Lease Agreements and Related Party Transactions - The company entered a lease agreement for an employee dormitory in Sai Kung, Hong Kong, at a monthly rent of HKD 56,000, effective from December 15, 2022, for one year, and renewed the lease under similar terms for another year starting December 15, 2023[1]. - The total value of the related party transactions under the lease agreements is below HKD 3 million, qualifying for a full exemption from reporting and shareholder approval requirements under the listing rules[3]. - Independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business, on normal commercial terms, and were fair and reasonable to the shareholders[4]. - The company has complied with the disclosure requirements of the listing rules regarding the related party transactions[5]. Financial Performance - The company's revenue for 2023 was approximately RMB 6,589.9 million, an increase of RMB 1,926.3 million or 41.3% compared to RMB 4,663.6 million in 2022[108]. - The profit attributable to the owners of the company for 2023 was approximately RMB 85.7 million, a significant recovery from a loss of approximately RMB 165.3 million in 2022[132]. - The gross profit for 2023 was approximately RMB 296.6 million, compared to a gross loss of approximately RMB 20.1 million in 2022[172]. - The net profit margin for 2023 was approximately 1.3%, compared to a net loss margin of 3.5% in 2022[150]. - Other income increased to approximately RMB 8.8 million in 2023, a rise of about RMB 4.3 million or 95.6% from RMB 4.5 million in 2022[146]. - In 2023, administrative expenses decreased to approximately RMB 58.6 million, a reduction of about RMB 6.2 million or 9.6% compared to RMB 64.8 million in 2022[176]. Capital Expenditure and Investments - Capital expenditure for the acquisition of properties, plants, and equipment amounted to approximately RMB 257.4 million as of December 31, 2023, compared to RMB 90.9 million as of December 31, 2022[106]. - The company will finance its capital expenditures through internal resources and borrowings[106]. - The group plans to invest in the construction and management of three new berths at Huajin Port, with the first berth expected to be completed by mid-2024[184]. - As of December 31, 2023, deposits paid for the acquisition of properties, plants, and equipment amounted to approximately RMB 200.4 million, compared to RMB 27.7 million in 2022[196]. Risk Management and Internal Controls - The company emphasizes the importance of a robust risk management and internal control system to mitigate major risks and has implemented a risk assessment model to identify and manage various types of risks[98]. - The company has established an internal control system covering key financial, operational, and compliance controls to safeguard assets from unauthorized use[99]. - The company has not identified any significant internal control weaknesses or deficiencies that could adversely affect its financial condition or operations during the reporting period[99]. - The audit committee's main responsibilities include providing independent reviews of the group's financial reporting procedures and risk management systems[74]. Corporate Governance and Board Diversity - The company has adopted the corporate governance code as per the listing rules and has complied with applicable provisions throughout the year ending December 31, 2023[32]. - The board held five meetings during the year, ensuring adequate notice and documentation were provided to directors[39]. - The chairman and CEO positions are held by different individuals to ensure a balance of power and responsibilities[50]. - The board collectively oversees the company's business and strategic decisions, ensuring alignment with shareholder interests[42]. - The board plans to appoint a female director by December 31, 2024, to enhance gender diversity[58]. - As of December 31, 2023, the employee gender ratio is 79% male and 21% female, with a commitment to consider gender diversity in future hiring processes[83]. - The nomination committee consists of four members, three of whom are independent non-executive directors, emphasizing the importance of board diversity[56]. - The board has adopted a diversity policy that considers various factors, including professional experience, skills, gender, age, and cultural background when selecting candidates[57]. Audit and Compliance - The audit committee convened three times to review the accounting policies and the effectiveness of the internal control systems and risk management[53]. - The audit committee has reviewed the audited consolidated results for the year ending December 31, 2023, and recommended the approval of the financial statements[78]. - The total audit services provided by Deloitte amounted to RMB 2,439,000, while non-audit services totaled RMB 464,000, leading to a combined total of RMB 2,903,000[88]. - The company confirmed that all directors complied with the standards set out in the trading code for securities transactions during the year[33]. Employee and Operational Metrics - The total employee cost for the group in 2023 was approximately RMB 123.0 million, up from RMB 116.7 million in 2022[182]. - The sales volume of cold-rolled steel products increased to approximately 886,949 tons, a rise of about 272,209 tons or 44.3% compared to 614,740 tons in 2022[136]. - The sales volume of galvanized steel products rose to approximately 583,438 tons, an increase of about 240,052 tons or 69.9% from 343,386 tons in 2022[136]. - Total sales volume of cold-rolled and galvanized steel products reached approximately 1,470,387 tons, up about 512,261 tons or 53.5% from 958,126 tons in 2022[160]. Environmental Compliance - The company’s environmental policies ensure compliance with national and local environmental laws in China, with no significant environmental complaints or incidents reported during the review period[12]. - The board is responsible for evaluating and managing significant environmental and social risks, with a report on these matters expected to be published in April 2024[105].
茂宸集团(00273) - 2023 - 年度财报