Financial Performance - Revenue for 2023 was HK2,279,321 thousand in 2022[75] - Profit for the year in 2023 was HK226,909 thousand in 2022[75] - Gross profit margin improved to 26.4% in 2023 from 23.7% in 2022[75] - Net profit margin increased to 10.5% in 2023 from 10.0% in 2022[75] - Inventory turnover days increased to 102 days in 2023 from 98 days in 2022[75] - Trade receivable turnover days rose to 58 days in 2023 from 54 days in 2022[75] - Trade payable turnover days increased to 61 days in 2023 from 57 days in 2022[75] - The company's current ratio improved to 276.0% in 2023 from 219.1% in 2022[75] - The gearing ratio significantly decreased to 1.5% in 2023 from 21.6% in 2022[75] - Net profit for 2023 amounted to HK200 million, with net cash on hand reaching HK1,945.7 million, while gross profit margin and net profit margin increased to 26.4% and 10.5% respectively[87][98] - The company declared a final dividend of 7.5 HK cents per share and a special dividend of 10.0 HK cents per share, with a total annual dividend of 20.3 HK cents per share for the year ended December 31, 2023[114] Corporate Governance - The Board consists of 7 members, including 4 executive directors and 3 independent non-executive directors[30] - The Chairman of the Board is Mr. Li Pui Leung, and the Chief Executive Officer is Mr. Yung Kin Cheung Michael, with clearly defined responsibilities[31] - Mr. Lee Leung Yiu, an executive director, has approximately 40 years of experience in plastic mold fabrication and injection molding[32][49] - Mr. Yue Yiu Chung, corporate financial controller, has over 30 years of experience in auditing and finance and manages finance, IT, HR, and EHS for the Group[35] - Mr. Tsang Wah Kwong, an independent non-executive director, has extensive experience in corporate governance and serves on multiple committees[42] - The Group has implemented a written code for employee securities transactions, with no violations reported[29] - Directors are appointed for 3-year terms, with renewal options, and executive directors are subject to service agreements[39] - The Board oversees strategic decisions, financial performance, risk management, and key personnel appointments[46] - All directors have completed continuous professional training in compliance with corporate governance codes[48] - The Group emphasizes transparency, accountability, and adherence to corporate governance standards[28][47] - The Board comprises 7 members, including 4 executive Directors and 3 independent non-executive Directors, with at least one independent non-executive Director possessing appropriate professional qualifications or accounting/financial management expertise[124][128] - The Audit Committee held 3 meetings during the year ended December 31, 2023, and performed major corporate governance functions as delegated by the Board[111][133] - The company has established three Board committees (Nomination, Remuneration, and Audit) with defined written terms of reference, ensuring sufficient resources and the ability to seek independent professional advice when necessary[139] - The Nomination Committee, comprising 4 members (majority independent non-executive Directors), oversees the selection, appointment, and reappointment of Directors, with plans for orderly succession if necessary[144][142] - The company has adopted a Director Nomination Policy to manage changes in Board composition without undue disruption, including formal procedures for Director selection and periodic review of succession plans[142] - The Nomination Committee held 1 meeting in 2023 to review the Board's structure, size, and composition, ensuring a balance of expertise, skills, and experience appropriate for the Group's business requirements[169][172] - The Remuneration Committee held 2 meetings in 2023 to assess the performance of executive Directors and review the Company's remuneration policy and structure[168] - The Company achieved measurable goals in 2023, including having at least one-third of the Board as independent non-executive Directors, at least one female Director, and at least one Director with relevant industry experience[171] - The gender ratio of the Company's employees (including Directors and senior management) was 58% male and 42% female as of December 31, 2023, achieving gender diversity[171] - Directors are encouraged to attend relevant training courses at the Company's expense to continuously update their knowledge and skills[149][162] - The Board includes four members in the Nomination Committee, with the majority being independent non-executive Directors[157] - The Company has adopted a formal and transparent Director nomination policy, including a succession plan if necessary, to ensure orderly transitions[158] - Directors have timely access to relevant information and can request independent professional advice at the Company's expense when appropriate[153][154] - The Board reviews the implementation and effectiveness of the Nomination Policy annually to maintain the Company's competitive advantage[160] - The Company believes greater diversity of Directors is beneficial for corporate governance and is committed to attracting and retaining candidates with a wide range of competencies[160] - The company achieved measurable objectives including at least one-third of the Board being independent non-executive Directors, at least one female Director, and at least one Director with relevant industry experience as of 31 December 2023[177] - The male-to-female ratio in the company's workforce (including Directors and senior management) was 58% male and 42% female, representing a ratio of 1.4:1 as of 31 December 2023[177] - The Remuneration Committee reviewed and approved the bonus for Directors and senior management for 2022 and proposed salary increments for 2023[179][185] - The company's senior management (including executive Directors) had annual remuneration ranging from HKD 2,000,001 to HKD 5,500,000 for the year ended 31 December 2023[188] - The Audit Committee held three meetings in 2023, reviewing financial statements, risk management, and internal control systems[194][190] - The company paid fees to PricewaterhouseCoopers for audit and non-audit services for the year ended 31 December 2023[193] - The company's workforce diversity policy aims to maintain a gender balance and increase female representation on the Board when suitable opportunities arise[176][178] - The Remuneration Committee met twice in 2023 to evaluate executive Director performance and review remuneration policies[179][184] - The company's risk management and internal control systems were reviewed for adequacy and effectiveness by the Audit Committee[190] - The company's external auditor attended meetings to discuss audit and financial reporting issues with the Audit Committee[195][197] Product Development and Innovation - The Group is developing new products integrating silicone and traditional plastic injection molding technology, offering diversified solutions and enriching the product portfolio[12] - The Group has introduced Printing Direct Structure (PDS) technology, a circuit printing solution applicable in medical equipment, electronics, sports equipment, and clothing industries, providing low-cost, high-compatibility, and environmentally friendly production solutions[12] - The Group's liquid silicone products offer flexibility at low temperatures, high-temperature resistance, and various hardness levels, suitable for consumer electronics, medical equipment, optical products, and more[12] - The company upgraded its protective cover products, reducing weight from 65.9g to 54.6g, achieving a 17% weight reduction[67] - The company achieved a 96% weight reduction in the first nozzle, reducing its weight from 13.8g to 0.5g, and a 22% reduction in the second nozzle, from 19.7g to 15.2g[79] Global Expansion and Production - The Group successfully established an overseas production base in Vietnam, focusing on serving consumer electronics brand customers and expanding its customer base in Southeast Asia, Europe, and America[14] - The Group is exploring the establishment of another production base in North America through mergers, acquisitions, or investments to provide lower tariff costs for North American customers[14] - The company is considering establishing an injection molding production line in North America to meet customer demand, in addition to its existing production bases in China and Vietnam[95] Strategic Collaborations and Industry 4.0 - The Group is actively collaborating with leading domestic medical and innovative technology companies, leveraging its expertise in precision molds to secure high-quality domestic clients, including a leading bone conduction headphone brand and a wearable camera brand[13] - The Group is adopting Industry 4.0 to optimize production and operational structures, aiming to improve efficiency and reduce costs while continuing to create value for customers and shareholders[15] - The Group is extending its product value chain to provide one-stop services, aiming to deepen its presence in advantageous industries and expand its business territory[14] - The company has streamlined its mold production structure and deepened Industry 4.0 to enhance production efficiency and management efficiency[98] Risk Management and Economic Outlook - The Group's major revenue is denominated in US dollar, Euro, RMB, and HK dollar, while major expenses are denominated in RMB, with no RMB hedging agreements in place[8] - As of December 31, 2023, the Group had no mortgaged assets, compared to bank borrowings of HKD 116,060,000 secured by bank deposits of HKD 157,138,000 as of December 31, 2022[10] - The company has successfully navigated economic turbulence, with operating risks and fluctuations being basically controllable[98] - The company believes that the most difficult days have passed and is poised to seize opportunities arising from global economic recovery[98] - The U.S. economy showed resilience with falling inflation and a stable job market, leading to sound consumption, and the company actively cooperated with consumer electronics brand customers for new product releases and project development in 2024[113] - The company plans to strengthen its leading position in the plastic injection molding industry chain, focusing on product innovation and technological breakthroughs while managing risks prudently and improving operational efficiency[112] Financial Position and Cost Management - The company has maintained a strong financial position with a net cash of HK$1.13 billion, reflecting effective operational and financial strategies[86][89] - The company has implemented cost reduction and efficiency improvement reforms, enhancing competitiveness and maintaining stable financial conditions[86][89] - The company has diversified its production layout and explored new business directions, seeking breakthroughs in production technology[86][89]
东江集团控股(02283) - 2023 - 年度财报