Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 86,050,000, a decrease of 56.1% compared to HKD 196,231,000 in 2021[6] - The net loss attributable to shareholders for the year was HKD 43,929,000, an increase in loss of 120.3% from HKD 19,943,000 in 2021[8] - Cowhide leather sales amounted to HKD 74,365,000, a decline of 56.6% compared to HKD 171,485,000 in 2021[22] - The operating loss for 2022 was HKD 44,053,000, compared to a loss of HKD 17,692,000 in 2021[62] - Gross loss for 2022 was HKD 7,807,000 compared to a gross profit of HKD 18,201,000 in 2021, indicating a significant decline in profitability[171] - The net loss for the year was HKD 43,929,000, which is a 104.5% increase from the net loss of HKD 19,943,000 in 2021[173] - Other comprehensive loss for the year amounted to HKD 10,594,000, compared to a gain of HKD 7,202,000 in 2021, indicating adverse currency translation effects[173] - The company reported a significant foreign exchange loss of HKD 13,788,000 in 2022, contrasting with a gain of HKD 6,205,000 in 2021, highlighting increased currency volatility risks[173] Sales and Production - The total sales volume of cowhide leather was 5,802 thousand square feet, down 52.7% from 12,262 thousand square feet in the previous year[6] - In 2022, the total production of cowhide leather was 5,180,000 square feet, a decrease of 55.7% from 11,706,000 square feet in the previous year[19] - The total procurement amount for the year was HKD 67,406,000, a reduction of 61.1% from the previous year[22] Assets and Liabilities - The company's total assets decreased by 23.8% to HKD 174,007,000, and the net asset value per share was HKD 0.22, down 31.3%[6] - Total assets decreased to HKD 119,909,000 in 2022 from HKD 170,228,000 in 2021, a decline of 29.5%[175] - The company's net asset value dropped to HKD 120,013,000 in 2022 from HKD 174,536,000 in 2021, a decrease of 31.2%[175] - The total liabilities for 2022 were HKD 53,994,000, slightly up from HKD 53,748,000 in 2021[64] Cash Flow and Financial Management - As of December 31, 2022, the group's cash and cash equivalents were HKD 9,463,000, a decrease of 50.0% from HKD 18,942,000 in 2021[25] - Operating cash flow for the year was a net outflow of HKD 6,364,000, an improvement from a net outflow of HKD 39,405,000 in the previous year[178] - The company experienced a decrease in cash and cash equivalents, ending the year with HKD 9,463,000, down from HKD 18,942,000 at the beginning of the year[178] - The company’s financial expenses decreased to HKD 107,000 from HKD 1,994,000 in the previous year, reflecting improved financial management[178] Corporate Governance - The board of directors consists of two executive directors, two non-executive directors, and three independent non-executive directors, ensuring a high level of independence with independent non-executive directors accounting for at least one-third of the board[99] - The board held four meetings during the year ending December 31, 2022, to discuss overall strategy and the company's operational and financial performance[102] - The company has implemented good corporate governance practices and procedures under the leadership of the chairman[100] - The board has mechanisms in place to address conflicts of interest, ensuring that significant matters are discussed in formal meetings[103] Risk Management - The liquidity risk is heightened due to the shrinking demand in the leather market, leading to potential difficulties in recovering payments from downstream shoe factories[59] - Environmental compliance risks have increased due to stricter enforcement of national and local environmental policies, leading to higher operational costs[55] - The company aims to mitigate losses by strengthening risk management and ensuring safe production operations[13] Future Plans and Strategy - The company plans to focus on stable operations and cost management while enhancing product quality and optimizing team efficiency in 2023[13] - The company will actively seek development opportunities to inject new momentum into its growth and provide long-term benefits to shareholders[14] - The company is focusing on market-oriented principles, conducting in-depth market research, and adjusting product structures to enhance brand value and competitiveness[54] Shareholder Information - The company does not recommend any dividend distribution for the year ended December 31, 2022[9] - The company did not declare an interim dividend during the year and the board does not recommend a final dividend for the year ended December 31, 2022[47] - The company has adopted a shareholder communication policy to facilitate effective communication with shareholders and stakeholders[149] Employee and Diversity - The workforce decreased to 327 employees from 364 in the previous year, reflecting adjustments in operational efficiency[32] - As of December 31, 2022, the gender ratio of the group's employees is 74% male and 26% female, reflecting a commitment to gender diversity[114] - The company aims to appoint at least one director of a different gender by December 31, 2024, to enhance board diversity[114] Audit and Compliance - The Audit Committee conducted four meetings during the year to review the company's full-year results for 2021, mid-year and quarterly results for 2022, and to monitor the integrity of financial statements[128] - The company paid HKD 750,000 for audit services related to the full-year results for 2022[131] - The auditors believe that the impairment tests conducted by the group are supported by sufficient evidence[161][163]
南粤控股(01058) - 2022 - 年度财报