Financial Performance - In 2023, the group's revenue was HKD 701,552,000, a decrease of 19.7% compared to HKD 874,011,000 in 2022[6] - The group's gross profit increased by 19.3% to HKD 158,865,000, with a gross margin of 22.6% in 2023, up from 15.2% in 2022[6] - Other income and gains totaled HKD 8,464,000 in 2023, a 34.1% increase from HKD 6,311,000 in 2022[7] - The group recorded a net financing expense of HKD 12,621,000 in 2023, an increase of 45.6% from HKD 8,671,000 in 2022[13] - The attributable profit to the company's owners was HKD 11,288,000 in 2023, a growth of 35.7% from HKD 8,317,000 in 2022[17] - The operating profit for the group was HKD 42,206,000 in 2023, a significant increase of 158.5% from HKD 16,329,000 in 2022[17] - Basic earnings per share rose to HKD 0.0491 in 2023, a 36.0% increase from HKD 0.0361 in 2022[18] - The income tax expense decreased by 42.9% to HKD 1,915,000 in 2023 from HKD 3,355,000 in 2022[16] - The net profit margin for the group in 2023 was approximately 3.9%, an increase from 0.5% in 2022, driven by significant sales orders from electric vehicle manufacturers[32] - The return on equity for the group in 2023 was approximately 2.5%, compared to 1.7% in 2022, reflecting the increase in profit[32] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.035 per share, totaling HKD 8,053,000, with a total dividend of HKD 0.045 per share for the year[20] - The company proposed a final dividend of HKD 0.035 per share, totaling HKD 8,053,000, with a total dividend of HKD 0.045 per share for the year, down from HKD 0.090 per share in the previous year[55] - The company's dividend policy aims to enhance transparency and facilitate informed investment decisions, with no predetermined payout ratio; dividends are subject to the board's discretion based on various factors[123] - Past dividend distribution records cannot be used as a benchmark for future dividend levels, and future dividends will comply with the board's decisions and applicable laws[124] Operational Metrics - The total order volume for the group in 2023 was HKD 843,939,000, down 19.4% from HKD 1,046,432,000 in 2022[23] - The group recognized a loss of HKD 15,916,000 from associates in 2023, compared to a profit of HKD 3,885,000 in 2022[14] - The group incurred a loss of HKD 8.6 million due to the poor business performance of its associate company, which it holds a 30% stake in[24] - The group employed 226 staff as of December 31, 2023, a decrease from 237 staff in 2022[39] Cash and Assets - As of December 31, 2023, the group's cash balance was HKD 29,795,000, down from HKD 63,438,000 on December 31, 2022[29] - The group's inventory balance as of December 31, 2023, was HKD 80,209,000, compared to HKD 92,890,000 on December 31, 2022[29] - The net asset liability ratio as of December 31, 2023, was approximately 28.7%, down from 33.5% on December 31, 2022[30] - As of December 31, 2023, the total value of assets pledged for bank financing was approximately HKD 148,961,000, down from HKD 320,633,000 in 2022[38] Future Outlook and Strategy - The group expects China's GDP growth target for 2024 to be set at 5%, focusing on stimulating domestic consumption, including new energy vehicles[26] - The group believes that its business performance in 2024 will exceed that of 2023, despite potential global economic instability[26] - The group plans to continue launching new products to expand its product portfolio and market coverage in response to advancements in manufacturing technology in China[26] - The company aims to expand its business in Southeast Asia to mitigate risks associated with over-reliance on the Chinese market[61] - The company will explore investment opportunities in manufacturing equipment in other countries, including Europe, to diversify market risks[61] Risk Management and Compliance - The company has established risk management systems to identify and manage significant risks that could adversely affect performance[58] - The company has established a disaster recovery plan that includes cybersecurity and disaster recovery elements to ensure business continuity[62] - The company has not encountered any legal cases related to corruption in the fiscal years 2022 and 2023[182] - The company adheres to local labor laws and regulations, ensuring compliance with employment standards[160] Environmental and Social Responsibility - The company is committed to reducing environmental impact and enhancing sustainability measures[159] - The company actively participates in community charitable activities, reinforcing its commitment to social responsibility[197] - The company has adopted a green office policy across all its offices in Hong Kong, China, Taiwan, Singapore, and other locations[187] - The company aims to reduce greenhouse gas emissions intensity by 10% by 2030, using 2021 as the baseline year[196] - The company is committed to achieving zero plastic bottle consumption by 2025 through continued reduction of single-use plastic products[196] Corporate Governance - The company has maintained compliance with the corporate governance code as of December 31, 2023, ensuring effective management and accountability[106] - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and financial reporting matters for the year ending December 31, 2023[94] - The board consists of six members, including three independent non-executive directors, ensuring critical oversight of management processes[120] - The company has adopted a board diversity policy since September 1, 2013, considering factors such as age, cultural background, and professional experience[119] Employee Management - The company has implemented a performance appraisal system for all employees based on position, capability, attitude, and performance[160] - The company provides competitive compensation and performance-based bonuses to retain employees[171] - The company emphasizes employee feedback and has established various communication channels for concerns and suggestions[173] - The employee turnover rate for males is 8.0% and for females is 3.1%[161] Audit and Financial Reporting - The financial statements for the year ending December 31, 2023, were audited by PwC, who are eligible and willing to be reappointed[104] - The independent auditor's report confirms that the consolidated financial statements accurately reflect the company's financial position as of December 31, 2023[200] - The audit committee is responsible for monitoring risk management and internal controls, ensuring accurate financial reporting, and reviewing the nature and scope of audits[129]
力丰(集团)(00387) - 2023 - 年度财报