Financial Performance - The total revenue for the fiscal year ended December 31, 2022, was approximately HKD 273 million, an increase of about 16.2% compared to HKD 235 million in the previous year[10]. - The company recorded a profit of approximately HKD 4.8 million for the fiscal year 2022, a significant turnaround from a loss of approximately HKD 80.3 million in the previous year, representing a 106.0% improvement[10]. - The revenue from the frozen warehouse and related services business increased by approximately 27.4% compared to the previous year[10]. - The company received government subsidies of approximately HKD 4.1 million under the employment support scheme from the Hong Kong government[10]. - The group anticipates a rebound in Hong Kong's economy in 2023, which may boost consumer spending and confidence[23]. - The group expects gradual recovery in its frozen warehouse and logistics business in Hong Kong and food and beverage distribution in mainland China through internal restructuring and resource reallocation[23]. Operational Efficiency - The company plans to enhance the operational efficiency of its frozen warehouse facilities and effectively manage costs as economic activities normalize[8]. - The group has increased the efficiency of temperature-controlled warehouse areas in response to rising demand from food grocery distributors and supermarkets due to the COVID-19 pandemic[13]. - The group has relocated the storage of alcohol and tobacco products to improve operational efficiency and reduce costs[15]. - The group has upgraded the cooling system in the Kwai Hei Street warehouse to improve operational efficiency and comply with environmental standards[24]. - The company is focusing on high-margin product lines and adopting more efficient and cost-effective sales channels in its food and beverage trading business in mainland China[8]. Market Conditions and Risks - The ongoing COVID-19 pandemic and trade tensions have negatively impacted trade activities in Hong Kong, affecting the overall performance of the warehousing and logistics industry[12]. - The company recognizes the ongoing risks from the COVID-19 pandemic and has implemented measures to mitigate operational and market risks[21]. - In 2022, the group faced significant increases in frozen warehouse rental costs, which may be challenging to pass on to customers amid a weak economic environment in Hong Kong[13]. Corporate Governance - The company has adopted a high standard of corporate governance practices, which are regularly reviewed and updated[109]. - The board of directors consists of 8 members, including 2 executive directors and 6 non-executive directors, with a focus on maintaining independence[111]. - The company has established a risk management policy to enhance its ability to manage risks effectively[109]. - The board is responsible for implementing an appropriate corporate governance structure, overseeing the group's business and performance[110]. - The company has arranged training courses for directors to enhance their knowledge and skills, ensuring compliance with corporate governance code C.1.4[129]. Shareholder Communication - The company emphasizes transparent communication with shareholders and investors, providing timely and comprehensive information through various channels[192]. - The company has adopted a shareholder communication policy to ensure clear and reliable information is provided to shareholders[193]. - The company encourages shareholders to submit proposals for special meetings and ensures compliance with relevant regulations[190]. - The company emphasizes the importance of the annual general meeting (AGM) for the fiscal year, with all directors and senior executives actively attending[194]. Employee and Remuneration Policies - The total employee-related costs for the year ended December 31, 2022, amounted to approximately HKD 69,455,000, down from HKD 78,568,000 in 2021[47]. - The remuneration policy aims to provide competitive and fair compensation to attract and retain high-quality employees, balancing fixed and variable pay[164]. - Executive directors' remuneration includes basic salary, annual bonuses, other benefits, and retirement benefits, with salaries reviewed annually[161]. - Non-executive directors' remuneration includes director's fees but excludes any performance-related pay, reviewed annually against comparable companies[169]. Financial Position - As of December 31, 2022, the company's basic and diluted earnings per share were HKD 1.64, a significant improvement from a loss of HKD 27.67 in 2021[33]. - The company's current ratio decreased to 0.85 in 2022 from 1.25 in 2021, indicating a tighter liquidity position[33]. - The total debt to total assets ratio improved to 0.93 in 2022 from 0.96 in 2021, reflecting better leverage management[33]. - Cash and bank balances as of December 31, 2022, were approximately HKD 60.4 million, slightly up from HKD 59.9 million in 2021, primarily due to increased cash generated from operations[33]. Strategic Initiatives - The company diversified its customer base to attract new clients, including supermarkets and frozen food stores, to mitigate risks during the pandemic[7]. - The online grocery shopping platform "Urban Mart" was launched in Hong Kong in 2021, with plans to expand sales channels to offline pop-up stores in shopping centers in 2022[18]. - The newly launched online B2C grocery shopping platform "Urban Mart" is expected to increase membership registrations and reach a broader retail customer base in Hong Kong[26]. Audit and Compliance - The audit committee, established on January 12, 2000, oversees the financial reporting system, internal audit functions, risk management, and internal control systems[171]. - The external auditor for the group was changed to Zhongjun Zhonghuan (Hong Kong) CPA Limited, effective from October 27, 2022, due to a disagreement on audit fees with Deloitte[180]. - The total fees paid to external auditors for the year ended December 31, 2022, amounted to HKD 1,536,000, a decrease of 40.4% from HKD 2,571,000 in the previous year[181]. - The audit committee met with the external auditor twice during the year ended December 31, 2022, to discuss audit plans and financial reporting matters[173].
大同集团(00544) - 2022 - 年度财报