Financial Performance - For the year ended December 31, 2022, the total revenue was HKD 1,607,388,000, a decrease of 16.7% compared to HKD 1,931,099,000 in 2021[2] - The company reported a loss for the year of HKD 119,437,000, compared to a loss of HKD 105,376,000 in 2021, representing a 13.4% increase in losses[2] - The basic and diluted loss per share was HKD 2.55, compared to HKD 2.32 in the previous year[5] - The company reported a net loss of HKD 119,437,000 for the year, compared to a net loss of HKD 105,376,000 in the previous year[28] - The company’s loss attributable to shareholders was HKD 111,051,000 for the year ended December 31, 2022, compared to a loss of HKD 100,907,000 in 2021[48] - EBITDA for the year ended December 31, 2022, was approximately HKD 51,728,000, a decrease of HKD 59,238,000 or 53.4% from HKD 110,966,000 in 2021[60] Revenue Breakdown - Total revenue for the period reached HKD 1,607,388,000, with significant contributions from watch and clock products (HKD 1,248,281,000) and banking and financial services (HKD 338,642,000) [26] - The company reported a significant decrease in non-banking and financial business sales revenue to HKD 1,248,281,000 from HKD 1,555,114,000, a drop of 19.7%[2] - Revenue from external customers in 2022 was HKD 1,607,388 thousand, a decrease from HKD 1,931,099 thousand in 2021, with notable declines in the Chinese market[31] - Revenue from watch and timing products for the year ended December 31, 2022, was HKD 255,398,000, a decrease of HKD 98,352,000 or 27.8% compared to HKD 353,750,000 in 2021[70] - Non-banking and financial business revenue decreased to HKD 1,268,746,000 in 2022, a decline of 19% compared to HKD 1,571,138,000 in 2021[38] Assets and Liabilities - Total assets decreased to HKD 16,157,243,000 from HKD 19,962,419,000, reflecting a decline of 19%[6] - Total liabilities decreased to HKD 11,978,382,000 from HKD 15,338,879,000, a reduction of 22.5%[7] - The company’s equity attributable to owners decreased to HKD 4,012,813,000 from HKD 4,361,133,000, a decline of 8%[8] - The company’s total liabilities were reported at HKD 11,978,382,000, with banking and financial services liabilities at HKD 10,104,603,000 [27] - The total assets as of December 31, 2022, were HKD 16,157,243,000, down from HKD 19,962,419,000 as of December 31, 2021[98] Operational Highlights - The main business operations of the group include manufacturing and distribution of watches and timepieces, property investment, and banking and financial services[9] - The group has not experienced significant operational changes during the year[9] - The group implemented diversified sales models and flexible policies to adapt to the ongoing impact of the COVID-19 pandemic[65] - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming fiscal year[30] - The company aims to strengthen collaboration with traditional e-commerce platforms like Tmall and JD.com while actively promoting new e-commerce channels such as Douyin and Kuaishou[72] E-commerce and Market Trends - E-commerce sales accounted for 44.1% of total revenue in 2022, up from 41.4% in 2021[63] - E-commerce sales decreased from HKD 247,381,000 to HKD 180,963,000, a reduction of HKD 66,418,000 or 26.85% for the year ended December 31, 2022[66] - The company plans to enhance its e-commerce market by developing suitable new products to increase unit price and profit margin in the coming year[72] - The company anticipates a stronger recovery in the tourism sector in 2023, which is expected to boost visitor numbers and sales[67] Financial Management - The company incurred financial expenses totaling HKD 70,532,000, which included HKD 41,311,000 in unallocated expenses [26] - The company recognized a provision for expected credit losses of HKD (2,361) thousand on receivables, indicating a cautious outlook on credit quality[29] - The company’s inventory provisions amounted to HKD 24,917,000, indicating challenges in inventory management [27] - The company’s cash and deposits amounted to HKD 18,529 thousand, reflecting liquidity management strategies[29] Governance and Compliance - The company adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with all applicable provisions, except for certain disclosures[131] - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2022, and confirmed they present a true and fair view of the group's financial position[141] - The external auditor, Hong Kong Li Xin De Hao CPA Limited, has confirmed that the financial figures align with the audited consolidated financial statements[142] Future Outlook - The group plans to leverage the recovery of the global economy, particularly in mainland China, to drive new development cycles in the watch industry[74] - The company is implementing innovative strategies to improve revenue in response to the challenges posed by the post-COVID-19 era[67] - The group aims to continue improving profitability and reviewing policies and customer relationships to adapt to ongoing challenges from the pandemic and rising living costs[77]
冠城钟表珠宝(00256) - 2022 - 年度业绩