Financial Performance - The overall revenue of the Group decreased by approximately RMB32.3 million or approximately 15.3%, from approximately RMB211.8 million in 2021 to approximately RMB179.5 million in 2022[15]. - The Group's overall revenue decreased by approximately RMB32.3 million or approximately 15.3%, from approximately RMB211.8 million in the previous year to approximately RMB179.5 million for the year[42][46]. - Revenue from transportation services decreased by approximately 23.5%, from approximately RMB95.6 million to approximately RMB73.1 million, primarily due to reduced orders caused by lockdown policies and overseas customers setting up production facilities locally[44][47]. - Revenue from warehousing services decreased by approximately 21.1%, from approximately RMB43.7 million to approximately RMB34.5 million, mainly due to the cessation of one warehouse's use in Guangdong Province[50][53]. - Revenue from in-plant logistics services slightly decreased by approximately 2.5%, from approximately RMB70.9 million to approximately RMB69.1 million[51][55]. - The Group's loss for the year decreased significantly by approximately 99% to approximately RMB0.2 million, down from approximately RMB17.1 million in 2021[19][22]. - The Group recorded a loss of approximately RMB0.2 million for the Year, a significant improvement from a loss of approximately RMB17.1 million in the Previous Year[76]. Operational Efficiency - The Group has been managing operating expenses cautiously and reducing marketing and promotion budgets due to market uncertainties[14]. - The logistics industry faced disruptions in 2022 due to high inflation, extreme weather, and geopolitical issues, impacting overall performance[13]. - The logistics efficiency has been severely disrupted since the outbreak of COVID-19 in 2020, affecting the entire industry[13]. - The Group's operations are gradually returning to normal as China's new epidemic policy continues to optimize and adjust[13]. Strategic Initiatives - The Group is actively exploring new customer sources to broaden its customer base despite the challenging market conditions[15]. - The Group plans to diversify logistics services to a broader spectrum of industries in response to potential changes in customer demand[20][23]. - The Group intends to commence a Chinese Medicine Business focusing on agency, dealership, and distributorship of Chinese Medicine products and related health industry products[21][23]. - The Group aims to seek business development opportunities for future acquisitions and joint ventures in the Chinese Medicine industry[25][27]. - The Group is actively identifying potential strategic partners in various areas, including the Chinese Medicine Business, to develop new economic partnerships[25][27]. Cost Management - The proportion of outsourcing costs to total revenue was reduced from approximately 37.9% in 2021 to approximately 32.1% in 2022, with subcontracting expenses decreasing by approximately RMB 22.5 million from approximately RMB 80.2 million to approximately RMB 57.7 million[18][22]. - The Group reduced the proportion of outsourcing to total revenue from approximately 37.9% in 2021 to approximately 32.1% in 2022[36][39]. - Sub-contracting expenses decreased by approximately RMB22.5 million from approximately RMB80.2 million for the Previous Year to approximately RMB57.7 million for the Year[61]. Human Resources - Employee benefits expenses remained stable at approximately RMB71.7 million for the Previous Year and approximately RMB70.6 million for the Year[60]. - As of December 31, 2022, the Group employed 678 full-time employees, a decrease from 687 in 2021[94]. Financial Position - Net current assets decreased to approximately RMB87.4 million as of 31 December 2022, down from approximately RMB119.5 million in 2021[77]. - Cash and cash equivalents decreased to approximately RMB55.5 million as of 31 December 2022, compared to approximately RMB68.2 million in 2021[77]. - Other income and net gains increased from approximately RMB4.1 million to approximately RMB6.8 million, mainly due to net exchange gains and increased interest income[59]. - Other income increased from approximately RMB4.1 million in the Previous Year to approximately RMB6.8 million for the Year, mainly due to foreign exchange gains and increased interest income[62]. - The Group maintained a net cash position as cash and cash equivalents exceeded lease liabilities as of 31 December 2022[84]. Corporate Governance - The Company has complied with all applicable Code Provisions as set out in the Corporate Governance Code during the year ended 31 December 2022[144]. - The Board is committed to maintaining high standards of corporate governance to uphold transparency and safeguard shareholders' interests[143]. - The Company aims to establish and maintain a competent and independent Board to supervise the Group's business and overall performance[146]. - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct regarding Directors' transactions in the securities of the Company[145]. - The Company has established three Board Committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined terms of reference[199]. - The Company has documented all business transacted at Board meetings and by written resolutions, ensuring transparency[192]. - The Company has received annual confirmations of independence from each INED, assessing them according to guidelines[197]. Board Composition and Diversity - The Board comprises four executive Directors, one non-executive Director, and four independent non-executive Directors as of December 31, 2022[155]. - The Company aims to appoint at least one female Director by December 31, 2024, to enhance gender diversity on the Board[165]. - The Board's diversity is assessed based on various factors, including gender, age, and professional qualifications[163]. - The Directors possess a balanced mix of experiences in business management, accounting, and corporate governance[165]. - The Company has adopted a Board Diversity Policy to promote sustainable and balanced development[158]. Management Team - The company has been expanding its management team with experienced professionals in investment and logistics sectors[118]. - The management team includes members with qualifications in economics, mathematics, and financial management from reputable institutions[123]. - Mr. Li Jiahao was appointed as CEO on August 4, 2021, and has been with the company since 2012, holding various positions in Guangzhou World-Link[114]. - Mr. Song Ruipeng, with over 15 years of experience in equity investment, was appointed as an executive director on December 15, 2021[118]. - Mr. Lau Wai Piu Patrick, appointed as an independent non-executive director on June 28, 2022, has over 20 years of experience in auditing and accounting[127]. Future Outlook - The Group's financial conditions are expected to strengthen through the funds raised for the development of the Chinese Medicine Business[103]. - The net proceeds from the share offering amounted to approximately HK$38.8 million, with planned uses including upgrading warehouses and expanding logistics[109]. - The actual use of net proceeds for expanding existing logistics was HK$0.5 million as of December 31, 2022[111]. - The Company has no future plans for material investments or acquisitions as of December 31, 2022[95][100].
乐氏国际控股(01529) - 2022 - 年度财报