Financial Performance - The Group's revenue decreased by approximately 25.6% from RMB 353.9 million in 2021 to RMB 263.2 million in 2022 due to economic slowdown in China[17]. - The Group recorded a net loss of approximately RMB 7.1 million for the Reporting Period, compared to a profit of approximately RMB 10.1 million in the corresponding period in 2021[17]. - The Group's total revenue for the year ended December 31, 2022, was approximately RMB263.2 million, a decrease of 25.6% from RMB353.9 million in 2021[30]. - Gross profit for the Reporting Period was approximately RMB29.4 million, a decrease of approximately 45.6% from RMB54.0 million in 2021, with a gross profit margin decline from 15.3% to 11.2%[40]. - Other income for the Group was approximately RMB7.0 million for the Reporting Period (2021: approximately RMB6.4 million), mainly from government grants and bank interest income[48]. - Selling and distribution expenses decreased by approximately 11.0% to approximately RMB3.0 million for the Reporting Period (2021: approximately RMB3.4 million), maintaining a stable expense ratio of approximately 1.0% against revenue[50]. - Administrative expenses amounted to approximately RMB39.6 million for the Reporting Period (2021: approximately RMB42.3 million), representing a decrease of approximately 6.4% due to reduced bonuses[57]. - The Group recorded a net loss of approximately RMB7.1 million for the Reporting Period compared to a net profit of approximately RMB10.1 million for the year ended 31 December 2021[66]. Business Strategy and Expansion - The Group commenced a financial technology business by acquiring a third-party company's registered capital, focusing on financial-related application platforms and maintenance services[15]. - The Group plans to actively expand its new financial technology business to sustain future growth[21]. - The Group aims to diversify its customer base and product offerings to broaden revenue sources and mitigate business risks[20]. - The Group will continue to invest in in-house capabilities and keep abreast of technological advancements in the EMS industry[21]. - The Group will adopt a cautious approach to spending and expansion to reduce financial risks[22]. - The Group aims to enrich its customer base and product portfolio to broaden revenue sources and mitigate business risks amid macroeconomic challenges[24]. - The Group plans to actively expand its fintech business to maintain future growth and will invest in internal capabilities to align with industry technological developments[25]. Revenue Breakdown - Revenue from PCBAs for telecommunication devices decreased by approximately 28.3% to RMB131.6 million, primarily due to weak demand in the smartphone market[32]. - Revenue from PCBAs for IoT products fell by approximately 37.1% to RMB89.4 million, mainly due to reduced orders from a major customer affected by COVID-19 lockdowns in Shanghai[33]. - Revenue from PCBAs for automotive related devices increased by approximately 240.8% to RMB31.4 million, driven by increased orders as production technology matured[34]. - The revenue from other PCBAs decreased from approximately RMB18.9 million to RMB8.0 million, attributed to reduced orders from industrial use device customers due to economic slowdown[35]. Management and Governance - The Group has a strong management team with diverse backgrounds in electronic engineering, manufacturing, and finance, enhancing operational efficiency[116][118][123]. - The company aims to expand its market presence and enhance product offerings through strategic management and operational oversight[116][123]. - The management team is committed to maintaining high standards in quality control and production management across its subsidiaries[124][125]. - The company emphasizes the importance of financial oversight and strategic planning in achieving its long-term goals[118]. - The company has a diverse board with expertise in finance, logistics, technology, and accounting, enhancing its strategic decision-making capabilities[136][139]. - The independent directors play a crucial role in providing unbiased advice and oversight, ensuring corporate governance standards are met[136][139]. - The company is committed to enhancing its operational management through the expertise of its directors in their respective fields[133][139]. Corporate Governance - The company has adopted the Corporate Governance Code and complied with its provisions during the reporting period, except for the deviation regarding the roles of chairman and chief executive officer being held by the same individual, Mr. Li[155]. - The Board consists of five executive Directors, one non-executive Director, and three independent non-executive Directors, with independent Directors representing not less than one third of the Board[169]. - The company emphasizes the importance of high corporate governance standards to enhance performance, transparency, and accountability[154]. - The Board is responsible for corporate governance duties and has reviewed the effectiveness of the corporate governance policy during the reporting period[159]. - The company has implemented the Model Code for Directors' securities transactions, with all Directors confirming compliance during the reporting period[158]. - The independent non-executive Directors bring strong independent views and judgment to the Board's decision-making process[161]. - The Board's structure is designed to ensure independence and objectivity, providing checks and balances to safeguard shareholder interests[170]. Financial Position - The Group had net current assets of approximately RMB144.3 million as at 31 December 2022 (2021: approximately RMB130.5 million), with a stable current ratio of approximately 2.7[68]. - Bank borrowings amounted to approximately RMB8.0 million as at 31 December 2022 (2021: approximately RMB12.6 million), secured by bank deposits and property, plant, and equipment[69]. - As of December 31, 2022, the gearing ratio was approximately 5.8%, down from 8.5% as of December 31, 2021, due to a decrease in bank borrowings and lease liabilities by approximately RMB 7.6 million[70][75]. - The Group's capital commitment as of December 31, 2022, amounted to approximately RMB 3.2 million, unchanged from 2021, primarily related to the acquisition of machinery and equipment to enhance production efficiency[97][100]. Employee and Remuneration - The total remuneration for 754 employees during the reporting period was approximately RMB 74.9 million, down from RMB 88.8 million for 891 employees in 2021[88][92]. - The Group's contributions to the Defined Contribution Scheme are fully vested with employees, with no forfeiture of contributions during the reporting period[90][93].
信恳智能(01967) - 2022 - 年度财报