Business Performance and Economic Conditions - The company faced challenges from COVID-19 affecting human resources, supply chains, and overall economic conditions, leading to adverse business performance[9]. - Despite the lifting of restrictions in December 2022, the economic rebound was slower than expected, influenced by factors such as US interest rate hikes and geopolitical tensions[9]. - The company reported a net loss of approximately HKD 33,394,000 for the fiscal year ending December 31, 2023[52]. - The group’s revenue for the year was approximately HKD 262.1 million, a slight increase of 0.75% compared to HKD 260.2 million in the previous year[102]. - The loss attributable to shareholders was approximately HKD 31.0 million, a decrease of 24.6% from HKD 41.1 million in 2022[102]. Financial Management and Governance - The management team is focused on improving existing business operations and exploring opportunities to create value for shareholders[10]. - The board of directors confirmed compliance with corporate governance codes, ensuring transparency and accountability in operations[14]. - The management provided regular updates to the board regarding the company's performance and financial status, despite not distributing monthly accounts[15]. - The board typically holds at least four meetings annually to review the company's performance and consider corporate actions[15]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance for the year ending December 31, 2023[18]. Risk Management and Internal Controls - The board reviewed the effectiveness of the group's risk management and internal control systems, concluding they are effective and adequate as of December 31, 2023[62]. - The group adopted a three-tier risk management approach to identify, assess, and manage significant risks, with operational units responsible for the first line of defense[65]. - The audit committee is responsible for reviewing and supervising the group's financial reporting and compliance procedures[26]. - The internal audit report's recommendations have been accepted by management and incorporated into daily operations[66]. Corporate Culture and Employee Management - The company emphasizes the importance of product and service quality, diversification, and sustainable development in its corporate culture and strategy[17]. - The company has adopted a competitive remuneration scheme for its employees, with promotions and salary increases based on performance evaluations[33]. - The company has established a remuneration committee consisting of three independent non-executive directors to review and determine the remuneration policies for all directors and senior management[30]. - The employee gender ratio as of December 31, 2023, was 1.59:1 (male to female)[40]. Shareholder Engagement and Communication - The company is committed to effective communication with shareholders, providing multiple channels for engagement and feedback[73]. - The company maintains a shareholder communication policy that has been deemed effective during the year[74]. - The company is dedicated to fostering trust and respect through effective communication with stakeholders, enhancing business strategy formulation[174]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes its commitment to sustainable development through its environmental, social, and governance initiatives as a core part of its business strategy[149]. - The group has adopted a three-tier risk management approach to identify, assess, and manage significant risks and opportunities, including ESG-related risks[163]. - The company adheres to strict environmental regulations, with no violations reported in air, water, or waste emissions during the year[179]. - The company has established guidelines to ensure compliance with insider information disclosure requirements[66]. Operational Efficiency and Cost Control - The company implemented cost control measures and strategic pricing policies to attract more sales orders from existing and potential customers[9]. - The company aims to reduce costs by up to HKD 2.5 million in the fiscal year ending December 31, 2024, following successful cost control measures implemented last year[55]. - The company is focused on improving cash flow and operational efficiency through various measures, including cost control and potential leasing agreements[55]. Future Financing and Capital Raising - The company plans to raise up to RMB 140 million through debt and/or equity financing in the second half of 2024[57]. - A total of 133,883,000 new shares were issued on February 22, 2024, raising approximately HKD 13.2 million, with plans for further capital raising exceeding HKD 35 million in Q2 to Q3 2024[59]. - The company is negotiating with potential tenants in China for leasing unused factory space, expecting to receive RMB 20-40 million as advance rental payments or deposits[55]. Legal and Compliance Matters - The company is involved in ongoing legal disputes in China, with claims totaling approximately RMB 38,500,000 still in legal proceedings[127]. - The company has established mechanisms to ensure the board receives independent views and opinions, which are reviewed annually[42]. - The company has established an independent email account for whistleblowing to enhance the effectiveness of its reporting procedures[85].
中华银科技(00515) - 2023 - 年度财报