Financial Performance - The company's total revenue increased by approximately 126.0% from HKD 45.8 million in 2022 to HKD 103.5 million in 2023[3]. - Gross profit rose by about 96.4% from HKD 22.5 million in 2022 to HKD 44.2 million in 2023, with a gross margin decrease of 6.5 percentage points to 42.7%[3][11]. - The annual profit improved significantly from a loss of HKD 13.8 million in 2022 to a profit of HKD 2.9 million in 2023, marking a 121.0% increase[3]. - The ticket distribution segment's revenue surged by approximately 93.9% from HKD 11.4 million in 2022 to HKD 22.1 million in 2023, driven by the recovery of the global travel industry[13]. - The travel business process management segment's revenue decreased by about 34.1% from HKD 32.0 million in 2022 to HKD 21.1 million in 2023, while its gross margin increased by 18.4 percentage points to 66.4%[14]. - The company generated approximately HKD 60.1 million in revenue from its travel products and services segment, primarily related to cultural tourism in the Greater Bay Area of China[10]. - The group's revenue increased by approximately HKD 57.7 million or about 126.0% to approximately HKD 103.5 million for the year ended December 31, 2023, compared to approximately HKD 45.8 million for the previous year[23]. - Ticket distribution revenue rose by approximately HKD 10.7 million or about 93.9% to approximately HKD 22.1 million, driven by a strong recovery in the tourism industry[24]. - Revenue from the travel products and services segment was approximately HKD 60.3 million, attributed to the resumption of self-operated tours in the first quarter of 2023 following the easing of COVID-19 restrictions[26]. - The gross profit increased by approximately HKD 21.7 million or about 96.4% to approximately HKD 44.2 million, primarily due to increased revenue from ticket distribution services and travel products[29]. - The overall gross margin decreased by approximately 6.5 percentage points to about 42.7%, mainly due to a higher contribution from the lower-margin travel products and services segment[30]. - The gross profit from the ticket distribution segment increased by approximately HKD 10.9 million or about 162.7% to approximately HKD 17.6 million, with a gross margin of approximately 79.5%[31]. - The gross profit from the travel business process management segment decreased by approximately HKD 1.4 million or about 9.1% to approximately HKD 14.0 million, with a gross margin of approximately 66.4%[32]. - The group reported a profit of approximately HKD 2.9 million for the year, a significant turnaround from a loss of approximately HKD 13.8 million in the previous year, driven by a revenue increase of approximately 126.0% from HKD 45.8 million to HKD 103.5 million[42]. Assets and Equity - Total assets increased by 6.6% from HKD 133.0 million in 2022 to HKD 141.8 million in 2023[3]. - Shareholders' equity rose by 5.2% from HKD 47.8 million in 2022 to HKD 50.3 million in 2023[3]. - The current ratio improved by 9.1% from 1.1 in 2022 to 1.2 in 2023, indicating better liquidity[3]. - The group's cash and cash equivalents decreased by approximately 39.7% to about HKD 26.4 million from HKD 43.8 million as of December 31, 2022[43]. - The debt-to-equity ratio improved to approximately 6.6% from 8.4% in the previous year, reflecting a decrease of about 1.8 percentage points[43]. - As of December 31, 2023, the company's distributable reserves amounted to approximately HKD 7.6 million, including share premium and accumulated losses[148]. Business Strategy and Opportunities - The company is exploring new business opportunities in the travel wellness sector through a memorandum of understanding with a service provider in Hainan, China[10]. - The company will continue to explore new business opportunities in the travel industry, particularly in the Greater Bay Area, to strengthen its market share[20]. - The company anticipates a steady recovery in the aviation travel demand throughout 2023, creating more business opportunities in the tourism sector[20]. - The company is focused on expanding its market presence through strategic investments and operational efficiencies[75]. - Future outlook includes potential new product offerings and technological advancements to enhance customer experience[75]. - The company is focused on expanding its business operations in Canada, the United States, and the People's Republic of China[136]. Corporate Governance - The company has adopted and complied with all applicable code provisions of the Corporate Governance Code for the year ended December 31, 2023, except for C.2.1[88]. - The board consists of 3 independent non-executive directors, meeting the requirement that they must represent at least one-third of the board[95]. - The company emphasizes the importance of good corporate governance to enhance shareholder value and ensure effective accountability mechanisms[88]. - The company provides tailored onboarding training for new directors to ensure they understand their responsibilities and the company's operations[98]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[98]. - The board believes that having the same person serve as both chairman and CEO is beneficial for consistent leadership and effective strategic planning[88]. - The company has a balanced composition of executive, non-executive, and independent non-executive directors to ensure independent judgment[90]. - The board has established three committees: the audit committee, remuneration committee, and nomination committee, each operating within its defined scope[103]. - The audit committee consists of three independent non-executive directors, ensuring oversight of the group's financial reporting and internal control systems[104]. - The board conducted a review of the effectiveness of the risk management and internal control systems, concluding that they are adequate and effective for the current business environment[117]. Employee and Management Information - As of December 31, 2023, the group had a total of 71 employees, with total employee costs for the year amounting to approximately HKD 31.7 million, down from approximately HKD 46.3 million for the year ended December 31, 2022[54]. - The total compensation for senior management for the year ended December 31, 2023, was approximately HKD 5.3 million[96]. - The number of senior management members earning between HKD 1,000,001 and HKD 1,500,000 was 1[96]. - The total number of senior management members earning between HKD 500,001 and HKD 1,000,000 was 2[96]. - The group is committed to regular reviews of employee compensation policies and benefits based on market practices and individual performance[54]. Risk Management - The group has identified key risks including natural disasters, travel demand fluctuations, and economic conditions that may affect financial performance[138]. - The company has a procedure for identifying, assessing, and managing significant risks that could impact its business objectives, reviewed at least annually[116]. - The risk management procedures are updated regularly to ensure the effectiveness of risk mitigation strategies, reflecting management's focus on identified risks[114]. - The board is responsible for assessing the nature and extent of risks the company is willing to take to achieve its strategic objectives[113]. - The company will review its risk management and internal control systems annually to adapt to any regulatory changes and business needs[117]. Shareholder Communication and Dividends - The board is committed to maintaining effective communication with shareholders and regularly reviews the shareholder communication policy[130]. - The board will consider various factors, including financial performance and liquidity, when determining dividend payments[131]. - The company did not recommend a final dividend for the year ended December 31, 2023, in order to retain more cash for operational needs and future development[143]. - The company will consider future dividend distributions based on its dividend policy at an appropriate time[143]. - The board will convene a special general meeting if requested by shareholders holding at least 10% of voting rights[128]. - The annual general meeting is scheduled for June 26, 2024, with a deadline for share transfer registration on June 20, 2024[146][147]. Audit and Compliance - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2023[192]. - The audit committee reviewed the consolidated financial statements and annual performance announcement, ensuring compliance with applicable accounting standards and listing rules[188]. - The company maintained a minimum public float of 25% as required by listing rules as of the report date[185]. - The company has appropriate insurance for the responsibilities of directors and senior officers, effective throughout the reporting period[184]. - The audit committee assessed the recoverability of deferred tax assets, considering future taxable income forecasts and tax planning strategies[196]. Related Party Transactions - The company has not engaged in any related party transactions during the fiscal year ending December 31, 2023[176]. - The company has complied with the relevant provisions of the Listing Rules regarding related party transactions[176]. - There are no rights granted to directors or their associates to acquire shares or bonds of the company during the fiscal year[175]. Stock Options and Share Capital - The stock option plan allows for a maximum of 120,000,000 shares to be issued, equivalent to 10% of the total issued shares as of the report date[167]. - No stock options have been granted or agreed to be granted under the stock option plan as of the report date[170]. - The stock option plan will remain effective for ten years from its adoption date, expiring on May 6, 2028[174]. Financial Assets and Liabilities - The group confirmed deferred tax assets of approximately HKD 28,161,000 as of December 31, 2023, related to unused tax losses and other deductible temporary differences[196]. - As of December 31, 2023, the carrying value of trade receivables and amounts due from travel companies for ticket costs, net of expected credit loss provisions, were approximately HKD 32,706,000 and HKD 44,322,000 respectively[199]. - For the year ended December 31, 2023, the expected credit loss provision made for trade receivables and amounts due from travel companies for ticket costs was approximately HKD 414,000, with a reversal of approximately HKD 1,575,000[199]. - Management's estimation of expected credit losses is based on a forward-looking expected credit loss model, taking into account economic factors that may impact the recoverability of amounts from customers and travel companies[199].
富盈环球集团(01620) - 2023 - 年度财报