Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | Neo-Concept International Group Holdings Limited |
Trading Symbol | NCI |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 18,000,000 |
Amendment Flag | false |
Entity Central Index Key | 0001916331 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-42016 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 10/F, Seaview Centre |
Entity Address, Address Line Two | No.139-141 Hoi Bun Road |
Entity Address, City or Town | Kwun Tong Kowloon |
Entity Address, Country | HK |
Title of 12(b) Security | Ordinary shares, par value $0.0000625 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Name | WWC, P.C. |
Auditor Firm ID | 1171 |
Auditor Location | San Mateo, California |
Entity Address, Postal Zip Code | 00000 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 10/F, Seaview Centre |
Entity Address, Address Line Two | No.139-141 Hoi Bun Road |
Entity Address, City or Town | Kwun Tong Kowloon |
Entity Address, Country | HK |
Contact Personnel Name | Patrick Kwok Fai Lau |
City Area Code | (852) |
Local Phone Number | 2798-8639 |
Contact Personnel Email Address | Email: patrick.lau@neo-concept.com.hk |
Entity Address, Postal Zip Code | 00000 |
Consolidated Balance Sheets
Consolidated Balance Sheets | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | |
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 5,849,306 | $ 748,865 | $ 8,593,063 | |
Accounts receivable, net | 32,343,592 | 4,140,828 | 10,339,186 | |
Other current assets, net | 20,225,722 | 2,589,425 | 4,380,864 | |
Inventories, net | 5,320,199 | 681,125 | 1,299,895 | |
Total current assets | 63,738,819 | 8,160,243 | 40,885,741 | |
NON-CURRENT ASSETS | ||||
Property and equipment, net | 1,297,682 | 166,137 | 54,926 | |
Right-of-use assets, net | 23,884,854 | 3,057,888 | 653,344 | |
Intangible assets, net | 112,049 | |||
Other non-current assets, net | 1,695,474 | 217,065 | 159,401 | |
Deferred tax assets | 7,876 | |||
Total non-current assets | 26,878,010 | 3,441,090 | 987,596 | |
Total assets | 90,616,829 | 11,601,333 | 41,873,337 | |
CURRENT LIABILITIES | ||||
Bank borrowings | 30,753,400 | 3,937,242 | 83,962,426 | |
Accounts payable | 10,429,941 | |||
Accruals and other payables | 3,205,705 | 410,413 | 2,242,615 | |
Operating lease liabilities | 708,829 | 90,750 | 653,344 | |
Tax payable | 916,436 | 117,329 | 4,885,548 | |
Total current liabilities | 69,827,614 | 8,939,767 | 102,173,874 | |
NON-CURRENT LIABILITIES | ||||
Bank borrowings | 375,059 | |||
Operating lease liabilities | 23,176,025 | 2,967,138 | ||
Total non-current liabilities | 23,176,025 | 2,967,138 | 375,059 | |
Total liabilities | 93,003,639 | 11,906,905 | 102,548,933 | |
COMMITMENTS AND CONTINGENCIES | ||||
SHAREHOLDERS’ DEFICIT | ||||
Ordinary shares: US$0.0000625 par value, 800,000,000 shares authorized as of December 31, 2022 and 2023, 18,000,000 shares issued and outstanding as of December 31, 2022 and 2023* | [1] | 8,775 | 1,125 | 8,775 |
Additional paid-in capital | 55,091,225 | 7,053,121 | 91,225 | |
Accumulated other comprehensive income | 844,791 | 108,156 | 1,970,738 | |
Accumulated losses | (58,331,601) | (7,467,974) | (62,746,334) | |
Total shareholders’ deficit | (2,386,810) | (305,572) | (60,675,596) | |
Total liabilities and shareholders’ deficit | 90,616,829 | 11,601,333 | 41,873,337 | |
Related Party | ||||
CURRENT ASSETS | ||||
Due from related parties | 16,272,733 | |||
CURRENT LIABILITIES | ||||
Due to related parties | $ 34,243,244 | $ 4,384,033 | ||
[1]Giving retroactive effect to all the 11,250,000 shares issued and outstanding for a share split at a ratio of 1-to-1.6 on July 14, 2023 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Statement of Financial Position [Abstract] | |||
Ordinary shares: par value (in Dollars per share and Dollars per share) | (per share) | [1] | $ 0.0000625 | |
Ordinary shares: shares authorized | [1] | 800,000,000 | 800,000,000 |
Ordinary shares: shares issued | [1] | 18,000,000 | 18,000,000 |
Ordinary shares: shares outstanding | [1] | 18,000,000 | 18,000,000 |
[1]Giving retroactive effect to all the 11,250,000 shares issued and outstanding for a share split at a ratio of 1-to-1.6 on July 14, 2023 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 HKD ($) $ / shares shares | Dec. 31, 2021 HKD ($) $ / shares shares | |
REVENUES, NET | $ 174,202,627 | $ 22,302,504 | $ 347,451,568 | $ 240,536,527 |
COST OF REVENUES | ||||
COST OF REVENUES | (139,154,316) | (17,815,401) | (305,616,607) | (217,943,422) |
Gross profit | 35,048,311 | 4,487,103 | 41,834,961 | 22,593,105 |
EXPENSES | ||||
Selling and marketing | (3,132,277) | (401,014) | (2,631,231) | (3,133,094) |
Depreciation – related party | (720,000) | (92,179) | (720,000) | |
Depreciation | (2,540,273) | (325,222) | (2,485,017) | (2,486,443) |
Management fee – related party | (4,223,236) | |||
Staff cost | (13,260,898) | (1,697,743) | (12,436,317) | (6,324,017) |
Professional fee | (2,204,622) | (282,249) | (3,654,819) | (623,530) |
Allowance for expected credit losses | (1,383,316) | (177,101) | ||
Others | (2,760,400) | (353,403) | (972,264) | (1,329,634) |
Total expenses | (26,001,786) | (3,328,911) | (22,899,648) | (18,119,954) |
INCOME FROM OPERATION | 9,046,525 | 1,158,192 | 18,935,313 | 4,473,151 |
OTHER INCOME (EXPENSES) | ||||
Interest income | 92,951 | 11,900 | 1 | 1 |
Interest expense | (5,759,182) | (737,326) | (6,133,455) | (2,492,179) |
Agency income – related party | 2,662,034 | 340,810 | 2,586,019 | 2,904,339 |
Other income | 326 | 42 | 2,313,438 | |
Other expense | (302,784) | (38,764) | (7,444) | (5,953) |
Total other income (expenses), net | (3,306,655) | (423,338) | (3,554,879) | 2,719,646 |
INCOME BEFORE TAX EXPENSES | 5,739,870 | 734,854 | 15,380,434 | 7,192,797 |
INCOME TAX EXPENSES | (1,325,137) | (169,652) | (2,979,918) | (1,742,282) |
NET INCOME | 4,414,733 | 565,202 | 12,400,516 | 5,450,515 |
FOREIGN CURRENCY TRANSLATION ADJUSTMENT | (1,125,947) | (143,118) | 2,514,162 | 138,058 |
TOTAL COMPREHENSIVE INCOME | $ 3,288,786 | $ 422,084 | $ 14,914,678 | $ 5,588,573 |
Basic and diluted (in Shares) | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 |
EARNINGS PER SHARE – BASIC AND DILUTED (in Dollars per share and Dollars per share) | (per share) | $ 0.25 | $ 0.03 | $ 0.69 | $ 0.3 |
Related parties | ||||
COST OF REVENUES | ||||
COST OF REVENUES | $ (34,213,521) | $ (4,380,228) | $ (103,159,420) | $ (29,522,341) |
External | ||||
COST OF REVENUES | ||||
COST OF REVENUES | $ (104,940,795) | $ (13,435,173) | $ (202,457,187) | $ (188,421,081) |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Parentheticals) | 12 Months Ended | |||
Dec. 31, 2023 $ / shares shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Income Statement [Abstract] | ||||
Weighted average number of ordinary shares, Diluted | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 |
EARNINGS PER SHARE -DILUTED (in Dollars per share and Dollars per share) | (per share) | $ 0.25 | $ 0.03 | $ 0.69 | $ 0.30 |
Consolidated Statements of Chan
Consolidated Statements of Changes of Shareholders’ Deficit | Ordinary shares HKD ($) shares | Ordinary shares USD ($) shares | Addition paid-in capital HKD ($) | Addition paid-in capital USD ($) | Accumulated other comprehensive (losses) income HKD ($) | Accumulated other comprehensive (losses) income USD ($) | Accumulated losses HKD ($) | Accumulated losses USD ($) | HKD ($) shares | USD ($) shares | ||
Balance (in Dollars) | $ 8,775 | $ 91,225 | $ (681,482) | $ (78,082,256) | $ (78,663,738) | |||||||
Balance at Dec. 31, 2020 | $ 8,775 | 91,225 | (681,482) | (78,082,256) | (78,663,738) | |||||||
Balance (in Shares) at Dec. 31, 2020 | shares | 18,000,000 | 18,000,000 | ||||||||||
Net income | 5,450,515 | 5,450,515 | ||||||||||
Distribution in specie and cash | (2,515,109) | (2,515,109) | ||||||||||
Foreign currency translation | 138,058 | 138,058 | ||||||||||
Balance at Dec. 31, 2021 | $ 8,775 | 91,225 | (543,424) | (75,146,850) | (75,590,274) | |||||||
Balance (in Shares) at Dec. 31, 2021 | shares | 18,000,000 | 18,000,000 | ||||||||||
Balance (in Dollars) | $ 8,775 | 91,225 | (543,424) | (75,146,850) | (75,590,274) | |||||||
Net income | 12,400,516 | 12,400,516 | ||||||||||
Foreign currency translation | 2,514,162 | 2,514,162 | ||||||||||
Balance at Dec. 31, 2022 | $ 8,775 | 91,225 | 1,970,738 | (62,746,334) | $ (60,675,596) | |||||||
Balance (in Shares) at Dec. 31, 2022 | shares | 18,000,000 | 18,000,000 | 18,000,000 | [1] | 18,000,000 | [1] | ||||||
Balance (in Dollars) | $ 8,775 | 91,225 | 1,970,738 | (62,746,334) | $ (60,675,596) | |||||||
Net income | 4,414,733 | 4,414,733 | $ 565,202 | |||||||||
Forgiveness of related party balance | 55,000,000 | 55,000,000 | ||||||||||
Foreign currency translation | (1,125,947) | (1,125,947) | (143,118) | |||||||||
Balance at Dec. 31, 2023 | $ 8,775 | $ 1,125 | 55,091,225 | $ 7,053,121 | 844,791 | $ 108,156 | (58,331,601) | $ (7,467,974) | $ (2,386,810) | $ (305,572) | ||
Balance (in Shares) at Dec. 31, 2023 | shares | 18,000,000 | 18,000,000 | 18,000,000 | [1] | 18,000,000 | [1] | ||||||
Balance (in Dollars) | $ 8,775 | $ 1,125 | $ 55,091,225 | $ 7,053,121 | $ 844,791 | $ 108,156 | $ (58,331,601) | $ (7,467,974) | $ (2,386,810) | $ (305,572) | ||
[1]Giving retroactive effect to all the 11,250,000 shares issued and outstanding for a share split at a ratio of 1-to-1.6 on July 14, 2023 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Cash flows from operating activities | ||||
Net income | $ 4,414,733 | $ 565,202 | $ 12,400,516 | $ 5,450,515 |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation of property and equipment | 33,091 | 4,237 | 11,114 | 136,236 |
Depreciation of right-of-use assets | 3,260,273 | 417,400 | ||
Amortization of intangible assets | 112,049 | 14,345 | 137,358 | 151,634 |
Inventory provision | 68,536 | 8,774 | ||
Allowance for expected credit loss | 1,383,316 | 177,101 | ||
Changes in operating assets and liabilities | ||||
Accounts receivable | (23,387,722) | (2,994,242) | 19,369,617 | (29,744,236) |
Other current assets | (14,332,426) | (1,834,926) | (3,796,835) | (589,596) |
Deferred tax assets | 7,876 | 1,008 | ||
Inventories | (4,088,840) | (523,479) | (619,878) | 646,291 |
Accounts payable | (10,429,941) | (1,335,306) | (74,184,359) | 32,554,096 |
Accruals and other payables | 963,089 | 123,301 | 921,015 | (76,800) |
Lease liabilities | (3,260,273) | (417,400) | ||
Tax payable | (3,969,112) | (508,150) | 3,001,914 | 1,742,282 |
Net cash from (used in) operating activities | (49,225,351) | (6,302,136) | (42,759,538) | 10,270,422 |
Cash flows from investing activities | ||||
Purchase of property and equipment | (1,275,847) | (163,342) | (73,526) | (78,190) |
Cash used in investing activities | (1,275,847) | (163,342) | (73,526) | (78,190) |
Cash flows from financing activities | ||||
Proceeds from bank borrowings | 115,018,274 | 14,725,356 | 508,716,999 | 243,090,875 |
Repayment for bank borrowings | (168,602,359) | (21,585,523) | (452,377,168) | (220,367,256) |
Distribution in cash | (266,559) | |||
Advance to related parties | (6,341,947) | (31,642,544) | ||
Repayment from related parties | 16,272,733 | 2,083,336 | ||
Advance from related parties | 84,857,958 | 10,864,044 | ||
Net cash (used in) from financing activities | 47,546,606 | 6,087,213 | 49,997,884 | (9,185,484) |
Net increase (decrease) in cash and cash equivalents | (2,954,592) | (378,265) | 7,164,820 | 1,006,748 |
Cash and cash equivalents at the beginning of the year | 8,593,063 | 1,100,137 | 1,428,243 | 421,495 |
Cash and cash equivalents at the end of the year | 5,638,471 | 721,872 | 8,593,063 | 1,428,243 |
Supplementary cash flow information | ||||
Interest received | 92,951 | 11,900 | 1 | 1 |
Interest paid | (6,134,748) | (785,409) | (6,102,137) | (2,889,864) |
Tax paid | (3,314,625) | (424,359) | (21,996) | |
Non-cash investing and financing activities: Supplemental schedule of non-cash investing and financing activities: | ||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 23,153,141 | 2,964,209 | 1,406,891 | |
Distribution in specie | $ (2,248,550) |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. organization and principal activities Business Neo-Concept International Group Holdings Limited (“We”, “us”, “Our”, “our Company”, the “Company” or “NCI”), through its wholly-owned subsidiaries is engaged in one-stop apparel solution services, offering a full suite of services in the apparel supply chain, including market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management serving the European, and North American markets. In addition, we sell apparel products in the United Kingdom (“UK”) under the licensed brand “ les 100 ciels Organization and reorganization NCI, incorporated in July 2021 under the laws of the Cayman Islands, is the holding company of our Group. Neo-Concept Apparel Group Limited (“NCA”), a British Virgin Islands (“BVI”) business company limited by shares incorporated in August 2008, is the immediate holding company of Neo-Concept International Company Limited (“Neo-Concept HK”). The equity interest of NCA was ultimately held as to 94% by Ms. Eva Yuk Yin Siu (our “Controlling Shareholder”, or “Ms. Siu”) and 6% by Ms. Man Chi Wai (“Ms. Wai”) through certain intermediate holding companies prior to the Group Reorganization (see below). Neo-Concept HK, a company incorporated in Hong Kong with limited liability in October 1992, is the immediate holding company of Neo-Concept (UK) Limited, and is our operating subsidiary in Hong Kong. Neo-Concept (UK) Limited (“Neo-Concept UK”), a company incorporated in the UK with limited liability in August 2000, is a direct wholly owned subsidiary of Neo-Concept HK, and is our operating subsidiary in the UK. Neo-Concept (NY) Corporation (“Neo-Concept NY”), a company incorporated in the United States of America (“USA”) with limited liability in June 2, 1999, was a direct wholly owned subsidiary of Neo-Concept HK, and was disposed of via distribution in December 2021. Pursuant to a group reorganization (the “Group Reorganization”) to rationalize the structure of the Company and its subsidiary companies in preparation for the listing of our shares, the Company became the holding company of the Group on October 29, 2021, which involved the transfer of 100 shares of NCA (representing 100% of the issued shares of NCA) by Ms. Siu and Ms. Wai to the Company in exchange for 100 shares of Neo-Concept (BVI) Limited (“NC (BVI)”) (representing 100% of the issued shares of NC (BVI)), a then 100% held subsidiary of the Company, to be transferred to Splendid Vibe Limited, a company incorporated in BVI and was held as to 94% by Ms. Siu and 6% by Ms. Wai ultimately. The Company, together with its wholly owned subsidiaries, are effectively controlled by the same shareholders, i.e., ultimately held as to 94% by Ms. Siu and 6% by Ms. Wai, before and after the Group Reorganization and therefore the Group Reorganization is considered as a recapitalization of entities under common control. The consolidation of the Company and its subsidiaries has been accounted for at historical cost. No amount is recognized in respect of goodwill or excess of acquirer’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost at the time of common control combination. The consolidated statements of income and comprehensive income, consolidated statements of changes of shareholders’ deficit and consolidated statements of cash flows are prepared as if the current Group structure had been in existence throughout the year ended December 31, 2020 and the period before the Group Reorganization had taken place, or since the respective dates of incorporation/establishment of the relevant entity, where this is a shorter period. Upon the Group Reorganization and as at the date of this report, details of the subsidiary companies are as follows: Name Background Ownership Neo-Concept Apparel Group Limited ● A BVI company ● Incorporated in August 2008 ● Issued Share Capital of US$100 ● Intermediate holding company 100% owned by NCI Name Background Ownership Neo-Concept International Company Limited ● A Hong Kong company ● Incorporated in October 1992 ● Issued Share Capital of HKD 100,000 ● Provision of one-stop apparel solution services 100% owned by NCA Neo-Concept (UK) Limited ● A UK company ● Incorporated in August 2000 ● Issued Share Capital of GBP100 ● Provision of online and offline retail sales of apparel products 100% owned by Neo-Concept HK |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. Summary of Significant Accounting Policies Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for information pursuant to the rules and regulations of the Securities and Exchange Commission. Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Merger accounting for business combinations involving entities under common control The consolidated financial statements incorporate the financial statements items of the combining entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the controlling parties. The net assets of the combining entities or businesses are combined using the existing book values from the controlling parties’ perspective. No amount is recognized in respect of goodwill or excess of acquirer’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost at the time of common control combination, to the extent of the continuation of the controlling parties’ interest. The combined statement of comprehensive income includes the results of each of the combining entities or businesses from the earliest date of presented or since the date when the combining entities or businesses first came under the common control, where this is a shorter period, regardless of the date of the common control combination. Use of estimates and assumptions The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to allowance for uncollectible accounts receivable, inventory valuation, useful lives and impairment for property and equipment, valuation allowance for deferred tax assets, fair value of financial instruments and contingencies. Actual results could vary from the estimates and assumptions that were used. Functional currency and foreign currency translation We use Hong Kong dollars (“HKD”) as our reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands and BVI is the United States dollar (“US$”) and the functional currency of the functional currency of its Hong Kong subsidiary is the Hong Kong dollar (“HKD”), and its UK subsidiary is the Pound Sterling (“GBP”). The determination of the respective functional currency is based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters. Transactions denominated in currencies other than functional currency are translated into functional currency at the exchange rates quoted by authoritative banks prevailing at the dates of the transactions. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded as other income (expense), net in the consolidated statements of comprehensive income. The financial statements of the Group are translated from the functional currency into HKD. Assets and liabilities are translated at the exchange rates at the balance sheet date. Equity accounts other than earnings generated in the current period are translated into HKD using the appropriate historical rates. Revenues and expenses, gains and losses are translated into HKD using the periodic average exchange rate for the year. Translation adjustments are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income (expense) in the consolidated statements of comprehensive income. Convenience translation Translations of amounts in the consolidated balance sheet, consolidated statements of income and consolidated statements of cash flows from HKD into US$ as of and for the year ended December 31, 2023, are solely for the convenience of the reader and were calculated at the noon buying rate of US$1 = HKD 7.8109, as published in H.10 statistical release of the United States Federal Reserve Board. No representation is made that the HKD amounts could have been, or could be, converted, realized, or settled into US$ at such rate or at any other rate. Cash and cash equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Accounts receivable and allowance for expected credit losses Accounts receivable, net are stated at the original amount less an allowance for expected credit loss on such receivables. The allowance for expected credit losses is estimated based upon our assessment of various factors including historical experience, the age of the accounts receivable balances, current general economic conditions, future expectations and customer specific quantitative and qualitative factors that may affect our customers’ ability to pay. An allowance is also made when there is objective evidence for us to reasonably estimate the amount of probable loss. The Company regularly reviews the adequacy and appropriateness of the allowance for doubtful accounts. The receivables are written off after all collection efforts have ceased. Other non-current assets, net Other current assets are rental deposits. Other current assets, net Other current assets, net primarily include deferred IPO costs, prepayments and others. Inventories, net Inventories, representing finished goods for sale, are stated at the lower of cost or net realizable value, using the weighted average method. We evaluate the need for impairment associated with obsolete, slow-moving, and non-saleable inventory by reviewing net realizable value on a periodic basis but at least annually. Only defective products are eligible for returning to our materials suppliers. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and any impairment losses. Major renewals, betterments, and improvements are capitalized to the asset accounts while replacements, maintenance, and repairs, which do not improve or extend the lives of the respective assets, are expensed to operations. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation are relieved of the applicable amounts. Gains or losses from retirements or sale are credited or charged to operations. We depreciate property and equipment using the straight-line method as follows: Leasehold improvement Over the shorter of the terms of leases or 5 Furniture, fixtures, and office equipment 6 7 Intangible assets, net Intangible assets are primarily purchased from third parties. Purchased intangible assets are initially recognized and measured at cost upon acquisition. Intangible assets that have determinable lives are amortized over their estimated useful lives based upon the usage of the asset, which is approximated using a straight-line method as follows: Computer software – Point-of-sale system 10 Impairment for long-lived assets Long-lived assets, representing property and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. We assess the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, we would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2022 and 2023, no impairment of long-lived assets was recognized. Fair value measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by us. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Accounts payable Accounts payable represents trade payables to vendors. Accruals and other payables Accruals and other payables primarily include payroll payable, interest payable, VAT and other accrual and payables. Leases Before January 1, 2020, we applied ASC Topic 840 (“ASC 840”), “Leases”, and each lease is classified at the inception date as either a capital lease or an operating lease. We adopted ASC 842, “Leases” (“ASC 842”) on January 1, 2020, using the modified retrospective transition method through a cumulative-effect adjustment in the period of adoption rather than retrospectively adjusting prior periods and the package of practical expedient. We categorized leases with contractual terms longer than twelve months as either operating or finance lease. The adoption of ASC 842 resulted in recognition of Operating Right-of-use (“ROU”) assets of HKD 541,625 and operating lease liabilities of and HKD 541,625 as of January 1, 2020. There is no impact to accumulated deficit at adoption. ROU assets represent our rights to use underlying assets for the lease terms and lease liabilities represent our obligation to make lease payments arising from the leases. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term, reduced by lease incentives received, plus any initial direct costs, using the discount rate for the lease at the commencement date. If the implicit rate in lease is not readily determinable for our operating leases, we generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We elected not to separate non-lease components from lease components; therefore, it will account for lease component and the non-lease components as a single lease component when there is only one vendor in the lease contract for the office leases. Lease payments are fixed. For operating leases, lease expense is recognized on a straight-line basis in operations over the lease term. Any lease with a term of 12 months or less is considered short-term. As permitted by ASC 842, short-term leases are excluded from the ROU asset and lease liabilities on the consolidated balance sheets. Lease payments that depend on the future use of the leased property, such as sales volume during the lease term, are contingent rentals and, accordingly, are excluded from minimum lease payments in their entirety in accordance with ASC 840-10-25-5. Accordingly, these contingent rentals are excluded from the ROU assets and lease liabilities on the consolidated balance sheets. Lease payments of the Group’s retail stores located in the UK are charged based on the sales volume during the lease terms and therefore they are excluded from the recognition of ROU assets and lease liabilities on the consolidated balance sheets. Bank borrowings Borrowings are initially recognized at fair value, net of upfront fees incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Employee benefit plan Payments to the Mandatory Provident Fund Scheme under the Hong Kong Mandatory Provident Fund Schemes Ordinance and state-managed retirement benefit schemes in other jurisdictions are recognized as an expense when employees have rendered service entitling them to the contributions. Related parties We adopted ASC 850, “Related Party Disclosures”, for the identification of related parties and disclosure of related party transactions. The details of related party transaction during the year ended December 31, 2021, 2022 and 2023, and balances as at December 31, 2022 and 2023 are set out in note 12. Revenue recognition We adopted ASC Topic 606, “Revenue from Contracts with Customers”, and all subsequent ASUs that modified ASC 606 on April 1, 2017, using the full retrospective method which requires us to present the financial statements for all periods as if Topic 606 had been applied to all prior periods. We derive revenue principally from sales of private-labelled apparel products and sales of own-branded apparel products in our retail stores. Revenue from contracts with customers is recognized using the following five steps: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until we identify a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. We have addressed whether various goods and services promised to the customer represent distinct performance obligations. We applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations. Our revenues from sales of private-labelled apparel products and sales of own-branded apparel products in our retail stores and digital channels are recognized at a point in time. The transaction price is allocated to each performance obligation in the contract on the basis of the relative stand-alone selling prices of the promised goods or services. The individual standalone selling price of a good or service that has not previously been sold on a stand-alone basis, is determined based on the residual portion of the transaction price after allocating the transaction price to goods and/or services with observable stand-alone selling price. Transaction price is the amount of consideration in the contract to which we expect to be entitled in exchange for transferring the promised goods or services. The transaction price is fixed and is adjusted for time value of money if the contract includes a significant financing component. Consideration payable to a customer is deducted from the transaction price if we do not receive a separate identifiable benefit from the customer. Revenue is recognized at a point in time. Typically, performance obligation for products where the process is described as below, the performance obligation is satisfied at point in time. The Company currently generates its revenue from the following main sources: Sale of private-labelled apparel products-customized original design manufacturer We currently generate our revenue from the sale of private-labelled apparel products. We are an original design manufacturer. We offer customized design and manufacturing services to customers. We typically receive purchase orders from our customers who operate retail stores, which will set forth the terms and conditions including the transaction price, products to be delivered, terms of delivery, and terms of payment. The terms serve as the basis of the performance obligations that we must fulfil in order to recognize revenue. There is only one performance obligation as a series of services of this revenue stream are interrelated and are not separable or distinct as our customers cannot benefit from the standalone task (i.e. customers do not obtain any benefits other than the finished products). The key performance obligation is the delivery of the finished product to the customer at their specified location at which point title to that asset passes to the customer. The completion of this earning process is evidenced by a written customer acceptance indicating receipt of the product. Typical payment terms set forth in the purchase order ranges from 30 to 90 days from invoice date. The transaction price does not include variable consideration provision for right of return as we do not have sales return policy and no sales return is offered. No right of return is included in the revenue of the Company. Retail sale of own-branded apparel products - “les 100 ciels” We currently generate our revenue from the sale of own-branded apparel products through our physical and digital channels. Retail revenue at a point of sale is measured at the fair value of the consideration received at the time the sale is made to the customer, net of discounts. Customers settle the consideration by cash or credit cards. For online sales, we have elected to treat shipping and handling as fulfillment activities and not a separate performance obligation. Accordingly, we recognize revenue for our single performance obligation related to online sales at the time control of the merchandise passes to the customer, which is generally at the time of shipment. The transaction price includes variable consideration provision for right of return as we have sales return policy. We record an allowance for estimated merchandise returns based on our historical return patterns and various other assumptions that management believes to be reasonable. For the years ended December 31, 2021, 2022 and 2023, we are not aware of any material claims against us in relation to defective products, nor any material product returns from our customers. Following the adoption of ASC 606, we considered the guidance set forth in ASC 340-40, and determined that an asset would be recognized from costs incurred to fulfill a contract under ASC 340-40-25-5 only if those costs meet all of the following criteria: ● The costs relate directly to a contract or an anticipated contract that the entity can specifically identify (for example, costs relating to services to be provided under the renewal of an existing contract or costs of designing an asset to be transferred under a specific contract that has not yet been approved). ● The costs generate or enhance resources of the entity that will be used in satisfying (or continuing to satisfy) performance obligations in the future. ● The costs are expected to be recovered. The Company elected to apply the practical expedient to recognize the incremental costs of obtaining a contract as an expense if the amortization period of the asset would have been one year or less. Costs that relate directly to a contract include cost of purchasing of private-labelled and own-branded apparel products from suppliers. We elected to treat shipping and handling costs undertaken by the Company after the customer has obtained control of the related goods as a fulfillment activity and present as transportation costs in selling and marketing expenses. Costs associated with the production of advertising, such as writing, printing, and other costs, are expensed as incurred. Costs associated with communicating advertising that has been produced, such as magazine costs, are expensed when the advertising event takes place. Cost of revenues Cost of revenues of private-labelled apparel products and cost of revenues of own-branded apparel products in our retail stores, which are directly related to revenue-generating transactions, primarily consist of cost of purchasing of private-labelled and own-branded apparel products from suppliers, and inbound shipping and handling cost. Selling and marketing expenses Selling and marketing expenses consist primarily of transportation and distribution expenses and marketing and displaying expenses. General and administrative expenses General and administrative expenses primarily consist of personnel-related compensation expenses, including salaries and related social insurance costs for our operations and supporting personnel, office rental and office expenses, insurance, amortization of intangible assets, write-down of inventories, allowance for doubtful debts, depreciation, professional services fees, and other expenses related to general operations. Shipping and handling costs Shipping and handling costs are expensed as incurred. Inbound shipping and handling costs associated with bringing the products from suppliers to the Company’s retail stores are included in cost of revenues. Outbound shipping and handling costs associated with shipping and delivery the products to customers are included in selling and marketing expenses. Government grants Government grants are recognized as income in other income or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated statements of comprehensive income upon receipt and when all conditions attached to the grants, such as companies are required to stay in the same level of employment, are fulfilled. Income taxes We account for income taxes pursuant to ASC Topic 740, “Income Taxes”. Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. ASC Topic 740 also requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including those related to the U.S. net operating loss carry-forwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain. We adopted ASC Topic 740-10-05, “Income Tax”, which provides guidance for recognizing and measuring uncertain tax positions, it prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the consolidated financial statements. It also provides accounting guidance on derecognizing, classification, and disclosure of these uncertain tax positions. Our policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expenses. Value added tax (“VAT”) Our subsidiary in UK is subject to VAT and related surcharges on revenue generated from sale of products. The Group records revenue net of VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT, paid to suppliers against their output VAT liabilities. The primary applicable rate of the United Kingdom VAT is 20% for the years ended December 31, 2021, 2022 and 2023. Comprehensive income We present comprehensive income in accordance with ASC Topic 220, “Comprehensive Income”. ASC Topic 220 states that all items that are required to be recognized under accounting standards as components of comprehensive income be reported in the consolidated financial statements. The components of comprehensive income were the net income for the years and the foreign currency translation adjustments. Commitments and contingencies In the normal course of business, we are subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. We recognize a liability for such contingency if it determines it is probable that a loss has occurred, and a reasonable estimate of the loss can be made. We may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. Earnings per share We compute earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2021, 2022 and 2023, there were no dilutive shares. Recently issued accounting pronouncements In November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The purpose of the update was to improve financial reporting by requiring disclosures of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and requires retrospective application to all periods presented in the consolidated financial statements. Management is evaluating the impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company’s management does not believe the adoption of ASU 2023-09 will have a material impact on its consolidated financial statements and disclosures. Except as mentioned above, we do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on our consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | 3. Segment information ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in consolidated financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different products or services. Based on management’s assessment, the Company has determined that it has only one operating segment. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | 4. INVENTORIES, NET Inventories, net are comprised of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Own-branded apparel products 1,299,895 5,388,735 689,899 Less: inventory provision — (68,536 ) (8,774 ) Total 1,299,895 5,320,199 681,125 Inventory write-down expense was nil nil |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net is comprised of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Accounts receivable – excluding due from factor 6,114,794 33,758,410 4,321,962 Accounts receivable – due from factor 4,255,894 — — Allowance for expected credit losses (31,502 ) (1,414,818 ) (181,134 ) Total 10,339,186 32,343,592 4,140,828 Allowance for expected credit losses, net consists of the following: 2022 2023 2023 HKD HKD US$ Beginning balance, January 1 31,502 31,502 4,033 Addition — 1,383,316 177,101 Ending balance, December 31 31,502 1,414,818 181,134 |
Other Current Assets, Net
Other Current Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Other Current Assets, Net [Abstract] | |
OTHER CURRENT ASSETS, NET | 6. OTHER CURRENT ASSETS, NET Other current assets, net consist of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Deferred IPO costs 4,229,639 8,148,021 1,043,160 Prepayments 129,229 12,021,838 1,539,110 Others 21,996 55,863 7,155 Total 4,380,864 20,225,722 2,589,425 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 7. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Furniture, fixtures, and office equipment 556,991 603,082 77,210 Leasehold improvement — 2,169,258 277,722 Total 556,991 2,772,340 354,932 Less: accumulated depreciation (502,065 ) (1,474,658 ) (188,795 ) Property and equipment, net 54,926 1,297,682 166,137 Depreciation expenses recognized for the years ended December 31, 2021, 2022 and 2023 were HKD 136,236, HKD 11,114 and HKD 33,091 (approximately US$4,237), respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Software 1,277,753 1,277,753 163,586 Less: accumulated amortization (1,165,704 ) (1,277,753 ) (163,586 ) Intangible assets, net 112,049 — — Amortization recognized for the years ended December 31, 2021, 2022, and 2023 were HKD 151,634, HKD 137,358 and HKD 112,049 (approximately US$14,345), respectively. |
Accruals and Other Payables
Accruals and Other Payables | 12 Months Ended |
Dec. 31, 2023 | |
Accruals and Other Payables [Abstract] | |
ACCRUALS AND OTHER PAYABLES | 9. ACCRUALS AND OTHER PAYABLES Accruals and other payables consist of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Payroll payable 734,454 2,185,617 279,816 Interest payable 412,442 46,397 5,940 VAT 905,214 834,902 106,889 Others 190,505 138,789 17,768 Total 2,242,615 3,205,705 410,413 |
Bank Borrowings
Bank Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Bank Borrowings [Abstract] | |
BANK BORROWINGS | 10. BANK BORROWINGS Outstanding balances of bank borrowings as of December 31, 2022, and 2023 consisted of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Bank borrowings: Guaranteed 375,059 — — Collateralized and guaranteed 83,962,426 30,753,400 3,937,242 84,337,485 30,753,400 3,937,242 Less: current maturities (83,962,426 ) (30,753,400 ) (3,937,242 ) Non-current maturities 375,059 — — Bank borrowings as of December 31, 2022 and 2023 are as follows: Maturity Interest Interest As of December 31, Lender Type date Currency rate as of rate as 2022 2023 2023 HKD HKD US$ DBS Bank (Hong Kong) Limited (i) Trading finance Within 1 year HKD Bank prevailing rates Bank prevailing rates 17,232,296 5,884,863 753,417 The Hongkong and Shanghai Banking Corporation Limited (i) Trading finance Within 1 year HKD Bank prevailing rates Bank prevailing rates 44,500,679 21,568,885 2,761,383 Dah Sing Bank, Limited (i) Overdraft Within 1 year HKD Bank prevailing rates Bank prevailing rates 22,229,451 — — Citibank, N.A., Hong Kong Branch (ii) Trading finance Within 1 year HKD Bank prevailing rates Bank prevailing rates — 3,299,652 422,442 HSBC UK Bank plc (iii) Term loan June 15, 2026 GBP 2.5% — 375,059 — — Total 84,337,485 30,753,400 3,937,242 Less: current maturities (83,962,426 ) (30,753,400 ) (3,937,242 ) Non-current maturities 375,059 — — (i) In connection with our operations in Hong Kong, Neo-Concept HK, together with a related company, Neo-Concept (Holdings) Company Limited (“NCH”), a company incorporated in Hong Kong and controlled by Ms. Siu, entered into (as renewed or supplemented yearly where required) several banking facilities with banks in Hong Kong for combined banking facilities which were shared by Neo-Concept HK and NCH combinedly. The banking facilities were secured, details of which are set out as follows: (a) Unlimited personal guarantee by Ms. Siu; (b) Ms. Siu being a subordinated lender towards all sums of money owed by Neo-Concept HK and NCH; (c) Legal charge over certain properties and car parking spaces owned by Ms. Siu and an immediate family member of Ms. Siu and also assignment of rental from the properties and the car parking spaces; (d) Legal charge over certain deposits accounts held by NCH at the relevant banks; (e) Legal charge over certain investment funds held by NCH at the relevant banks; (f) Assignment of benefit from life insurances premium assets held by NCH at the relevant banks; (g) Assignment of benefit from life insurances premium assets held by Pure Diamond Limited, a related company in which Ms. Siu has interests, at a relevant bank; (h) Indemnity granted by NCH to relevant banks; (i) Guaranteed by Neo-Concept Fashion (Zhongshan) Co., Ltd, a subsidiary company of NCH, amounting to HKD 131 million; and (j) Cross-corporate guaranteed by Neo-Concept HK and NCH; (ii) The banking facilities were secured, details of which are set out as follows: (a) Personal guarantee by Ms. Siu and an immediate family member of Ms. Siu; (b) Cross-corporate guaranteed by Neo-Concept HK, Neo-Concept (BVI) Limited, a company controlled by Ms. Siu, and NCH; and (c) Legal charge over certain deposits accounts held by NCH at the relevant banks; (iii) The loan was obtained in June 2020 having a tenure of 6 Loan type in terms of currency Carrying Carrying Within 1 2024 2025 2026 2027 HKD US$ HKD HKD HKD HKD HKD in HKD 83,962,426 10,749,392 83,962,426 — — — — in GBP 375,059 48,017 — — — 375,059 — December 31, 2022 84,337,485 10,797,409 83,962,426 — — 375,059 — Loan type in terms of currency Carrying Carrying Within 2025 2026 2027 2028 HKD US$ HKD HKD HKD HKD HKD in HKD 30,753,400 3,937,242 30,753,400 — — — — in GBP — — — — — — — December 31, 2023 30,753,400 3,937,242 30,753,400 — — — — |
Right-of-use Assets and Lease L
Right-of-use Assets and Lease Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Right-of-use Assets and Lease Liabilities [Abstract] | |
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES | 11. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES Our operating leases primarily consist of leases of office premises and showrooms. The recognition of whether a contract arrangement contains a lease is made by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all the economic benefits from and has the ability to direct the use of the asset. Operating lease assets and liabilities are included in the items of operating lease right-of-use assets, net, operating lease liabilities, current portion, and operating lease liabilities, non-current portion on the consolidated balance sheets. We adopted ASU No. 2016-02 and related standards (collectively ASC 842, Leases), which replaced previous lease accounting guidance, on January 1, 2020, using the modified retrospective method of adoption. We elected the transition method expedient which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, prior periods have not been restated. In addition, adoption of the new standard resulted in the recording of right-of-use assets and associated lease liabilities of approximately HKD 541,625 and HKD 541,625, respectively, as of January 1, 2020. Supplemental balance sheet information related to operating leases was as follows: As of December 31, 2022 2023 2023 HKD HKD US$ Operating lease: Operating lease right-of-use assets 653,344 23,884,854 3,057,888 Current operating lease obligation 653,344 708,829 90,750 Non-current operating lease obligation — 23,176,025 2,967,138 Total operating lease obligation 653,344 23,884,854 3,057,888 Operating lease expense for the year ended December 31, 2021, 2022 and 2023 was HKD 164,482, HKD 2,580,711 and HKD 3,271,053, respectively. The undiscounted future minimum lease payment schedule as follows: For the years ending December 31, HK$ US$ 2024 2,014,564 257,917 2025 2,678,490 342,917 2026 2,834,708 362,917 2027 3,023,467 387,083 2028 or after 15,006,137 1,921,179 Total lease payments 25,557,366 3,272,013 Less: imputed interest (1,672,512 ) (214,125 ) Total operating lease liabilities 23,884,854 3,057,888 Other supplemental information about the Company’s operating lease as of: December 31, Weighted average discount rate 7.91 % Weighted average remaining lease term (years) 9.0 Our right-of-use assets and relevant lease liabilities originated from our rented premises for office premises in Hong Kong and retail shops in the UK. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Balances and Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 12. Related party balances and transactions Due from related parties consist of the following: As of December 31, Relationship 2022 2023 2023 HKD HKD US$ Due from Ms. Siu Controlling Shareholder 70,001 — — Due from NCH Common controlled by Ms. Siu 16,202,732 — — Due to related parties consist of the following: As of December 31, Relationship 2022 2023 2023 HKD HKD US$ Due to Ms. Siu Controlling Shareholder — (59,106 ) (7,567 ) Due to NCH Common controlled by Ms. Siu — (34,184,138 ) (4,376,466 ) The amounts due from (to) the related parties are unsecured, interest free with no specific repayment terms. The amounts due from (to) NCH were non-trade nature, representing fund advances to NCH for its operation. In addition to the transactions and balances detailed elsewhere in these consolidated financial statements, we also had the following transactions with related parties: For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Agency income received by Neo-Concept UK from NCH 2,904,339 2,586,019 2,662,034 340,810 Purchase of apparel products from NCH 29,522,341 103,159,420 34,213,521 4,380,228 Rental expense paid to NCH — 720,000 720,000 92,179 Management fee paid to NCH 4,223,236 — — — |
Dissagreggated Revenue
Dissagreggated Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Dissagreggated Revenue [Abstract] | |
DISSAGREGGATED REVENUE | 13. DISSAGREGGATED REVENUE The following table shows disaggregated revenue by major product categories for the years ended December 31, 2021, 2022, and 2023, respectively: For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Sale of private-labelled apparel products 237,282,262 336,306,554 156,316,352 20,012,592 Retail sale of own-branded apparel products 3,254,265 11,145,014 17,886,275 2,289,912 Total 240,536,527 347,451,568 174,202,627 22,302,504 The following table shows disaggregated cost of revenues by major product categories for the years ended December 31, 2021, 2022, and 2023, respectively: For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Sale of private-labelled apparel products 216,523,165 301,429,220 134,239,759 17,186,208 Retail sale of own-branded apparel products 1,420,257 4,187,387 4,914,557 629,193 Total 217,943,422 305,616,607 139,154,316 17,815,401 The following table sets forth a breakdown of our gross profit and gross profit margin for years ended December 31, 2021, 2022, and 2023: For the year ended December 31, 2023 Product category Revenue Cost of Gross Gross HKD HKD HKD % Private-labelled apparel products 156,316,352 134,239,759 22,076,593 14.1 % Own-branded apparel products 17,886,275 4,914,557 12,971,718 72.5 % Total 174,202,627 139,154,316 35,048,311 20.1 % For the year ended December 31, 2022 Product category Revenue Cost of Gross Gross HKD HKD HKD % Private-labelled apparel products 336,306,554 301,429,220 34,877,334 10.4 % Own-branded apparel products 11,145,014 4,187,387 6,957,627 62.4 % Total 347,451,568 305,616,607 41,834,961 12.0 % For the year ended December 31, 2021 Product category Revenue Cost of Gross Gross HKD HKD HKD % Private-labelled apparel products 237,282,262 216,523,165 20,759,097 8.7 % Own-branded apparel products 3,254,265 1,420,257 1,834,008 56.4 % Total 240,536,527 217,943,422 22,593,105 9.4 % In the following table, revenue is disaggregated by the geographical locations of customers: For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Geographical locations: The United States and Canada 235,568,451 328,293,299 132,124,783 16,915,437 The UK 3,080,163 11,145,014 17,898,073 2,291,423 Others 1,887,913 8,013,255 24,179,771 3,095,644 Total 240,536,527 347,451,568 174,202,627 22,302,504 |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2023 | |
Other Income [Abstract] | |
OTHER INCOME | 14. OTHER INCOME Other income consists of the followings: For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Government subsidies 2,313,438 — — — Agency income 2,904,339 2,586,019 2,662,034 340,810 Others — — 326 42 Total 5,217,777 2,586,019 2,662,360 340,852 Agency income refers to other income from NCH, which was a discretionary payment made to Neo-Concept UK for promoting NCH’s products in UK upon a pre-determined yearly sale target was achieved. There are no enforceable rights and obligations, and the amount is recorded at a point in time. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Taxes [Abstract] | |
TAXES | 15. TAXES Income tax Cayman Islands The Cayman Islands currently levy no taxes on individuals or corporations based upon profits, income, gains or appreciations and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to our Company levied by the Government of the Cayman Islands save for certain stamp duties which may be applicable, from time to time, on certain instruments. BVI NCA is incorporated in the BVI and is not subject to tax on income or capital gains under current BVI law. In addition, upon payments of dividends by these entities to their shareholders, no BVI withholding tax will be imposed. Hong Kong Neo-Concept HK is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. From year of assessment of 2019/2020 onwards, Hong Kong profits tax rates are 8.25% on assessable profits up to HKD 2,000,000, and 16.5% on any part of assessable profits over HKD 2,000,000. Under Hong Kong tax law, Neo-Concept HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. Other jurisdictions Taxation arising in other jurisdictions such as the UK and the USA is calculated at the rates prevailing in the relevant jurisdictions. With effect from 1 April 2023, the current main rate of corporation tax in the UK is 25%. Significant components of the provision for income taxes are as follows: For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Current: Hong Kong 1,742,282 2,979,918 928,973 118,941 The UK — — 388,288 49,703 Deferred: Hong Kong — — 7,876 1,008 Total provision for income taxes 1,742,282 2,979,918 1,325,137 169,652 The following table reconciles Cayman Islands statutory rates to our effective tax rate: For the years ended December 31, 2021 2022 2023 Income tax rate in the Cayman Islands, permanent tax holiday 0 0 0 Hong Kong statutory income tax rate 16.5 % 16.5 % 16.5 % Effect of different tax rates (0.8 )% (0.6 )% 2.1 % Income not taxable (5.3 )% — — Expense not deductible — 4.3 % 7.0 % Temporary not recognized 14.1 % 0.3 % 0.4 % Tax concession (0.3 )% (1.1 )% (2.9 )% Effective tax rate 24.2 % 19.4 % 23.1 % Deferred tax Significant components of deferred tax were as follows: As of December 31, 2022 2023 2023 HKD HKD US$ Deferred tax assets 7,876 7,876 1,008 Transferred to consolidated statements of income — (7,876 ) (1,008 ) Valuation allowance — — — Net deferred tax assets 7,876 — — The Group did not recognize any valuation allowance against its deferred tax asset as management believes the Group will be able to full utilize the assets in the foreseeable future. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2023 | |
Risks And Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | 16. riskS AND UNCERTAINTIES Credit risk Our assets that potentially subject to a significant concentration of credit risk primarily consist of cash and accounts receivable. We believe that there is no significant credit risk associated with cash in Hong Kong, which were held by reputable financial institutions in the jurisdiction where Neo-Concept HK is located. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately US$64,090) if the bank with which an individual/a company hold its eligible deposit fails. As of December 31, 2023, cash balance of HKD 913,267 (approximately US$116,922) was maintained at financial institutions in Hong Kong and approximately HKD 500,000 was insured by the Hong Kong Deposit Protection Board. As of December 31, 2023, HKD4,936,039 We have designed credit policies with an objective to minimize their exposure to credit risk. Our accounts receivable is short term by nature and the associated risk is minimal. We conduct credit evaluations on our clients and generally do not require collateral or other security from such clients. We periodically evaluate the creditworthiness of the existing clients in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific clients. We are also exposed to risk from account receivables. These assets are subjected to credit evaluations. An allowance, where applicable, would make for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment. Customer concentration risk For the year ended December 31, 2021, one customer accounted for 94.5% of our total revenue. For the year ended December 31, 2022, one customer accounted for 91.4% of our total revenue. For the year ended December 31, 2023, one customer accounted for 71.3% of our total revenue. No other customer accounts for more than 10% of our revenue for the years ended December 31, 2021, 2022 and 2023. As of December 31, 2022, one customer accounted for 83.2% of the total balance of accounts receivable. As of December 31, 2023, four customers accounted for 44.7%, 21.6%, 11.0% and 10.1% of the total balance of accounts receivable. No other customer accounts for more than 10% of our accounts receivable as of December 31, 2022 and 2023. Vendor concentration risk For the year ended December 31, 2021, two vendors accounted for 86.5% and 13.5% of our total purchases. For the year ended December 31, 2022, two vendors accounted for 44.2% and 35.9% of our total purchases. For the year ended December 31, 2023, two vendors accounted for 69.3% and 24.6% of our total purchases. No other vendor accounts for more than 10% of our purchases for the years ended December 31, 2021, 2022 and 2023. As of December 31, 2022, three vendors accounted for 44.8%, 41.6% and 13.6% of the total balance of accounts payable. No accounts payables as of December 31, 2023. No other vendor accounts for more than 10% of our accounts payable as of December 31, 2022 and 2023. We focus on diversification of suppliers so as to minimize the vendor concentration risk. Interest rate risk Our exposure on fair value interest rate risk mainly arises from our fixed deposits with bank. We also have exposure on cash flow interest rate risk which is mainly arising from our deposits with banks and bank borrowings. In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative financial instruments held by us, such as cash deposits and bank borrowings, at the end of the reporting period, we are not exposed to significant interest rate risk as the interest rates are not expected to change significantly. Foreign currency risk We are exposed to foreign currency risk primarily through sales that are denominated in a currency other than the functional currency of the operations to which they relate. The currencies giving rise to this risk are primarily US$. As HKD is currently pegged to US$, our exposure to foreign exchange fluctuations is minimal. Market and geographic risk The Company’s operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s economy may influence the Company’s business, financial condition, and results of operations. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders' Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | 17. Shareholders’ equity Ordinary shares For the sake of undertaking a public offering of the Company’s ordinary shares, the Company has performed a series of re-organizing transactions resulting in 11,250,000 shares of ordinary shares issued and outstanding that have been retroactively restated to the beginning of the first period presented. The Company only has one single class of ordinary shares that are accounted for as permanent equity. On July 14, 2023, we effected a share split at a ratio of 1-to-1.6. As a result of the share split, we now have 800,000,000 authorized ordinary shares with a par value of US$0.0000625 per ordinary share and 18,000,000 ordinary shares issued and outstanding as of the date hereof. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES Litigation From time to time, we are involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, we do not believe that the ultimate outcome of any unresolved matters, individually and in the aggregate, are reasonably possible to have a material adverse effect on our financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and our view of these matters may change in the future. We record a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We review the need for any such liabilities on a regular basis. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS The Company has assessed all events from December 31, 2023, up through May 14, 2024, which is the date of these unaudited interim condensed consolidated financial statements are available to be issued, except as disclosed below, there are no other material subsequent events that require disclosure in these unaudited interim condensed consolidated financial statements. On April 23, 2024, the Company announced the closing of its IPO of 2,320,000 ordinary shares, US$0.0000625 par value per share at an offering price of US$4.00 per share. |
Parent Only Financial Informati
Parent Only Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Parent Only Financial Information [Abstract] | |
PARENT ONLY FINANCIAL INFORMATION | 20. PARENT ONLY FINANCIAL INFORMATION The following presents condensed parent company only financial information of Neo-Concept International Group Holdings Limited. Condensed balance sheets As of December 31, 2022 2023 2023 HKD HKD US$ Current assets Amount due from the shareholder 8,775 8,775 1,125 Non-current assets Interests in a subsidiary 780 780 100 Total assets 9,555 9,555 1,225 Liabilities and shareholders’ deficit Current liabilities Amounts due to a subsidiary 780 149,867 19,187 Amounts due to a related party 71,999 — — Total liabilities 72,779 149,867 19,187 Shareholders’ deficit Ordinary shares: US$0.0000625 par value, 800,000,000 shares authorized as of December 31, 2022 and 2023; 18,000,000 shares issued and outstanding as of December 31, 2022 and 2023 8,775 8,775 1,125 Accumulated losses (71,999 ) (149,087 ) (19,087 ) Total shareholders’ deficit (63,224 ) (140,312 ) (17,962 ) Total liabilities and shareholders’ deficit 9,555 9,555 1,225 Condensed statements of loss For the years ended December 31, 2021 2022 2023 2023 HKD HKD HKD US$ Operating expenses General and administrative expenses (29,999 ) (42,000 ) (77,088 ) (9,869 ) Total operating expenses (29,999 ) (42,000 ) (77,088 ) (9,869 ) Loss before income taxes (29,999 ) (42,000 ) (77,088 ) (9,869 ) Income taxes — — — — Net loss (29,999 ) (42,000 ) (77,088 ) (9,869 ) Condensed statements of cash flows For the years ended December 31, 2021 2022 2023 2023 HKD HKD HKD US$ Cash flows from operating activities Net loss (29,999 ) (42,000 ) (77,088 ) (9,869 ) Changes in operating assets and liabilities — — — — Net cash used in operating activities (29,999 ) (42,000 ) (77,088 ) (9,869 ) Cash flows from investing activities Cash from (used in) investing activities — — — — Cash flows from financing activities Amount due to a related party 29,999 42,000 77,088 9,869 Cash flows from financing activities 29,999 42,000 77,088 9,869 Net increase (decrease) in cash and cash equivalents — — — — Cash and cash equivalents at the beginning of the year — — — — Cash and cash equivalents at the end of the year — — — — (i) Basis of presentation The Company was incorporated under the laws of the Cayman Islands as an exempted company with limited liability on July 29, 2021 and as a holding company. Neo-Concept Apparel Group Limited (“NCA”), a British Virgin Island business company limited by shares, is the immediate holding company of Neo-Concept International Company Limited, which, in turn, holds the entire equity interests in Neo-Concept International Company Limited, a company incorporated in Hong Kong with limited liability, and Neo-Concept (NY) Corporation, a company incorporated in the United States of America with limited liability. The equity interest of NCA was ultimately held as to 94% by Ms. Eva Yuk Yin Siu (“Ms. Siu”) and 6% by Ms. Man Chi Wai (“Ms. Wai”) through certain intermediate holding companies. On October 29, 2021, the entire equity interest of NCA (representing 100 shares) was transferred to the Company by Ms. Siu and Ms. Wai in exchange for 100 shares of Neo-Concept (BVI) Limited, a then 100% held subsidiary of the Company, to Splendid Vibe Limited, a company incorporated in BVI and was held as to 94% by Ms. Siu and 6% by Ms. Wai ultimately. Accordingly, NCA became a wholly owned subsidiary of the Company. In the condensed parent-company-only financial statements, the Company’s investment in NCA is stated at cost plus equity in undistributed earnings of NCA since the date of acquisition. The Company’s share of net loss of NCA is included in condensed statements of loss and comprehensive loss using the equity method. These condensed parent-company-only financial statements should be read in connection with the consolidated financial statements and notes thereto. The condensed parent-company-only financial statements are presented as if the incorporation of the Company and its acquisition of NCA had taken place at January 1, 2020 and throughout the period as at the date before the Group Reorganization. (ii) Restricted Net Assets Schedule I of Rule 5-04 of Regulation S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender, regulatory agency, foreign government, etc.). The condensed parent company financial statements have to be prepared in accordance with Rule 12-04, Schedule I of Regulation S-X if the restricted net assets of the subsidiaries of Neo-Concept International Group Holdings Limited exceed 25% of the consolidated net assets of Neo-Concept International Group Holdings Limited. The abilities of the Company’s subsidiaries in Hong Kong, the United Kingdom and the United States to pay dividends are not restricted. In this connection, the restricted net assets of the subsidiaries of the Company does not exceed 25% of the consolidated net assets of the Company and accordingly the above condensed parent company only financial information of Neo-Concept International Group Holdings Limited is presented for the supplementary reference. As of December 31, 2022 and 2023, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for information pursuant to the rules and regulations of the Securities and Exchange Commission. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. |
Merger accounting for business combinations involving entities under common control | Merger accounting for business combinations involving entities under common control The consolidated financial statements incorporate the financial statements items of the combining entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the controlling parties. The net assets of the combining entities or businesses are combined using the existing book values from the controlling parties’ perspective. No amount is recognized in respect of goodwill or excess of acquirer’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost at the time of common control combination, to the extent of the continuation of the controlling parties’ interest. The combined statement of comprehensive income includes the results of each of the combining entities or businesses from the earliest date of presented or since the date when the combining entities or businesses first came under the common control, where this is a shorter period, regardless of the date of the common control combination. |
Use of estimates and assumptions | Use of estimates and assumptions The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to allowance for uncollectible accounts receivable, inventory valuation, useful lives and impairment for property and equipment, valuation allowance for deferred tax assets, fair value of financial instruments and contingencies. Actual results could vary from the estimates and assumptions that were used. |
Functional currency and foreign currency translation | Functional currency and foreign currency translation We use Hong Kong dollars (“HKD”) as our reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands and BVI is the United States dollar (“US$”) and the functional currency of the functional currency of its Hong Kong subsidiary is the Hong Kong dollar (“HKD”), and its UK subsidiary is the Pound Sterling (“GBP”). The determination of the respective functional currency is based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters. Transactions denominated in currencies other than functional currency are translated into functional currency at the exchange rates quoted by authoritative banks prevailing at the dates of the transactions. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded as other income (expense), net in the consolidated statements of comprehensive income. The financial statements of the Group are translated from the functional currency into HKD. Assets and liabilities are translated at the exchange rates at the balance sheet date. Equity accounts other than earnings generated in the current period are translated into HKD using the appropriate historical rates. Revenues and expenses, gains and losses are translated into HKD using the periodic average exchange rate for the year. Translation adjustments are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income (expense) in the consolidated statements of comprehensive income. |
Convenience translation | Convenience translation Translations of amounts in the consolidated balance sheet, consolidated statements of income and consolidated statements of cash flows from HKD into US$ as of and for the year ended December 31, 2023, are solely for the convenience of the reader and were calculated at the noon buying rate of US$1 = HKD 7.8109, as published in H.10 statistical release of the United States Federal Reserve Board. No representation is made that the HKD amounts could have been, or could be, converted, realized, or settled into US$ at such rate or at any other rate. |
Cash and cash equivalents | Cash and cash equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts receivable and allowance for expected credit losses | Accounts receivable and allowance for expected credit losses Accounts receivable, net are stated at the original amount less an allowance for expected credit loss on such receivables. The allowance for expected credit losses is estimated based upon our assessment of various factors including historical experience, the age of the accounts receivable balances, current general economic conditions, future expectations and customer specific quantitative and qualitative factors that may affect our customers’ ability to pay. An allowance is also made when there is objective evidence for us to reasonably estimate the amount of probable loss. The Company regularly reviews the adequacy and appropriateness of the allowance for doubtful accounts. The receivables are written off after all collection efforts have ceased. |
Other non-current assets, net | Other non-current assets, net Other current assets are rental deposits. |
Other current assets, net | Other current assets, net Other current assets, net primarily include deferred IPO costs, prepayments and others. |
Inventories, net | Inventories, net Inventories, representing finished goods for sale, are stated at the lower of cost or net realizable value, using the weighted average method. We evaluate the need for impairment associated with obsolete, slow-moving, and non-saleable inventory by reviewing net realizable value on a periodic basis but at least annually. Only defective products are eligible for returning to our materials suppliers. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and any impairment losses. Major renewals, betterments, and improvements are capitalized to the asset accounts while replacements, maintenance, and repairs, which do not improve or extend the lives of the respective assets, are expensed to operations. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation are relieved of the applicable amounts. Gains or losses from retirements or sale are credited or charged to operations. We depreciate property and equipment using the straight-line method as follows: Leasehold improvement Over the shorter of the terms of leases or 5 Furniture, fixtures, and office equipment 6 7 |
Intangible assets, net | Intangible assets, net Intangible assets are primarily purchased from third parties. Purchased intangible assets are initially recognized and measured at cost upon acquisition. Intangible assets that have determinable lives are amortized over their estimated useful lives based upon the usage of the asset, which is approximated using a straight-line method as follows: Computer software – Point-of-sale system 10 |
Impairment for long-lived assets | Impairment for long-lived assets Long-lived assets, representing property and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. We assess the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, we would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2022 and 2023, no impairment of long-lived assets was recognized. |
Fair value measurement | Fair value measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by us. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. |
Accounts payable | Accounts payable Accounts payable represents trade payables to vendors. |
Accruals and other payables | Accruals and other payables Accruals and other payables primarily include payroll payable, interest payable, VAT and other accrual and payables. |
Leases | Leases Before January 1, 2020, we applied ASC Topic 840 (“ASC 840”), “Leases”, and each lease is classified at the inception date as either a capital lease or an operating lease. We adopted ASC 842, “Leases” (“ASC 842”) on January 1, 2020, using the modified retrospective transition method through a cumulative-effect adjustment in the period of adoption rather than retrospectively adjusting prior periods and the package of practical expedient. We categorized leases with contractual terms longer than twelve months as either operating or finance lease. The adoption of ASC 842 resulted in recognition of Operating Right-of-use (“ROU”) assets of HKD 541,625 and operating lease liabilities of and HKD 541,625 as of January 1, 2020. There is no impact to accumulated deficit at adoption. ROU assets represent our rights to use underlying assets for the lease terms and lease liabilities represent our obligation to make lease payments arising from the leases. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term, reduced by lease incentives received, plus any initial direct costs, using the discount rate for the lease at the commencement date. If the implicit rate in lease is not readily determinable for our operating leases, we generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We elected not to separate non-lease components from lease components; therefore, it will account for lease component and the non-lease components as a single lease component when there is only one vendor in the lease contract for the office leases. Lease payments are fixed. For operating leases, lease expense is recognized on a straight-line basis in operations over the lease term. Any lease with a term of 12 months or less is considered short-term. As permitted by ASC 842, short-term leases are excluded from the ROU asset and lease liabilities on the consolidated balance sheets. Lease payments that depend on the future use of the leased property, such as sales volume during the lease term, are contingent rentals and, accordingly, are excluded from minimum lease payments in their entirety in accordance with ASC 840-10-25-5. Accordingly, these contingent rentals are excluded from the ROU assets and lease liabilities on the consolidated balance sheets. Lease payments of the Group’s retail stores located in the UK are charged based on the sales volume during the lease terms and therefore they are excluded from the recognition of ROU assets and lease liabilities on the consolidated balance sheets. |
Bank borrowings | Bank borrowings Borrowings are initially recognized at fair value, net of upfront fees incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. |
Employee Benefit Plan | Employee benefit plan Payments to the Mandatory Provident Fund Scheme under the Hong Kong Mandatory Provident Fund Schemes Ordinance and state-managed retirement benefit schemes in other jurisdictions are recognized as an expense when employees have rendered service entitling them to the contributions. |
Related parties | Related parties We adopted ASC 850, “Related Party Disclosures”, for the identification of related parties and disclosure of related party transactions. The details of related party transaction during the year ended December 31, 2021, 2022 and 2023, and balances as at December 31, 2022 and 2023 are set out in note 12. |
Revenue Recognition | Revenue recognition We adopted ASC Topic 606, “Revenue from Contracts with Customers”, and all subsequent ASUs that modified ASC 606 on April 1, 2017, using the full retrospective method which requires us to present the financial statements for all periods as if Topic 606 had been applied to all prior periods. We derive revenue principally from sales of private-labelled apparel products and sales of own-branded apparel products in our retail stores. Revenue from contracts with customers is recognized using the following five steps: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until we identify a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. We have addressed whether various goods and services promised to the customer represent distinct performance obligations. We applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations. Our revenues from sales of private-labelled apparel products and sales of own-branded apparel products in our retail stores and digital channels are recognized at a point in time. The transaction price is allocated to each performance obligation in the contract on the basis of the relative stand-alone selling prices of the promised goods or services. The individual standalone selling price of a good or service that has not previously been sold on a stand-alone basis, is determined based on the residual portion of the transaction price after allocating the transaction price to goods and/or services with observable stand-alone selling price. Transaction price is the amount of consideration in the contract to which we expect to be entitled in exchange for transferring the promised goods or services. The transaction price is fixed and is adjusted for time value of money if the contract includes a significant financing component. Consideration payable to a customer is deducted from the transaction price if we do not receive a separate identifiable benefit from the customer. Revenue is recognized at a point in time. Typically, performance obligation for products where the process is described as below, the performance obligation is satisfied at point in time. The Company currently generates its revenue from the following main sources: Sale of private-labelled apparel products-customized original design manufacturer We currently generate our revenue from the sale of private-labelled apparel products. We are an original design manufacturer. We offer customized design and manufacturing services to customers. We typically receive purchase orders from our customers who operate retail stores, which will set forth the terms and conditions including the transaction price, products to be delivered, terms of delivery, and terms of payment. The terms serve as the basis of the performance obligations that we must fulfil in order to recognize revenue. There is only one performance obligation as a series of services of this revenue stream are interrelated and are not separable or distinct as our customers cannot benefit from the standalone task (i.e. customers do not obtain any benefits other than the finished products). The key performance obligation is the delivery of the finished product to the customer at their specified location at which point title to that asset passes to the customer. The completion of this earning process is evidenced by a written customer acceptance indicating receipt of the product. Typical payment terms set forth in the purchase order ranges from 30 to 90 days from invoice date. The transaction price does not include variable consideration provision for right of return as we do not have sales return policy and no sales return is offered. No right of return is included in the revenue of the Company. Retail sale of own-branded apparel products - “les 100 ciels” We currently generate our revenue from the sale of own-branded apparel products through our physical and digital channels. Retail revenue at a point of sale is measured at the fair value of the consideration received at the time the sale is made to the customer, net of discounts. Customers settle the consideration by cash or credit cards. For online sales, we have elected to treat shipping and handling as fulfillment activities and not a separate performance obligation. Accordingly, we recognize revenue for our single performance obligation related to online sales at the time control of the merchandise passes to the customer, which is generally at the time of shipment. The transaction price includes variable consideration provision for right of return as we have sales return policy. We record an allowance for estimated merchandise returns based on our historical return patterns and various other assumptions that management believes to be reasonable. For the years ended December 31, 2021, 2022 and 2023, we are not aware of any material claims against us in relation to defective products, nor any material product returns from our customers. Following the adoption of ASC 606, we considered the guidance set forth in ASC 340-40, and determined that an asset would be recognized from costs incurred to fulfill a contract under ASC 340-40-25-5 only if those costs meet all of the following criteria: ● The costs relate directly to a contract or an anticipated contract that the entity can specifically identify (for example, costs relating to services to be provided under the renewal of an existing contract or costs of designing an asset to be transferred under a specific contract that has not yet been approved). ● The costs generate or enhance resources of the entity that will be used in satisfying (or continuing to satisfy) performance obligations in the future. ● The costs are expected to be recovered. The Company elected to apply the practical expedient to recognize the incremental costs of obtaining a contract as an expense if the amortization period of the asset would have been one year or less. Costs that relate directly to a contract include cost of purchasing of private-labelled and own-branded apparel products from suppliers. We elected to treat shipping and handling costs undertaken by the Company after the customer has obtained control of the related goods as a fulfillment activity and present as transportation costs in selling and marketing expenses. Costs associated with the production of advertising, such as writing, printing, and other costs, are expensed as incurred. Costs associated with communicating advertising that has been produced, such as magazine costs, are expensed when the advertising event takes place. |
Cost of revenues | Cost of revenues Cost of revenues of private-labelled apparel products and cost of revenues of own-branded apparel products in our retail stores, which are directly related to revenue-generating transactions, primarily consist of cost of purchasing of private-labelled and own-branded apparel products from suppliers, and inbound shipping and handling cost. |
Selling and marketing expenses | Selling and marketing expenses Selling and marketing expenses consist primarily of transportation and distribution expenses and marketing and displaying expenses. |
General and administrative expenses | General and administrative expenses General and administrative expenses primarily consist of personnel-related compensation expenses, including salaries and related social insurance costs for our operations and supporting personnel, office rental and office expenses, insurance, amortization of intangible assets, write-down of inventories, allowance for doubtful debts, depreciation, professional services fees, and other expenses related to general operations. Shipping and handling costs Shipping and handling costs are expensed as incurred. Inbound shipping and handling costs associated with bringing the products from suppliers to the Company’s retail stores are included in cost of revenues. Outbound shipping and handling costs associated with shipping and delivery the products to customers are included in selling and marketing expenses. |
Government grants | Government grants Government grants are recognized as income in other income or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated statements of comprehensive income upon receipt and when all conditions attached to the grants, such as companies are required to stay in the same level of employment, are fulfilled. |
Income taxes | Income taxes We account for income taxes pursuant to ASC Topic 740, “Income Taxes”. Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit or loss from ordinary activities adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. ASC Topic 740 also requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including those related to the U.S. net operating loss carry-forwards, are dependent upon future earnings, if any, of which the timing and amount are uncertain. We adopted ASC Topic 740-10-05, “Income Tax”, which provides guidance for recognizing and measuring uncertain tax positions, it prescribes a threshold condition that a tax position must meet for any of the benefits of the uncertain tax position to be recognized in the consolidated financial statements. It also provides accounting guidance on derecognizing, classification, and disclosure of these uncertain tax positions. Our policy on classification of all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expenses. |
Value added tax (“VAT”) | Value added tax (“VAT”) Our subsidiary in UK is subject to VAT and related surcharges on revenue generated from sale of products. The Group records revenue net of VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT, paid to suppliers against their output VAT liabilities. The primary applicable rate of the United Kingdom VAT is 20% for the years ended December 31, 2021, 2022 and 2023. |
Comprehensive Income | Comprehensive income We present comprehensive income in accordance with ASC Topic 220, “Comprehensive Income”. ASC Topic 220 states that all items that are required to be recognized under accounting standards as components of comprehensive income be reported in the consolidated financial statements. The components of comprehensive income were the net income for the years and the foreign currency translation adjustments. |
Commitments and Contingencies | Commitments and contingencies In the normal course of business, we are subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. We recognize a liability for such contingency if it determines it is probable that a loss has occurred, and a reasonable estimate of the loss can be made. We may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. |
Earnings per share | Earnings per share We compute earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2021, 2022 and 2023, there were no dilutive shares. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The purpose of the update was to improve financial reporting by requiring disclosures of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and requires retrospective application to all periods presented in the consolidated financial statements. Management is evaluating the impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company’s management does not believe the adoption of ASU 2023-09 will have a material impact on its consolidated financial statements and disclosures. Except as mentioned above, we do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on our consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of Group Reorganization | Upon the Group Reorganization and as at the date of this report, details of the subsidiary companies are as follows: Name Background Ownership Neo-Concept Apparel Group Limited ● A BVI company ● Incorporated in August 2008 ● Issued Share Capital of US$100 ● Intermediate holding company 100% owned by NCI Name Background Ownership Neo-Concept International Company Limited ● A Hong Kong company ● Incorporated in October 1992 ● Issued Share Capital of HKD 100,000 ● Provision of one-stop apparel solution services 100% owned by NCA Neo-Concept (UK) Limited ● A UK company ● Incorporated in August 2000 ● Issued Share Capital of GBP100 ● Provision of online and offline retail sales of apparel products 100% owned by Neo-Concept HK |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Depreciate Property and Equipment Using the Straight-Line Method | We depreciate property and equipment using the straight-line method as follows: Leasehold improvement Over the shorter of the terms of leases or 5 Furniture, fixtures, and office equipment 6 7 |
Schedule of Intangible Assets Estimated Useful Lives | Intangible assets that have determinable lives are amortized over their estimated useful lives based upon the usage of the asset, which is approximated using a straight-line method as follows: Computer software – Point-of-sale system 10 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net are comprised of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Own-branded apparel products 1,299,895 5,388,735 689,899 Less: inventory provision — (68,536 ) (8,774 ) Total 1,299,895 5,320,199 681,125 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net is comprised of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Accounts receivable – excluding due from factor 6,114,794 33,758,410 4,321,962 Accounts receivable – due from factor 4,255,894 — — Allowance for expected credit losses (31,502 ) (1,414,818 ) (181,134 ) Total 10,339,186 32,343,592 4,140,828 |
Schedule of Allowance for Doubtful Accounts, Net Consists | Allowance for expected credit losses, net consists of the following: 2022 2023 2023 HKD HKD US$ Beginning balance, January 1 31,502 31,502 4,033 Addition — 1,383,316 177,101 Ending balance, December 31 31,502 1,414,818 181,134 |
Other Current Assets, Net (Tabl
Other Current Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Current Assets, Net [Abstract] | |
Schedule of Other Current Assets | Other current assets, net consist of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Deferred IPO costs 4,229,639 8,148,021 1,043,160 Prepayments 129,229 12,021,838 1,539,110 Others 21,996 55,863 7,155 Total 4,380,864 20,225,722 2,589,425 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consist of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Furniture, fixtures, and office equipment 556,991 603,082 77,210 Leasehold improvement — 2,169,258 277,722 Total 556,991 2,772,340 354,932 Less: accumulated depreciation (502,065 ) (1,474,658 ) (188,795 ) Property and equipment, net 54,926 1,297,682 166,137 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Software 1,277,753 1,277,753 163,586 Less: accumulated amortization (1,165,704 ) (1,277,753 ) (163,586 ) Intangible assets, net 112,049 — — |
Accruals and Other Payables (Ta
Accruals and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accruals and Other Payables [Abstract] | |
Schedule of Accruals and Other Payables | Accruals and other payables consist of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Payroll payable 734,454 2,185,617 279,816 Interest payable 412,442 46,397 5,940 VAT 905,214 834,902 106,889 Others 190,505 138,789 17,768 Total 2,242,615 3,205,705 410,413 |
Bank Borrowings (Tables)
Bank Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Bank Borrowings [Abstract] | |
Schedule of Outstanding Balances of Bank Borrowings | Outstanding balances of bank borrowings as of December 31, 2022, and 2023 consisted of the following: As of December 31, 2022 2023 2023 HKD HKD US$ Bank borrowings: Guaranteed 375,059 — — Collateralized and guaranteed 83,962,426 30,753,400 3,937,242 84,337,485 30,753,400 3,937,242 Less: current maturities (83,962,426 ) (30,753,400 ) (3,937,242 ) Non-current maturities 375,059 — — |
Schedule of Bank Borrowings | Bank borrowings as of December 31, 2022 and 2023 are as follows: Maturity Interest Interest As of December 31, Lender Type date Currency rate as of rate as 2022 2023 2023 HKD HKD US$ DBS Bank (Hong Kong) Limited (i) Trading finance Within 1 year HKD Bank prevailing rates Bank prevailing rates 17,232,296 5,884,863 753,417 The Hongkong and Shanghai Banking Corporation Limited (i) Trading finance Within 1 year HKD Bank prevailing rates Bank prevailing rates 44,500,679 21,568,885 2,761,383 Dah Sing Bank, Limited (i) Overdraft Within 1 year HKD Bank prevailing rates Bank prevailing rates 22,229,451 — — Citibank, N.A., Hong Kong Branch (ii) Trading finance Within 1 year HKD Bank prevailing rates Bank prevailing rates — 3,299,652 422,442 HSBC UK Bank plc (iii) Term loan June 15, 2026 GBP 2.5% — 375,059 — — Total 84,337,485 30,753,400 3,937,242 Less: current maturities (83,962,426 ) (30,753,400 ) (3,937,242 ) Non-current maturities 375,059 — — (i) In connection with our operations in Hong Kong, Neo-Concept HK, together with a related company, Neo-Concept (Holdings) Company Limited (“NCH”), a company incorporated in Hong Kong and controlled by Ms. Siu, entered into (as renewed or supplemented yearly where required) several banking facilities with banks in Hong Kong for combined banking facilities which were shared by Neo-Concept HK and NCH combinedly. The banking facilities were secured, details of which are set out as follows: (a) Unlimited personal guarantee by Ms. Siu; (b) Ms. Siu being a subordinated lender towards all sums of money owed by Neo-Concept HK and NCH; (c) Legal charge over certain properties and car parking spaces owned by Ms. Siu and an immediate family member of Ms. Siu and also assignment of rental from the properties and the car parking spaces; (d) Legal charge over certain deposits accounts held by NCH at the relevant banks; (e) Legal charge over certain investment funds held by NCH at the relevant banks; (f) Assignment of benefit from life insurances premium assets held by NCH at the relevant banks; (g) Assignment of benefit from life insurances premium assets held by Pure Diamond Limited, a related company in which Ms. Siu has interests, at a relevant bank; (h) Indemnity granted by NCH to relevant banks; (i) Guaranteed by Neo-Concept Fashion (Zhongshan) Co., Ltd, a subsidiary company of NCH, amounting to HKD 131 million; and (j) Cross-corporate guaranteed by Neo-Concept HK and NCH; (ii) The banking facilities were secured, details of which are set out as follows: (a) Personal guarantee by Ms. Siu and an immediate family member of Ms. Siu; (b) Cross-corporate guaranteed by Neo-Concept HK, Neo-Concept (BVI) Limited, a company controlled by Ms. Siu, and NCH; and (c) Legal charge over certain deposits accounts held by NCH at the relevant banks; (iii) The loan was obtained in June 2020 having a tenure of 6 |
Schedule of Bank Loan | Loan type in terms of currency Carrying Carrying Within 1 2024 2025 2026 2027 HKD US$ HKD HKD HKD HKD HKD in HKD 83,962,426 10,749,392 83,962,426 — — — — in GBP 375,059 48,017 — — — 375,059 — December 31, 2022 84,337,485 10,797,409 83,962,426 — — 375,059 — Loan type in terms of currency Carrying Carrying Within 2025 2026 2027 2028 HKD US$ HKD HKD HKD HKD HKD in HKD 30,753,400 3,937,242 30,753,400 — — — — in GBP — — — — — — — December 31, 2023 30,753,400 3,937,242 30,753,400 — — — — |
Right-of-use Assets and Lease_2
Right-of-use Assets and Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Right-Of-Use Assets and Lease Liabilities [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases was as follows: As of December 31, 2022 2023 2023 HKD HKD US$ Operating lease: Operating lease right-of-use assets 653,344 23,884,854 3,057,888 Current operating lease obligation 653,344 708,829 90,750 Non-current operating lease obligation — 23,176,025 2,967,138 Total operating lease obligation 653,344 23,884,854 3,057,888 |
Schedule of Undiscounted Future Minimum Lease Payment | The undiscounted future minimum lease payment schedule as follows: For the years ending December 31, HK$ US$ 2024 2,014,564 257,917 2025 2,678,490 342,917 2026 2,834,708 362,917 2027 3,023,467 387,083 2028 or after 15,006,137 1,921,179 Total lease payments 25,557,366 3,272,013 Less: imputed interest (1,672,512 ) (214,125 ) Total operating lease liabilities 23,884,854 3,057,888 |
Schedule of Other Supplemental Information about the Company’s Operating Lease | Other supplemental information about the Company’s operating lease as of: December 31, Weighted average discount rate 7.91 % Weighted average remaining lease term (years) 9.0 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Balances and Transactions [Abstract] | |
Schedule of Due from Related Parties | Due from related parties consist of the following: As of December 31, Relationship 2022 2023 2023 HKD HKD US$ Due from Ms. Siu Controlling Shareholder 70,001 — — Due from NCH Common controlled by Ms. Siu 16,202,732 — — As of December 31, Relationship 2022 2023 2023 HKD HKD US$ Due to Ms. Siu Controlling Shareholder — (59,106 ) (7,567 ) Due to NCH Common controlled by Ms. Siu — (34,184,138 ) (4,376,466 ) |
Schedule of Related Party Transactions | In addition to the transactions and balances detailed elsewhere in these consolidated financial statements, we also had the following transactions with related parties: For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Agency income received by Neo-Concept UK from NCH 2,904,339 2,586,019 2,662,034 340,810 Purchase of apparel products from NCH 29,522,341 103,159,420 34,213,521 4,380,228 Rental expense paid to NCH — 720,000 720,000 92,179 Management fee paid to NCH 4,223,236 — — — |
Dissagreggated Revenue (Tables)
Dissagreggated Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Dissagreggated Revenue [Abstract] | |
Schedule of Disaggregated Revenue by Major Product Categories | The following table shows disaggregated revenue by major product categories for the years ended December 31, 2021, 2022, and 2023, respectively: For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Sale of private-labelled apparel products 237,282,262 336,306,554 156,316,352 20,012,592 Retail sale of own-branded apparel products 3,254,265 11,145,014 17,886,275 2,289,912 Total 240,536,527 347,451,568 174,202,627 22,302,504 For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Sale of private-labelled apparel products 216,523,165 301,429,220 134,239,759 17,186,208 Retail sale of own-branded apparel products 1,420,257 4,187,387 4,914,557 629,193 Total 217,943,422 305,616,607 139,154,316 17,815,401 |
Schedule of Breakdown of Gross Profit and Gross Profit Margin | The following table sets forth a breakdown of our gross profit and gross profit margin for years ended December 31, 2021, 2022, and 2023: For the year ended December 31, 2023 Product category Revenue Cost of Gross Gross HKD HKD HKD % Private-labelled apparel products 156,316,352 134,239,759 22,076,593 14.1 % Own-branded apparel products 17,886,275 4,914,557 12,971,718 72.5 % Total 174,202,627 139,154,316 35,048,311 20.1 % For the year ended December 31, 2022 Product category Revenue Cost of Gross Gross HKD HKD HKD % Private-labelled apparel products 336,306,554 301,429,220 34,877,334 10.4 % Own-branded apparel products 11,145,014 4,187,387 6,957,627 62.4 % Total 347,451,568 305,616,607 41,834,961 12.0 % For the year ended December 31, 2021 Product category Revenue Cost of Gross Gross HKD HKD HKD % Private-labelled apparel products 237,282,262 216,523,165 20,759,097 8.7 % Own-branded apparel products 3,254,265 1,420,257 1,834,008 56.4 % Total 240,536,527 217,943,422 22,593,105 9.4 % |
Schedule of Revenue is Disaggregated by the Geographical Locations | In the following table, revenue is disaggregated by the geographical locations of customers: For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Geographical locations: The United States and Canada 235,568,451 328,293,299 132,124,783 16,915,437 The UK 3,080,163 11,145,014 17,898,073 2,291,423 Others 1,887,913 8,013,255 24,179,771 3,095,644 Total 240,536,527 347,451,568 174,202,627 22,302,504 |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income [Abstract] | |
Schedule of Other Income | Other income consists of the followings: For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Government subsidies 2,313,438 — — — Agency income 2,904,339 2,586,019 2,662,034 340,810 Others — — 326 42 Total 5,217,777 2,586,019 2,662,360 340,852 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Taxes [Abstract] | |
Schedule of Provision for Income Taxes | Significant components of the provision for income taxes are as follows: For the years ended 2021 2022 2023 2023 HKD HKD HKD US$ Current: Hong Kong 1,742,282 2,979,918 928,973 118,941 The UK — — 388,288 49,703 Deferred: Hong Kong — — 7,876 1,008 Total provision for income taxes 1,742,282 2,979,918 1,325,137 169,652 |
Schedule of Reconciles Cayman Islands Statutory Rates | The following table reconciles Cayman Islands statutory rates to our effective tax rate: For the years ended December 31, 2021 2022 2023 Income tax rate in the Cayman Islands, permanent tax holiday 0 0 0 Hong Kong statutory income tax rate 16.5 % 16.5 % 16.5 % Effect of different tax rates (0.8 )% (0.6 )% 2.1 % Income not taxable (5.3 )% — — Expense not deductible — 4.3 % 7.0 % Temporary not recognized 14.1 % 0.3 % 0.4 % Tax concession (0.3 )% (1.1 )% (2.9 )% Effective tax rate 24.2 % 19.4 % 23.1 % |
Schedule of Significant Components of Deferred Tax | Significant components of deferred tax were as follows: As of December 31, 2022 2023 2023 HKD HKD US$ Deferred tax assets 7,876 7,876 1,008 Transferred to consolidated statements of income — (7,876 ) (1,008 ) Valuation allowance — — — Net deferred tax assets 7,876 — — |
Parent Only Financial Informa_2
Parent Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Parent Only Financial Information [Abstract] | |
Schedule of Condensed Balance Sheets | Condensed balance sheets As of December 31, 2022 2023 2023 HKD HKD US$ Current assets Amount due from the shareholder 8,775 8,775 1,125 Non-current assets Interests in a subsidiary 780 780 100 Total assets 9,555 9,555 1,225 Liabilities and shareholders’ deficit Current liabilities Amounts due to a subsidiary 780 149,867 19,187 Amounts due to a related party 71,999 — — Total liabilities 72,779 149,867 19,187 Shareholders’ deficit Ordinary shares: US$0.0000625 par value, 800,000,000 shares authorized as of December 31, 2022 and 2023; 18,000,000 shares issued and outstanding as of December 31, 2022 and 2023 8,775 8,775 1,125 Accumulated losses (71,999 ) (149,087 ) (19,087 ) Total shareholders’ deficit (63,224 ) (140,312 ) (17,962 ) Total liabilities and shareholders’ deficit 9,555 9,555 1,225 |
Schedule of Condensed Statements of Loss and Comprehensive Loss | Condensed statements of loss For the years ended December 31, 2021 2022 2023 2023 HKD HKD HKD US$ Operating expenses General and administrative expenses (29,999 ) (42,000 ) (77,088 ) (9,869 ) Total operating expenses (29,999 ) (42,000 ) (77,088 ) (9,869 ) Loss before income taxes (29,999 ) (42,000 ) (77,088 ) (9,869 ) Income taxes — — — — Net loss (29,999 ) (42,000 ) (77,088 ) (9,869 ) |
Schedule of Condensed Statements of Cash Flows | Condensed statements of cash flows For the years ended December 31, 2021 2022 2023 2023 HKD HKD HKD US$ Cash flows from operating activities Net loss (29,999 ) (42,000 ) (77,088 ) (9,869 ) Changes in operating assets and liabilities — — — — Net cash used in operating activities (29,999 ) (42,000 ) (77,088 ) (9,869 ) Cash flows from investing activities Cash from (used in) investing activities — — — — Cash flows from financing activities Amount due to a related party 29,999 42,000 77,088 9,869 Cash flows from financing activities 29,999 42,000 77,088 9,869 Net increase (decrease) in cash and cash equivalents — — — — Cash and cash equivalents at the beginning of the year — — — — Cash and cash equivalents at the end of the year — — — — |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - shares | Oct. 29, 2021 | Dec. 31, 2023 |
Splendid Vibe Limited [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of subsidiary | 100% | |
Ms. Eva Yuk Yin Siu [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of subsidiary | 94% | |
Ms. Man Chi Wai [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of subsidiary | 6% | |
Ms. Eva Yuk Yin Siu [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of equity interest | 94% | |
Ms. Man Chi Wai [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of equity interest | 6% | |
Neo-Concept Apparel Group Limited [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Transfer share (in Shares) | 100 | |
Percentage of issued shares | 100% | |
BVI [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Transfer share (in Shares) | 100 | |
Percentage of issued shares | 100% | |
Ms. Eva Yuk Yin Siu [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of incorporated | 94% | |
Ms. Man Chi Wai [Member] | ||
Organization and Principal Activities (Details) [Line Items] | ||
Percentage of incorporated | 6% |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of Group Reorganization | 12 Months Ended |
Dec. 31, 2023 | |
Neo-Concept Apparel Group Limited [Member] | |
Schedule of Group Reorganization [Line Items] | |
Background | ● A BVI company ● Incorporated in August 2008 ● Issued Share Capital of US$100 ● Intermediate holding company |
Ownership | 100% owned by NCI |
Neo-Concept International Company Limited [Member] | |
Schedule of Group Reorganization [Line Items] | |
Background | ● A Hong Kong company ● Incorporated in October 1992 ● Issued Share Capital of HKD 100,000 ● Provision of one-stop apparel solution services |
Ownership | 100% owned by NCA |
Neo-Concept (UK) Limited [Member] | |
Schedule of Group Reorganization [Line Items] | |
Background | ● A UK company ● Incorporated in August 2000 ● Issued Share Capital of GBP100 ● Provision of online and offline retail sales of apparel products |
Ownership | 100% owned by Neo-Concept HK |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Jan. 01, 2020 HKD ($) | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Noon buying rate (in Dollars) | $ 1 | |||||
Right-of-use assets (in Dollars) | $ 653,344 | $ 23,884,854 | $ 3,057,888 | $ 541,625 | ||
Lease liabilities (in Dollars) | $ 541,625 | |||||
Value Added Tax | 20% | 20% | 20% | |||
HONG KONG | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Foreign currency exchange rate, translation | 7.8109 | 7.8109 |
Schedule of Depreciate Property
Schedule of Depreciate Property and Equipment Using the Straight-Line Method (Details) - Schedule of Depreciate Property and Equipment Using the Straight-Line Method | Dec. 31, 2023 |
Schedule of Depreciate Property and Equipment Using the Straight-Line Method (Details) - Schedule of Depreciate Property and Equipment Using the Straight-Line Method [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture, Fixtures, and Office Equipment [Member] | Minimum [Member] | |
Schedule of Depreciate Property and Equipment Using the Straight-Line Method (Details) - Schedule of Depreciate Property and Equipment Using the Straight-Line Method [Line Items] | |
Property, Plant and Equipment, Useful Life | 6 years |
Furniture, Fixtures, and Office Equipment [Member] | Maximum [Member] | |
Schedule of Depreciate Property and Equipment Using the Straight-Line Method (Details) - Schedule of Depreciate Property and Equipment Using the Straight-Line Method [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Schedule of Intangible Assets E
Schedule of Intangible Assets Estimated Useful Lives (Details) - Schedule of Intangible Assets Estimated Useful Lives | Dec. 31, 2023 |
Computer Software, Intangible Asset [Member] | |
Schedule of Intangible Assets Estimated Useful Lives (Details) - Schedule of Intangible Assets Estimated Useful Lives [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Segment information (Details)
Segment information (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Information [Abstract] | |
Operating segment | 1 |
Inventories, Net (Details)
Inventories, Net (Details) | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Inventory Disclosure [Abstract] | ||||
Inventory write-down expense | $ 68,536 | $ 8,774 |
Inventories, Net (Details) - Sc
Inventories, Net (Details) - Schedule of Inventories, Net | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) |
Schedule of Inventories Net [Abstract] | |||
Total | $ 5,320,199 | $ 681,125 | $ 1,299,895 |
Less: inventory provision | (68,536) | (8,774) | |
Own-branded apparel products [Member] | |||
Schedule of Inventories Net [Abstract] | |||
Total | $ 5,388,735 | $ 689,899 | $ 1,299,895 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable, Net | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) |
Schedule of Accounts Receivable Net [Abstract] | |||
Accounts receivable – excluding due from factor | $ 33,758,410 | $ 4,321,962 | $ 6,114,794 |
Accounts receivable – due from factor | 4,255,894 | ||
Allowance for expected credit losses | (1,414,818) | (181,134) | (31,502) |
Total | $ 32,343,592 | $ 4,140,828 | $ 10,339,186 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Allowance for Doubtful Accounts, Net Consists | 12 Months Ended | ||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | |
Schedule of Allowance For Doubtful Accounts Net Consists [Abstract] | |||
Beginning balance, January 1 | $ 31,502 | $ 4,033 | $ 31,502 |
Addition | 1,383,316 | 177,101 | |
Ending balance, December 31 | $ 1,414,818 | $ 181,134 | $ 31,502 |
Other Current Assets, Net (Deta
Other Current Assets, Net (Details) - Schedule of Other Current Assets - Other Current Assets [Member] | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) |
Other Current Assets, Net (Details) - Schedule of Other Current Assets [Line Items] | |||
Deferred IPO costs | $ 8,148,021 | $ 1,043,160 | $ 4,229,639 |
Prepayments | 12,021,838 | 1,539,110 | 129,229 |
Others | 55,863 | 7,155 | 21,996 |
Total | $ 20,225,722 | $ 2,589,425 | $ 4,380,864 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Property and Equipment, Net [Abstract] | ||||
Depreciation expenses | $ 33,091 | $ 4,237 | $ 11,114 | $ 136,236 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of Property and Equipment, Net | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) |
Schedule of Property and Equipment, Net [Line Items] | |||
Property plant and equipment gross | $ 2,772,340 | $ 354,932 | $ 556,991 |
Less: accumulated depreciation | (1,474,658) | (188,795) | (502,065) |
Property and equipment, net | 1,297,682 | 166,137 | 54,926 |
Furniture, fixtures, and office equipment [Member] | |||
Schedule of Property and Equipment, Net [Line Items] | |||
Property plant and equipment gross | 603,082 | 77,210 | 556,991 |
Leasehold improvement [Member] | |||
Schedule of Property and Equipment, Net [Line Items] | |||
Property plant and equipment gross | $ 2,169,258 | $ 277,722 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Intangible Assets, Net [Abstract] | ||||
Amortization recognized | $ 112,049 | $ 14,345 | $ 137,358 | $ 151,634 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets, Net | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) |
Schedule of Intangible Assets, Net [Abstract] | |||
Software | $ 1,277,753 | $ 163,586 | $ 1,277,753 |
Less: accumulated amortization | (1,277,753) | (163,586) | (1,165,704) |
Intangible assets, net | $ 112,049 |
Accruals and Other Payables (De
Accruals and Other Payables (Details) - Schedule of Accruals and Other Payables | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) |
Schedule of Accruals and Other Payables [Abstract] | |||
Payroll payable | $ 2,185,617 | $ 279,816 | $ 734,454 |
Interest payable | 46,397 | 5,940 | 412,442 |
VAT | 834,902 | 106,889 | 905,214 |
Others | 138,789 | 17,768 | 190,505 |
Total | $ 3,205,705 | $ 410,413 | $ 2,242,615 |
Bank Borrowings (Details)
Bank Borrowings (Details) - HKD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2020 | |
Bank Borrowings [Line Items] | ||
Guaranteed amounting | $ 131 | |
Loan tenure | 6 years | |
Fixed interest rate | 2.50% |
Bank Borrowings (Details) - Sch
Bank Borrowings (Details) - Schedule of Outstanding Balances of Bank Borrowings - Borrowings [Member] | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) |
Schedule of Outstanding Balances of Bank Borrowings [Line Items] | |||
Bank borrowings | $ 30,753,400 | $ 3,937,242 | $ 84,337,485 |
Less: current maturities | (30,753,400) | (3,937,242) | (83,962,426) |
Non-current maturities | 375,059 | ||
Guaranteed [Member] | |||
Schedule of Outstanding Balances of Bank Borrowings [Line Items] | |||
Bank borrowings | 375,059 | ||
Collateralized and guaranteed [Member] | |||
Schedule of Outstanding Balances of Bank Borrowings [Line Items] | |||
Bank borrowings | $ 30,753,400 | $ 3,937,242 | $ 83,962,426 |
Bank Borrowings (Details) - S_2
Bank Borrowings (Details) - Schedule of Bank Borrowings | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2023 USD ($) | ||
Debt Instrument [Line Items] | ||||
Bank borrowings, Total | $ 30,753,400 | $ 84,337,485 | $ 3,937,242 | |
Less: current maturities | (30,753,400) | (83,962,426) | (3,937,242) | |
Non-current maturities | $ 375,059 | |||
DBS Bank (Hong Kong) Limited [Member] | ||||
Debt Instrument [Line Items] | ||||
Type | [1] | Trading finance | ||
Maturity date | [1] | Within 1 year | ||
Currency | [1] | HKD | ||
Interest rate | [1] | Bank prevailing rates | Bank prevailing rates | |
Bank borrowings, Total | [1] | $ 5,884,863 | $ 17,232,296 | 753,417 |
The Hongkong and Shanghai Banking Corporation Limited [Member] | ||||
Debt Instrument [Line Items] | ||||
Type | [1] | Trading finance | ||
Maturity date | [1] | Within 1 year | ||
Currency | [1] | HKD | ||
Interest rate | [1] | Bank prevailing rates | Bank prevailing rates | |
Bank borrowings, Total | [1] | $ 21,568,885 | $ 44,500,679 | 2,761,383 |
Dah Sing Bank, Limited [Member] | ||||
Debt Instrument [Line Items] | ||||
Type | [1] | Overdraft | ||
Maturity date | [1] | Within 1 year | ||
Currency | [1] | HKD | ||
Interest rate | [1] | Bank prevailing rates | Bank prevailing rates | |
Bank borrowings, Total | [1] | $ 22,229,451 | ||
Citibank, N.A., Hong Kong Branch [Member] | ||||
Debt Instrument [Line Items] | ||||
Type | [2] | |||
Maturity date | [2] | |||
Currency | [2] | |||
Interest rate | [2] | |||
Bank borrowings, Total | [2] | $ 3,299,652 | 422,442 | |
HSBC UK Bank plc [Member] | ||||
Debt Instrument [Line Items] | ||||
Type | [3] | Term loan | ||
Maturity date | [3] | June 15, 2026 | ||
Currency | [3] | GBP | ||
Interest rate | [3] | 2.5% | ||
Bank borrowings, Total | [3] | $ 375,059 | ||
[1]In connection with our operations in Hong Kong, Neo-Concept HK, together with a related company, Neo-Concept (Holdings) Company Limited (“NCH”), a company incorporated in Hong Kong and controlled by Ms. Siu, entered into (as renewed or supplemented yearly where required) several banking facilities with banks in Hong Kong for combined banking facilities which were shared by Neo-Concept HK and NCH combinedly. The banking facilities were secured, details of which are set out as follows: (a) Unlimited personal guarantee by Ms. Siu; (b) Ms. Siu being a subordinated lender towards all sums of money owed by Neo-Concept HK and NCH; (c) Legal charge over certain properties and car parking spaces owned by Ms. Siu and an immediate family member of Ms. Siu and also assignment of rental from the properties and the car parking spaces; (d) Legal charge over certain deposits accounts held by NCH at the relevant banks; (e) Legal charge over certain investment funds held by NCH at the relevant banks; (f) Assignment of benefit from life insurances premium assets held by NCH at the relevant banks; (g) Assignment of benefit from life insurances premium assets held by Pure Diamond Limited, a related company in which Ms. Siu has interests, at a relevant bank; (h) Indemnity granted by NCH to relevant banks; (i) Guaranteed by Neo-Concept Fashion (Zhongshan) Co., Ltd, a subsidiary company of NCH, amounting to HKD 131 million; and (j) Cross-corporate guaranteed by Neo-Concept HK and NCH;[2]The banking facilities were secured, details of which are set out as follows: (a) Personal guarantee by Ms. Siu and an immediate family member of Ms. Siu; (b) Cross-corporate guaranteed by Neo-Concept HK, Neo-Concept (BVI) Limited, a company controlled by Ms. Siu, and NCH; and (c) Legal charge over certain deposits accounts held by NCH at the relevant banks;[3]The loan was obtained in June 2020 having a tenure of 6 |
Bank Borrowings (Details) - S_3
Bank Borrowings (Details) - Schedule of Bank Loan | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) |
Schedule of Bank Loan [Line Items] | |||
Carrying value | $ 30,753,400 | $ 84,337,485 | |
Within 1 year | 3,937,242 | 10,797,409 | |
2024 | 83,962,426 | ||
2025 | |||
2026 | 30,753,400 | ||
2027 | 375,059 | ||
2028 | |||
HKD [Member] | |||
Schedule of Bank Loan [Line Items] | |||
Carrying value | 30,753,400 | 83,962,426 | |
Within 1 year | 3,937,242 | 10,749,392 | |
2024 | 83,962,426 | ||
2025 | |||
2026 | 30,753,400 | ||
2027 | |||
2028 | |||
GBP [Member] | |||
Schedule of Bank Loan [Line Items] | |||
Carrying value | 375,059 | ||
Within 1 year | 48,017 | ||
2024 | |||
2025 | |||
2026 | |||
2027 | $ 375,059 | ||
2028 |
Right-of-use Assets and Lease_3
Right-of-use Assets and Lease Liabilities (Details) | 12 Months Ended | ||||
Dec. 31, 2023 HKD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | Dec. 31, 2023 USD ($) | Jan. 01, 2020 HKD ($) | |
Right-of-use Assets and Lease Liabilities [Abstract] | |||||
Right-of-use assets | $ 23,884,854 | $ 653,344 | $ 3,057,888 | $ 541,625 | |
Associated lease liabilities | $ 541,625 | ||||
Operating lease expense | $ 3,271,053 | $ 2,580,711 | $ 164,482 |
Right-of-use Assets and Lease_4
Right-of-use Assets and Lease Liabilities (Details) - Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Jan. 01, 2020 HKD ($) |
Operating lease: | ||||
Operating lease right-of-use assets | $ 23,884,854 | $ 3,057,888 | $ 653,344 | $ 541,625 |
Current operating lease obligation | 708,829 | 90,750 | 653,344 | |
Non-current operating lease obligation | 23,176,025 | 2,967,138 | ||
Total operating lease obligation | $ 23,884,854 | $ 3,057,888 | $ 653,344 |
Right-of-use Assets and Lease_5
Right-of-use Assets and Lease Liabilities (Details) - Schedule of Undiscounted Future Minimum Lease Payment - Dec. 31, 2023 | HKD ($) | USD ($) |
Schedule of Undiscounted Future Minimum Lease Payment [Abstract] | ||
2024 | $ 2,014,564 | $ 257,917 |
2025 | 2,678,490 | 342,917 |
2026 | 2,834,708 | 362,917 |
2027 | 3,023,467 | 387,083 |
2028 or after | 15,006,137 | 1,921,179 |
Total lease payments | 25,557,366 | 3,272,013 |
Less: imputed interest | (1,672,512) | (214,125) |
Total operating lease liabilities | $ 23,884,854 | $ 3,057,888 |
Right-of-use Assets and Lease_6
Right-of-use Assets and Lease Liabilities (Details) - Schedule of Other Supplemental Information about the Company’s Operating Lease | Dec. 31, 2023 |
Schedule of Other Supplemental Information about the Company’s Operating Lease [Abstract] | |
Weighted average discount rate | 7.91% |
Weighted average remaining lease term (years) | 9 years |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - Schedule of Due from Related Parties - Common controlled by Ms. Siu [Member] | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) |
Ms. Siu [Member] | |||
Schedue of Due from Related Parties [Line Items] | |||
Due from related parties | $ 70,001 | ||
Due to related parties | (59,106) | (7,567) | |
NCH [Member] | |||
Schedue of Due from Related Parties [Line Items] | |||
Due from related parties | 16,202,732 | ||
Due to related parties | $ (34,184,138) | $ (4,376,466) |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details) - Schedule of Related Party Transactions | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Agency income received by Neo-Concept UK from NCH [Member] | ||||
Related Party Transaction [Line Items] | ||||
Management fee paid to NCH | $ 2,662,034 | $ 340,810 | $ 2,586,019 | $ 2,904,339 |
Purchase of apparel products from NCH [Member] | ||||
Related Party Transaction [Line Items] | ||||
Management fee paid to NCH | 34,213,521 | 4,380,228 | 103,159,420 | 29,522,341 |
Rental expense paid to NCH [Member] | ||||
Related Party Transaction [Line Items] | ||||
Management fee paid to NCH | 720,000 | 92,179 | 720,000 | |
Management fee paid to NCH [Member] | ||||
Related Party Transaction [Line Items] | ||||
Management fee paid to NCH | $ 4,223,236 |
Dissagreggated Revenue (Details
Dissagreggated Revenue (Details) - Schedule of Disaggregated Revenue by Major Product Categories | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Schedule of Disaggregated Revenue by Major Product Categories [Line Items] | ||||
Disaggregated revenue | $ 174,202,627 | $ 22,302,504 | $ 347,451,568 | $ 240,536,527 |
Disaggregated cost of revenue | 139,154,316 | 17,815,401 | 305,616,607 | 217,943,422 |
Sale of private-labelled apparel products [Member] | ||||
Schedule of Disaggregated Revenue by Major Product Categories [Line Items] | ||||
Disaggregated revenue | 156,316,352 | 20,012,592 | 336,306,554 | 237,282,262 |
Retail sale of own-branded apparel products [Member] | ||||
Schedule of Disaggregated Revenue by Major Product Categories [Line Items] | ||||
Disaggregated revenue | 17,886,275 | 2,289,912 | 11,145,014 | 3,254,265 |
Sale of private-labelled apparel products [Member] | ||||
Schedule of Disaggregated Revenue by Major Product Categories [Line Items] | ||||
Disaggregated cost of revenue | 134,239,759 | 17,186,208 | 301,429,220 | 216,523,165 |
Retail sale of own-branded apparel products [Member] | ||||
Schedule of Disaggregated Revenue by Major Product Categories [Line Items] | ||||
Disaggregated cost of revenue | $ 4,914,557 | $ 629,193 | $ 4,187,387 | $ 1,420,257 |
Dissagreggated Revenue (Detai_2
Dissagreggated Revenue (Details) - Schedule of Breakdown of Gross Profit and Gross Profit Margin | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2023 HKD ($) | Mar. 31, 2023 | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | Mar. 31, 2021 | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Schedule of Breakdown of Gross Profit and Gross Profit Margin [Line Items] | |||||||||
Revenue | $ 174,202,627 | $ 347,451,568 | $ 240,536,527 | $ 174,202,627 | $ 347,451,568 | $ 240,536,527 | |||
Cost of revenue | 139,154,316 | 305,616,607 | 217,943,422 | 139,154,316 | $ 17,815,401 | 305,616,607 | 217,943,422 | ||
Gross profit | 35,048,311 | $ 41,834,961 | 22,593,105 | 35,048,311 | $ 4,487,103 | 41,834,961 | 22,593,105 | ||
Gross profit margin % | 20.10% | 12% | 9.40% | ||||||
Private-labelled apparel products [Member] | |||||||||
Schedule of Breakdown of Gross Profit and Gross Profit Margin [Line Items] | |||||||||
Revenue | 156,316,352 | $ 336,306,554 | 237,282,262 | 156,316,352 | 336,306,554 | 237,282,262 | |||
Cost of revenue | 134,239,759 | 301,429,220 | 216,523,165 | ||||||
Gross profit | 22,076,593 | $ 34,877,334 | 20,759,097 | ||||||
Gross profit margin % | 14.10% | 10.40% | 8.70% | ||||||
Own-branded apparel products [Member] | |||||||||
Schedule of Breakdown of Gross Profit and Gross Profit Margin [Line Items] | |||||||||
Revenue | 17,886,275 | $ 11,145,014 | 3,254,265 | $ 17,886,275 | $ 11,145,014 | $ 3,254,265 | |||
Cost of revenue | 4,914,557 | 4,187,387 | 1,420,257 | ||||||
Gross profit | $ 12,971,718 | $ 6,957,627 | $ 1,834,008 | ||||||
Gross profit margin % | 72.50% | 62.40% | 56.40% |
Dissagreggated Revenue (Detai_3
Dissagreggated Revenue (Details) - Schedule of Revenue is Disaggregated by the Geographical Locations | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Geographical locations: | ||||
Revenue by geographical locations | $ 174,202,627 | $ 22,302,504 | $ 347,451,568 | $ 240,536,527 |
Geographical locations [Member] | ||||
Geographical locations: | ||||
Revenue by geographical locations | 174,202,627 | 347,451,568 | 240,536,527 | |
The United States and Canada [Member] | ||||
Geographical locations: | ||||
Revenue by geographical locations | 16,915,437 | |||
The United States and Canada [Member] | Geographical locations [Member] | ||||
Geographical locations: | ||||
Revenue by geographical locations | 132,124,783 | 328,293,299 | 235,568,451 | |
The UK [Member] | ||||
Geographical locations: | ||||
Revenue by geographical locations | 2,291,423 | |||
The UK [Member] | Geographical locations [Member] | ||||
Geographical locations: | ||||
Revenue by geographical locations | 17,898,073 | 11,145,014 | 3,080,163 | |
Others [Member] | ||||
Geographical locations: | ||||
Revenue by geographical locations | $ 3,095,644 | |||
Others [Member] | Geographical locations [Member] | ||||
Geographical locations: | ||||
Revenue by geographical locations | $ 24,179,771 | $ 8,013,255 | $ 1,887,913 |
Other Income (Details) - Schedu
Other Income (Details) - Schedule of Other Income | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Schedule of Other Income Consists [Abstract] | ||||
Exchange gain, net | $ 2,313,438 | |||
Agency income | 2,662,034 | 340,810 | 2,586,019 | 2,904,339 |
Others | 326 | 42 | ||
Total | $ 2,662,360 | $ 340,852 | $ 2,586,019 | $ 5,217,777 |
Taxes (Details)
Taxes (Details) - HKD ($) | 12 Months Ended | |||
Apr. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2020 | Dec. 31, 2019 | |
Hong Kong [Member] | ||||
Taxes [Line Items] | ||||
Applicable tax rate | 16.50% | |||
Profits tax rates | 16.50% | 8.25% | ||
Assessable profits (in Dollars) | $ 2,000,000 | $ 2,000,000 | ||
UK [Member] | ||||
Taxes [Line Items] | ||||
Applicable tax rate | 25% |
Taxes (Details) - Schedule of P
Taxes (Details) - Schedule of Provision for Income Taxes | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Deferred: | ||||
Total provision for income taxes | $ 1,325,137 | $ 169,652 | $ 2,979,918 | $ 1,742,282 |
Hong Kong [Member] | ||||
Current: | ||||
Provision for income taxes - Current | 928,973 | 118,941 | $ 2,979,918 | $ 1,742,282 |
Deferred: | ||||
Provision for income taxes - Deferred | 7,876 | 1,008 | ||
The UK [Member] | ||||
Current: | ||||
Provision for income taxes - Current | $ 388,288 | $ 49,703 |
Taxes (Details) - Schedule of R
Taxes (Details) - Schedule of Reconciles Cayman Islands Statutory Rates | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Reconciles Cayman Islands Statutory Rates [Abstract] | |||
Income tax rate in the Cayman Islands, permanent tax holiday | 0% | 0% | 0% |
Hong Kong statutory income tax rate | 16.50% | 16.50% | 16.50% |
Effect of different tax rates | 2.10% | (0.60%) | (0.80%) |
Income not taxable | (5.30%) | ||
Expense not deductible | 7% | 4.30% | |
Temporary not recognized | 0.40% | 0.30% | 14.10% |
Tax concession | (2.90%) | (1.10%) | (0.30%) |
Effective tax rate | 23.10% | 19.40% | 24.20% |
Taxes (Details) - Schedule of S
Taxes (Details) - Schedule of Significant Components of Deferred Tax | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) |
Schedule Of Significant Components Of Deferred Tax Abstract | |||
Deferred tax assets | $ 7,876 | $ 1,008 | $ 7,876 |
Transferred to consolidated statements of income | (7,876) | (1,008) | |
Valuation allowance | |||
Net deferred tax assets | $ 7,876 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 USD ($) | |
Hong Kong [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Cash was on deposit at financial institutions | $ 500,000 | $ 64,090 | ||
Cash balance | 913,267 | 116,922 | ||
UK [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Cash was on deposit at financial institutions | $ 936,039 | $ 631,942 | ||
Customer One [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 71.30% | 91.40% | 94.50% | |
Customer One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 44.70% | 83.20% | ||
Customer Two [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 21.60% | |||
Customer Three [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 11% | |||
Customer Four [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 10.10% | |||
No Other Customer [Member] | Purchases [Member] | Supplier Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 10% | |||
No Other Customer [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 10% | |||
One Vendor [Member] | Purchases [Member] | Supplier Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 69.30% | 44.20% | 86.50% | |
One Vendor [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 44.80% | |||
Two Vendor [Member] | Purchases [Member] | Supplier Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 24.60% | 35.90% | 13.50% | |
Two Vendor [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 41.60% | |||
No Other Vendor [Member] | Purchases [Member] | Supplier Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 10% | |||
No Other Vendor [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 10% | |||
Three Vendor [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Concentration risk, percentage | 13.60% | |||
Hong Kong Deposit Protection Board [Member] | Hong Kong [Member] | ||||
Risks and Uncertainties [Line Items] | ||||
Cash was on deposit at financial institutions | $ 4,936,039 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Shareholders' Equity [Line Items] | |||
Ordinary shares issued | [1] | 18,000,000 | 18,000,000 |
Ordinary shares outstanding | [1] | 18,000,000 | 18,000,000 |
Permanent equity | 1 | ||
Ordinary shares shares authorized | [1] | 800,000,000 | 800,000,000 |
Ordinary shares par value (in Dollars per share) | (per share) | [1] | $ 0.0000625 | |
IPO [Member] | |||
Shareholders' Equity [Line Items] | |||
Ordinary shares issued | 11,250,000 | ||
Ordinary shares outstanding | 11,250,000 | ||
[1]Giving retroactive effect to all the 11,250,000 shares issued and outstanding for a share split at a ratio of 1-to-1.6 on July 14, 2023 |
Subsequent Events (Details)
Subsequent Events (Details) - Forecast [Member] | 1 Months Ended |
Apr. 23, 2024 $ / shares shares | |
Subsequent Events (Details) [Line Items] | |
Closing ordinary shares (in Shares) | shares | 2,320,000 |
Ordinary shares par value | $ 0.0000625 |
Offering price per share | $ 4 |
Parent Only Financial Informa_3
Parent Only Financial Information (Details) - shares | Oct. 29, 2021 | Dec. 31, 2023 |
Splendid Vibe Limited [Member] | ||
Schedule I - Parent Only Financial Information [Line Items] | ||
Percentage of subsidiary | 100% | |
Ms. Eva Yuk Yin Siu [Member] | ||
Schedule I - Parent Only Financial Information [Line Items] | ||
Percentage of equity interest | 94% | |
Ms. Man Chi Wai [Member] | ||
Schedule I - Parent Only Financial Information [Line Items] | ||
Percentage of equity interest | 6% | |
NCA [Member] | ||
Schedule I - Parent Only Financial Information [Line Items] | ||
Transfer share (in Shares) | 100 | |
BVI [Member] | ||
Schedule I - Parent Only Financial Information [Line Items] | ||
Transfer share (in Shares) | 100 | |
Ms. Eva Yuk Yin Siu [Member] | ||
Schedule I - Parent Only Financial Information [Line Items] | ||
Percentage of incorporated | 94% | |
Ms. Man Chi Wai [Member] | ||
Schedule I - Parent Only Financial Information [Line Items] | ||
Percentage of incorporated | 6% |
Parent Only Financial Informa_4
Parent Only Financial Information (Details) - Schedule of Condensed Balance Sheets - Parent Company [Member] | Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) |
Current assets | |||
Amount due from the shareholder | $ 8,775 | $ 1,125 | $ 8,775 |
Non-current assets | |||
Interests in a subsidiary | 780 | 100 | 780 |
Total assets | 9,555 | 1,225 | 9,555 |
Current liabilities | |||
Amounts due to a subsidiary | 149,867 | 19,187 | 780 |
Amounts due to a related party | 71,999 | ||
Total liabilities | 149,867 | 19,187 | 72,779 |
Shareholders’ deficit | |||
Ordinary shares: US$0.0000625 par value, 800,000,000 shares authorized as of December 31, 2022 and 2023; 18,000,000 shares issued and outstanding as of December 31, 2022 and 2023 | 8,775 | 1,125 | 8,775 |
Accumulated losses | (149,087) | (19,087) | (71,999) |
Total shareholders’ deficit | (140,312) | (17,962) | (63,224) |
Total liabilities and shareholders’ deficit | $ 9,555 | $ 1,225 | $ 9,555 |
Parent Only Financial Informa_5
Parent Only Financial Information (Details) - Schedule of Condensed Balance Sheets (Parentheticals) - Parent Company [Member] | Dec. 31, 2023 $ / shares shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ordinary shares: par value (in Dollars per share and Dollars per share) | (per share) | $ 0.0000625 | $ 0.0000625 | $ 0.0000625 |
Ordinary shares: shares authorized | 800,000,000 | 800,000,000 | 800,000,000 |
Ordinary shares: shares issued | 18,000,000 | 18,000,000 | 18,000,000 |
Ordinary shares: shares outstanding | 18,000,000 | 18,000,000 | 18,000,000 |
Parent Only Financial Informa_6
Parent Only Financial Information (Details) - Schedule of Condensed Statements of Loss and Comprehensive Loss - Parent Company [Member] | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Operating expenses | ||||
General and administrative expenses | $ (77,088) | $ (9,869) | $ (42,000) | $ (29,999) |
Total operating expenses | (77,088) | (9,869) | (42,000) | (29,999) |
Loss before income taxes | (77,088) | (9,869) | (42,000) | (29,999) |
Income taxes | ||||
Net loss | $ (77,088) | $ (9,869) | $ (42,000) | $ (29,999) |
Parent Only Financial Informa_7
Parent Only Financial Information (Details) - Schedule of Condensed Statements of Cash Flows - Parent Company [Member] | 12 Months Ended | |||
Dec. 31, 2023 HKD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 HKD ($) | |
Cash flows from operating activities | ||||
Net loss | $ (77,088) | $ (9,869) | $ (42,000) | $ (29,999) |
Changes in operating assets and liabilities | ||||
Net cash used in operating activities | (77,088) | (9,869) | (42,000) | (29,999) |
Cash from (used in) investing activities | ||||
Amount due to a related party | 77,088 | 9,869 | 42,000 | 29,999 |
Cash flows from financing activities | 77,088 | 9,869 | 42,000 | 29,999 |
Net increase (decrease) in cash and cash equivalents | ||||
Cash and cash equivalents at the beginning of the year | ||||
Cash and cash equivalents at the end of the year |