Financial Performance - The company's consolidated revenue for the fiscal year ended December 31, 2023, was approximately HKD 714,486,000, a decrease of about 27.5% from HKD 986,094,000 in 2022[11]. - The company reported a loss attributable to shareholders of approximately HKD 102,604,000, a decline of 1,747.5% compared to a profit of HKD 6,228,000 in the previous year[11]. - Gross profit decreased by approximately 24.1% to about HKD 308,680,000 due to reduced sales[29]. - The operating cash flow for the year was approximately HKD 32,219,000, significantly lower than HKD 229,171,000 in the previous year[42]. - The company's total assets decreased by approximately 17.8% to about HKD 851,230,000, while total liabilities decreased to about HKD 180,126,000[45]. - The company maintained a cash balance of approximately HKD 181,202,000, down from HKD 258,959,000 the previous year[40]. Dividends - The mid-term dividend paid was HKD 0.05 per share, an increase of 25% from HKD 0.04 per share in the previous year[11]. - The proposed final dividend for 2023 is zero, a decrease of 100% from HKD 0.08 per share in 2022[11]. - The company announced an interim dividend of HKD 0.03 per share, compared to no dividend in the previous year[27]. - The company’s dividend policy considers various factors including financial performance, shareholder interests, and capital requirements[154]. Liquidity and Financial Ratios - The company maintained a current ratio of 3.5 and a quick ratio of 2.2, indicating stable liquidity positions[11]. - The capital debt ratio improved slightly to 0.5% from 0.6% in the previous year, indicating a reduction in leverage[11]. Market Challenges - The company faced significant challenges due to global economic conditions, including high inflation and cautious inventory management by customers[23]. - The company continues to face challenges in the North American and European markets due to high inflation and geopolitical uncertainties[49]. Revenue by Region - Revenue from Canada decreased by approximately HKD 17,773,000 or 21.1% to about HKD 66,298,000 this year[54]. - Revenue from Europe increased by approximately HKD 6,587,000 or 8.1% to about HKD 88,384,000 this year[56]. - Revenue from Mexico decreased by approximately HKD 2,404,000 or 17.5% to about HKD 11,349,000 this year[59]. - Revenue from Australia and New Zealand decreased by approximately HKD 921,000 or 2.3% to about HKD 38,932,000 this year[60]. - Revenue from South America increased by approximately HKD 812,000 or 6.4% to about HKD 13,414,000 this year[61]. Environmental, Social, and Governance (ESG) Initiatives - The company plans to continue focusing on environmental, social, and governance (ESG) initiatives as part of its sustainable development strategy[24]. - The total greenhouse gas emissions for the group in 2023 were 12,421.81 tons of CO2 equivalent, a decrease of 30.2% from 17,800.27 tons in 2022[167]. - The main source of emissions was indirect emissions from purchased electricity, accounting for 99.74% of total emissions in 2023, compared to 99.82% in 2022[171]. - The group’s energy consumption was 18,829,903 kWh in 2023, down from 27,003,081 kWh in 2022, reflecting a commitment to energy efficiency[180]. - The group implemented measures that eliminated 39.970 tons of CO2 equivalent emissions in 2023 through energy-saving initiatives, compared to 60.549 tons in 2022[172]. - The group has implemented water-saving measures, including the installation of water meters and employee training on water conservation[182]. Corporate Governance - The company has adopted a corporate governance code in compliance with the Hong Kong Stock Exchange's listing rules, ensuring adherence to best practices[93]. - The board consists of three executive directors and four independent non-executive directors, meeting the requirement of at least one-third independent members[94]. - The independent non-executive directors have confirmed their independence according to the applicable listing rules, maintaining their ability to make independent judgments[96]. - The board believes it has the necessary skills and experience to act in the best interests of the company[97]. - The roles of the Chairman and CEO are separated, with Mr. Zheng Rongbin as Chairman and Ms. Ye Xiaoxia as CEO, ensuring effective governance and operational management[99]. Internal Controls and Audit - The board is committed to addressing the auditor's concerns regarding the qualified opinion by hiring external experts and enhancing internal controls[77]. - The Audit Committee has conducted regular meetings to review the effectiveness of the internal control systems, including financial, operational, and compliance monitoring, as well as risk management functions[134]. - The internal audit function has been established since 2015, focusing on risk management and internal control systems, with a dedicated internal audit team[138]. - The external auditor's independence and objectivity have been reviewed, ensuring compliance with relevant accounting standards and regulations[129]. Workforce and Employment - As of December 31, 2023, the group employed approximately 2,310 full-time employees, all factory workers, compared to 3,275 in 2022[185]. - The annual employee turnover rate improved, with rates of 21.12% for ages 18-25, 29.27% for ages 26-35, and 28.15% for ages 36-45 in 2023, down from 32.50%, 35.78%, and 20.11% respectively in 2022[187]. - The group provided a total of 4 hours of training per factory employee in both 2023 and 2022, with a total of 2,310 factory employees trained in 2023[195]. Future Outlook - The global economic outlook for 2024 is cautiously optimistic, with signs of recovery from challenges posed by the pandemic, high inflation, and high interest rates[67]. - The company plans to invest in property in Vietnam to capitalize on the growth in the Southeast Asian market[70]. - The company aims to enhance automation to improve efficiency and maximize long-term returns for shareholders[71].
MATRIX HOLDINGS(01005) - 2024 - 年度财报