Financial Performance - The total revenue for the year ended December 31, 2023, was approximately HKD 70.96 million, a decrease of 20.3% compared to HKD 89.09 million in 2022[16]. - The gross profit for 2023 was HKD 25.2 million, down from HKD 40.9 million in 2022, consistent with the revenue decline[17]. - The net loss for the year was approximately HKD 31.21 million, significantly reduced from HKD 68.70 million in 2022[19]. - The loss attributable to the owners of the company decreased from HKD 67.46 million in 2022 to HKD 32.12 million in 2023[20]. - Sales and administrative expenses accounted for 53.5% of total revenue in 2023, down from 89.9% in 2022, reflecting a reduction from approximately HKD 80.1 million to HKD 38.0 million[18]. - As of December 31, 2023, total assets were HKD 381.55 million, a decrease from HKD 399.73 million in 2022[5]. - The total liabilities increased to HKD 48.67 million in 2023 from HKD 35.69 million in 2022, resulting in a debt ratio of 14.6%[24]. - Cash and cash equivalents as of December 31, 2023, were approximately HKD 12.8 million, up from HKD 6.7 million in 2022[22]. - The company did not declare any dividends for the year ended December 31, 2023, maintaining a cautious approach[15]. - The company has adopted a dividend policy that allows for the payment of dividends in any currency, subject to the board's discretion and financial performance considerations[92]. - The company reported an audit fee of approximately HKD 680,000 for the fiscal year ending December 31, 2023, for services provided by the auditor, Long Green[81]. Business Strategy and Operations - The company continues to focus on diversifying its business into the settlement application market, which has been a key driver of revenue[16]. - The group aims to enhance its revenue streams by leveraging existing technological knowledge and programs for sustainable development[29]. - The group plans to explore business opportunities in interactive virtual reality games related to anime culture, leveraging its understanding of the market[30]. - The company primarily engages in providing internet and mobile applications, developing interactive virtual reality technology, and distributing related electronic products and accessories[105]. - The company focuses on providing mobile platform programming and promotion solutions to offices in Hong Kong and China, with extensive experience in developing mobile applications and interactive virtual reality technology for well-known companies[157]. - The business goal is to achieve sustainable growth in business and financial performance while actively expanding and strengthening market position[158]. - The company emphasizes sustainable development as crucial for creating long-term value for shareholders, customers, employees, and other stakeholders[112]. Governance and Compliance - The company faced a non-standard audit opinion due to the inability to confirm the accuracy and completeness of certain subsidiaries' financial records[39]. - The expected loss from the termination of consolidation of certain subsidiaries is approximately HKD 308 million, which will be recognized in the consolidated financial statements for the year ending December 31, 2024[44]. - The audit issues are anticipated to be resolved by the end of 2024, and the non-standard audit opinion will be removed from the consolidated financial statements for the year ending December 31, 2026[44]. - The company has been seeking legal advice to retrieve necessary documents and records from several subsidiaries to address the audit issues[43]. - The board of directors underwent significant changes, with new appointments and resignations occurring in late 2023[37]. - The board has authorized the management to handle daily operations, with major strategic decisions requiring board approval[57]. - The company ensures compliance with board meeting procedures and provides independent professional advice when necessary[56]. - The company has adopted a zero-tolerance policy towards bribery, extortion, fraud, and money laundering, with no recorded incidents during the reporting period[84]. - The company’s governance policies are regularly reviewed and assessed for effectiveness[73]. - The company has established a clear nomination policy to ensure that appointed directors possess relevant business, financial, and management skills[69]. - The company has established a remuneration committee to review and approve the remuneration of directors based on operational performance and market trends[140]. Human Resources and Employee Welfare - The company experienced a significant reduction in employee count from 45 in 2022 to 21 as of December 31, 2023[28]. - The total number of employees as of December 31, 2023, is 21, a decrease from 45 in 2022[182]. - The overall employee turnover rate for 2023 is 72.73%[183]. - The turnover rate for employees aged 30 and below is notably high at 120.00%[183]. - The company has a commitment to providing a healthy and safe working environment for all employees[110]. - The company recorded zero work-related fatalities and zero lost workdays due to injuries in 2023, resulting in a work-related fatality rate of 0%[185]. - 100% of employees received training during the reporting period, with equal participation across gender and employee levels[190]. - A total of 442 hours of training were organized and sponsored, benefiting 21 employees across various levels[187]. - The average training hours completed per employee was 21.05 hours, with management-level employees averaging 88.40 hours[191]. - The company promotes resource efficiency and recycling in its operations[172]. - The company has maintained a supplier base of 42 vendors, including 8 from Hong Kong and 34 from China, ensuring compliance with environmental and social regulations[198]. Environmental, Social, and Governance (ESG) Matters - The company emphasizes transparency, fairness, legality, and social responsibility in its operations, focusing on minimizing environmental and social impacts[163]. - The board of directors regularly reviews important ESG aspects and engages with stakeholders to understand their views and concerns[160]. - The company has identified significant ESG issues, including employee welfare, product quality, and corporate governance, and manages them according to established policies[163]. - The environmental, social, and governance report is prepared in accordance with the Hong Kong Stock Exchange's listing rules and guidelines[165]. - The company has implemented internal controls and formal audit procedures to ensure the accuracy and reliability of the information presented in the report[168]. - The report covers the company's sustainable development performance, achievements, and challenges in Hong Kong and China for the reporting period[164]. - The company has no significant violations of environmental laws during the reporting period[170]. - The company has implemented measures to reduce waste, although no specific waste reduction targets have been set[172]. - The company has no significant air or greenhouse gas emissions due to the nature of its operations[170]. - The company has no water supply issues and promotes water conservation among employees[174]. - The company has not experienced any product recalls or complaints related to health and safety issues during the reporting period[200]. - The company emphasizes investment in new technology research and development to enhance product quality and safety[199]. Shareholder and Market Relations - The board has actively communicated with institutional investors and analysts as part of its investor relations program[93]. - The group reported that sales to the top five customers accounted for approximately 26.3% of total annual sales, with the largest customer contributing about 8.38%[117]. - The group maintains a strong relationship with suppliers, with purchases from the top five suppliers accounting for approximately 37.9% of total annual purchases, and the largest supplier contributing about 4.4%[117]. - The company has not engaged in any related party transactions that require disclosure during the year[139]. - The company has not made any charitable contributions during the review year, maintaining a record of zero contributions[145].
中国钱包(00802) - 2023 - 年度财报