Financial Performance - The company's revenue for the fiscal year ending June 30, 2024, was approximately RMB 139,203,000, a decrease of 1.6% compared to RMB 141,536,000 in the previous year[2]. - Operating loss increased to RMB 33,236,000, representing a 52.9% rise from RMB 21,734,000 in the prior year[2]. - Loss attributable to shareholders was RMB 32,735,000, up 44.3% from RMB 22,692,000 year-on-year[2]. - The basic and diluted loss per share was RMB 3.16, compared to RMB 2.19 in the previous year, marking a 44.3% increase[2]. - The net asset value decreased to RMB 1,690,688,000, down 1.7% from RMB 1,720,592,000 year-on-year[2]. - The company's revenue for the year was approximately RMB 139,203,000, a decrease of about 1.6% compared to RMB 141,536,000 in the previous year, primarily due to reduced demand in certain downstream markets and increased competition in the automation and watch instrument sectors[12]. - Gross profit for the year was approximately RMB 35,026,000, slightly up from RMB 34,994,000 in the previous year, attributed to changes in product mix and production improvements despite rising material costs[13]. - The operating loss for the year was approximately RMB 33,236,000, compared to RMB 21,734,000 in the previous year, influenced by a decline in sales and property impairment losses[13][14]. - The loss attributable to shareholders for the year was approximately RMB 32,735,000, compared to RMB 22,692,000 in the previous year[15]. - Basic and diluted loss per share for the year was RMB 3.16, compared to RMB 2.19 in the previous year[16]. - As of June 30, 2024, the company's cash and cash equivalents amounted to approximately RMB 1,417,002,000, down from RMB 1,444,580,000 in the previous year[17]. - The total equity attributable to shareholders decreased by approximately RMB 29,904,000 to about RMB 1,690,688,000 as of June 30, 2024[19]. Segment Performance - Sales from the automation instruments and technology products segment were approximately RMB 139,081,000, accounting for 99.9% of total revenue, a slight decrease from RMB 140,945,000 in the previous year[8]. - The segment reported a loss of RMB 14,009,000, compared to a loss of RMB 13,236,000 in the previous year, primarily due to reduced market demand and increased competition[8]. - The watch and instrument segment generated sales of approximately RMB 122,000, down from RMB 591,000 in the previous year, representing 0.1% of total revenue[9]. Corporate Strategy and Governance - The company has no major expansion plans due to global market instability, and future development plans will be approached cautiously[10]. - The company continues to focus on technological innovation and new product development to adapt to evolving market demands[7]. - The company is focused on expanding its market presence and enhancing its product offerings through continuous research and development[36]. - The management team includes professionals with significant expertise in finance, accounting, and engineering, ensuring robust oversight of financial and operational strategies[33][35][36]. - The company has a strong commitment to technological advancement, with several executives involved in the development of innovative products recognized by government awards[32][36]. - The company’s strategic direction is guided by experienced leaders who have been with the organization for many years, ensuring continuity and stability[31][36]. - The company emphasizes accountability, transparency, and fairness in its corporate governance practices[37]. Board Composition and Meetings - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced composition with relevant knowledge and experience[39]. - The board held three meetings during the year, with all members attending each meeting, indicating strong engagement and oversight[43]. - The company has adopted the corporate governance code and has complied with most of its provisions, with management providing updates to the board semi-annually instead of monthly[41]. - The company has three independent non-executive directors, exceeding one-third of the board, ensuring compliance with listing rules and providing independent perspectives[45]. - The board is responsible for overseeing business operations and making key decisions regarding annual and interim results, dividends, and accounting policies[40]. - The company held an annual general meeting on December 22, 2023, with full attendance from executive and independent non-executive directors[44]. - The board has mechanisms in place to ensure independent directors contribute effectively and meet regularly to discuss company matters[45]. Risk Management and Compliance - The company has established a risk management framework aimed at achieving business objectives and safeguarding assets from unauthorized use[61]. - The board conducts an annual review of the effectiveness of the risk management and internal control systems, confirming no significant deficiencies were found this year[61]. - The company emphasizes environmental, social, and governance (ESG) responsibilities, holding at least one board meeting annually to assess ESG risks and strategies[67]. - The company has not identified any significant uncertainties that may cast doubt on its ability to continue as a going concern[59]. - The group has complied with all relevant laws and regulations concerning bribery, extortion, fraud, and money laundering throughout the year[103]. Environmental and Social Responsibility - The company emphasizes environmental, social, and governance (ESG) responsibilities, holding at least one board meeting annually to assess ESG risks and strategies[67]. - The company has established a comprehensive management system for energy and resource usage, focusing on water and electricity conservation[75]. - The company has maintained compliance with national environmental standards, with no harmful waste generated during the reporting period[73]. - The total wastewater discharge was 5,249 tons, an increase from 5,100 tons in 2023, while the biochemical oxygen demand (BOD) decreased to 64.0 kg from 87.7 kg[74]. - The total air emissions in 2024 were significantly reduced to 589,952 cubic meters from 9,459,600 cubic meters in 2023, indicating a substantial improvement in emission control[74]. - The company aims to reduce non-production related water usage by 10% to 15% over the next five years[78]. - The company plans to decrease electricity consumption per production unit by 10% to 15% within the next five years[79]. Employee Management and Training - The total number of employees decreased to 436 as of June 30, 2024, from 473 in the previous year, with employee costs amounting to approximately RMB 38,340,000[25]. - The employee turnover rate for males is 11.5% and for females is 15.0%[86]. - The company has implemented mandatory social insurance, medical insurance, and provident fund plans throughout the year, complying with significant employment and labor regulations[87]. - The company has developed a training plan based on departmental needs, ensuring employees meet educational and skill requirements[89]. - The company provided a total of 4,008 hours of training for production personnel in 2023, compared to 2,540 hours in 2022, reflecting a significant increase[94]. - Average training hours for new employee onboarding increased from 20 hours in 2022 to 24 hours in 2023[94]. - Average training hours for position skills training rose from 20 hours in 2022 to 24 hours in 2023[94]. Financial Reporting and Audit - The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards and reflect a true and fair view of the group's financial position as of June 30, 2024[136]. - The audit committee reviewed the financial statements for the year ending June 30, 2024, and held three meetings during the same period[56][57]. - The company confirmed that the remuneration for senior management (excluding directors) is within the range of HKD 1,000,000 or below for two individuals[55]. - The independent auditor's report does not cover other information included in the annual report, focusing solely on the consolidated financial statements[141]. - The governance team is tasked with overseeing the financial reporting process of the group[142]. Shareholder Relations - The company maintains a proactive shareholder communication policy to strengthen relationships with investors and enhance communication[66]. - The company encourages shareholders to attend annual general meetings for constructive communication with the board[66]. - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting to address specified business matters[63].
中国高精密(00591) - 2025 - 年度财报