Revenue Performance - The company's total revenue for 2022 was approximately $126.6 million, an increase of about 0.5% compared to approximately $126.0 million in 2021[9]. - Revenue from North America increased by approximately 19.6% to about $38.0 million in 2022[10]. - Revenue from Europe decreased by approximately 1.7% to about $46.8 million in 2022[11]. - Revenue from Asia decreased by approximately 26.1% to about $23.0 million in 2022, partly due to the strategy of discontinuing low-margin products[12]. - Revenue from Latin America increased by approximately 20.9% to about $18.7 million in 2022[13]. - The company's revenue for the year ended December 31, 2022, increased by approximately 0.5% (about $0.6 million) compared to the previous year, primarily due to revenue growth in North America and Latin America, offset by a decline in Asia[23]. - Revenue breakdown by region for the year ended December 31, 2022: North America $38,044 (30.1%), Europe $46,813 (37.0%), Asia $23,024 (18.2%), Latin America $18,679 (14.7%)[26]. Profitability - The company achieved a net profit of approximately $4.6 million for the year ended December 31, 2022, compared to approximately $3.8 million for the year ended December 31, 2021[21]. - Gross profit decreased from approximately $29.0 million for the year ended December 31, 2021, to about $27.6 million for the year ended December 31, 2022, primarily due to changes in product mix[30]. - Other income decreased from approximately $1.7 million to about $0.3 million, mainly due to a reduction in government subsidies[31]. - The company's net profit for the year ended December 31, 2022, was approximately $4.6 million, an increase of about $0.8 million from $3.8 million in the previous year[40]. - Basic and diluted earnings per share for the year ended December 31, 2022, were both $0.0091, compared to $0.0076 and $0.0075 for the previous year[41]. Cash Flow and Financial Position - As of December 31, 2022, the company's cash and cash equivalents were approximately $15.3 million, down from $17.6 million the previous year[42]. - The net cash generated from operating activities for the year ended December 31, 2022, was $1.393 million, compared to $3.603 million in the previous year[44]. - The net cash flow from operating activities for the year ended December 31, 2022, was approximately $1.4 million, reflecting a cash inflow of about $10.2 million before changes in working capital[45]. - The net cash flow from investing activities for the year was approximately $0.5 million, primarily due to the redemption of financial assets amounting to $1.6 million, offset by the purchase of property, plant, and equipment of about $1.1 million[46]. - The net cash flow used in financing activities for the year was approximately $4.1 million, mainly due to repayment of bank loans of about $3.0 million and paid dividends of approximately $1.9 million[48]. - As of December 31, 2022, the total debt was approximately $24.5 million, a slight decrease from $25.0 million as of December 31, 2021[52]. - The debt ratio as of December 31, 2022, was approximately 35.7%, compared to 26.6% as of December 31, 2021[55]. - The net current assets increased from approximately $22.9 million as of December 31, 2021, to about $24.9 million as of December 31, 2022[49]. Research and Development - Continued investment in R&D, particularly in sustainability, IoT, and other new business segments[14]. - The company has over 200 patents and a comprehensive infrared and code database, enhancing its innovation capabilities[18]. - The company plans to continue investing in research and development and expanding its sales team to improve its existing business supply chain[22]. - The company has allocated HKD 14.27 million (USD 1.82 million) for research and development of OTT products and expanding its smart home product series[102]. Corporate Governance and Management - The board of directors presented the audited consolidated financial statements for the year ending December 31, 2022[87]. - The company emphasizes the importance of maintaining close relationships with employees, customers, and business partners for sustainable development[91]. - The management discussion and analysis section provides insights into the business review and future outlook for the company[90]. - The company has a balanced board composition suitable for its business, with three independent non-executive directors meeting the minimum requirement of one-third of the board[149]. - The company has maintained directors' and officers' liability insurance to provide adequate protection against potential legal claims[156]. Shareholder Information - The company has 504,141,829 shares issued as of December 31, 2022, with 2,508,166 shares granted under the share incentive plan on October 5, 2022, representing approximately 0.50% of the total issued shares post-allocation[119]. - No dividends were proposed for the fiscal year ending December 31, 2022, compared to a dividend of 0.38 cents per share in the previous year[106]. - The company’s share premium account available for distribution to shareholders was approximately $7,830,000 as of December 31, 2022, down from $9,573,000 in the previous year[111]. - The company has adopted a share option plan to attract and retain employees, with options vesting based on performance metrics[120]. - The company aims to promote business success through the share option plan, which has a maximum exercise price of approximately $0.0877 per share[123]. Business Risks and Future Outlook - The company recognizes various business risks, including potential adverse impacts from major customer performance and technological innovation failures[97]. - The management anticipates continued fluctuations in the exchange rates of SGD, RMB, and USD, which may adversely affect financing costs, sales, and product profits[62]. - The company is unaware of any significant matters that may affect the group after the end of the fiscal year[194]. - The company is committed to establishing good corporate governance practices to ensure transparency and accountability to shareholders[196]. Strategic Initiatives - The company plans to utilize the IPO proceeds primarily for strategic investments or acquisitions in OTT systems and smart home security products, with an allocation of HKD 23.01 million (USD 2.93 million)[102]. - The company aims to expand its professional sales team to support business development with an allocation of HKD 13.8 million (USD 1.76 million)[102]. - The company plans to enhance its supply chain management and investment outside of China with an allocation of HKD 6.57 million (USD 0.84 million)[102]. - Home Control aims to provide advanced remote control solutions to simplify customers' lives and is dedicated to continuous innovation and improvement of its products[197]. - The company's ultimate goal is to become a leading provider of home remote control solutions based on trust, innovation, and excellent service[197].
HOME CONTROL(01747) - 2022 - 年度财报