Audit and Compliance - The independent auditor for the group is Crowe (HK) CPA Limited, with audit and non-audit service fees amounting to HKD 2,050,000 and HKD 275,000 respectively for the year ended December 31, 2022[8]. - The audit committee reviewed the group's interim and annual results for the year ended December 31, 2022, confirming compliance with applicable accounting standards and sufficient disclosure[3]. - The audit committee ensures that the board responds timely to matters raised in the auditor's management letter[3]. - The audit committee and board conduct a comprehensive review of the internal control and risk management systems every six months, with no significant discrepancies found during the latest review[16]. - The independent auditor has issued an unqualified opinion on the group's continuous related party transactions, confirming they were conducted on normal commercial terms[89]. - The independent auditor, Deloitte (Hong Kong) Limited, has audited the consolidated financial statements for the year ended December 31, 2022[100]. - The consolidated financial statements reflect the group's financial position as of December 31, 2022, and its performance for the year, in accordance with Hong Kong Financial Reporting Standards[103]. Risk Management - The company has established a risk management framework involving the board, audit committee, and senior management to identify and manage significant risks[15]. - The board is responsible for overseeing the design, implementation, and overall effectiveness of the internal control and risk management systems, which are aimed at managing rather than eliminating risks[15]. - The company has not established an internal audit department but has engaged independent consultants to review its internal control and risk management systems[16]. - The company has implemented a whistleblowing policy allowing employees and third parties to report any actions that may harm the company's interests, with all reports being independently investigated[16]. - The company emphasizes compliance with applicable laws and regulations, with no significant violations reported during the year[47]. Corporate Governance - The board acknowledges its responsibility for the effectiveness of the internal control and risk management systems, which are designed to provide reasonable assurance against material misstatements or losses[11]. - The board of directors includes both executive and independent non-executive members, ensuring governance and oversight[80]. - The board of directors emphasizes that corporate governance is key to the group's success and is committed to following best practices[92]. Financial Performance - The total revenue for the year ended December 31, 2022, increased by approximately HKD 76 million, reaching HKD 1,732.1 million, a growth of 4.6% compared to HKD 1,656.4 million in 2021[119]. - Sales revenue from electronic products rose by 4.7% to HKD 1,731.8 million, up from HKD 1,654.2 million in the previous year[128]. - The gross profit margin improved from 15.7% in 2021 to 19.0% in 2022, attributed to better control of production costs and a higher proportion of sales from products with higher average gross margins[133]. - The net profit attributable to the company's owners for the year was approximately HKD 112 million, compared to HKD 69 million in 2021[119]. - The company's profit attributable to owners for the year was HKD 112,100,000, an increase from HKD 69,300,000 in 2021, primarily due to higher gross profit[137]. - The net profit for the year 2022 was HKD 121,483 thousand, compared to HKD 67,142 thousand in 2021, reflecting an increase of 80.9%[157]. - Basic and diluted earnings per share for the year were HKD 23.69, up from HKD 14.66 in the previous year, marking a 61.5% increase[154]. - Total comprehensive income for the year was HKD 100,154 thousand, compared to HKD 81,076 thousand in 2021, showing a growth of 23.5%[157]. Shareholder Information - The company’s dividend policy considers operational performance, profitability, financial condition, cash needs, and other relevant factors[22]. - The company declared an interim dividend of HKD 0.02 per share, totaling HKD 9,461,164, and proposed a final dividend of HKD 0.02 per share, pending shareholder approval[44]. - The company proposed a final dividend of HKD 0.02 per share, bringing the total dividend for the year to HKD 0.04 per share[121]. - The company provides various communication channels for shareholders, including interim and annual reports, annual general meetings, and timely responses to inquiries[24]. - The company encourages shareholder participation in annual general meetings, providing a platform for communication with the board[24]. Environmental and Social Responsibility - The company has implemented environmental policies in accordance with international standards, achieving ISO 9001 and ISO 14001 certifications for quality and environmental management systems[40]. - The company’s production facilities have adopted environmentally friendly practices to enhance energy efficiency while reducing consumption and emissions[40]. - The company made charitable donations totaling HKD 228,000 during the year[45]. Inventory and Assets - Inventory as of December 31, 2022, was approximately HKD 371,369,000, net of an allowance for obsolete inventory of about HKD 42,547,000[141]. - The company is focused on identifying slow-moving and obsolete inventory as a key audit matter due to its significant impact on the financial statements[141]. - The management's assessment of inventory provisions involves significant judgment, making it a critical area of focus for the audit[141]. - The group spent approximately HKD 6,000,000 on the acquisition of properties, plants, and equipment to expand production capacity[138]. Legal Matters - Shenzhen Dexun is involved in a legal lawsuit regarding unpaid procurement orders, with the total claim amounting to approximately RMB 10,800,000[192]. - The court ruled that Shenzhen Dexun must pay RMB 9,476,532.75 for unpaid finished goods and production losses, along with overdue payment compensation calculated at an annual interest rate of 5.775%[196]. - Shenzhen Dexun is also required to pay storage fees of RMB 22,240 per month from November 1, 2020, until the retrieval of the inventory[196]. - The intermediate court has annulled the initial judgment and sent the case back for retrial, indicating ongoing legal proceedings[197]. - The hearing date for the retrial has not yet been determined, but the company believes it will not have a significant adverse impact on its operations[200].
华讯(00833) - 2022 - 年度财报