Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.0174 per share for the year ended December 31, 2023, compared to HKD 0.0272 per share in 2022, subject to shareholder approval[1] - The company declared and paid a final dividend of HKD 208,000 for 2022 and an interim dividend of HKD 296,000 for 2023[93] - The proposed final dividend for the year ended December 31, 2023, is HK$0.0174 per share, to be paid on or around July 15, 2024, subject to approval at the Annual General Meeting on June 18, 2024[192] - The company proposes to issue one new bonus share for every ten shares held by shareholders on the record date of July 2, 2024, subject to approval at the Annual General Meeting and by the Hong Kong Stock Exchange[165] - The company will suspend share transfer registration from June 26, 2024, to July 2, 2024, to ensure shareholders are entitled to the proposed final dividend and bonus shares[177] Financial Performance - Revenue increased by 18.5% from HKD 944.0 million in 2022 to HKD 1,118.5 million in 2023[40] - Net profit attributable to owners of the company rose by 15.3% to HKD 80.0 million in 2023 from HKD 69.4 million in 2022[45] - Basic earnings per share increased by 15.1% to 15.10 HK cents in 2023 from 13.12 HK cents in 2022[45] - Revenue increased to HKD 1,118,514 thousand in 2023 from HKD 944,014 thousand in 2022, representing an 18.5% growth[50] - Gross profit rose to HKD 480,130 thousand in 2023, up 17.3% from HKD 409,366 thousand in 2022[50] - Net profit attributable to the company's owners grew to HKD 80,048 thousand in 2023, a 15.3% increase from HKD 69,397 thousand in 2022[50] - Total comprehensive income for the year reached HKD 109,725 thousand in 2023, up 62.2% from HKD 67,639 thousand in 2022[51] - Revenue for the year reached HKD 1,118.5 million, a year-on-year increase of 18.5%[114] - Net profit for the year was HKD 122.2 million, up 16.6% year-on-year[114] - Profit attributable to the company's owners was HKD 80.0 million, a 15.3% increase compared to the previous year[114] - Revenue for 2023 was HKD 1,118,514 thousand, an increase of 18.5% compared to HKD 944,014 thousand in 2022[138] - The company maintained a strong cash position with cash and cash equivalents of HKD 222.3 million in 2022 and HKD 227.3 million in 2023[142] - The company's profit attributable to owners increased by 15.3% from HKD 69.4 million in 2022 to HKD 80.0 million in 2023[126] Global Expansion and Service Network - The company has established 72 branches and laboratories in multiple countries, including Singapore, Indonesia, Malaysia, India, Pakistan, Australia, Brunei, Bangladesh, Argentina, and South Africa, to enhance its global service capabilities[6] - The company's global marketing network and service capabilities for international clients were enhanced, improving overall profitability[42] - The company's service network expanded from major trade ports and hub cities in the Asia-Pacific region to emerging markets in South America and Africa[117] - The company operates 72 service points globally and holds 18 professional certifications, covering over 50 types of bulk commodities and natural resources[87] Research and Development (R&D) - R&D costs for the year ended December 31, 2023, amounted to approximately HKD 27,688,000, compared to HKD 26,745,000 in 2022[21] - The company's R&D costs for 2023 were HKD 27,970 thousand, up from HKD 26,883 thousand in 2022[98] - The company focused on R&D, particularly in the development of intelligent coal testing technology, which was recognized as internationally leading[131] ESG and Sustainability - The company's ESG-related businesses, such as clean energy, environmental protection, and climate change, developed rapidly, exceeding expectations[41] - The company is focusing on low-carbon and sustainable development, offering services such as carbon asset development, low-carbon technology consulting, and ESG consulting, helping clients achieve carbon neutrality goals[96] - The company is aligning with national energy development strategies, particularly in green and low-carbon transformation, and is actively contributing to the construction of a new power system[101] - The company achieved a breakthrough in carbon trading, becoming one of the most important carbon asset traders in the Beijing carbon market[134] - The company strengthened its environmental protection services, particularly through its LDAR business, which plays a key role in low-carbon emission reduction[133] - The company is focusing on ESG development strategies, including clean energy, environmental protection, and climate change, to support the green and low-carbon transformation of industries[150][151] - The company plans to accelerate investment plans aligned with its ESG strategy, focusing on green, low-carbon, and sustainable growth opportunities[151] Taxation - The company's subsidiaries in Hong Kong are subject to a 16.5% tax rate on estimated taxable profits, while a subsidiary in mainland China is subject to a 5% tax rate on dividend income[18] - A subsidiary in Singapore is subject to a 17% tax rate on estimated taxable profits[19] - The company's tax expense for the year totaled HKD 35,049 thousand in 2023, up from HKD 31,513 thousand in 2022[80] Corporate Governance - The company has adopted revised International Financial Reporting Standards (IFRS) for the first time in the current year's financial statements[24] - The company has adopted the "Corporate Governance Code" as outlined in Appendix C1 of the "Listing Rules" to enhance management standards and protect shareholder interests[196] - The Board of Directors will continue to review and monitor the company's practices to maintain high standards of corporate governance[197] - The company has adopted the "Standard Code" from Appendix C3 of the "Listing Rules" as a code of conduct for directors and employees regarding securities transactions[198] - The company's audit committee, consisting of three independent non-executive directors, has reviewed and discussed the annual consolidated financial statements for the year ended December 31, 2023, with management[183] - The company's directors have confirmed compliance with the Model Code for Securities Transactions throughout the year ended December 31, 2023[181] Operational Efficiency and Cost Management - The company implemented a refined operational management system, improving cost control and operational efficiency, which contributed to profit growth[127] - The company's sales cost for 2023 was HKD 638,384 thousand, compared to HKD 534,648 thousand in 2022[98] - Employee benefit expenses, including salaries and wages, increased to HKD 377,776 thousand in 2023 from HKD 322,616 thousand in 2022[98] Market and Industry Recognition - The company has been recognized for three consecutive years in Forbes' "Asia's 200 Best Under A Billion" list, highlighting its strong governance, operational capabilities, and business performance[7] - The company was designated as the quality inspection agency for industrial silicon and lithium carbonate futures by the Guangzhou Futures Exchange on May 16 and November 28, 2023, marking a significant milestone in the new energy testing sector[89] - The company was appointed as the quality inspection agency for coking coal, coke, and iron ore by the Dalian Commodity Exchange on June 30, 2023, reflecting high recognition of its professional capabilities and service quality in the energy bulk inspection field[94] - The company was designated as a testing institution for copper, aluminum, and zinc futures by the Shanghai Futures Exchange and for international copper futures by the Shanghai International Energy Exchange in August 2023[149] Financial Position and Assets - The company's equity attributable to owners totaled HKD 569,278,000, up from HKD 487,025,000 in the previous year[22] - Non-current liabilities decreased to HKD 48,295,000 from HKD 91,503,000[30] - The company's total non-current assets increased to HKD 370.4 million in 2023 from HKD 329.2 million in 2022[46] - The company's total current assets rose to HKD 524.1 million in 2023 from HKD 430.9 million in 2022[46] - Current liabilities increased to HKD 276,962 thousand in 2023, a 52.5% rise from HKD 181,560 thousand in 2022[53] - Trade payables grew to HKD 51,910 thousand in 2023, up 19.0% from HKD 43,622 thousand in 2022[53] - Contract liabilities more than doubled to HKD 8,029 thousand in 2023 from HKD 3,565 thousand in 2022[53] - Interest-bearing bank loans surged to HKD 48,530 thousand in 2023, an 83.5% increase from HKD 26,449 thousand in 2022[53] - Total assets less current liabilities increased to HKD 617,573 thousand in 2023, up 6.8% from HKD 578,528 thousand in 2022[53] - Net asset value grew to HKD 569,278 thousand in 2023, a 16.9% increase from HKD 487,025 thousand in 2022[53] - The company's leverage ratio is zero when the amount of cash and cash equivalents exceeds total liabilities[167] - The company's net surplus attributable to equity holders was HKD (7,043) thousand in 2023, compared to HKD (28,329) thousand in 2022, with net capital and liabilities increasing to HKD 417,458 thousand from HKD 349,939 thousand[147] Revenue Breakdown - Revenue from testing services increased to HKD 716,422 thousand in 2023, up 18.8% from HKD 602,972 thousand in 2022[61] - Revenue from the Greater China region was HKD 650,368 thousand in 2023, a 5.7% increase from HKD 615,313 thousand in 2022[61] - Revenue from Singapore and other countries/regions grew significantly to HKD 468,146 thousand in 2023, a 42.4% increase from HKD 328,701 thousand in 2022[61] - Revenue from the Greater China region increased to HKD 650,368 thousand in 2023 from HKD 615,313 thousand in 2022[75] - Revenue from Singapore and other countries/regions rose to HKD 468,146 thousand in 2023 from HKD 328,701 thousand in 2022[75] - Revenue from one major client accounted for 10.0% of the company's total revenue in 2023, down from 12.3% in 2022[77] Trade Receivables and Payables - Trade receivables and bills totaled HKD 208,841 thousand in 2023, up 21.2% from HKD 172,302 thousand in 2022[64] - Overdue trade receivables and bills amounted to HKD 46,474 thousand as of December 31, 2023, a 58.3% increase from HKD 29,358 thousand in 2022[66] - A subsidiary pledged trade receivables and bills of HKD 20,210 thousand as collateral for bank loans in 2023, compared to none in 2022[64] - The company's trade receivables and notes are non-interest bearing and are not backed by any collateral or credit enhancements[109] - The company's trade payables totaled HKD 51.91 million at the end of the reporting period, with 80.9% due within 3 months[111] - Trade payables increased to HKD 51,910 thousand in 2023 from HKD 43,622 thousand in 2022, while other payables and accruals decreased to HKD 71,155 thousand from HKD 72,993 thousand[147] Strategic Initiatives and Acquisitions - The company successfully acquired World Standard Testing, enhancing its bulk testing capabilities and solidifying its core competitive advantages[122] - The company has obtained designated quality inspection qualifications for 10 futures varieties across four major futures exchanges by the end of 2023[122] - The company upgraded its development strategy to "3+X," emphasizing clean energy, dual carbon, and ESG-related businesses[136] - The company expanded its international service network and deepened cooperation with key clients, enhancing customer loyalty and service quality[139] Risk Management - The company faces foreign exchange risk due to cash, receivables, payables, and interest-bearing bank loans denominated in currencies other than the functional currency of its entities, primarily HKD, USD, and SGD[188] - The company's credit risk for financial assets, including cash and cash equivalents, is equal to the carrying amount of these assets[169] Employee and Compensation - The company had 3,016 employees as of December 31, 2023, up from 2,528 in 2022, with compensation including base salary, bonuses, and cash subsidies, along with other benefits such as retirement plans and medical insurance[162] Miscellaneous - The company has not purchased, sold, or redeemed any of its listed securities during the year ended December 31, 2023[173] - The company has maintained the public float required by the Hong Kong Stock Exchange Listing Rules as of the date of the announcement[178] - The company's diluted earnings per share were calculated based on a profit of HKD 80.048 million and a weighted average number of 532,054,186 ordinary shares[108] - The company's diluted earnings per share increased due to the anti-dilutive effect of convertible bonds, which were excluded from the calculation of diluted earnings per share[144]
力鸿检验(01586) - 2023 - 年度业绩