Business Strategy and Growth - The Group is actively seeking various business and investment opportunities to broaden revenue sources and manage associated risks[1] - The Group's strategy may involve organic growth and new business combinations, which could be modified or delayed based on market conditions[1] - Management is cautiously optimistic about future business outlook, anticipating a gradual return to normality post-pandemic[30] - The Group aims to maintain sustainable business development to maximize shareholder returns[30] - The Group is accelerating the expansion of its Shenzhen development center to address the shortage of IT workforce in Hong Kong[30] - The Shenzhen team is expected to help fill the development resource gap in Hong Kong and facilitate business expansion in the Greater Bay Area[30] Financial Performance - The Group's total revenue increased by HK$3.2 million, or 1.2%, to HK$268.7 million for the reporting year[36] - Gross profit decreased by HK$7.4 million, or 4.9%, to HK$145.0 million, with a gross profit margin falling to 54.0% from 57.4%[36] - Profit attributable to shareholders fell by 12.7% to HK$47.0 million, resulting in a net profit margin of 17.5%[38] - The Group's financial position remains robust, continuously generating positive cash inflows from operations[16] - Current assets slightly increased by HK$15.4 million, or 3.9%, to HK$412.7 million, mainly from cash and trade receivables[38] - The Group maintained a current ratio of 3.0 and a gearing ratio of 22.9% as of December 31, 2022, compared to 3.0 and 23.1% respectively in the previous year[58] Risk Management - The Board meets quarterly to review the Group's operations and financial performance, considering economic and industry risks[1] - The Group's operational risk management is a shared responsibility across all functions at both divisional and departmental levels[4] - The Group continuously identifies and assesses key operational exposures to report risk issues to the Board and senior management[4] - The Board has delegated the evaluation of key risks, including ESG-related risks, to the Audit Committee and the Risk Management Committee[8] - The Risk Management Committee reviewed the Group's risk framework and key risks, submitting reports to the Audit Committee for approval[172] Human Resources and Talent Management - The Group recognizes the need to attract, train, retain, and motivate skilled personnel to ensure its growth and success[4] - The Group is committed to providing competitive remuneration packages to motivate employees and attract suitable candidates[4] - The Group aims to provide regular training and development programs to staff to nurture talent and ensure a decent and safe work environment[11] - The company provided over HK$153,000 in financial sponsorship during the reporting year to support employee training and development[75] - Structured orientation training is provided to new joiners, covering company values, business operations, and employee rights[75] Corporate Governance - The Board comprises four executive directors and three independent non-executive directors (INEDs), with INEDs constituting more than one-third of the Board[105] - The Company has implemented measures to ensure its corporate governance practices align with the CG Code[102] - The Board believes that good corporate governance is essential for the Company's success and enhancement of shareholder value[102] - The Company emphasizes the importance of board diversity, considering factors such as gender, age, educational background, and professional experience in its composition[111] - The Nomination Committee reviews the composition of the Board annually to ensure it possesses the necessary core competence for informed decision-making and effective functioning[117] Environmental, Social, and Governance (ESG) Initiatives - The ESG Working Group, chaired by an independent non-executive director, oversees the Group's ESG performance and reports to the Board[8] - The Group's commitment to ESG compliance is viewed as a fundamental operation while striving to create value for stakeholders[10] - The Group aims to enhance existing recycling programs and promote environmental sustainability among staff[54] Dividend Policy - The Group declared a final dividend of 7.5 HK cents per ordinary share for the year ended December 31, 2022, down from 11 HK cents in 2021, and a special dividend of 5 HK cents, totaling a full-year dividend of 19 HK cents compared to 17 HK cents in 2021[16] - The Group has adopted a dividend policy allowing shareholders to participate in profits while retaining adequate reserves for future growth, considering dividends twice a year[184] - The Board will consider actual and expected financial results, economic conditions, and business strategies when determining dividend frequency and amount[187] Investment and Financial Management - The Investments segment recorded a loss of HK$0.1 million in 2022, a decline from a profit of HK$3.1 million in 2021 due to weakened market sentiment[29] - The Group has pledged investment properties valued at HK$63.5 million as collateral for general bank financing totaling HK$111.9 million[55] - The company’s investment strategy focuses on prudent treasury investment and management, aiming to diversify low to moderate risk investments to counter cash depreciation and generate stable income[165] Software and Technology Development - The Group invested in research and development to enhance software offerings and improve user experience[18] - The Group's enterprise software businesses reported lower revenue and profit contributions, but maintained double-digit growth in recurring maintenance and SaaS income[18] - The Solutions and Integration Services business achieved double-digit revenue growth, primarily driven by projects from the HKSAR Government[18] Board and Management Composition - The Group's management team includes professionals with degrees from prestigious universities, enhancing their expertise in their respective fields[100] - The Board is characterized by a mix of expertise and experience, ensuring informed decision-making[117] - The Company retains discretion to establish criteria for evaluating director candidates based on the collective composition of the Board[121]
科联系统(00046) - 2022 - 年度财报