Financial Performance - The total revenue from continuing operations for the year ended December 31, 2023, was approximately HKD 23.1 million, representing an increase of about 41.7% or HKD 6.8 million compared to HKD 16.3 million for the year ended December 31, 2022[14]. - The annual loss from continuing operations decreased from approximately HKD 33.2 million for the year ended December 31, 2022, to approximately HKD 36.7 million for the year ended December 31, 2023, primarily due to increased losses from the sale of machinery and equipment, impairment losses under expected credit loss models, and increased administrative expenses[18]. - The company reported a gross profit of HKD 3.6 million for the year ended December 31, 2023, down from HKD 5.1 million in 2022[14]. - The total gross profit from continuing operations for the year ended December 31, 2023, was approximately HKD 3.6 million, a decrease of about HKD 1.5 million or 29.4% from approximately HKD 5.1 million for the previous year[22]. - The company's loss for the year increased from approximately HKD 33.2 million for the year ended December 31, 2022, to approximately HKD 36.7 million for the year ended December 31, 2023[22]. - The gross profit margin for the year ended December 31, 2023, decreased to approximately 15.6%[22]. - The cost of sales and services rose to approximately HKD 19.5 million for the year ended December 31, 2023, up from approximately HKD 11.3 million for the year ended December 31, 2022, primarily due to increased subcontracting costs in the construction services segment[46]. - Other income, gains or losses increased from approximately HKD 2.4 million for the year ended December 31, 2022, to approximately HKD 5.3 million for the year ended December 31, 2023, mainly due to losses from the sale of machinery and equipment[49]. Assets and Liabilities - Total assets as of December 31, 2023, were HKD 50.6 million, a decrease from HKD 102.1 million in 2022[14]. - Total liabilities as of December 31, 2023, were HKD 10.9 million, down from HKD 25.7 million in 2022[14]. - The net asset value as of December 31, 2023, was HKD 39.7 million, compared to HKD 76.4 million in 2022[14]. - The company experienced a significant reduction in total liabilities, indicating improved financial stability[14]. - As of December 31, 2023, the total amount of outstanding loans (before credit loss provisions) was HKD 5,800,000, with credit loss provisions amounting to approximately HKD 81,000[38]. - The loan portfolio included two outstanding loans from corporate borrowers, which accounted for 100% of the total outstanding loans[38]. Revenue Sources and Business Segments - The construction services segment generated revenue of HKD 8.0 million for the year ended December 31, 2023, compared to zero revenue in the previous year[30]. - Revenue from machinery rental services decreased from approximately HKD 16.0 million for the year ended December 31, 2022, to approximately HKD 9.9 million for the year ended December 31, 2023[24]. - Total sales from the trading of machinery, tools, and parts increased from approximately HKD 36,000 to approximately HKD 4.0 million for the year ended December 31, 2023[27]. - Revenue from transportation and other services increased from approximately HKD 0.3 million to approximately HKD 0.8 million for the year ended December 31, 2023[28]. - The company aims to diversify its revenue sources and enhance shareholder value by exploring various business opportunities in response to market conditions[20]. - The company remains optimistic about the growth in construction tender numbers and the rental services market in Hong Kong, driven by favorable government policies and industry trends[20]. Employee and Administrative Expenses - As of December 31, 2023, the company employed 15 full-time employees and 2 part-time employees, with total employee costs of approximately HKD 11.3 million, up from HKD 10.4 million in 2022[74]. - Administrative expenses increased to approximately HKD 19.9 million for the year ended December 31, 2023, from approximately HKD 14.2 million for the year ended December 31, 2022, primarily due to higher employee costs and short-term operating lease rentals[51]. Corporate Governance - The company has adopted and complied with the GEM Listing Rules Appendix C1 Corporate Governance Code as of December 31, 2023, with a board consisting of eight members, including five executive directors and three independent non-executive directors[91]. - The company does not have a defined dividend policy, and future dividends will be decided based on various factors including current market conditions and financial performance[92]. - The company is committed to continuously reviewing its corporate governance practices to enhance standards and meet regulatory requirements[93]. - The company has established a whistleblowing policy in its operational manual to report any violations, emphasizing ethical values and fraud prevention[64]. - The company has implemented a code of conduct for directors regarding securities trading, ensuring compliance with GEM listing rules[95]. - The board is collectively responsible for overseeing the company's affairs and developing business strategies to enhance shareholder value[97]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and has set various ESG-related goals, which are reviewed annually by business and functional department representatives[155]. - The company has identified key ESG focus areas, including greenhouse gas emissions, occupational health and safety, and product quality and safety[154]. - The group conducted a materiality assessment in 2023 to identify significant ESG issues, which will guide strategic planning and reporting priorities[172]. - The group aims to enhance its ESG effectiveness and create greater value for the community through active stakeholder collaboration[169]. - The ESG report emphasizes the importance of stakeholder engagement, with a focus on government compliance, shareholder value creation, and customer service quality[169]. - The company has implemented measures to manage energy consumption and reduce waste, including recycling and energy-efficient practices[194][196]. Risk Management and Internal Controls - The company has engaged an independent internal control consultant to review its risk management and internal control systems annually[140]. - The company's board has delegated the responsibility of reviewing risk management and internal control matters to the audit committee[140]. - The board conducted an annual review of the mechanisms in place to ensure independence and found them to be adequately implemented[132]. - The company is committed to ensuring compliance with the GEM Listing Rules and the Securities and Futures Ordinance regarding the handling and disclosure of inside information[141].
维亮控股(08612) - 2023 - 年度财报