted to customers ranges from 0 to 180 days, with management regularly assessing the recoverability of trade receivables based on various factors[150]. Operational and Market Conditions - The company anticipates that 2024 will be a challenging year due to economic conditions in Hong Kong and China[12]. - The retail sales of jewelry, watches, and luxury gifts in Hong Kong increased by approximately 54.9% compared to 2022[12]. - The group faces operational risks from market fluctuations, changing industry standards, competition, and evolving customer demands[48]. Governance and Compliance - The company has adopted the corporate governance code and has complied with the relevant provisions throughout the year ending December 31, 2023[100]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors, complying with the requirement that at least one must have appropriate professional qualifications or accounting expertise[101]. - The company has maintained the required public float since its listing on January 30, 2015, according to the Hong Kong Stock Exchange listing rules[53]. - The company has adopted a code of conduct for securities transactions by directors, confirming compliance from the date of listing to the report date[70]. Audit and Financial Reporting - The financial statements for the year ending December 31, 2023, were audited by Zhongji Xinshe (Hong Kong) CPA Limited[93]. - The audit committee assists the board in overseeing the financial reporting process[158]. - The independent auditor has audited the consolidated financial statements and confirmed they reflect the group's financial position accurately as of December 31, 2023[146]. - The audit identified key audit matters, including the assessment of expected credit loss provisions for trade receivables and inventory provision evaluations[149]. Employee and Remuneration - The company employed 56 staff members as of December 31, 2023, with total salary costs of approximately RMB 4.4 million for the fiscal year[33]. - The board of directors reviews employee compensation annually to ensure competitiveness in the market[90]. - The company is committed to ensuring that remuneration reflects individual performance and the complexity of roles[121]. Risk Management - Financial risks include liquidity risk, interest rate risk, and currency risk, which are critical for the group's business and financial performance[48]. - The company has established a risk management report that includes risks, issues, and recommended action plans presented to the board for review[128]. - The internal audit team regularly monitors and reports on concerns to ensure appropriate remedial measures are implemented[124]. Sustainability and Development - The company is committed to sustainable development and has implemented effective measures to achieve resource efficiency and energy conservation[85]. - The company has not encountered any significant disputes with business partners during the year[92].
励时集团(01327) - 2023 - 年度财报