Financial Performance - The group reported a net loss attributable to shareholders of approximately HKD 137,336,000 for the year ended December 31, 2023, an increase of approximately HKD 33,268,000 compared to the previous year's loss of HKD 104,068,000[11]. - The company's revenue for the year ended December 31, 2023, was HKD 319.15 million, a decrease of HKD 29.85 million or 8.6% compared to HKD 349.00 million in 2022, primarily due to reduced income from the water supply business and rental income from commercial properties in China[102]. - The group's main business revenue was approximately HKD 319,147,000 for the year, a decrease of 8.6% or about HKD 29,853,000 compared to last year's revenue of HKD 349,000,000[169]. - Revenue from the water supply and related services segment was approximately HKD 296.11 million, a decrease of 5% or HKD 15.89 million from HKD 311.99 million in the previous year, primarily due to a decline in water consumption from commercial users[126]. - The investment properties and development segment recorded revenue of approximately HKD 22.78 million, down from HKD 33.06 million, reflecting a decrease of about HKD 10.28 million due to increased vacancy rates[126]. - The group recorded financial expenses of HKD 48,597,000 for the year ended December 31, 2023, a decrease of 9.7% compared to the previous fiscal year due to partial repayment of bank loans[137]. - The group reported a tax credit of HKD 12,750,000 for the year ended December 31, 2023, compared to a tax expense of HKD 13,015,000 in the previous year, primarily due to impairment losses on certain assets in the water supply and related businesses[137]. Assets and Liabilities - The group's receivables decreased by HKD 8,187,000 or 19% from HKD 42,659,000 as of December 31, 2022, to HKD 34,472,000 as of December 31, 2023, primarily due to reduced revenue from water supply and related businesses[2]. - The group's deposits, prepayments, and other receivables increased by HKD 84,460,000 to HKD 100,962,000 as of December 31, 2023, mainly due to receivables from independent third parties in the water supply business[3]. - The group's bank and other borrowings decreased by HKD 83,154,000 from HKD 949,952,000 as of December 31, 2022, to HKD 866,798,000 as of December 31, 2023, primarily due to loan repayments[4]. - The group's contract liabilities decreased by HKD 1,772,000 from HKD 15,873,000 as of December 31, 2022, to HKD 14,101,000 as of December 31, 2023, mainly due to reduced contract revenue from water supply and related businesses[6]. - The group's accounts payable increased by HKD 83,736,000 from HKD 266,707,000 as of December 31, 2022, to HKD 350,443,000 as of December 31, 2023, due to increased provisions for water supply costs related to ongoing litigation[4]. - The group's cash and bank balances and time deposits decreased from HKD 564,494,000 as of December 31, 2022, to HKD 229,666,000 as of December 31, 2023, a reduction of HKD 334,828,000 mainly due to bank loan repayments and deposits for property acquisitions[160]. - The group's non-current asset impairment loss was HKD 52,009,000 for the year ended December 31, 2023, an increase of HKD 18,875,000 compared to the previous year, primarily due to the water supply and related businesses[149]. - The group's inventory decreased from HKD 14,783,000 as of December 31, 2022, to HKD 5,627,000 as of December 31, 2023, a reduction of HKD 9,156,000 due to reclassification of certain assets as development properties[143]. - The group's investment properties decreased from HKD 656,381,000 as of December 31, 2022, to HKD 603,127,000 as of December 31, 2023, a reduction of HKD 53,254,000 attributed to impairment losses and currency depreciation[138]. Governance and Management - The board held five meetings, two audit committee meetings, two nomination committee meetings, and two remuneration committee meetings during the year[81]. - The company encourages all directors to participate in continuous professional development to enhance their knowledge and skills, providing training materials and updates on regulatory developments[82]. - The board is responsible for approving and monitoring the overall strategy and policies of the group, focusing on growth and financial performance[75]. - The company has adopted the standards of conduct for securities trading as outlined in the listing rules, ensuring compliance by its directors[78]. - The independent non-executive directors are required to submit written confirmations of their independence annually[85]. - The chairman is responsible for leading the board and ensuring effective governance practices are followed[86]. - The company’s organizational articles allow for the removal of directors by ordinary resolution at the shareholders' meeting[87]. - The nomination committee evaluates the independence of candidates nominated for independent non-executive director positions before their appointment[93]. Strategic Outlook - The company anticipates a slowdown in global economic growth in 2024, with inflation decreasing and the U.S. Federal Reserve's interest rate hike cycle potentially coming to an end[30]. - The company plans to maintain a cautious approach in response to external environmental changes, regularly reviewing its existing business and strategies to enhance risk management and strict cost control[30]. - The water supply and property investment and development businesses are expected to continue providing stable income for the company[30]. - The company aims to explore significant property projects in China and overseas, seeking new business and investment opportunities to enhance market competitiveness and diversify income sources[30]. - The company plans to adjust strategies prudently in response to market opportunities and risks, aiming for sustainable development and shareholder returns[115][128]. - The company will continue to focus on providing safe water and enhancing risk management to improve corporate image[128]. - The overall economic environment remains complex, with geopolitical and macroeconomic uncertainties impacting the recovery of the Chinese consumer market[115]. Employee and Corporate Culture - The group emphasizes employee training and development as a key element for long-term sustainable growth, providing training and career development pathways[170]. - The group has not made any significant investments, acquisitions, or disposals other than those disclosed in the report for the year ending December 31, 2023[172]. - The group is committed to improving corporate governance, corporate culture, and internal control standards to enhance sustainable development and long-term shareholder returns[170]. Ownership Structure - Major shareholder Ms. Zhu, along with Affluent Vast and Yongcheng, holds a total of 1,561,140,000 shares, representing 28.32% of the company's issued share capital[199]. - Yongcheng directly holds 961,140,000 shares, while 600,000,000 shares are held by Bosun, indicating a significant ownership structure[199]. - Affluent Vast is wholly and beneficially owned by Ms. Zhu, establishing a clear control chain over Yongcheng and Bosun[199]. - The company has a complex ownership structure involving multiple entities controlled by Ms. Zhu and her family through New Century[200].
环球实业科技(01026) - 2023 - 年度财报