Financial Performance - Revenue for 2022 was HK$284.2 million, a decrease of 9.1% compared to HK$312.6 million in 2021[30] - Gross profit for 2022 was HK$80.7 million, representing a gross margin of 28.4%[30] - Loss attributable to owners of the company was HK$6.9 million in 2022, compared to a profit of HK$17.6 million in 2021[33] - Earnings per share for 2022 was a loss of 15.0 HK cents, down from a profit of 8.7 HK cents in 2021[35] - Net profit for 2022 was HK$27.9 million, a significant increase of HK$24 million from a loss of HK$3.8 million in 2021[75] - Operating profit increased to HK$28.2 million in 2022, compared to HK$6.9 million in 2021, primarily due to a fair value gain on investment property of HK$29.5 million[57] - The gross profit margin for 2022 was 30.7%, down from 35.1% in 2021[79] - Operating profit for 2022 was HK$28,200,000, significantly up from HK$6,900,000 in the previous year[79] Revenue Breakdown - The communication and networking segment accounted for 19% of revenue in 2022, down from 26% in 2021[40] - The communication segment's sales decreased by 21% to HK$50.7 million, contributing 19% of total revenue[59] - Data processing segment sales increased by 11% to HK$34.8 million, contributing 13% of total revenue[60] - Industrial application segment sales rose by 7% to HK$93.7 million, contributing 36% of total revenue[66] - High precision and reliability segment sales surged by 38% to HK$83.2 million, contributing 32% of total revenue[67] Market Presence - The US market represented 86% of product sales in 2022, a slight decrease from 87% in 2021[42] - The Group serves over 300 customers, focusing on high-end segments in telecommunications, data processing, and medical equipment[46] - The Group's product offerings include both standard and customized magnetic components tailored to customer specifications[45] Financial Position - Net assets as of 2022 were HK$864.1 million, slightly up from HK$860.8 million in 2021[38] - The total equity of the Group as of December 31, 2022, was approximately HK$850,300,000, compared to HK$878,200,000 in 2021[80] - Cash and cash equivalents were approximately HK$136,800,000 as of December 31, 2022, down from HK$208,200,000 in 2021[80] - As of December 31, 2022, Datronix had a cash balance of HK$136.7 million and no bank loans[58] - The Group had no bank loans or other borrowings as of December 31, 2022, indicating a strong financial position[80] Employee and Management - As of December 31, 2022, the Group employed approximately 1,114 personnel globally, with 600 in the PRC and 420 overseas[82] - The Group has implemented a staff education sponsorship program and provides training on operation systems and product development[82] - The Group's management team includes individuals with over 30 years of experience in operations and finance, contributing to strategic decision-making[108][109][110] - The Group's future success relies heavily on the contributions of its management team and technical personnel[141] Dividends and Shareholder Information - The Group did not recommend the payment of a final dividend for the year ended 31 December 2022, maintaining the total at HK$3,200,000, consistent with 2021[123] - The Company declared a final dividend of HKD 3,200,000 for the year ended December 31, 2022, maintaining the same amount as in 2021[124] - The Board considers factors such as current and future operations, liquidity position, and capital expenditure requirements before declaring dividends[125] - There were no changes in share capital during the year, and no share options were granted[151] - As of December 31, 2022, Mr. Siu Paul Y. holds a total of 231,412,000 shares, representing 72.32% of the issued share capital of the Company[171][178] - No substantial shareholders other than directors or chief executives were reported to have interests in the shares of the Company as of December 31, 2022[180] Compliance and Governance - The Company has independent non-executive directors with extensive experience in finance and corporate governance, enhancing oversight[102][104][106] - The Company emphasizes compliance with applicable laws and regulations that significantly impact its operations[150] - The Group has complied with the requirements under Chapter 14A of the Listing Rules for connected transactions[183] Contracts and Agreements - The Group entered into a new Datronix Master Supply Agreement with Datatronics Romoland, Inc. on October 18, 2019, superseding the previous agreement[184] - Total purchases made by DRI under the New Master Supply Agreement for the year ended December 31, 2022, was approximately HK$54,546,000, an increase from HK$44,524,000 in 2021, representing a growth of 22.8%[192][194] - The New Master Supply Agreement has a fixed term of three years starting from January 1, 2020, and is based on similar terms and conditions as the previous agreements[192][194] - The selling price of magnetic products required by DRI is determined based on a cost-plus approach with a mark-up margin, ensuring compliance with the Group's pricing policy[193][194] - The connected transactions were confirmed to be in the ordinary course of business and on terms no less favorable than those available to independent third parties[197][198] Other Information - The Group's business operates in cyclical markets sensitive to economic conditions, which may cause fluctuations in operating results[140] - The Group did not have any material contingent liabilities as of December 31, 2022[84] - There were no significant events affecting the Group after December 31, 2022[139] - The Group's annual report includes audited financial statements for the year ended 31 December 2022, providing transparency to stakeholders[113] - The Group has a capital commitment of HK$6.9 million for property, plant, and equipment as of year-end, up from HK$4.7 million in 2021[88] - The Company has not entered into any management contracts concerning the administration of the business during the year[165] - No existing or proposed service contracts with any member of the Group were reported, except for those mentioned[161] - There were no competing business interests among the Directors of the Company during the year under review[200]
连达科技控股(00889) - 2022 - 年度财报