Financial Performance - The company reported a net loss of RMB 165.3 million for the year 2022, compared to a profit of RMB 62.0 million in 2021, indicating a significant decline in performance [23]. - The company's revenue for 2022 was approximately RMB 4,663.6 million, a decrease of RMB 629.4 million or 11.9% compared to RMB 5,293.0 million in 2021 [50]. - The loss attributable to the company's owners for 2022 was approximately RMB 165.3 million, while in 2021, the profit attributable to the company's owners was approximately RMB 62.0 million [50]. - The financial performance in 2022 reflects the adverse effects of the economic environment related to the COVID-19 pandemic in mainland China [10]. - The group experienced negative impacts during the review period due to economic changes related to COVID-19 in mainland China, resulting in reduced revenue and increased losses [170]. Operational Efficiency - The average processing cost per ton decreased by 37.3% to RMB 336 in 2022, down from RMB 536 in 2021 [24]. - Despite an increase in sales volume of processed steel and galvanized steel products, the company's revenue was negatively impacted by a sluggish market environment [27]. - The company faced increased unit costs of sales, administrative expenses, and financial costs, contributing to the overall net loss [27]. - The company plans to continue focusing on improving operational efficiency and managing costs in response to market challenges [27]. Corporate Governance - The company has adopted corporate governance principles and complied with the applicable code provisions throughout the fiscal year ending December 31, 2022 [72][73]. - The board believes sufficient measures have been taken to ensure the company's corporate governance practices meet or exceed the standards set forth in the corporate governance code [73]. - The board consists of a sufficient number of independent non-executive directors, meeting the requirements of the Listing Rules [101]. - The company has appointed independent non-executive directors who provide oversight and ensure compliance with corporate governance standards [89]. - The board is collectively responsible for leading and supervising the company's affairs, focusing on strategic decisions and performance [85]. Shareholder Communication - The company is committed to ensuring adequate shareholder communication and will provide sufficient notice for shareholder meetings as per regulations [161]. - The board is committed to ensuring timely, fair, accurate, and complete disclosure of information to enable informed decision-making by shareholders and the public [187]. - The board has established a mechanism for shareholders to submit inquiries and concerns, ensuring transparency and communication [184]. Risk Management - The board emphasizes the importance of a robust risk management and internal control system to mitigate major risks, which includes a clear management structure and risk assessment models [165]. - The board has confirmed the effectiveness of the risk management and internal control systems during the review period, with no significant concerns affecting financial, operational, compliance, or risk management functions identified [167]. - The company has established a whistleblowing policy allowing employees and stakeholders to report potential misconduct confidentially [168]. Employee Engagement and Diversity - The company is committed to encouraging employee participation in community service initiatives [11]. - The company recognizes the importance of maintaining gender diversity in its workforce and will continue to consider this in recruitment processes [144]. - The board's composition includes 7 male directors and 0 female directors, highlighting a significant gender imbalance [144]. - As of December 31, 2022, the gender ratio among employees was 79.9% male and 20.1% female, indicating a need for gender diversity in recruitment [144]. Future Plans - The company aims to enhance its market position through strategic initiatives and potential expansions in the future [27]. - The company plans to propose a dividend, indicating a potential return to shareholders [52]. - The company intends to propose a dividend distribution of approximately 30% of the net distributable profits for the fiscal year ending December 31, subject to shareholder approval [187]. - The board does not recommend the payment of a final dividend for 2022 [199].
茂宸集团(00273) - 2022 - 年度财报