越南制造加工出口(00422) - 2023 - 年度业绩

Company Information Annual Results Announcement The Board of Directors of Vietnam Manufacturing and Export Processing (Holdings) Limited announced the consolidated financial results for the year ended December 31, 2023, and decided not to declare a final dividend - The company's Board of Directors announced the consolidated financial results for the year ended December 31, 2023[1] - The Board does not recommend the payment of a final dividend for the year ended December 31, 2023[1] Financial Highlights Key Financial Indicators In FY2023, the company's revenue decreased by 20.9% to USD 105.1 million, but gross profit increased by 13.9% to USD 15.5 million, with profit after tax turning from loss to profit at USD 1.7 million, and earnings per share at USD 0.0019 Key Financial Indicators for FY2023 (Million USD) | Financial Summary | 2023 | 2022 | Change (USD Million) | Change (%) | | :------------------------- | :----- | :----- | :------------------- | :--------- | | Revenue | 105.1 | 132.9 | (27.8) | -20.9% | | Gross Profit | 15.5 | 13.6 | 1.9 | 13.9% | | Profit/(Loss) After Tax | 1.7 | (0.2) | 1.9 | 950.0% | | EPS/(LPS) (USD) | 0.0019 | (0.0002) | 0.0021 | 1050.0% | Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income In FY2023, the company's revenue was USD 105.1 million, gross profit USD 15.5 million, operating profit USD 1.9 million, ultimately achieving a profit after tax of USD 1.7 million, reversing the loss situation of 2022 Consolidated Statement of Profit or Loss and Other Comprehensive Income (USD) | Indicator | 2023 | 2022 | | :------------------------------------------- | :---------- | :------------ | | Revenue | 105,147,919 | 132,899,372 | | Cost of Sales | (89,657,485)| (119,341,579) | | Gross Profit | 15,490,434 | 13,557,793 | | Other Income | 1,030,615 | 1,147,872 | | Distribution Expenses | (5,915,868) | (6,221,993) | | Technical Transfer Fees | (806,317) | (774,399) | | Administrative and Other Operating Expenses | (7,920,847) | (7,059,715) | | Operating Profit | 1,878,017 | 649,558 | | Net Finance Income | 407,705 | 81,912 | | Impairment Loss on Other Property, Plant and Equipment | (454,207) | (778,800) | | Share of Profit of Associates | 26,351 | 3,663 | | Profit/(Loss) Before Income Tax | 1,857,866 | (43,667) | | Income Tax Expense | (171,666) | (156,679) | | Profit/(Loss) for the Year After Tax | 1,686,200 | (200,346) | | Profit Attributable to Equity Holders of the Company | 1,686,198 | (200,346) | Total Comprehensive Income for the Year (USD) | Indicator | 2023 | 2022 | | :------------------------------------------- | :---------- | :------------ | | Profit/(Loss) for the Year After Tax | 1,686,200 | (200,346) | | Exchange Differences on Translation of Financial Statements of Foreign Subsidiaries and Associates | (1,431,425) | (1,508,628) | | Total Comprehensive Income for the Year | 254,775 | (1,708,974) | Consolidated Statement of Financial Position As of December 31, 2023, the company's net assets were USD 51.1 million, net current assets were USD 44.8 million, and total equity slightly increased Consolidated Statement of Financial Position (USD) | Indicator | 2023 | 2022 | | :------------------------------------------- | :---------- | :------------ | | Non-current Assets | | | | Investment Properties | 3,934,824 | 4,076,156 | | Other Property, Plant and Equipment | 3,943,684 | 4,289,558 | | Interests in Associates | 613,287 | 605,801 | | Current Assets | | | | Inventories | 22,853,016 | 25,951,818 | | Trade and Other Receivables and Prepayments | 20,779,858 | 36,799,492 | | Cash and Bank Balances | 53,980,524 | 55,297,226 | | Current Liabilities | | | | Trade and Other Payables | 9,746,471 | 33,482,913 | | Bank Loans | 42,779,390 | 40,210,386 | | Lease Liabilities | 104,727 | 52,091 | | Current Tax Payable | 167,012 | 19,879 | | Net Current Assets | 44,815,798 | 44,283,267 | | Net Assets | 51,137,521 | 50,882,746 | Share Capital and Reserves (USD) | Indicator | 2023 | 2022 | | :------------------------------------------- | :---------- | :------------ | | Share Capital | 1,162,872 | 1,162,872 | | Reserves | 49,970,337 | 49,715,564 | | Total Equity Attributable to Equity Holders of the Company | 51,133,209 | 50,878,436 | | Non-controlling Interests | 4,312 | 4,310 | | Total Equity | 51,137,521 | 50,882,746 | Notes to the Financial Statements Basis of Preparation and Changes in Accounting Policies This financial report is prepared in accordance with International Financial Reporting Standards and uses the US dollar as its presentation currency. New and revised standards issued by the IASB were applied during the period, with no significant impact on the Group's results and financial position - The financial report is prepared in accordance with all applicable International Financial Reporting Standards issued by the International Accounting Standards Board and complies with the disclosure requirements of the Hong Kong Companies Ordinance and the Listing Rules[26] - The Group adopts the US dollar as its presentation currency, as the Directors believe it facilitates financial data analysis[50] - New and revised International Financial Reporting Standards issued by the International Accounting Standards Board were applied during the current accounting period, but they did not have a significant impact on the preparation or presentation of the Group's results and financial position for the current or prior periods[29][53] Revenue and Segment Information The Group's principal activities are the manufacturing and sale of motorcycles, spare parts, and engines, with total revenue of USD 105.1 million in 2023, of which motorcycle sales accounted for USD 95.9 million. The company has two reportable segments by business line and actively expands markets outside ASEAN to diversify risks - The Group's principal activities are the manufacturing and sale of motorcycles, spare parts, and engines, as well as motorcycle repair services[15] Revenue from Contracts with Customers by Category (USD) | Product or Service Category | 2023 | 2022 | | :----------------------------------------- | :---------- | :------------ | | Manufacturing and Sale of Motorcycles | 95,887,544 | 120,545,295 | | Manufacturing and Sale of Spare Parts and Engines | 9,260,375 | 12,354,077 | | Total | 105,147,919 | 132,899,372 | - The Group has identified two reportable segments: manufacturing and sale of motorcycles (main products for the Vietnam market and exported to Malaysia, Philippines, Thailand, Greece, Dubai, and Taiwan) and manufacturing and sale of spare parts and engines (for internal use and export to third-party manufacturers)[35][57] Revenue from External Customers by Geographical Area (USD) | Geographical Area | 2023 | 2022 | | :---------------- | :---------- | :------------ | | Vietnam | 36,131,761 | 39,277,814 | | Thailand | 50,158,581 | 55,322,752 | | Malaysia | 6,754,409 | 24,816,965 | | Philippines | 4,559,016 | 5,082,341 | | Greece | 3,468,606 | 4,615,490 | | Dubai | 3,246,179 | 2,549,664 | | Taiwan | 145,970 | 104,303 | | Other Regions | 683,397 | 1,130,043 | | Total | 105,147,919 | 132,899,372 | Profit/(Loss) Before Income Tax Profit before tax in 2023 was USD 1.86 million, mainly influenced by increased net finance income and reduced impairment loss on other property, plant and equipment. Total staff costs were USD 12.0 million, and R&D expenses were USD 2.4 million Net Finance Income (USD) | Indicator | 2023 | 2022 | | :------------------------- | :---------- | :------------ | | Bank Interest Income | 3,338,690 | 2,171,384 | | Bank Interest Paid and Payable | (2,306,910) | (1,253,761) | | Interest on Lease Liabilities | (171,076) | (166,063) | | Net Foreign Exchange Loss | (452,999) | (669,648) | | Net Finance Income | 407,705 | 81,912 | Items (Credited)/Charged to Profit/(Loss) Before Income Tax (USD) | Item | 2023 | 2022 | | :------------------------------------------- | :---------- | :------------ | | Depreciation of Property, Plant and Equipment | 275,438 | 296,684 | | Write-down/(Reversal of Write-down) of Inventories | 196,144 | (427,457) | | Provision for Loss on Trade Receivables | 539,836 | 121,923 | | Impairment Loss on Other Property, Plant and Equipment | 458,905 | 769,825 | | Auditors' Remuneration - Audit Services | 388,903 | 358,844 | | Research and Development Expenses | 2,420,421 | 2,225,253 | | Cost of Inventories | 89,461,341 | 119,769,036 | Staff Costs (USD) | Item | 2023 | 2022 | | :------------------------------------------- | :------------ | :------------ | | Defined Contribution Retirement Plan Contributions | 1,302,630 | 1,133,980 | | Severance Pay Allowances | 23,799 | 87,170 | | Wages, Salaries and Other Benefits | 10,642,128 | 10,875,465 | | Total | 11,968,557| 12,096,615| Income Tax Income tax expense in 2023 was USD 171,666, primarily including a current year provision of USD 196,619. The company is exempt from income tax in the Cayman Islands, while Vietnamese subsidiaries are subject to corporate income tax rates ranging from 10% to 20% Income Tax Expense (USD) | Item | 2023 | 2022 | | :------------------------------------------- | :---------- | :------------ | | Current Tax - Current Year Provision | 196,619 | 31,637 | | Under-provision in Prior Years | 6,757 | 3,825 | | Deferred Tax Expense | (31,710) | 121,217 | | Actual Tax Expense | 171,666 | 156,679 | - The Group is not subject to any income tax in the Cayman Islands[91] - The corporate income tax rate for Vietnamese subsidiary VMEP is calculated by business type: 18% for motorcycle assembly and production, 10% for engine assembly and production, and 20% for other businesses[131] Earnings/(Loss) Per Share Basic earnings per share in 2023 was USD 0.0019, a significant improvement from the basic loss per share of USD 0.0002 in 2022. There were no potential dilutive ordinary shares during the year, so basic and diluted EPS are the same Earnings/(Loss) Per Share (USD) | Indicator | 2023 | 2022 | | :--------------------------------- | :----- | :------- | | Basic Earnings/(Loss) Per Share | 0.0019 | (0.0002) | - Basic earnings per share is calculated based on the profit attributable to equity holders of the Company of USD 1,686,198 and the weighted average number of ordinary shares outstanding during the year of 907,680,000[45] - For the year ended December 31, 2023, diluted earnings/(loss) per share was the same as basic earnings/(loss) per share, as there were no potential dilutive ordinary shares[124] Other Property, Plant and Equipment Due to intense competition in the motorcycle industry and increased manufacturing costs, the Group recognized an impairment loss of USD 454,207 in 2023 to write down the carrying amount of related assets to their recoverable amount. The recoverable amount is determined as the higher of value in use and fair value less costs to sell - Due to intense competition in the motorcycle industry and increased manufacturing costs for newly launched products, the Group incurred significant operating losses in recent years, leading to an impairment loss of USD 454,207 recognized in 2023 (2022: USD 778,800)[46] - The impairment loss aims to write down the carrying amount of other property, plant and equipment and prepayments in the cash-generating unit to their recoverable amount[46] - The recoverable amount is determined as the higher of value in use and fair value less costs to sell, with fair value measurements categorized as Level 3 measurements, and key unobservable inputs including a 5% building quality premium[95] Inventories As of December 31, 2023, total inventories amounted to USD 22.85 million, a decrease from 2022. Inventory write-down provision was USD 2.75 million, with an increase of USD 196,144 during the year Inventories in Consolidated Statement of Financial Position (USD) | Inventory Category | 2023 | 2022 | | :----------------------------------------- | :------------ | :------------ | | Motorcycle Manufacturing - Raw Materials | 14,767,260 | 20,318,760 | | - Tools and Supplies | 336,770 | 274,719 | | - Work-in-progress | 168,145 | 316,166 | | - Finished Goods | 5,221,062 | 2,726,324 | | - Merchandise Inventories | 2,246,308 | 2,322,440 | | Provision for Inventory Write-down | (2,751,978) | (2,954,049) | | Properties | 2,865,449 | 2,947,458 | | Total | 22,853,016| 25,951,818| Movements in Provision for Inventory Write-down (USD) | Item | 2023 | 2022 | | :------------------------------------------- | :------------ | :------------ | | At January 1 | 2,954,049 | 3,689,771 | | Increase/(Reversal) | 196,144 | (427,457) | | Utilized | (322,805) | (236,787) | | Exchange Adjustment | (75,410) | (71,478) | | At December 31 | 2,751,978 | 2,954,049 | Amount of Inventories Recognized as Expense in Profit or Loss (USD) | Item | 2023 | 2022 | | :------------------------------------------- | :------------ | :------------ | | Carrying Amount of Inventories Sold | 89,461,341 | 119,769,036 | | Write-down/(Reversal of Write-down) of Inventories | 196,144 | (427,457) | | Total | 89,657,485| 119,341,579| Trade and Other Receivables and Prepayments As of December 31, 2023, total trade and other receivables and prepayments amounted to USD 20.78 million, a significant decrease from 2022. The aging of trade receivables is primarily within three months Trade and Other Receivables and Prepayments (USD) | Item | 2023 | 2022 | | :------------------------------------------- | :------------ | :------------ | | Trade Receivables | 10,282,879 | 19,740,540 | | Non-trade Receivables | 10,059,160 | 16,714,310 | | Prepayments | 338,090 | 277,416 | | Amounts Due from Related Parties - Trade | 93,751 | 66,879 | | Amounts Due from Related Parties - Non-trade | 5,978 | 347 | | Total | 20,779,858| 36,799,492| Aging Analysis of Trade Receivables (USD) | Aging | 2023 | 2022 | | :------------------------------------------- | :------------ | :------------ | | Within 3 Months | 4,233,872 | 19,679,572 | | Over 3 Months but Within 1 Year | 6,142,758 | 127,847 | | Total | 10,376,630| 19,807,419| - All trade receivables, including trade amounts due from related parties, are expected to be recovered within one year[125] Trade Payables As of December 31, 2023, total trade and other payables amounted to USD 9.75 million, a significant decrease from 2022. The aging of payables is primarily within three months Trade and Other Payables (USD) | Item | 2023 | 2022 | | :------------------------------------------- | :------------ | :------------ | | Trade Payables | 2,101,628 | 8,431,671 | | Other Payables and Accrued Operating Expenses | 3,665,255 | 4,454,975 | | Contract Liabilities - Payments Received in Advance | 370,313 | 733,388 | | Provisions | 2,299,689 | 2,151,871 | | Amounts Due to Related Parties - Trade | 1,095,229 | 17,295,814 | | Amounts Due to Related Parties - Non-trade | 214,357 | 415,194 | | Total | 9,746,471 | 33,482,913| Aging Analysis of Trade Payables (USD) | Aging | 2023 | 2022 | | :------------------------------------------- | :------------ | :------------ | | Within 3 Months | 3,182,607 | 25,718,605 | | Over 3 Months but Within 1 Year | 10,534 | 4,893 | | Over 1 Year but Within 5 Years | 3,716 | 3,987 | | Total | 3,196,857 | 25,727,485| - All trade and other payables are repayable or recognized as revenue within one year or are repayable on demand[100] Dividends The Board does not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with 2022 - The Board does not recommend the payment of a final dividend for the year ended December 31, 2023 (2022: nil)[101] Management Discussion and Analysis Operating Environment Vietnam's GDP grew by 5.05% in 2023, below expectations, impacted by weak international demand. The motorcycle industry faces intense competition, with total sales of the top five FDI manufacturers declining by 16.21%. The company actively seeks business opportunities and sustainable development - Vietnam's Gross Domestic Product (GDP) growth in 2023 was 5.05%, lower than the expected annual growth rate of 6.5%, primarily due to weak international demand[76] - Statistics from the Vietnam Association of Motorcycle Manufacturers show that the total sales of the top five foreign direct investment manufacturers in 2023 were 2,516,212 units, a 16.21% decline from 2022[104] - The Group's management will continue to actively seek potential business opportunities and pursue sustainable development to enhance profitability and ensure stable production and orderly operations[104] Business Review As a leading motorcycle manufacturer in Vietnam, the Group's total sales volume in Vietnam decreased by 13.0% in 2023, and total export sales to ASEAN countries decreased by 26.9%, mainly due to Vietnam's economic slowdown and increased competition in the Thai and Malaysian markets. The company addresses challenges by launching new products (such as the SHARK scooter) and expanding into European and Middle Eastern markets - The Group is one of Vietnam's leading manufacturers of scooters and national motorcycles, with an annual production capacity of 200,000 units, offering a diverse range of motorcycle models under the SYM brand[102] - In 2023, total sales volume in Vietnam was approximately 39.5 thousand units, a 13.0% decrease from the previous year; total export sales volume to ASEAN countries was approximately 46.8 thousand units, a 26.9% decrease[77] - The decrease in sales was mainly due to the slowdown in Vietnam's economic growth, conservative consumer purchasing power, and the impact of Japanese competitors gaining market share and currency depreciation in the Thai and Malaysian markets[78][105] - The Group launched the new SHARK scooter model, which was well-received, and actively expanded into markets outside ASEAN countries, such as Europe and the Middle East, with total sales volume in Dubai increasing by 25.3% compared to 2022[105][127] - As of December 31, 2023, the Group had 181 SYM authorized distribution points in Vietnam, covering all provinces[79] Financial Review In FY2023, the company's net profit was USD 1.7 million, a significant improvement from the net loss of USD 0.2 million in 2022. Revenue decreased by 20.9% to USD 105.1 million, but gross profit margin increased to 14.7%. Cost of sales and distribution expenses decreased, administrative expenses increased, and net finance income grew substantially - The Group's net profit for FY2023 was USD 1.7 million, an improvement of USD 1.9 million compared to the net loss of USD 0.2 million in FY2022, with net profit margin improving from -0.2% to 1.6%[80][121] Revenue Revenue in 2023 was USD 105.1 million, a year-on-year decrease of 20.9%. Domestic sales revenue in Vietnam accounted for 34.4% of total revenue, while export sales revenue decreased by 26.3% Revenue (USD) | Indicator | 2023 | 2022 | Change (USD) | Change (%) | | :-------- | :---------- | :------------ | :----------- | :--------- | | Total Revenue | 105,100,000 | 132,900,000 | (27,800,000) | -20.9% | - Domestic sales revenue in Vietnam decreased by 8.1% from USD 39.3 million to USD 36.1 million, accounting for approximately 34.4% of total revenue (2022: 29.6%)[108] - Export sales revenue decreased by 26.3% from USD 93.6 million to USD 69.0 million[108] Cost of Sales Cost of sales decreased by 24.8% to USD 89.7 million, mainly due to a decline in overall sales volume. The cost of sales ratio decreased from 89.8% to 85.3%, with the company reducing production costs through bulk purchasing and supplier screening Cost of Sales (USD) | Indicator | 2023 | 2022 | Change (USD) | Change (%) | | :----------- | :---------- | :------------ | :----------- | :--------- | | Cost of Sales | 89,700,000 | 119,300,000 | (29,600,000) | -24.8% | - The decrease in cost of sales was mainly due to a decline in overall sales volume, but the company reduced production costs by increasing bargaining power through bulk purchasing[81] - The cost of sales ratio decreased from 89.8% to 85.3%, and the company will continue to focus on developing new sourcing channels and re-screening suppliers to reduce per-unit production costs[109] Gross Profit and Gross Profit Margin Gross profit increased by USD 1.9 million to USD 15.5 million, and gross profit margin improved by 4.5 percentage points to 14.7%, mainly benefiting from flexible procurement, optimized product sales structure, and market expansion Gross Profit and Gross Profit Margin (USD) | Indicator | 2023 | 2022 | Change (USD) | Change (Percentage Points) | | :--------------- | :---------- | :---------- | :----------- | :------------------------- | | Gross Profit | 15,500,000 | 13,600,000 | 1,900,000 | - | | Gross Profit Margin | 14.7% | 10.2% | - | 4.5 | - The increase in gross profit and gross profit margin was mainly due to the Group's flexible procurement arrangements to stabilize production costs, optimization of product sales structure, strengthening of sales strategies, and expansion into European and Middle Eastern markets[84] Distribution Expenses Distribution expenses decreased by 4.8% to USD 5.9 million, mainly due to reduced transportation and packaging costs resulting from decreased sales volume to ASEAN countries Distribution Expenses (USD) | Indicator | 2023 | 2022 | Change (USD) | Change (%) | | :--------------- | :---------- | :---------- | :----------- | :--------- | | Distribution Expenses | 5,900,000 | 6,200,000 | (300,000) | -4.8% | - The decrease in distribution expenses was mainly due to the reduction in the Group's export sales volume to ASEAN countries, leading to lower transportation and packaging costs[137] Technical Transfer Fees Technical transfer fees slightly increased by 5.2% to USD 0.81 million, mainly due to increased sales of SYM brand models in Vietnam and ASEAN countries Technical Transfer Fees (USD) | Indicator | 2023 | 2022 | Change (USD) | Change (%) | | :----------------- | :-------- | :-------- | :----------- | :--------- | | Technical Transfer Fees | 810,000 | 770,000 | 40,000 | 5.2% | - The increase in technical transfer fees was mainly due to increased sales of SYM brand models in Vietnam and ASEAN countries, which are subject to technical transfer fees[118] Administrative and Other Operating Expenses Administrative and other operating expenses increased by 11.3% to USD 7.9 million, mainly due to increased professional service fees and office expenses, accounting for 7.5% of total revenue Administrative and Other Operating Expenses (USD) | Indicator | 2023 | 2022 | Change (USD) | Change (%) | | :------------------------------- | :-------- | :-------- | :----------- | :--------- | | Administrative and Other Operating Expenses | 7,900,000 | 7,100,000 | 800,000 | 11.3% | - The increase in administrative and other operating expenses was mainly due to increased professional service fees and office expenses[85] - For the year ended December 31, 2023, administrative and other operating expenses accounted for 7.5% of the Group's total revenue[85] Operating Profit Operating profit in 2023 was USD 1.9 million, a significant increase from USD 0.6 million in 2022 Operating Profit (USD) | Indicator | 2023 | 2022 | Change (USD) | | :--------------- | :-------- | :------ | :----------- | | Operating Profit | 1,900,000 | 600,000 | 1,300,000 | Net Finance Income Net finance income significantly increased by 300.0% to USD 0.4 million, mainly due to reduced exchange losses, with increased bank interest expenses offset by increased bank interest income Net Finance Income (USD) | Indicator | 2023 | 2022 | Change (USD) | Change (%) | | :--------------- | :------ | :------ | :----------- | :--------- | | Net Finance Income | 400,000 | 100,000 | 300,000 | 300.0% | - The increase was mainly due to a USD 0.2 million reduction in exchange losses recognized in 2023 arising from changes in the VND to USD exchange rate, an increase in bank interest expenses of USD 1.1 million offset by an increase in bank interest income of USD 1.2 million[129] Profit/(Loss) for the Year and Net Profit/(Loss) Margin The Group recorded a net profit of USD 1.7 million in 2023, a significant improvement from the net loss of USD 0.2 million in 2022, with net profit margin increasing from -0.2% to 1.6% Profit/(Loss) for the Year and Net Profit/(Loss) Margin (USD) | Indicator | 2023 | 2022 | Change (USD) | Change (Percentage Points) | | :------------------------- | :-------- | :-------- | :----------- | :------------------------- | | Net Profit/(Loss) | 1,700,000 | (200,000) | 1,900,000 | - | | Net Profit/(Loss) Margin | 1.6% | (0.2%) | - | 1.8 | Liquidity and Financial Resources As of December 31, 2023, net current assets were USD 44.8 million, and total cash and bank balances were USD 54.0 million. The gearing ratio was 83.7%, an increase from 2022 Liquidity and Financial Resources (USD) | Indicator | 2023 | 2022 | | :------------------------------------------- | :---------- | :------------ | | Net Current Assets | 44,800,000 | 44,300,000 | | Current Assets | 97,600,000 | 118,100,000 | | Current Liabilities | 52,800,000 | 73,800,000 | | Total Cash and Bank Balances | 54,000,000 | 55,300,000 | | Interest-bearing Borrowings Repayable Within One Year | 42,800,000 | 40,200,000 | | Gearing Ratio | 83.7% | 79.0% | - Cash and bank balances are primarily denominated in Vietnamese Dong (equivalent to USD 48.9 million) and US dollars (USD 4.6 million)[117] - The gearing ratio is calculated as total bank loans divided by total shareholders' equity[138] Exchange Rate Fluctuation Risk The Group's primary transaction currencies are Vietnamese Dong and US dollars, and it will closely monitor exchange rate trends and enhance risk awareness. As of December 31, 2023, no financial instruments were used to hedge foreign exchange risk - The Group's primary transaction currencies are Vietnamese Dong and US dollars[163] - The Group will closely monitor exchange rate trends and enhance risk awareness among relevant personnel to manage exchange rate risks[163] - As of December 31, 2023, the Group did not use any financial instruments to hedge its foreign exchange risk[163] Human Resources and Remuneration Policy As of December 31, 2023, the Group employed a total of 1,109 employees, with total salaries and related costs of approximately USD 12.0 million. The company offers a competitive remuneration package, including basic salary, bonuses, benefits, and training opportunities Human Resources Overview | Indicator | 2023 | 2022 | | :--------------------------------- | :---- | :---- | | Total Employees | 1,109 | 1,155 | | Total Salaries and Related Costs (Million USD) | 12.0 | 12.1 | - The Group provides its employees in Vietnam, Taiwan, and Hong Kong with a competitive remuneration package, including basic salary, bonuses, staff accommodation, training and development opportunities, medical benefits, insurance coverage, and retirement benefits[164] Outlook Looking ahead to 2024, global economic challenges will continue to impact the motorcycle industry. The Group will adopt flexible and diversified procurement strategies, review the strategic value of production facilities, and plans to launch several new motorcycle models in Vietnam, ASEAN, European, and Middle Eastern markets to enhance market share and profitability - The global economy in 2024 is expected to continue facing challenges such as inflation and high interest rates, severely impacting the motorcycle manufacturing and sales industry[165] - The Group will implement more flexible and diversified procurement arrangements for raw materials and parts to reduce production costs and enhance efficiency[165] - The Group will continue to review the strategic functional value and asset value or land development return potential of its production plants and facilities in Bien Hoa City, Dong Nai Province, and plans to relocate its production plant in Ha Dong District, Hanoi City from its current location[166] - The Group plans to launch several new or revamped motorcycle models in Vietnam, ASEAN countries, Europe, and the Middle East markets to enhance product diversification, market share, and profitability[171] Other Information Use of Proceeds from Initial Public Offering Net proceeds from the initial public offering were approximately USD 76.7 million. As of December 31, 2023, USD 0.5 million had been utilized for developing production sites and relocating facilities, with USD 17.6 million remaining unutilized, expected to be fully used by 2030 - Net proceeds from the initial public offering were approximately USD 76.7 million[175] Use of Proceeds from Initial Public Offering (Million USD) | Purpose | Net Proceeds from IPO as per Prospectus and Announcement | Unutilized Balance as at January 1, 2023 | Amount Utilized for the Year Ended December 31, 2023 | Unutilized Balance as at December 31, 2023 | | :------------------------------------------- | :--------------------------------------------------- | :------------------------------------- | :--------------------------------------------- | :------------------------------------- | | Construction and Establishment of R&D Center in Vietnam | 11.7 | - | - | - | | Expansion of Distribution Channels in Vietnam | 19.0 | - | - | - | | Acquisition of Assets or Businesses | 9.0 | - | - | - | | General Working Capital | 2.7 | - | - | - | | Development of Production Sites and Relocation of Existing Production Facilities | 15.0 | 3.0 | 0.5 | 2.5 | | Land Development | 19.3 | 15.1 | - | 15.1 | | Total | 76.7 | 18.1 | 0.5 | 17.6 | - The unutilized net proceeds are expected to be fully used by 2030, primarily for land project development applications[173] Material Investments Held For the year ended December 31, 2023, the Group did not hold any material investments - For the year ended December 31, 2023, the Group did not hold any material investments[140] Material Acquisitions or Disposals of Subsidiaries or Associates For the year ended December 31, 2023, the Group had no material acquisitions or disposals of subsidiaries or associates - For the year ended December 31, 2023, the Group had no material acquisitions or disposals of subsidiaries or associates[168] Capital Commitments and Contingent Liabilities As of December 31, 2023, the Group had no material capital commitments or contingent liabilities - As of December 31, 2023, the Group had no material capital commitments or contingent liabilities[150] Pledge of Assets As of December 31, 2023, the Group pledged its bank fixed deposits of USD 24,264,950 as collateral for bank financing - As of December 31, 2023, the Group pledged its bank fixed deposits of USD 24,264,950 as collateral for bank financing granted to the Group[142] Material Events After Reporting Period No material events that could affect the Group occurred after December 31, 2023, and up to the date of this announcement - No material events that could affect the Group occurred after December 31, 2023, and up to the date of this announcement[153] Future Plans for Material Investments or Capital Assets As of December 31, 2023, other than those disclosed, the Group had no other specific plans for material investments or acquisitions of capital assets - As of December 31, 2023, other than those disclosed in this announcement, the Group had no other specific plans for material investments or acquisitions of capital assets[141] Purchase, Sale or Redemption of the Company's Listed Securities For the year ended December 31, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the year ended December 31, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[174] Corporate Governance Practices For the year ended December 31, 2023, the Company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules - For the year ended December 31, 2023, the Company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[154] Compliance with the Model Code for Securities Transactions by Directors The Company has adopted the Model Code set out in Appendix C3 of the Listing Rules and confirmed that the Directors have complied with the code for the year ended December 31, 2023 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its own code of conduct for Directors' dealings in the Company's securities[177] - The Company has made specific enquiries with all its Directors and confirmed that the Directors have complied with the required standards set out in the Model Code for the year ended December 31, 2023[177] Review of Annual Results by Audit Committee The Company's Audit Committee has reviewed the annual results for the year ended December 31, 2023, and considers them to be in compliance with applicable accounting standards and requirements - The annual results for the year ended December 31, 2023, have been reviewed by the Company's Audit Committee, which is of the opinion that the preparation of such results complied with applicable accounting standards and requirements[155] Scope of Work by KPMG KPMG has reconciled the financial information disclosed in the Group's preliminary results announcement with the draft consolidated financial statements, finding the figures to be consistent, but this work does not constitute an audit, review, or other assurance engagement - KPMG has reconciled the financial information disclosed in the Group's preliminary results announcement for the year ended December 31, 2023, including the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and related notes, with the information in the Group's draft consolidated financial statements for the same year, and the figures are consistent[155] - The work performed by KPMG in this regard does not constitute an audit, review, or other assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements, or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants, and therefore KPMG has not expressed any assurance conclusion[155] Annual General Meeting and Closure of Register of Members for Determining Eligibility to Attend The Company's Annual General Meeting is scheduled for June 27, 2024, and the register of members will be closed from June 24, 2024, to June 27, 2024, to determine the list of shareholders entitled to attend and vote - The Company's forthcoming Annual General Meeting is scheduled to be held on Thursday, June 27, 2024[146] - To ascertain the list of shareholders entitled to attend and vote at the Annual General Meeting, the Company's register of members will be closed from Monday, June 24, 2024, to Thursday, June 27, 2024[146] Final Dividend The Board does not recommend the payment of a final dividend for the year ended December 31, 2023 - The Board does not recommend the payment of a final dividend for the year ended December 31, 2023 (2022: nil)[157] Sufficient Public Float For the year ended December 31, 2023, and up to the date of this announcement, the Company has maintained a sufficient public float as required by the Listing Rules - For the year ended December 31, 2023, and up to the date of this announcement, the Company has maintained a sufficient public float as required by the Listing Rules[147] Publication of Annual Results Announcement and Annual Report The annual results announcement has been published on the HKEXnews website and the Company's website, and the 2023 annual report will be published on the aforementioned websites in due course - The annual results announcement is published on the HKEXnews website www.hkexnews.hk and the Company's website **www.vmeph.com**[158](index=158&type=chunk) - The Company's 2023 annual report will be published on the aforementioned websites in due course[158] Acknowledgement The Group extends its sincere gratitude to its shareholders, suppliers, customers, and all employees for their support and contributions over the past year - The Group extends its sincerest gratitude for the strong support from the Company's shareholders, the Group's suppliers, and customers[148] - The Group also thanks every employee for their hard work and contributions to the Group over the past year[148] Board Information As of the date of this announcement, the Board of Directors comprises three executive directors, three non-executive directors, and three independent non-executive directors - As of the date of this announcement, the Board of Directors includes three executive directors (Mr. Liu Wu-Hsiung, Ms. Wu Jui-Chiao, and Mr. Lin Chun-Yu), three non-executive directors (Ms. Wu Li-Chu, Mr. Chen Hsu-Pin, and Mr. Liu Ju-Cheng), and three independent non-executive directors (Ms. Lin Ching-Ching, Mr. Chang An-Chieh, and Ms. Wu Hui-Lan)[162]