Financial Performance - The company's revenue for the year ended December 31, 2022, decreased by 42.6% to HKD 100,387,000 compared to HKD 175,010,000 in the previous year[9]. - The net loss for the year was HKD 26,796,000, a significant increase from the net loss of HKD 5,519,000 in the previous year[6][9]. - The gross profit for the year was HKD 24,297,000, slightly up from HKD 24,079,000 in the previous year, indicating a stable gross margin despite declining revenues[6]. - The group's revenue decreased by approximately 42.6% from about HKD 175 million for the year ended December 31, 2021, to about HKD 100.4 million for the year ended December 31, 2022[13]. - The gross profit margin increased to 24.2% for the year ended December 31, 2022, compared to 13.8% for the previous year, attributed to the introduction of higher-priced new products[14]. - The loss attributable to equity holders for the year ended December 31, 2022, was approximately HKD 26.8 million, compared to a loss of HKD 5.5 million in the previous year[19]. - The group reported no final dividend for the year ended December 31, 2022, compared to zero in the previous year[139]. Assets and Liabilities - Non-current assets decreased to HKD 108,911,000 from HKD 142,400,000 in the previous year, reflecting a reduction in property, plant, and equipment[7]. - Current assets also decreased to HKD 113,252,000 from HKD 145,952,000, indicating a tightening liquidity position[7]. - The total assets less current liabilities stood at HKD 125,082,000, down from HKD 156,847,000 in the previous year, reflecting a decline in financial stability[7]. - Cash and bank balances as of December 31, 2022, were HKD 38.1 million, down from HKD 46 million in the previous year[21]. - The bank loans as of December 31, 2022, amounted to HKD 70.9 million, a decrease from HKD 81.8 million in the previous year[21]. - The distributable reserves of the company as of December 31, 2022, were approximately HKD 68,000,000[152]. Operational Challenges - The company has been facing challenges due to the COVID-19 pandemic, including supply chain disruptions and currency depreciation affecting export trade[9][12]. - The company is continuously reassessing its business strategies to streamline operations and improve overall performance[9][12]. - The group faced liquidity risk due to insufficient funds or inability to liquidate assets, impacting its ability to meet obligations[35]. - The expected credit loss provision for trade receivables increased by HKD 5.5 million due to longer collection periods for certain customers[18]. Corporate Governance - The board emphasizes the importance of corporate governance and has adhered to the relevant listing rules throughout the fiscal year[49]. - The company has established a written terms of reference for the audit committee, which is responsible for reviewing and supervising the financial reporting process and internal control systems[73]. - All independent non-executive directors confirmed their independence according to the listing rules, ensuring compliance with governance standards[68]. - The company has adopted an anti-corruption policy to promote compliance with anti-corruption laws and guidelines, ensuring no tolerance for any form of corruption or fraud[115]. - The board of directors held four meetings during the fiscal year ending December 31, 2022, with attendance records showing full participation from most members[67]. Employee and Management Information - The company employed approximately 130 employees as of December 31, 2022, down from 160 employees in the previous year[20]. - The company is committed to providing attractive compensation packages to retain key personnel essential for achieving business objectives[39]. - The gender ratio of employees as of December 31, 2022, is 75:25, indicating a commitment to gender diversity within the workforce[66]. Future Outlook - The outlook for 2023 remains uncertain, influenced by inflation and geopolitical risks, with expectations of rising raw material costs and fluctuating consumer behavior[46]. - The group aims to maintain operational flexibility and discipline while adapting to changing consumer behaviors and market dynamics[46]. - The company will continue to monitor market conditions and adjust strategies as necessary to ensure sustainability[53]. Audit and Financial Reporting - The independent auditor's report confirms the financial statements present a true and fair view of the financial position[89]. - The company must ensure that the consolidated financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and reflect a true and fair view of the group's financial position as of December 31, 2022[183]. - The audit process involves identifying and assessing risks of material misstatement due to fraud or error, and designing audit procedures to address these risks[200]. - The auditor evaluates the appropriateness of accounting policies adopted by the directors and the reasonableness of accounting estimates and related disclosures[200]. Shareholder Information - The company has engaged in shareholder and investor communication activities, expressing satisfaction with the implementation and effectiveness of its communication policy[109]. - The company has a structured process for shareholders to submit inquiries in writing, ensuring transparency and responsiveness[109]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[102]. - Shareholders with at least 5% of the paid-up capital can submit written requests to notify other shareholders of any proposed resolutions at the next general meeting[106].
兴利(香港)控股(00396) - 2022 - 年度财报