Procurement and Customer Concentration - The largest supplier accounted for 64.2% of total procurement, while the top five suppliers represented 75.5% of total procurement[3]. - The largest customer contributed 41.6% to total sales, and the top five customers accounted for 58.7% of total sales[4]. Financial Performance - For the year ended December 31, 2022, the group's revenue decreased by 29.3% to HKD 24,968,652,000 from HKD 35,297,778,000 in the previous year[37]. - The group's gross profit was HKD 1,285,327,000, a decrease of 19.0% from HKD 1,587,248,000, with a gross margin of 5.1% compared to 4.5% last year[37]. - Shareholders' profit attributable to the company was HKD 400,337,000, down 43.9% from HKD 713,191,000, with basic earnings per share at HKD 0.6397 (2021: HKD 1.1396)[37]. - Total revenue for the year 2022 was HKD 24,968,652, a decrease of 29.5% from HKD 35,297,778 in 2021[172]. - Gross profit for 2022 was HKD 1,285,327, down 19.0% from HKD 1,587,248 in 2021[172]. - The net profit for the year was HKD 563,907, representing a decline of 39.1% compared to HKD 925,134 in 2021[172]. - The company reported a decrease in administrative expenses to HKD 207,817 from HKD 228,786, a reduction of 9.2%[172]. - The total comprehensive income for the year was HKD 479,994, down 49.3% from HKD 944,944 in 2021[172]. Inventory and Turnover - The inventory turnover period and average accounts payable turnover period were approximately 37 days and 42 days, respectively, compared to 29 days and 35 days in 2021[46]. - The group's inventory value as of December 31, 2022, was HKD 2,398,330,000, with a provision for inventory of HKD 193,194,000, representing 29.5% of the total assets[163]. Risk Management - The company faces various risks, including exchange rate risk, interest rate risk, credit risk, and liquidity risk, which are monitored closely[12]. - The company has established foreign exchange forward contracts to hedge against foreign currency risks related to payables[103]. Corporate Governance - The company has no significant violations of applicable laws and regulations, ensuring compliance with the Hong Kong Companies Ordinance and other relevant regulations[9]. - The company adhered to the corporate governance code as per the Hong Kong Stock Exchange Listing Rules for the fiscal year ending December 31, 2022[69]. - The board held a total of 5 meetings, with all executive directors attending 100% of the meetings[76]. - The company has a diversity policy for its board members, ensuring at least one-third are independent non-executive directors[85]. - The audit committee conducted a review of the group's risk management and internal control systems during the year[89]. - The company has adopted a standard code of conduct for securities trading by directors[72]. Shareholder Engagement - The company encourages shareholders to attend annual general meetings, providing at least 20 business days' notice[93]. - The company allows shareholders to propose resolutions at general meetings, requiring a minimum of 100 shareholders or 5% of voting rights[79]. Donations and Social Responsibility - The company donated HKD 3,513,000 to charitable and non-profit organizations in Hong Kong and China during the year[43]. - The group made charitable donations and other contributions of approximately HKD 3,513,000 during the fiscal year[157]. Future Outlook - The company anticipates facing significant challenges in 2023, including slow global economic recovery, low demand visibility, high inflation, and elevated interest costs[42]. - Demand for televisions, PCs, 5G network equipment, and data centers in China was weak, leading to a decline in revenue from the consumer electronics segment[39]. - The semiconductor industry is shifting towards digital and green economic development, which will remain a consistent trend[42]. Auditor and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2022[137]. - The company has engaged Deloitte as external auditors for the fiscal year, with fees disclosed in the report[73]. - The company plans to propose the reappointment of Deloitte as the auditor at the upcoming annual general meeting[158]. Major Shareholders - Major shareholder Foxconn holds 124 million shares, representing 19.81% of the company's issued share capital[108]. - The company has engaged in multiple related party transactions with major shareholder Foxconn and its subsidiaries during the fiscal year[130]. Environmental Initiatives - The company aims to enhance resource efficiency and reduce waste through various environmental initiatives, including the use of LED lighting and eco-friendly materials[119].
S.A.S. DRAGON(01184) - 2022 - 年度财报