Financial Performance - For the fiscal year ending March 31, 2023, the total revenue was HKD 3,175.3 million, a decrease from HKD 3,557.9 million in the previous year[8]. - The net profit attributable to shareholders for the fiscal year was HKD 82.2 million, compared to a profit of HKD 92.5 million in the previous year, reflecting a decline of approximately 14.1%[8]. - The basic earnings per share for the fiscal year was HKD 1.08, down from HKD 1.40 in the previous year, indicating a decrease of about 22.9%[10]. - The company's gross profit for fiscal year 2023 was HKD 278.7 million, down from HKD 334.8 million in fiscal year 2022[18]. - The company reported a profit attributable to shareholders of HKD 2.7 million for FY2023, a significant decrease from HKD 82.2 million in FY2022, mainly due to sales decline and increased financing costs[41]. - The company's financing costs increased to HKD 43.8 million in fiscal year 2023, compared to HKD 17.3 million in fiscal year 2022, due to rising interest rates[18]. - The gross profit margin fell from 9.8% in FY2022 to 8.9% in FY2023, primarily due to weakened demand for semiconductor chips and intensified competition among suppliers[56]. Revenue Breakdown - The revenue breakdown by industry application for the fiscal year 2023 shows that lighting accounted for 21%, telecommunications 19%, and industrial applications 29%[17]. - The automotive electronics segment became the largest revenue source for the company in FY2023, generating HKD 845.2 million, an increase of 18.9% year-on-year, contributing approximately 27.0% to total revenue, up from 20.7% in FY2022[29]. - The electronic manufacturing services segment recorded a significant growth of 50.2%, with sales reaching HKD 245.1 million, increasing its contribution to total revenue from 4.8% in FY2022 to 7.8% in FY2023[29]. - The industrial segment experienced a revenue decline of 25.0%, falling to HKD 758.2 million from HKD 1,010.4 million in FY2022[43]. - The home appliance segment's revenue decreased by 14.0%, from HKD 660.8 million in FY2022 to HKD 568.0 million in FY2023[43]. - The telecommunications segment's revenue decreased by 5.0% year-on-year to HKD 203.2 million, despite strong demand for optical image stabilization (OIS) in smartphone camera components[51]. - The audio-visual segment's revenue was HKD 191.9 million, a decrease of 19.7% year-on-year, with expectations of continued weak demand for consumer electronics due to high interest rates and inflation[52]. - The lighting segment recorded revenue of HKD 98.0 million, down 17.5% year-on-year, with a focus on increasing marketing efforts for commercial lighting applications[54]. Market Conditions and Challenges - The company anticipates continued challenges in the consumer electronics market due to inflation and high interest rates affecting domestic demand and exports[27]. - The geopolitical tensions in Eastern Europe and between the US and China are expected to keep energy and raw material prices high and volatile, impacting economic activity[32]. - The group anticipates challenges in the next 12 months due to geopolitical tensions and inflationary pressures affecting consumer confidence and demand for electronic products[80]. Strategic Focus and Growth Areas - The company is focusing on expanding its market presence in Taiwan to capitalize on opportunities from large Taiwanese electronics manufacturers operating in mainland China[2]. - The company plans to continue investing resources in growth potential areas, particularly in sectors emphasized by the Chinese government, such as industrial, home appliances, and automotive electronics[30]. - The company remains optimistic about the automotive electronics segment due to government support for carbon neutrality and the increasing popularity of electric vehicles[29]. - The company aims to expand its product offerings in clean energy and low-carbon solutions, particularly in the automotive electronics and industrial sectors, in response to consumer trends and favorable sustainable development policies in China[120]. Corporate Governance and Management - The company is committed to corporate governance, with multiple committees in place, including audit, nomination, and remuneration committees[94]. - The company has a strong board with independent non-executive directors, including Lin Liming, who will retire on July 28, 2023, and will not seek re-election[94]. - The company has established a dedicated Environmental, Social, and Governance (ESG) team to systematically plan and implement sustainability strategies across departments and subsidiaries[150]. - The board of directors conducts annual meetings to assess significant ESG-related matters, identify climate change risks and opportunities, and review ESG performance and goals[150]. - The company has implemented a nomination policy and board diversity policy to enhance governance and sustainability, aiming for a balanced board in terms of skills, experience, and perspectives[160]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report highlights the company's commitment to sustainability, adhering to global standards and frameworks for reporting[105]. - The company aims to integrate sustainability into its business strategy and operations, providing reliable information to stakeholders[105]. - The company has engaged internal auditors to review the ESG report, ensuring compliance with regulatory requirements[106]. - The company has identified 41 economic, environmental, and social-related ESG areas relevant to its operations[129]. - The company is committed to attracting and retaining talent, providing comprehensive training programs, and ensuring clear career development paths for employees[174]. Employee and Operational Insights - The group employs 377 full-time employees, a 5% increase from 359 employees a year earlier, with 30.8% based in Hong Kong and 65.9% in China[83]. - The company has a comprehensive training program to cultivate talent, emphasizing employee safety and effective pandemic response measures[121]. - The company actively promotes employee training and development, linking performance to rewards and providing clear career advancement opportunities[165]. Sustainability and Environmental Impact - The company generated 427.76 tons of greenhouse gas emissions during the reporting period, with a density of 1.47 tons of CO2 equivalent per employee, a 3% reduction compared to the previous year[182]. - The company reduced its nitrogen oxides (NOx) emissions to 5.01 kg from 6.63 kg in the previous year, and sulfur oxides (SOx) emissions to 0.17 kg from 0.18 kg[180]. - The total amount of non-hazardous waste generated was 11.82 tons, with a waste generation density of 0.04 tons per employee, a 19% decrease compared to the previous reporting period[190]. - The company has set a goal to replace traditional lighting with LED lighting in its Shanghai office by the end of the next fiscal year to further reduce energy consumption[178]. - The company emphasizes the importance of maintaining long-term relationships with suppliers and customers to enhance value sharing and continuous improvement[174].
威雅利(00854) - 2023 - 年度财报