Financial Performance - For the year ended December 31, 2023, the company reported revenue of HKD 30,298,000, a decrease of 46.0% compared to HKD 56,042,000 for the year ended December 31, 2022[10]. - Gross profit for the same period was HKD 5,681,000, down from HKD 10,261,000, resulting in a gross margin of 18.8%, slightly up from 18.3% in the previous year[10]. - The company recorded a pre-tax loss of HKD 27,641,000, compared to a loss of HKD 18,936,000 in the prior year, indicating a worsening financial performance[10]. - The total loss for the year was HKD 27,909,000, which is an increase from the previous year's loss of HKD 18,936,000[10]. - Basic loss per share increased to HKD (7.2) from HKD (4.9), indicating a larger loss per share for investors[10]. - Other income decreased by 73.5% from approximately HKD 675,000 in 2022 to about HKD 179,000 in 2023, primarily due to the absence of rental concessions and a significant drop in foreign exchange gains[64]. - Other losses increased from approximately HKD 1,822,000 in 2022 to about HKD 8,162,000 in 2023, mainly due to impairment losses on right-of-use assets and property, plant, and equipment[64]. - Reported segment loss for 2023 was HKD (20,516) thousand, compared to HKD (11,046) thousand in 2022, indicating a significant increase in losses[77]. - Comprehensive loss before tax for 2023 was HKD (27,641) thousand, up from HKD (18,936) thousand in 2022, reflecting a worsening financial position[77]. - The company recorded a net loss attributable to shareholders of approximately HKD 27,909,000 for the year ended December 31, 2023, compared to a loss of HKD 18,936,000 for the year ended December 31, 2022[102]. Liquidity and Financial Ratios - The current ratio decreased to 0.20 from 0.31, and the quick ratio also fell to 0.13 from 0.21, reflecting a decline in liquidity[10]. - The total current assets decreased to approximately HKD 13,252,000 as of December 31, 2023, from HKD 17,831,000 as of December 31, 2022[113]. - The total assets decreased to HKD 14,033 thousand in 2023 from HKD 30,582 thousand in 2022, a decline of 54.1%[79]. - The company's asset-liability ratio as of December 31, 2023, was approximately 522.8%, compared to 250.5% as of December 31, 2022[136]. - The company reported a decrease in unallocated corporate expenses to HKD (7,127) thousand in 2023 from HKD (7,890) thousand in 2022, reflecting improved cost management[77]. Revenue Sources and Business Segments - The leather manufacturing and retail businesses contributed revenues of approximately HKD 29,547,000 and HKD 751,000, respectively, for the year ended December 31, 2023, down from HKD 54,542,000 and HKD 1,500,000 in the previous year[63]. - Revenue from belts accounted for 94.7% of total revenue in 2023, down from 96.0% in 2022, indicating a slight diversification in revenue sources[89]. - Revenue from the leather manufacturing business accounted for approximately 97.5% of total revenue for the year ended December 31, 2023, compared to 97.3% for the year ended December 31, 2022[103]. - Retail revenue from Hong Kong for the year ended December 31, 2023, was approximately HKD 751,000, a decrease of about 49.9% compared to HKD 1,500,000 for the year ended December 31, 2022[91]. Operational Strategies and Future Outlook - The company is focusing on improving its financial position and exploring new strategies for market expansion and product development[10]. - Future outlook includes potential new product launches and technology advancements to drive revenue growth[10]. - The company anticipates that future performance may be affected by global economic factors, including trade tensions and geopolitical conflicts[63]. - The company is focused on enhancing its operational efficiency and exploring new market opportunities to mitigate the impact of external challenges[63]. - The company expects an increase in customer orders for the year ending December 31, 2024, due to ongoing negotiations with new potential clients, primarily in the fashion industry across the US, Europe, and Asia[92]. Corporate Governance and Management - The company emphasizes good corporate governance as a key factor for success, aiming to enhance shareholder value and protect shareholder rights[182]. - The board of directors consists of three executive directors and three independent non-executive directors, with no significant relationships among them[184]. - The independent non-executive directors represent at least one-third of the board, complying with listing rules[194]. - The board regularly reviews the functions and responsibilities of its authorized personnel, requiring board approval for any significant transactions[196]. - The company has established a cost-effective approach by hiring independent external professionals to review its internal control systems annually instead of forming an internal audit department[183]. Share Capital and Dividends - The number of issued shares increased to 412,704,000 from 382,704,000, indicating potential dilution for existing shareholders[10]. - The company has completed a placement of 30,000,000 new shares, representing approximately 7.27% of the enlarged issued share capital, at a price of HKD 0.45 per share[118]. - The board does not recommend the distribution of any dividends for the year ended December 31, 2023, consistent with the previous year[122]. - The net proceeds from the placement, after deducting commissions and expenses, amounted to approximately HKD 13.0 million, slightly lower than the previously estimated HKD 13.2 million[141]. Asset Management and Impairments - The company reported a comprehensive impairment of property, plant, and equipment of HKD 8,162 thousand in 2023, compared to HKD 1,822 thousand in 2022, indicating increased asset write-downs[79]. - The company reported a non-cash impairment loss of approximately HKD 8,162,000 for property, plant, and equipment as of December 31, 2023, compared to HKD 1,822,000 in 2022, primarily due to past performance and challenging market conditions[116]. - The company recorded an asset deficit of approximately HKD 59,325,000 as of December 31, 2023, an increase from HKD 46,016,000 in 2022, primarily due to operating losses and impairment losses during the year[137].
中联发展控股(00264) - 2023 - 年度财报