Financial Performance - The Group's revenue for the year ended December 31, 2022, was HK$324,524,000, a decrease of 13.1% from HK$373,472,000 in 2021[17]. - Profit for the year was HK$15,848,000, an increase of 15.8% compared to HK$13,689,000 in 2021[17]. - Earnings per share rose to HK$0.080, up from HK$0.069 in the previous year, reflecting a growth of 15.9%[17]. - The Group's revenue decreased by 13% to HK$324.5 million in the financial year 2022, primarily due to decreased orders amid rising interest rates and ongoing geopolitical tensions[23]. - Turnover from the business in America decreased by 10.4% to approximately HK$188.5 million, accounting for 58.1% of total turnover[25]. - The gross margin increased from 21.4% in 2021 to 23.0% in 2022 due to proactive measures to maintain operational efficiency[26]. - The Group recorded a net profit margin of 4.9% in 2022, up from 3.7% in 2021, attributed to improved gross margins and lower operating expenses[27]. - Total assets decreased to HK$661,831,000 in 2022 from HK$727,733,000 in 2021, a decline of 9.0%[164]. - Total liabilities significantly reduced to HK$95,726,000 in 2022 from HK$158,675,000 in 2021, a decrease of 39.6%[164]. Dividends and Shareholder Information - The Board recommends a final dividend of HK$0.03 per share for the year ended December 31, 2022, compared to HK$0.02 per share in 2021[18]. - The proposed final dividend is subject to shareholder approval at the Annual General Meeting scheduled for May 23, 2023[19]. - As of December 31, 2022, the Company's distributable reserves amounted to HK$19,510,000[179]. - Shareholders holding not less than one-twentieth of the paid-up capital or not less than 100 shareholders can requisition a resolution for the annual general meeting[143]. - External auditors are invited to attend annual general meetings to assist in addressing shareholder queries related to the audit[144]. Operational Insights - The Group employed 790 full-time staff worldwide as of December 31, 2022, involved in various operational roles[14]. - The primary markets for the Group include America, Europe, Australia, Mainland China, Japan, and Southeast Asia, focusing on multinational producers of electrical and electronic products[13]. - Sales of power cords accounted for 59% of the Group's revenue, while wire harnesses accounted for 33%, and cables, wires, and plastic resins made up the remaining 8%[24]. - The factory in Quang Ngai, Vietnam became fully operational in the latter part of 2022, shifting labor-intensive activities from Mainland China[28]. - The Group's cash flow from operating activities improved, generating HK$59.9 million during the year, primarily used for repaying borrowings[34]. Governance and Management - The Board consists of eight members and held four meetings during the year ended December 31, 2022[78]. - The Company has arranged for appropriate liability insurance for the Directors and senior management, reviewed annually[86]. - The role of the Chairman is separate from that of the Chief Executive Officer to reinforce independence and accountability[87]. - The Company confirms compliance with the Corporate Governance Code and has adopted best practices where appropriate[72]. - The Company has established a Board Diversity Policy to ensure diversity in skills, experience, and backgrounds among Board members[109]. Risk Management and Internal Control - The Group has established a robust risk management framework, with the Board responsible for monitoring its overall effectiveness[127]. - The Audit Committee is responsible for reviewing the Group's financial and accounting policies and practices[97]. - The Board has reviewed the effectiveness of the Group's internal control system for the year ended December 31, 2022, and considers it effective and adequate[123]. - Areas for improvement in the internal control system have been identified, and appropriate measures have been taken to manage key business and operational risks[125]. - The Group identifies key risks that could adversely affect its objectives and prioritizes them according to standard criteria[133]. Key Personnel - Mr. Mon Chung Hung, the founder and CEO, has over 44 years of experience in the electric cable and wire industry, responsible for overall strategic planning[195]. - Mr. Siu Yuk Shing has over 34 years of experience in the electric cable and wire industry and is responsible for sales and product development[196]. - Ms. Mon Wai Ki, with a Bachelor of Communications degree, has been with the Group since 2004 and participates in developing marketing strategies[197]. - Ms. Mon Tiffany holds a double major degree in economics and management and has been with the Group since 2002, coordinating marketing strategies and managing the information system[198].
恒都集团(00725) - 2022 - 年度财报