Economic Environment - The macro-economic environment in 2023 was volatile due to global events, including tightened monetary policies and inflationary pressures, impacting business confidence [20]. - The Group plans to focus on uncertainties in the economic environment and formulate strategies for steady development in 2024 [39]. Business Performance - The Group recorded total revenue of approximately HK$23,550,000 for the year ended 31 December 2023, representing a decrease of approximately 32% from HK$34,645,000 for the year ended 31 December 2022 [25]. - The total gross profit for the year ended 31 December 2023 was approximately HK$6,375,000, a decrease of approximately 74% from HK$24,112,000 for the year ended 31 December 2022 [25]. - The loss attributable to the owners of the Company amounted to approximately HK$73,721,000 for the year ended 31 December 2023, compared to a profit of approximately HK$10,104,000 for the year ended 31 December 2022 [25]. - Revenue from the publications and advertising business decreased to approximately HK$9,109,000 for the year ended 31 December 2023, down from approximately HK$33,538,000 for the year ended 31 December 2022 [33]. - Revenue generated from online sales of beauty and cosmetics products amounted to approximately HK$11,321,000 for the year ended 31 December 2023 [37]. - Revenue from sales of luxury products was approximately HK$3,120,000 for the year ended 31 December 2023 [38]. - No revenue was generated from the exhibition and trade show business and related services for the year ended 31 December 2023, compared to approximately HK$1,107,000 for the year ended 31 December 2022 [36]. - Total revenue decreased by approximately 32% from approximately HK$34,645,000 for the year ended 31 December 2022 to approximately HK$23,550,000 for the year ended 31 December 2023, primarily due to reduced demand for advertisement in the Macau market [45]. - Revenue generated from publications and advertising business decreased by 73% to approximately HK$9,109,000 compared to approximately HK$33,538,000 for the year ended 31 December 2022 [49]. - Total gross profit decreased by approximately 74% from approximately HK$24,112,000 for the year ended 31 December 2022 to approximately HK$6,375,000 for the year ended 31 December 2023 [47]. - Other income decreased by approximately HK$2,052,000 from approximately HK$2,206,000 for the year ended 31 December 2022 to approximately HK$154,000 for the year ended 31 December 2023 [48]. - Other losses recorded approximately HK$56,802,000 for the year ended 31 December 2023, compared with other gains of approximately HK$2,055,000 for the year ended 31 December 2022 [54]. - Operating expenses decreased by approximately 8% from approximately HK$12,380,000 for the year ended 31 December 2022 to approximately HK$11,360,000 for the year ended 31 December 2023 [57]. Business Strategy - The Group expanded its business into fast-moving consumer goods and luxury products, aiming to create synergies with its existing advertising business [21]. - The Group aims to diversify its business portfolio by expanding into fast-moving consumer goods and luxury product sales [25]. - The Group is cautiously optimistic about its business outlook despite the challenging market conditions [21]. Financial Health - The current ratio of the Group as at 31 December 2023 was approximately 0.5 times compared to approximately 1.6 times as at 31 December 2022 [69]. - The gearing ratio of the Group was approximately 29% as at 31 December 2023, down from 38% in 2022 [71]. - Trade receivables decreased from approximately HK$33,997,000 to HK$25,436,000, with trade receivable turnover days decreasing from approximately 358 days to approximately 217 days [74]. - Trade receivables decreased from approximately HK$33,997,000 (after deducting HK$3,940,000 expected credit losses) to approximately HK$25,436,000 (after deducting HK$15,770,000 expected credit losses) as of December 31, 2023 [80]. - Trade receivables turnover days improved from approximately 358 days as of December 31, 2022, to approximately 217 days as of December 31, 2023 [80]. - Total employee headcount decreased from 17 in 2022 to 13 as of December 31, 2023, with total staff costs approximately HK$7,158,000 in 2023 compared to approximately HK$7,171,000 in 2022 [89][94]. - The Group did not have any material plans for significant investments or capital assets as of December 31, 2023 [87][92]. - There were no significant contingent liabilities as of December 31, 2023 [84]. - The Group maintained a conservative treasury policy, continuously assessing the financial status of customers to mitigate credit risk [81]. - The Group had no material pledges of assets as of December 31, 2023 [88][93]. Corporate Governance - Mr. Wong has extensive experience in corporate governance across various sectors including automobile, construction, and oil and gas [109]. - Mr. Wong served as CFO and company secretary for Yuanda China Holdings Limited, focusing on financing and investor relations [107]. - Ms. Wong has over 25 years of experience in finance and accounting, currently serving as group financial controller at RNP Jewelry Design Limited [110]. - Mr. Lin is a doctoral candidate in Applied Finance and has obtained an MBA in Finance from the City University of Hong Kong [116]. - Ms. Liu has over 10 years of experience in banking and capital management, with qualifications in fund and securities practices in PRC [121]. - Mr. Wong was involved in project management and financial consultation services at Huanian Xinxing Chanye Jituan Company Limited [106]. - Mr. Wong's career includes roles at KPMG Hong Kong and various Hong Kong listed companies, enhancing his financial expertise [107]. - Ms. Wong has been an independent non-executive director since October 2019, providing independent opinions to the board [110]. - Mr. Lin founded two companies focused on technology education and has participated in research on listed companies [116]. - Mr. Wong's previous roles include CFO at China Oilfield Technology Services Group Limited, specializing in enhanced oil recovery technology [107]. Shareholder Information - The Directors do not recommend the payment of a final dividend for the year ended 31 December 2023 [25]. - As of December 31, 2023, the Company did not have any reserves available for distribution to shareholders [139]. - For the year ended December 31, 2023, the Group's sales to the five largest customers accounted for approximately 26% of total sales, with the largest customer contributing about 12% [149]. - Purchases from the Group's five largest suppliers represented approximately 80% of total purchases, with the largest supplier accounting for around 24% [149]. - The Board does not recommend the payment of any final dividend for the year ended December 31, 2023 [136]. - The company has adopted a share option scheme to incentivize directors and eligible participants, which will expire on February 16, 2025 [169]. - As of December 31, 2023, no directors or chief executives had interests or short positions in shares or debentures that required notification [185]. - The company has no equity-linked agreements that may result in issuing shares during the year [166]. - There are no competing business interests among the directors or controlling shareholders [176]. - As of December 31, 2023, the company has 622,080,000 shares issued [189]. - Muhammad Shaifadila Binti holds 39,376,000 shares, representing approximately 6.33% of the total shareholding [192]. - The company confirmed compliance with the disclosure requirements under Chapter 20 of the GEM Listing Rules regarding related party transactions [195]. - There were no connected transactions subject to disclosure requirements under the GEM Listing Rules during the year [196]. - The company maintains a sufficient public float of not less than 25% of its issued shares as required under the GEM Listing Rules [197]. - The consolidated financial statements for the reporting period have been audited by Jon Gepsom CPA Limited [198]. - The ultimate beneficial owner of the shares is Mr. Lui Man Wah, who directly holds shares through Source Creation International Limited [189]. - There is duplication in the interests held by Mr. Lui Man Wah and Source Creation, representing the same block of shares [190]. - The company has complied with the disclosure requirements in accordance with Chapter 20 of the GEM Listing Rules [199]. - No other persons had interests or short positions in the company's shares that required disclosure as of December 31, 2023 [192]. Compliance and Risk Management - The Group's business operations focused on minimizing environmental damage and ensuring employee well-being, with no recorded non-compliance in environmental and social aspects [130]. - The Group will continue to engage with stakeholders on key material issues, including employee health and safety, labor standards, and customer data protection [130]. - The Directors' report includes a discussion on the Group's future business development and possible risks and uncertainties [129].
惠陶集团(08238) - 2023 - 年度财报