Financial Performance - The company's revenue for the reporting period was approximately RMB 534.7 million, representing a year-on-year increase of 12.2%, while net profit was RMB 22.1 million, a decrease of 37.2% compared to the previous year[11]. - The CMS business revenue was approximately RMB 269.6 million, a decrease of 37.3% from RMB 430.2 million in the previous year, primarily due to supply chain disruptions and rising international commodity prices[14]. - The OBM business revenue increased to approximately RMB 70.1 million, up 51.7% from RMB 46.2 million in the previous year, reflecting successful market expansion and product development efforts[15]. - The total comprehensive income attributable to the company's owners was approximately RMB 5.4 million, down from RMB 45.8 million in the previous year, mainly due to foreign exchange differences[12]. - The company reported basic earnings per share of RMB 0.05, down from RMB 0.07 in the previous year[11]. - Net profit for 2022 was approximately RMB 22,100,000, a decrease of about 37.2% from RMB 35,200,000 in 2021, resulting in a net profit margin of 4.1%[19]. - Sales costs increased by approximately 29.8% to RMB 451,300,000 in 2022, up from RMB 347,800,000 in 2021[17]. - Gross profit decreased by approximately 35.1% to RMB 83,400,000 in 2022, with a gross margin of 15.6%, down from 27.0% in 2021[19]. - Other comprehensive expenses amounted to approximately RMB 27,400,000 in 2022, a decrease of about 358.5% from other comprehensive income of RMB 10,600,000 in 2021[20]. Business Strategy and Market Development - The company has actively expanded its domestic market and increased investment in e-commerce, which has started to yield positive results, particularly in the OBM segment[11]. - The company introduced personal care products in the wholesale market during the reporting period to diversify revenue sources[11]. - The company aims to enhance its product pricing power and continue developing high-value-added products to adapt to market challenges[11]. - The company plans to continue upgrading existing production lines to improve automation levels and product quality, while also investing in the development of aerosol products through its subsidiaries in China[47]. - The company aims to expand its sales network and platforms to achieve business growth and is actively monitoring market investment opportunities[47]. - The company is actively pursuing new product development and technological advancements to strengthen its market position[116]. - The company aims to expand its market presence and explore potential mergers and acquisitions to drive growth[116]. - The company operates in three main business segments: aerosol products, clean energy utilizing sewage source heat in China, and investment holding in Hong Kong[130]. Corporate Governance - The board emphasizes the importance of good corporate governance for the company's sustainable development and is committed to maintaining transparency and accountability[49]. - The company has deviated from corporate governance codes by having the same individual serve as both Chairman and CEO, citing the unique role and experience of the individual as justification[50]. - The board consists of three executive directors and three independent non-executive directors, meeting the requirement of at least three independent non-executive directors as per listing rules[55]. - All independent non-executive directors have submitted written confirmations of their independence to the stock exchange, ensuring compliance with independence standards[56]. - The board believes its composition reflects a balance of skills and experience necessary for effective leadership and business development[57]. - The board is responsible for corporate governance duties as outlined in the corporate governance code, while management handles daily operations[58]. - The company has adopted a "Director Nomination Procedure" to ensure a transparent and thoughtful process for evaluating and selecting director candidates[59]. - The board has mechanisms in place to ensure it receives independent opinions, including the appointment of at least three independent non-executive directors[66]. - The board will recommend the reappointment of directors who are eligible and willing to stand for re-election at the upcoming annual general meeting[61]. - The nomination committee will review the director nomination procedures annually to ensure their continued effectiveness[66]. - The independent non-executive directors possess extensive professional knowledge and experience in accounting, finance, law, and business[57]. - The company aims to maintain high standards of compliance with financial and other mandatory reporting requirements through the presence of independent directors[57]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to achieve diversity among board members[78]. - The board held five meetings during the reporting period, exceeding the minimum requirement of four meetings per year[81]. - Independent non-executive directors are appointed for an initial term of three years and must stand for re-election[72]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the company's affairs[82]. - The chairman and CEO roles are held by the same individual, which the board believes provides stability and consistency in market leadership[71]. - All directors confirmed compliance with the standard code of conduct for securities trading during the reporting period[74]. - New directors are required to undergo onboarding training to ensure they understand the company's operations and their responsibilities[76]. - The board has delegated corporate governance responsibilities to an independent compliance advisor to assist in policy development and compliance monitoring[77]. Risk Management and Internal Control - The Board is responsible for maintaining an effective risk management and internal control system, aimed at achieving business objectives and safeguarding assets[98]. - The risk management system includes a risk register to track identified risks and a continuous risk assessment approach to evaluate inherent risks affecting goal achievement[102]. - The company has engaged an independent consultant for internal control review, identifying minor deficiencies but no major flaws, confirming the effectiveness of the risk management and internal control systems as of December 31, 2022[105]. - The board regularly reviews the effectiveness of the risk management and internal control systems, covering all significant controls including financial, operational, and compliance controls[105]. - The company has established a policy for handling and disclosing inside information, ensuring timely and accurate public announcements[106]. - The company maintains effective communication with shareholders through various channels, including its website and email, to ensure transparency and timely information dissemination[110]. - The company has adopted a shareholder communication policy to ensure equal and timely access to information for all shareholders[111]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to enhancing its environmental, social, and governance (ESG) performance, as highlighted in its recent ESG report[125]. - The board of directors plays a crucial role in overseeing the company's sustainable development and has dedicated significant time to assess ESG-related risks and formulate relevant policies[143]. - The company has established an Environmental, Social, and Governance (ESG) working group consisting of 6 members, including 3 executive directors and 3 independent non-executive directors, to oversee ESG processes and risk management[144]. - The company has implemented a systematic approach to assess the significance of environmental, social, and governance issues through stakeholder discussions[140]. - The company has identified significant ESG issues through industry benchmarking and stakeholder engagement, prioritizing key areas for action[147]. - The company has fully complied with all relevant environmental laws and regulations, with no legal cases related to environmental issues reported during the year[150]. - The company has introduced measures to enhance employee environmental awareness and promote environmentally friendly work habits[150]. - The company has implemented a greenhouse gas emission management system to monitor and control emissions effectively[156]. - The company aims to reduce air pollutant emissions by 3% by 2025, with a significant reduction achieved in 2022 due to effective energy-saving policies[153]. - The company aims to reduce greenhouse gas emissions by 5% by 2025, primarily through the implementation of energy-saving policies[156]. - The company has set a comprehensive waste reduction target to decrease non-hazardous waste by 5% by 2025[162]. - The company recognizes the importance of reducing waste and has implemented waste management measures to minimize environmental impact[159]. - The company promotes a green office concept, encouraging employees to adopt paperless solutions and reduce waste generation[162]. - The company is focusing on reducing carbon emissions and promoting the use of renewable energy in its operations to achieve net-zero emissions[187]. - The company is committed to transparent communication with stakeholders regarding its climate strategies and progress[187]. - The company faces litigation risks due to stricter government regulations related to climate change[200]. - Compliance costs have increased, leading to higher operational expenses[200]. - The company is monitoring updates to environmental laws and regulations[200].
中国绿岛科技(02023) - 2022 - 年度财报