R&D and Operational Challenges - The Group's research and development progress was significantly affected by remote working due to COVID-19, impacting operational efficiency [15]. - The uncertain macroeconomic environment and cautious market sentiment significantly hindered the Group's business development, leading to stagnant growth and difficulties in raising capital [79]. - The Group has faced operational challenges due to COVID-19, impacting its transition to industrialization [91][92]. - The Company plans to transition into the production stage and is exploring opportunities for product and manufacturing process development, although progress has been stalled due to COVID-19 [87]. Financial Performance - The Group did not record any revenue or gross profit for the year ended December 31, 2023, maintaining the same status as 2022 [72][77]. - The loss for the year decreased to approximately HK$22.0 million, a significant reduction from HK$620.3 million in 2022, while the loss attributable to shareholders was approximately HK$21.2 million compared to HK$644.3 million in the previous year [73][75]. - Operating expenses decreased to approximately HK$22.4 million from HK$33.9 million in 2022, primarily due to a reduction in employee benefit expenses from approximately HK$18.4 million to HK$13.2 million [72][78]. - The Group reported a loss of HK$21.97 million and an operating cash outflow of HK$4.92 million for the year [155]. Strategic Plans and Future Outlook - The Company is confident in gradually catching up as the global economy recovers, aiming for new milestones in the automotive industry [16]. - The Group plans to double efforts in exploring new capital-raising strategies and expanding development space in 2024 [22]. - The Company aims to recover lost time from 2022 and 2023 during the upcoming year [22]. - The Group is confident that successful implementation of its development plan will secure a stable revenue stream and improve profitability in the future [95][99]. Collaborations and Acquisitions - The Management is committed to seeking collaborations and investment opportunities to improve liquidity and operational performance in the long run [18]. - The Group is actively exploring potential collaboration or acquisition opportunities to enhance electric vehicle manufacturing capabilities [89][92]. - The proposed acquisition of Best Knob International Limited, primarily engaged in manufacturing automobile parts, is valued at HK$392 million, to be settled by promissory notes [113]. - The acquisition is expected to create synergies by expanding manufacturing capabilities and sales channels to leading automobile manufacturers in China [94][98]. Governance and Management - Mr. Feng Rui served as the executive director and CEO of the Group from January 1, 2020, until his resignation on March 5, 2024 [28]. - Mr. Liu Stephen Quan has been an executive director since October 2007, bringing over 15 years of experience in investment management and supply chain business [29]. - Dr. Yeung Yung, aged 66, has been an executive director since November 1998 and is a major shareholder of the Company [31]. - Mr. Li Zhengshan, appointed in June 2010, is responsible for corporate coordination and business development in China [34]. Financial Position and Liquidity - As of December 31, 2023, the total deficiency in equity of the group amounted to approximately HK$200.8 million, compared to HK$179.5 million as of December 31, 2022 [136]. - The gearing ratio as of December 31, 2023, was approximately 101.9%, down from 116.4% in the previous year [136]. - The net current liabilities of the group were approximately HK$201.1 million as of December 31, 2023, compared to HK$179.1 million in the previous year [137]. - The Group has been exploring various fundraising opportunities, including equity financing and debt financing, amid a cautious investment sentiment [163]. Investments and Impairments - The company recognized a net loss of approximately HK$143.6 million from the disposal of its equity interests in associates, specifically in Ningbo Joint Venture and Shenzhen SUSTC [179]. - The Company has provided full impairment on the carrying amounts of the Meilai Investment and Compensation Payable during the year ended December 31, 2022, due to the unlikelihood of recovery [200]. - The Group's investment in Meilai Group was made at a cost of RMB 60 million for a 5% equity stake [191].
正道集团(01188) - 2023 - 年度财报