Revenue and Financial Performance - The group's revenue decreased in 2022 primarily due to a reduction in PCB product orders, particularly single-sided and multi-layer PCBs[8]. - The total revenue for the year ended December 31, 2022, was HKD 260,179,000, a decrease of 30.7% compared to HKD 375,375,000 in 2021[87]. - Revenue from single-sided PCBs was HKD 29,811,000, down 55.0% from HKD 66,256,000 in the previous year[87]. - Revenue from double-sided PCBs was HKD 205,746,000, representing a decrease of 10.4% from HKD 229,513,000 in 2021[87]. - Revenue from multi-layer PCBs was HKD 17,610,000, a significant decline of 74.8% compared to HKD 69,786,000 in the prior year[87]. - Revenue from LED lighting business was HKD 7,012,000, down 28.6% from HKD 9,820,000 in 2021[87]. - The company reported a loss of approximately HKD 43,715,000 for the fiscal year ending December 31, 2022[51]. - The loss attributable to shareholders was approximately HKD 41.1 million, a significant increase of 1,053.8% from HKD 3.9 million in the previous year[93]. - As of December 31, 2022, the company's current liabilities exceeded its current assets by approximately HKD 408,416,000, raising significant doubts about its ability to continue as a going concern[51]. Corporate Governance - The board consists of 11 members, including 5 executive directors, 2 non-executive directors, and 4 independent non-executive directors, ensuring a balanced mix of skills and experience[17]. - The audit committee is composed of four independent non-executive directors, with a focus on reviewing and supervising the group's financial reporting and compliance procedures[23]. - The chairman leads the board and ensures effective communication with shareholders while promoting good corporate governance practices[20]. - The company has adopted a standard code of conduct for directors' securities trading, ensuring compliance with regulations[16]. - The board meets at least four times a year, with regular updates provided to ensure directors can fulfill their responsibilities effectively[19]. - The nomination committee is responsible for reviewing the board's structure and composition annually, ensuring a diverse skill set among board members[34]. - The compliance committee oversees the group’s adherence to relevant laws and regulations, ensuring effective compliance procedures[35]. - The board has established a diversity policy aimed at enhancing governance and achieving sustainable business goals, with two female directors among eleven total[37]. - The board has resolved not to recommend a final dividend for the year, consistent with the previous year[110]. Strategic Initiatives and Future Plans - The company plans to implement cost-saving measures and improve quality to attract more sales orders from existing and potential customers[8]. - The company aims to enhance long-term shareholder returns through sustainable recurring revenue growth and maintaining a strong financial position[15]. - The company plans to focus on developing high-value-added PCB products, particularly copper-based PCBs for clean environmental applications[92]. - The company is seeking debt and equity financing to improve its working capital and cash flow situation[103]. - The company is taking cost control measures and strategic pricing policies to attract more sales orders amid the challenges posed by the COVID-19 pandemic[99]. Environmental, Social, and Governance (ESG) Efforts - The company emphasizes a commitment to sustainable development as a core part of its business strategy[135]. - The board of directors is responsible for overseeing the company's environmental, social, and governance (ESG) strategies and performance[148]. - The group has adopted a three-tier risk management approach to identify, assess, and manage significant risks and opportunities, including environmental, social, and governance-related risks[149]. - The group identifies key sustainability issues through a three-step process: identification, prioritization, and application and verification[151]. - High importance issues identified include product/service quality and safety, occupational health and safety, wastewater discharge, and greenhouse gas emissions[157]. - The company generated a total of 7,403.4 tons of carbon dioxide equivalent (tCO2e) greenhouse gases, with a carbon density of 13.0 tons of CO2e per 10,000 square feet, reflecting a reduction attributed to decreased production activities[173]. - The total wastewater discharge for the year was 83,284.1 cubic meters, significantly reduced from 415,233.3 cubic meters in the previous year, primarily due to decreased production activities[169]. - The company aims to reduce greenhouse gas emissions density (Scope 1 and 2) by 3% from the 2021 baseline by 2027[178]. - The company plans to reduce waste emissions density by 5% from the 2021 baseline by 2027[189]. Employee and Operational Insights - The group employed a total of 372 employees as of December 31, 2022, a decrease from 448 employees in 2021[111]. - The employee gender ratio as of December 31, 2022, was 1.68:1 (male to female)[41]. - The company has adopted a competitive remuneration scheme for its employees, with promotions and salary increases based on performance[31]. - The company has established mechanisms to ensure independent viewpoints are available to the board, which are reviewed annually[41]. Risk Management and Compliance - The board conducted an annual review of the effectiveness of the group's risk management and internal control systems, finding them effective and adequate as of December 31, 2022[57]. - The group has implemented a three-tier risk management approach to identify, assess, and manage significant risks[59]. - The board tracks and reviews major environmental, social, and governance issues at least once a year to narrow the gap between current progress and expectations[149]. - The company has established an effective energy monitoring and assessment system to continuously improve energy efficiency and set energy-saving targets[192].
中华银科技(00515) - 2022 - 年度财报