Financial Performance - The company's revenue for the fiscal year ending March 31, 2023, was approximately HKD 2,205 million, a decrease of 14.0% compared to HKD 2,550 million for the previous year[22]. - The sales volume for the fiscal year was about 80,000 tons, down 17.4% from 96,790 tons in the previous year[23]. - The company recorded a loss attributable to equity shareholders of approximately HKD 44.4 million, compared to a profit of HKD 18.7 million in the previous year[23]. - Gross profit for the fiscal year was approximately HKD 77.3 million, with a gross margin of 3.5%, down from HKD 146 million and 5.7% in the previous year[23]. - The total assets as of March 31, 2023, were HKD 925.7 million, down from HKD 1,117.2 million in the previous year[22]. - The company maintained a strong financial position with cash and bank balances of HKD 221 million as of March 31, 2023[26]. - The company reported a total comprehensive loss of HKD 41,517 for the year, compared to a comprehensive income of HKD 29,579 in the previous year[150]. - The company incurred a loss of HKD 44,469,000 for the year, compared to a profit of HKD 18,657,000 in the previous year[156]. - The total equity attributable to equity shareholders decreased from HKD 923,263,000 in 2022 to HKD 873,582,000 in 2023, a decline of about 5.4%[156]. Operational Developments - The company implemented a new industrialization process in Hong Kong, enabling real-time data collection and exchange, improving production efficiency while saving energy[16]. - Automation was introduced in the casting production line at Ningbo, enhancing product stability and quality while ensuring employee safety[16]. - The launch of a new e-commerce platform by the company's subsidiary expanded customer channels and addressed local demand for water quality testing[17]. - The company is investing in a new production line in Hong Kong, expected to commence production in the third quarter of the current year[22]. - The group expanded its office in Thailand in 2022 to meet the growing demand for quality alloys and technical consulting services in Southeast Asia[29]. - The group launched a series of special alloys targeting key industrial sectors across Asia, optimizing its product mix to meet high-growth industry demands[31]. Sustainability and Environmental Initiatives - The company is assisting clients in advancing green production and integrating into future green supply chains, contributing to carbon footprint reduction[17]. - The company received several sustainability awards, including the "Environmental, Social and Governance Excellence Award" from the Hong Kong Listed Companies Association[17]. - The company plans to offer metal remelting services to help clients reduce their carbon footprint[17]. - The group generated 260,279 kWh of renewable energy from its 200 kW solar panels during the fiscal year[33]. - The group aims to reduce its environmental footprint through sustainable manufacturing initiatives, including the use of renewable energy and energy-efficient equipment[40]. - The company has adopted its own environmental policy aimed at minimizing negative operational impacts and enhancing environmental awareness among stakeholders[121]. - The company participates in the Environmental Protection Department's "Carbon Footprint Database" and "Carbon Audit - Green Organization" programs since 2015[121]. Governance and Management - The company has implemented specific measures to comply with the corporate governance code as per the Stock Exchange Listing Rules during the fiscal year[61]. - The board of directors is responsible for providing corporate leadership and ensuring long-term value for shareholders[63]. - The company has adopted the standard code for securities transactions by directors, with no reported violations during the fiscal year[62]. - The company has established a remuneration committee responsible for reviewing compensation terms and determining bonuses, consisting of three members, two of whom are independent non-executive directors[68]. - The nomination committee has reviewed the company's diversity policy and measurable targets, ensuring a balance of skills, experience, and diverse perspectives within the board[70]. - The company has adopted a compliance policy to handle potential insider information and public trading announcements, enhancing corporate governance awareness among employees[73]. Risk Management - Major risks identified include commodity price risk, currency risk, volume risk, credit risk, liquidity risk, cyber risk, and climate risk[82]. - The company employs stress testing to analyze commodity price and volume risks, acknowledging that these measures do not provide absolute guarantees[84]. - A dedicated team monitors currency, credit, and liquidity risks, utilizing hedging strategies to lock in favorable rates[85]. - The company has established a risk register to systematically prioritize and manage identified risks[86]. - The audit committee and board have confidence in the effectiveness of the risk management system, with no immediate concerns affecting financial and operational performance[86]. Employee and Community Engagement - Employee costs, including directors' remuneration, were approximately HKD 67.8 million for the year, up from HKD 66.5 million in 2022[47]. - The group employed approximately 190 employees as of March 31, 2023, an increase from 180 employees in 2022[47]. - Charitable and other donations made by the group during the year amounted to approximately HKD 71,000[101]. - The company emphasizes the importance of employee safety and has established a safety committee to ensure workplace safety[122]. - The company has received multiple awards and certifications for its commitment to community service and environmental protection[120]. Financial Reporting and Compliance - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and the relevant accounting principles, ensuring compliance with the Hong Kong Stock Exchange listing rules[161]. - The group did not apply any new standards or interpretations that are not yet effective for the current accounting period, indicating stability in accounting practices[164]. - The audit report confirms that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2023, in accordance with Hong Kong Financial Reporting Standards[132]. - The company has identified key audit matters and communicated them to the audit committee, ensuring transparency in the audit process[145].
利记(00637) - 2023 - 年度财报