Procurement and Suppliers - The largest supplier accounted for 41% of the total procurement amount for the year, while the top five suppliers together accounted for 65%[3]. Corporate Governance - The company has a total equity of 407,372,381 shares, representing 64.49% of the issued share capital[9]. - The company has not entered into any arrangements that would allow directors to benefit from purchasing shares or bonds of the company or any other entity during the year[15]. - The board consists of six executive directors and four independent non-executive directors as of December 31, 2022[20]. - The company has adopted the standard code of conduct for securities trading by directors, ensuring compliance throughout the year[19]. - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange's listing rules[96]. - The board of directors held four regular meetings during the fiscal year, with all directors attending[77]. - The company does not grant performance-related equity compensation to independent non-executive directors[6]. Financial Performance - The group's revenue for the year ended December 31, 2022, was HKD 1,601,433,000, with a profit of HKD 15,814,000[44]. - The group's revenue for the year ended December 31, 2022, decreased by 29.6% to HKD 1,601,433,000 compared to HKD 2,273,399,000 in the previous year, primarily due to the impact of COVID-19 and strict prevention measures in China[47]. - The annual profit for the year was HKD 15,814,000, down from HKD 227,841,000 in the previous year[55]. - The group reported a profit before tax of HKD 21,670,000, a significant decline from HKD 315,489,000 in the previous year[55]. - The basic earnings per share decreased to HKD 2.50 from HKD 36.07 in the previous year[55]. - The group’s total comprehensive income for the year was HKD 268,500,000, reflecting the impact of foreign exchange differences from overseas operations[1]. - The group’s total comprehensive expenses for the year amounted to HKD 120,455,000, influenced by foreign exchange losses[1]. Cash Flow and Financial Position - Operating cash flow before changes in working capital was HKD 146,679,000, with net cash from operating activities amounting to HKD 76,865,000[35]. - The group reported a net cash decrease of HKD 249,786,000 for the year, with year-end cash and cash equivalents at HKD 536,643,000[35]. - The group's bank deposits and cash amounted to HKD 536,643,000 as of December 31, 2022, compared to HKD 833,586,000 in 2021, with no borrowings reported[91]. - The group has sufficient cash to meet its operational and capital commitments, with no financial impact from the COVID-19 pandemic[93]. Operational Challenges - The group experienced a significant decline in total customer orders due to a contraction in the overall Chinese market, leading to a corresponding decrease in revenue[45]. - The group faced challenges from geopolitical tensions and the ongoing impact of the COVID-19 pandemic, which affected consumer confidence and economic activity[45]. - The management highlighted significant market and inflationary pressures affecting the prices of mold steel raw materials, resulting in increased operational costs[46]. - Demand for household appliances and furniture products continues to decline, and the medical product demand is expected to decrease as the pandemic recedes[197]. Employee and Compensation - The group employed approximately 2,900 employees as of December 31, 2022, with a competitive compensation system in place[94]. - Employee benefit expenses decreased by 23.6% to HKD 436,242,000, while other expenses decreased by 15.2% to HKD 369,563,000[49]. Investment and Assets - The fair value measurement of investment properties is based on observable and unobservable inputs, classified into three levels[85]. - The fair value of investment properties increased by HKD 19,500,000 compared to the same period last year[122]. - The carrying amount of property, plant, and equipment is reviewed for impairment indicators at the end of the reporting period[120]. - The group measures inventory at the lower of cost and net realizable value, with costs determined using the weighted average cost method[170]. Taxation - Income tax expenses decreased by 93.3%, with the effective tax rate reduced to 27.0% (2021: 27.8%)[122]. - Deferred tax assets and liabilities are reviewed at each reporting date and adjusted if it is no longer probable that sufficient taxable profits will be available to recover the assets[176]. Future Outlook - The company will adopt a cautious approach to market changes while striving for sustainable business development in 2023[112]. - The group anticipates that as the pandemic is controlled, Chinese consumer spending will gradually increase, further driving economic growth in the domestic market, although the growth rate remains to be observed[197]. - Raw material and mold steel prices are expected to continue fluctuating due to inflationary pressures, prompting the group to optimize management models and enhance automated production processes to mitigate potential risks and pressures from rising costs[198]. - The group is focused on managing operational costs while improving production efficiency to lower the impact of cost increases[198].
龙记集团(00255) - 2022 - 年度财报