Financial Performance - The group's total revenue for the fiscal year ended December 31, 2022, was approximately HKD 194.54 million, a decrease of about 52% from HKD 404.56 million in the previous fiscal year[14]. - The tobacco packaging business generated revenue of approximately HKD 167.58 million, down from HKD 183.93 million, while the environmental governance business revenue fell to HKD 26.64 million from HKD 215.33 million, representing 86% and 14% of total revenue respectively[14]. - The company reported a loss attributable to shareholders of approximately HKD 53.11 million, which is an increase of 244% compared to the previous fiscal period[7]. - The overall gross profit was approximately HKD 47,060,000, down from HKD 115,700,000 in the previous fiscal year, with a gross margin of 24%, a decline of 5% from 29%[18]. - The gross profit from the cigarette packaging business was approximately HKD 58,430,000, with a gross margin of 35%, down from 40% in the previous fiscal year[18]. - The net loss attributable to the owners of the company was approximately HKD 53,110,000, a decrease of HKD 90,110,000 or 244% compared to a net profit of HKD 37,000,000 in the previous fiscal year[26]. - The total cash and cash equivalents at the end of the reporting period were approximately HKD 91,230,000, down from HKD 115,140,000 in the previous fiscal year[31]. - The net cash generated from operating activities was HKD 54,891,000, an increase from HKD 38,836,000 in the previous fiscal year[32]. - The distribution costs were approximately HKD 620,000, a decrease of about 13% from HKD 710,000 in the previous fiscal year[19]. - The company did not recommend any final dividend for the fiscal year ending December 31, 2022[27]. Business Strategy and Operations - The company plans to continue diversifying its business while consolidating its tobacco packaging materials operations and actively seeking opportunities in the ecological restoration sector[10]. - The company is responding to the challenges posed by the COVID-19 pandemic and geopolitical factors by implementing various measures to mitigate negative impacts on its business[6]. - The company aims to enhance management standards and operational efficiency in response to national investments in ecological restoration[6]. - The company acknowledges the ongoing economic recovery in China following the relaxation of COVID-19 measures, which is expected to boost global economic growth[6]. - The company is committed to exploring suitable investment opportunities to achieve revenue diversification and promote business development[10]. - The cigarette packaging business remains the primary revenue source for the group, with ongoing efforts to strengthen relationships with existing clients and seek new customers[39]. - The group plans to invest more resources into new wastewater treatment projects to expand revenue sources, supported by a solid technical background[39]. - The group anticipates growth in 2023 due to the easing of pandemic restrictions by the Chinese government, despite intense competition in the cigarette packaging and environmental governance sectors[39]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to ensure competitiveness and healthy growth, adhering to the corporate governance code as per the Hong Kong Stock Exchange[55]. - The board consists of two executive directors, Zheng Yisheng and Zheng Mingsheng, one non-executive director, Hao Jiming, and three independent non-executive directors, including Liu Guoxiong, Huo Baotian, and Cai Xiaowen[56]. - The company has adopted the corporate governance code principles to align with the best interests of stakeholders[55]. - The board has complied with the relevant listing rules throughout the reporting period, ensuring regulatory adherence[56]. - The company has implemented a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance board composition[62]. - The board held five regular meetings and one annual general meeting during the year ending December 31, 2022[71]. - The attendance rate for the board members at the annual general meeting was 100%[72]. - The Audit Committee held two meetings to review the financial statements for the year ending December 31, 2021, and the interim results for the six months ending June 30, 2022[75]. - The Audit Committee consists of independent non-executive directors with relevant qualifications and experience[75]. - The Remuneration Committee convened once during the year to review the remuneration of directors and senior management[77]. - The company ensures that all directors participate in continuous professional development to update their knowledge and skills[70]. - The board has established various committees, including the Audit Committee and Remuneration Committee, to oversee specific matters[73]. - The company has received annual independence confirmation letters from all independent non-executive directors, affirming their independence[66]. - The company has a structured approach to appointing and re-electing directors, ensuring no director has a term exceeding three years without re-election[67]. - The company held one meeting of the Nomination Committee during the year ended December 31, 2022, to review the board's structure, size, composition, and diversity[80]. - The board is responsible for maintaining the risk management and internal control systems, ensuring effective monitoring of the company's operations[89]. - The company conducted an annual self-assessment to confirm compliance with risk and internal control policies, with no significant irregularities reported for the year ended December 31, 2022[90]. - The company’s governance structure includes a clear distinction between the roles of the Chairman and the CEO, although both roles are held by the same individual[83]. - The company’s board reviewed its internal control system's effectiveness and deemed it effective and adequate for the year ended December 31, 2022[90]. Environmental, Social, and Governance (ESG) Initiatives - The company’s ESG initiatives are overseen by the board and an ESG management team, focusing on sustainable development and compliance with environmental regulations[101]. - The board is responsible for formulating and disclosing key performance indicators related to ESG management, ensuring data accuracy and reliability[105]. - The company engages with stakeholders, including shareholders and customers, to align long-term development goals and maintain effective communication channels[107]. - The company has implemented strict wastewater management policies, ensuring that domestic wastewater is treated and complies with regulatory standards[114]. - The company reported that no industrial wastewater was generated during production, with domestic wastewater being the primary concern[114]. - The company has established a noise control policy, ensuring that noise emissions do not disturb surrounding residents[116]. - The company has implemented various energy-saving measures, including using LED lighting and adjusting air conditioning settings to reduce energy consumption[141]. - The company has adopted measures to promote tree planting and carpooling among employees to reduce emissions[127]. - The company encourages the use of shared bicycles and electric vehicles to minimize emissions from traditional vehicles[128]. - The group actively promotes green environmental activities among suppliers and conducts regular inspections[182]. - The group has established a system for monitoring and managing intellectual property rights, enhancing innovation awareness among employees[185]. Employee and Workplace Safety - The total employee compensation for the reporting period was HKD 43,160,000, compared to HKD 42,380,000 in the previous fiscal year, reflecting competitive remuneration practices[42]. - The company has implemented a comprehensive occupational health and safety management system to enhance workplace safety and employee well-being[159]. - The company has achieved zero employee fatalities due to work-related incidents over the past three years, maintaining a fatality rate of 0%[162]. - In the past year, the company reported no work-related injuries, indicating a strong safety record[163]. - A total of 596 training sessions were provided to employees, accumulating 30 hours of training time[168]. - The company has implemented strict compliance with occupational health and safety management systems, achieving certification under GB/T 45001–2020/ISO 45001:2018[161]. - The company adheres to labor laws and regulations to protect employee rights, preventing child labor and forced labor[173]. - The group strictly adheres to the laws and regulations regarding child labor and forced labor, with no significant violations reported during the reporting period[174]. - Regular safety training sessions are conducted quarterly to enhance employees' awareness of occupational health and safety[159]. Community Engagement and Anti-Corruption - The group actively participated in community activities and invested approximately 600,000 in ecological projects, contributing to environmental sustainability[192]. - The group has implemented anti-corruption policies and established reporting channels for employees to report misconduct[191]. - The group has not experienced any legal cases related to corruption during the reporting period[189]. - The group has set a target of achieving zero corruption complaints and zero corruption lawsuits for the year[189]. - The group has established guidelines for acceptable and unacceptable behaviors regarding gifts and interactions with government officials[190].
华禧控股(01689) - 2022 - 年度财报