Financial Performance - The company reported a loss of approximately HKD 42 million for the year ended June 30, 2023, compared to a loss of HKD 89 million in the same period of 2022, indicating a significant reduction in losses [8]. - Revenue for the year was approximately HKD 7 million, down from HKD 9 million in 2022, reflecting a decrease in rental income from investment properties [9]. - The total sales for the year amounted to approximately HKD 10 million [13]. - For the fiscal year ending June 30, 2023, the total greenhouse gas emissions amounted to 160 tons, an increase from 101 tons in the previous year, resulting in a per employee emission of 2.39 tons compared to 1.44 tons [91]. - Total revenue for the year ended June 30, 2023, was HKD 18,386,000, a decrease of 36.2% from HKD 28,783,000 in 2022 [196]. - Gross profit for the same period was HKD 10,093,000, down from HKD 10,906,000, reflecting a decline of 7.4% [196]. - Operating loss narrowed to HKD 37,567,000 from HKD 87,230,000, indicating a significant improvement in operational efficiency [196]. - The net loss for the year was HKD 41,764,000, compared to HKD 89,466,000 in the previous year, representing a reduction of 53.3% [196]. - The company's equity attributable to owners decreased to HKD 710,932,000 from HKD 749,077,000, a decline of 5.1% [200]. - Basic loss per share improved to HKD 2.66 from HKD 5.84, reflecting a 54.4% reduction in loss per share [196]. Investment and Technology - The company has invested approximately HKD 160 million in next-generation technology applications, with expectations of generating USD 33 million in revenue from its technology department by 2027 [11]. - The technology department consists of 37 R&D engineers across five operational sites in four countries [11]. - The company has launched various improvements to its portable X-ray detection devices aimed at security and industrial applications, with sales expected to increase in the fiscal years 2023 to 2024 [15]. - The company is developing advanced positioning and imaging sensor technologies, with several products expected to enter mass production in 2024 [17]. - Dynim Oy is developing high-end sensors and AI software for industrial applications, with a focus on robust stereo cameras for heavy machinery [18]. - Imagica Technology Inc. has developed linear image sensors for spectroscopy and document scanners, utilizing advanced 3D semiconductor processes [18]. - The company is currently evaluating whether to invest additional capital due to significant challenges in achieving profitability over the past three years [20]. Governance and Management - The board of directors consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring a diverse range of expertise in management, property market, electronics, accounting, finance, and corporate development [40]. - The board held four meetings and one annual general meeting during the year ending June 30, 2023, with attendance details provided for each director [43]. - The nomination committee has been established to review the board's structure and composition, ensuring a diverse skill set among members [47]. - The company has adopted a nomination policy to enhance board diversity and governance standards, considering factors such as gender, age, cultural background, and professional experience [53]. - The remuneration committee, consisting of three independent non-executive directors and one executive director, is responsible for proposing the remuneration policy for all directors and senior management [54]. - The company has made appropriate insurance arrangements for legal actions that directors and senior officers may face [48]. - The chairman and CEO roles are separated, with the current chairman temporarily acting as CEO until a new appointment is made [46]. - The board is responsible for setting the group's strategic direction and policies, as well as overseeing management [40]. - Independent non-executive directors are selected based on required skills and experience to ensure strong independent judgment within the board [43]. - The company will regularly review its governance practices to ensure effective corporate governance is maintained [46]. - The audit committee held two meetings during the year ended June 30, 2023, with attendance as follows: Chairman 廖文健 attended 2/2, 陳智豪 attended 2/2, 歐植林 attended 1/2, and 羅榮選 attended 0/2 [58][59]. - The external auditor, 罗申美会计师事务所, charged a total of HKD 864,000 for audit and non-audit services, with HKD 610,000 for audit services and HKD 254,000 for non-audit services [69]. - The company’s board of directors has adopted a dividend policy to consider and declare interim and final dividends semi-annually, subject to various factors including available reserves and operational needs [61]. - The company emphasizes the importance of a robust internal control system to achieve business objectives and ensure compliance with laws and regulations [70]. - The internal control procedures include a comprehensive budgeting and performance monitoring system, with management responsible for identifying and reporting significant business risks [71]. - The audit committee is responsible for reviewing the company's financial information, including annual and interim reports, and ensuring the independence of the external auditor [56][58]. - The company has implemented training programs for directors to enhance their understanding of corporate governance and their responsibilities [64][65]. - The board of directors acknowledges its responsibility for the effectiveness of the internal control system and has engaged independent consultants to review it [71]. Environmental Impact - The company has established an environmental policy addressing significant environmental issues, ensuring compliance with relevant environmental laws and regulations, with no major non-compliance incidents reported during the reporting period [86]. - Total gasoline consumption decreased from 7,257 liters in 2022 to 6,777 liters in 2023, representing a reduction of approximately 6.6% [98]. - Purchased electricity consumption increased significantly from 153,866 kWh in 2022 to 245,043 kWh in 2023, marking an increase of about 59.3% [98]. - Employee density for gasoline consumption improved from 104 liters per employee in 2022 to 101 liters per employee in 2023 [98]. - Employee density for purchased electricity rose from 2,198 kWh per employee in 2022 to 3,657 kWh per employee in 2023, indicating a 66.5% increase [98]. - The company maintained a low level of hazardous waste emissions due to the nature of its business operations, with no significant data disclosed [94]. - The company has implemented various energy-saving measures to reduce emissions, including the use of energy-efficient lighting and recycling initiatives [101]. - No significant environmental impact was reported during the reporting period, and the company is committed to complying with relevant environmental laws and regulations [103]. - The company plans to maintain the same levels of energy and water consumption through the fiscal year ending June 30, 2024 [101]. Employee and Labor Relations - The total number of employees as of June 30, 2023, was 67, with compensation determined based on market conditions [27]. - The employee turnover rate for males was 22%, while for females it was 0% [110]. - The overall employee count was 67, with 54 males and 13 females, indicating a gender ratio of approximately 81% male to 19% female [108]. - During the reporting period, 31% of male and 31% of female employees received training, with senior management receiving an average of 1 hour and regular employees receiving 3 hours of training [114]. - The company did not receive any tenant complaints during the reporting period [121]. - The company has not identified any serious violations of labor standards or regulations during the reporting period [116]. - The company emphasizes the importance of maintaining high quality and standards for sustainable development, ensuring compliance with health, safety, and privacy regulations [122]. - The company has a zero-tolerance policy for misconduct and has not received any reports of corruption-related risks during the reporting period [126]. - The company is committed to community investment and encourages employees to participate in local community projects [127]. Risks and Challenges - The company anticipates challenges due to ongoing geopolitical tensions and economic uncertainties, impacting its future outlook [11]. - The company faces significant business risks related to the performance of the Hong Kong property market, which could adversely affect its financial condition and operations [132]. - The company has made significant investments in high-tech products, but the success of its R&D efforts is uncertain due to rapid technological changes in the market [132]. - The company regularly evaluates existing suppliers to mitigate supply chain risks and ensures the quality of services and products provided [118]. Shareholder Information - For the fiscal year ending June 30, 2023, the company's distributable reserves amounted to HKD 202,463,000 [144]. - The largest customer accounted for 40% of total revenue, while the top five customers represented 76% of total revenue for the same period [146]. - The largest supplier contributed 35% to the total cost of sales, and the top five suppliers accounted for 48% of total cost of sales [146]. - The company’s directors collectively held 55,497,189 shares, representing 3.96% of total equity [150]. - Major shareholder Basurto Holdings Limited held 508,848,531 shares, accounting for 36.31% of total equity [153]. - Gold Seal Holdings Limited, another major shareholder, held 537,993,892 shares, representing 38.39% of total equity [153]. - The company reported no significant disputes with employees or customers during the fiscal year [139]. - The company has complied with all relevant laws and regulations without any major violations during the review period [138]. - The company’s board of directors includes both executive and independent non-executive members, ensuring governance and oversight [147]. Corporate Actions - The company has not disclosed any new product developments or market expansion strategies in the provided documents [145]. - The company adopted a share option plan on December 8, 2015, to reward selected participants contributing to the group [156]. - A total of 397,721,900 share options were granted to certain employees and directors between May 30, 2016, and November 9, 2018 [156]. - As of June 30, 2023, the number of unexercised options held by directors includes 13,676,400 options at an exercise price of HKD 0.321, granted in 2016 [156]. - The company did not engage in any arrangements that would allow directors or senior executives to benefit from purchasing shares or bonds of the company or any other entity during the year [159]. - The net proceeds from the public offering conducted in December 2017 amounted to approximately HKD 63,200,000, which has been fully utilized by June 30, 2023 [169]. - There were no purchases, sales, or redemptions of the company's listed shares by the company or its subsidiaries for the year ending June 30, 2023 [168]. - The company has not entered into any management or administrative contracts concerning any significant part of its business during the year [162]. - The company has not established or maintained any share-linked agreements during the year, aside from its convertible bonds and share option plan [164]. - The company has provided indemnification rights to its directors and senior officers for losses or liabilities incurred while performing their duties [163]. - The company has not disclosed any significant interests held by directors in major contracts with the company or its subsidiaries during the year [160]. - As of June 30, 2023, the group incurred a loss of approximately HKD 41,764,000, with net current liabilities of about HKD 69,334,000, raising significant doubts about the group's ability to continue as a going concern [181]. - The fair value of the group's investment properties was estimated at approximately HKD 518,000,000, with a fair value loss of about HKD 9,400,000 recognized in the income statement for the year ended June 30, 2023 [184].
PALADIN(00495) - 2023 - 年度财报