Company Overview - Carry Wealth Holdings Limited has been listed on the Main Board of The Stock Exchange of Hong Kong since 2000[6]. - The company manufactures and trades garment products for internationally renowned brands and engages in securities investment[6]. - The group has production facilities located in Mainland China[6]. - The company is headquartered in Hong Kong, emphasizing its strategic location for business operations[6]. - Carry Wealth Holdings Limited's Chinese name translates to "enduring prosperity," reflecting its long-term vision[6]. - The company is actively involved in the garment industry while also exploring opportunities in securities investment[6]. Financial Performance - The Group's total revenue for 2022 was HK$499.0 million, representing a year-on-year increase of 13.1% from HK$441.1 million in 2021[34]. - The gross profit for 2022 was HK$80.2 million, which is a 31.3% increase compared to HK$61.1 million in 2021[34]. - The loss attributable to equity holders of the Company for 2022 was HK$7.6 million, a significant increase from a loss of HK$19, indicating a 40,031.6% change[34]. - Total assets decreased by 11.9% to HK$254.7 million in 2022, down from HK$289.2 million in 2021[34]. - Total liabilities were reduced by 16.0% to HK$118.3 million in 2022, compared to HK$140.9 million in 2021[34]. - The cash and cash equivalents at year-end were HK$95.7 million, a slight decrease of 1.9% from HK$97.5 million in 2021[34]. - The revenue from the United States market increased by 23.8% to HK$313.9 million in 2022[38]. - The current ratio improved to 1.8 in 2022, up from 1.7 in 2021, reflecting better liquidity[34]. - The gross profit margin increased to 16.1% in 2022, compared to 13.8% in 2021[34]. - The Group's properties, plant, and equipment decreased by 15.4% to HK$59.1 million in 2022[34]. - The Group's basic and diluted loss per share for the year was 0.93 HK cents, compared to 0.00 HK cents in 2021[54]. - The securities investment segment reported a loss of HK$5.0 million, slightly higher than the loss of HK$4.9 million in the previous year[42]. Market and Economic Outlook - The IMF forecasts global economic growth to rise to 2.9% in 2023, with China's economy expected to grow between 5% and 5.5%[44]. - The U.S. economy is projected to grow by 1.4% in 2023, avoiding recession amid declining inflation and low unemployment[44]. - The Group plans to actively explore and develop markets in Europe and America related to its garment manufacturing business[45]. - Order demand from brand customers has turned more conservative as retailers are cautious in sourcing and maintaining inventory levels amid macroeconomic headwinds[100]. Corporate Governance - The executive director team underwent significant changes on February 1, 2023, with multiple appointments and resignations[9][10]. - The roles of chairman and chief executive officer were held by Mr. Li Haifeng until his resignation on February 1, 2023, after which the position of CEO remained vacant[115]. - The Board believes that the current governance structure ensures effective oversight of management and enables prompt decision-making[115]. - The Company maintained compliance with Listing Rules by having at least three independent non-executive directors, representing one-third of the Board[119]. - The Audit Committee is tasked with developing and reviewing the Company's corporate governance policies and practices[129]. - The Company has a strong corporate governance structure to ensure effective oversight and independent access to management for directors[125]. - The Company confirmed compliance with the Model Code for Securities Transactions by Directors, with no incidents of non-compliance noted in 2022[134][136]. - The Company has established a code of conduct for employees regarding securities transactions, ensuring no non-compliance incidents were noted[136]. Risk Management - The board acknowledges its responsibility for preparing financial statements in accordance with statutory requirements and applicable accounting standards[172]. - The board is responsible for evaluating risks and maintaining effective risk management and internal control systems to safeguard shareholders' investments[174]. - The Group's risk management and internal control systems are based on the 2013 COSO Framework and are designed to manage risks rather than eliminate them[179]. - The Audit Committee and Board were satisfied that the risk management and internal control systems were effective and adequate for the year ended 31 December 2022[193]. - An annual internal audit plan was developed to evaluate the effectiveness of the Group's risk management and internal control systems, covering significant business cycles[187]. - Regular training is provided to employees to enhance their risk awareness and management capabilities[180]. Employee and Operational Insights - As of 31 December 2022, the Group had 488 full-time employees, a slight decrease from 491 in 2021[92]. - The Group plans to reduce production scale in Mainland China and allocate more production orders to Southeast Asian countries due to geopolitical risks, which may lead to downsizing in the manufacturing facility at Heshan[98]. - Capital expenditures in advanced manufacturing machinery and equipment with modern technology are expected to incur in the coming year to improve efficiency[101]. - Administrative and other operating expenses increased by 52.5% to HK$76.5 million, primarily due to pandemic-related costs and business expansion[68]. - Finance expenses rose by 147.9% to HK$4.5 million, mainly due to interest rate hikes[70]. Committees and Meetings - The Board held four meetings and one general meeting during the year ended December 31, 2022[114]. - The Audit Committee held three meetings during the year, focusing on financial reporting, external auditor independence, and risk management[139]. - The Remuneration Committee updated its terms of reference on December 30, 2022, to assess executive directors' performance and review remuneration policies[144]. - The investment committee was established in 2014 and is responsible for reviewing and approving investment policies and monitoring securities investment activities[165]. - The investment committee held one meeting during the year, focusing on reviewing investment policies and overseeing investment activities[168].
恒富控股(00643) - 2022 - 年度财报