Financial Performance - The total revenue for the group was approximately HKD 559.8 million, a decrease of about 8.3% compared to HKD 610.4 million in the previous year[6]. - The profit attributable to the owners of the parent company was approximately HKD 42.0 million, an increase of about 132.1% from HKD 18.1 million in the previous year[6]. - The automotive beauty and maintenance products segment recorded revenue of approximately HKD 457.8 million, a decrease of about 12.5% from HKD 523.0 million in the previous year[18]. - The personal care products segment generated revenue of approximately HKD 102.0 million, an increase of about 16.8% compared to HKD 87.4 million in the same period last year[19]. - Gross profit was approximately HKD 154.2 million, a decrease of about 1.8% from HKD 157.1 million in the previous year[23]. - Other income and gains decreased by approximately 52.5% to HKD 7.0 million from HKD 14.8 million last year, primarily due to a reduction in government subsidies[24]. - Selling and distribution expenses were approximately HKD 33.7 million, a decrease of about 27.5% from HKD 46.4 million last year, attributed to reduced overseas sales and strict cost control measures[25]. - Administrative expenses decreased by approximately 17.4% to HKD 44.8 million from HKD 54.3 million last year, influenced by various cost reductions[26]. - Net profit increased significantly by approximately 132.7% to HKD 41.9 million from HKD 18.0 million in the previous year[28]. Dividends and Shareholder Communication - The board proposed a final dividend of HKD 0.0269 per share, compared to HKD 0.0094 per share in the previous year[7]. - The company will continue to focus on gender diversity among employees to maintain competitive advantages[62]. - The board is committed to maintaining effective communication with shareholders and regularly reviews the shareholder communication policy to ensure its effectiveness[99]. - The company holds an annual general meeting for shareholders to communicate with the board, with special meetings called upon request from shareholders holding at least 10% of the paid-up capital[88][90]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules, except for the separation of the roles of Chairman and CEO[45]. - The board consists of four executive directors and three independent non-executive directors, ensuring high independence and effective decision-making[54]. - All independent non-executive directors confirm their independence annually, in accordance with the listing rules[49]. - The company has established a formal and transparent process for evaluating and selecting board candidates[57]. - The terms of service for directors are set for three years, with re-election occurring at the annual general meeting[58]. - The company believes that the dual role of Chairman and CEO is necessary for strong market leadership and efficient decision-making[45]. - The board of directors confirmed compliance with the corporate governance code during the reporting period[59]. - The company has adopted a board diversity policy, aiming for over 25% female representation in the board within the next few years[61]. - The nomination policy includes criteria for selecting candidates to enhance board diversity and governance standards[63]. - The audit committee, established on May 27, 2019, consists of three independent non-executive directors and reviews financial statements and risk management systems[71]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific responsibilities[68]. - The company emphasizes the importance of corporate governance policies, effective risk management, and compliance with applicable laws and regulations[82]. Risk Management - The company faces strategic risks related to human resource allocation and government relations, and has implemented measures to enhance innovation and competitiveness[106]. - Financial risks include potential misuse of funds and compliance with accounting regulations, which the company addresses through strengthened accounting controls and budget management[107]. - Operational risks involve ensuring product safety and environmental standards, with the company focusing on monitoring hazards and updating employee training[110]. - Legal risks are mitigated through contract review processes and regular compliance audits to reduce potential impacts on the company[111]. - The company has established a risk management and internal control system to support long-term sustainable growth[104]. - The board is responsible for assessing and determining the group's environmental, social, and governance (ESG) related risks and ensuring effective risk management systems are in place[115]. Environmental and Social Responsibility - The company reduced VOCs emissions from 21.32 tons per year to 7.52 tons per year, demonstrating commitment to emission regulations[143]. - The company implemented key measures to control air pollutants, greenhouse gas emissions, and waste management in compliance with environmental laws in China and Thailand[139]. - The company is committed to using more environmentally friendly and cost-effective propellants in its products[141]. - The company has not experienced any significant violations of applicable environmental laws and regulations during the reporting period[140]. - The company emphasizes the importance of product quality and customer satisfaction through marketing activities and exhibitions[133]. - The company prioritizes community engagement and local economic development by providing job opportunities to local residents[133]. - The company is focused on ensuring employee rights and benefits, including health and safety in the workplace[133]. - The company has made significant contributions to community epidemic prevention efforts during the COVID-19 pandemic[194]. Employee Management and Training - The company employed a total of 466 employees, down from 513 employees last year, with employee costs approximately HKD 47.7 million compared to HKD 51.2 million last year[39]. - The company emphasizes the importance of talent acquisition and retention, continuously assessing human resources to align with business development needs[164]. - The company has established a safety management department to ensure compliance with national and local safety regulations, including regular safety training and emergency drills[167]. - A total of 444 employees participated in various training programs, accumulating 13,251 hours of training during the reporting period[174]. - The company strictly adheres to labor laws in China and Thailand, ensuring no employment of child labor or forced labor, with a commitment to hiring individuals over 18 years old[175]. - No issues related to child labor or forced labor were reported within the company during the reporting period[176]. Quality Control and Supplier Management - The company has established a supplier selection and evaluation policy, ensuring suppliers meet strict quality and pricing standards[179]. - The company has received multiple quality management certifications, including ISO9001:2015 and ISO14001:2015, for its aerosol products and related management systems[181]. - A quality assurance team has been established to oversee quality control procedures, including raw material inspections and production process monitoring[182]. - The company has a policy for handling product complaints, with a dedicated customer service team to address quality-related issues[189]. - There were no disputes regarding product quality or regulatory non-compliance during the reporting period, and no products were recalled for safety or health reasons[189].
保宝龙科技(01861) - 2022 - 年度财报