CON AERO TECH-大陆航空科技控股(00232) - 2023 - 年度财报

Community Engagement - The Group engaged in 159 hours of volunteer work and contributed over US $8,000 to various community activities, including sponsoring sports events and supporting food banks[8]. - The Group's commitment to community investment focuses on supporting disadvantaged groups through various initiatives[31]. Employee Management - The employee turnover rate decreased to 11% in 2023 from 20% in 2022, showing improvements across gender and age groups[24]. - As of December 31, 2023, the Group had 567 employees, with total wages and salaries amounting to HK$ 241,520,000, an increase from HK $216,715,000 in 2022[95]. - In 2023, the total number of employees decreased to 378 from 390 in 2022, representing a reduction of approximately 3.08%[122]. - The number of full-time employees decreased from 380 in 2022 to 375 in 2023, a decline of approximately 1.32%[122]. - The Group maintains a diverse and inclusive working environment, believing that employees significantly impact product and service quality, and strives for long-term sustainable development[113][114]. - Employee development and engagement are prioritized, with a commitment to fostering a skilled and proactive workforce[129]. - The Group has comprehensive human resources management policies, regularly reviewing remuneration packages to ensure competitiveness and attract top talent[116]. - The Group's workforce includes 289 male employees and 89 female employees, with a gender ratio of approximately 76.3% male to 23.7% female[122]. Environmental Performance - The Group achieved over a 30% reduction in treatable wastewater during the reporting period, exceeding its annual target of a 1% reduction[33]. - The Group has set a target to reduce greenhouse gas emissions and is actively working on waste reduction initiatives[12]. - The Group aims to reduce treatable wastewater by 1% per year, achieving a 30% reduction during the reporting period[128]. - The Group has not experienced any major environmental accidents during the reporting period[40]. - The total consumption of packaging material used for finished products was 198.06 tonnes in 2023, up from 178.01 tonnes in 2022, reflecting an increase of 11.3%[38]. - The Group is committed to reducing total electricity consumption by 1% annually as part of its energy management strategy[60]. - In 2023, the total electricity consumption was 15.23 million kWh, an increase from 14.41 million kWh in 2022, representing a growth of 5.7%[35]. - Fuel oil consumption decreased significantly from 2,621.76 million kWh in 2022 to 923.79 million kWh in 2023, a reduction of 64.8%[35]. - Total energy consumption for 2023 was 10,075.61 million kWh, down from 12,192.41 million kWh in 2022, indicating a decrease of 17.4%[35]. - Water consumption increased to 41,105.22 cubic meters in 2023 from 30,760.00 cubic meters in 2022, marking a rise of 33.4%[35]. Governance and Compliance - There were no legal cases regarding corrupt practices against the Group or its employees during the reporting period[31]. - The Group has established an internal integrity system and an audit committee to enhance governance practices and prevent misconduct[3]. - The Group has established effective whistle-blowing procedures to report misconduct while ensuring confidentiality for employees[4]. - The Group has no significant contingent liabilities as of December 31, 2023, maintaining compliance with all relevant laws and regulations throughout 2023[99][100]. - The company emphasizes transparency, accountability, and responsibility in its corporate governance practices[164]. - For the year ended December 31, 2023, the company complied with all code provisions of the Corporate Governance Code[165]. - The company has a commitment to regularly review and improve its corporate governance practices[163]. - All Directors confirmed compliance with the required standards set out in the Model Code throughout the year ended December 31, 2023[168]. - The company has established written guidelines for employees regarding securities transactions to prevent insider trading[168]. - The company has independent non-executive Directors with diverse backgrounds and extensive experience in various industries[153][157]. - The Company has adopted a board diversity policy to maintain competitive advantage, currently comprising one female and eight male Directors[188]. - The Company has implemented and complied with all provisions of the Corporate Governance Code as of December 31, 2023[179]. - The Nomination Committee evaluates candidates for Director appointments and submits recommendations to the Board for approval[187]. - The Company emphasizes transparency, accountability, and responsibility to maintain good corporate governance practices[179]. - The Board is responsible for the overall strategy of the Group and monitoring its financial performance[190]. Financial Performance - As of December 31, 2023, the Group's current assets amounted to HK$ 1,741,669,000, an increase from HK $1,509,210,000 in 2022[80]. - The Group's total equity as of December 31, 2023, was HK$ 2,995,461,000, compared to HK $2,818,891,000 in 2022, reflecting a growth in equity[80]. - The Group recorded administrative expenses of HK$ 311,185,000 in 2023, up from HK $293,665,000 in 2022, indicating a rise in operational costs[78]. - The Group's gearing ratio decreased to 8.8% in 2023 from 9.4% in 2022, showing improved capital structure[80]. - The Group recorded a share of loss from an associate of HK$ 4,112,000 in 2023, down from HK$8,390,000 in 2022, indicating improved performance[78]. - No material acquisitions or disposals occurred during the current year, maintaining a stable operational focus[82]. Operational Efficiency - The successful implementation of the new ERP system transitioned from the outdated Macola system to Oracle NetSuite, enhancing operational efficiency[73]. - The company achieved a record delivery volume in 2023, reflecting the success of the Bluefin Tuna project aimed at improving manufacturing efficiency[53]. - The Blue Marlin project was completed, improving manufacturing efficiency and achieving the highest delivery volumes in 2023[68]. - The time between replacements for the CD-170 and CD-300 engines increased from 1,200 hours to 1,800 hours and 2,000 hours respectively, enhancing customer value[54]. - The Group will leverage innovative technology and data analytics to enhance operational efficiency and reduce costs[124]. - The Group plans to fully implement World Class Manufacturing (WCM) practices in all factories by 2024, aiming for the highest standards of efficiency, quality, and innovation[105][107]. - The Group will focus on expanding its global service network and introducing innovative solutions to capture new market segments and drive revenue growth[109]. Leadership and Management - Mr. Huang Yongfeng has been the chairman of the company since April 1, 2022, and has extensive experience in financial management and mergers and acquisitions[133]. - Mr. Li Peiyin, appointed as an executive director on April 1, 2022, has over 11 years of experience in corporate financial management and is currently the head of the finance department[139]. - Mr. Zhang Zhibiao, appointed as an executive director on April 3, 2023, has over 25 years of experience in management, aviation business, and strategic development[137]. - Mr. Yu Xiaodong has been appointed as the Chief Executive Officer since April 1, 2022, and has extensive experience in international trade and project management[148]. - The company is focused on expanding its operations in the aviation manufacturing and operation sectors, leveraging the expertise of its executive team[133]. - The diverse experience of the board members in various industries supports the company's strategic initiatives and operational efficiency[139]. - The executive team has a strong educational background, with degrees from prestigious institutions such as Peking University and Nankai University[135][137]. - The company aims to enhance its market position through strategic acquisitions and partnerships in the aviation sector[133]. Future Outlook - The Group anticipates a modest contraction in real GDP of approximately 0.5% between the first and third quarters of 2024, which would be the smallest contraction among the 12 post-World War II economic recessions[96][104]. - The Group plans to strategically expand market share and target untapped opportunities in 2024, focusing on integrating cutting-edge technologies[131].