Financial Performance - The company's revenue for the year ended December 31, 2022, decreased by 4% to HKD 94.2 million, compared to HKD 98.1 million in 2021[11]. - The gross profit for the year was HKD 48.6 million, with a gross margin of 52%, slightly down from 53% in the previous year[11][13]. - The company reported a profit of HKD 1.1 million for the year, a significant improvement from a loss of HKD 21.3 million in 2021[5][11]. - Total operating expenses decreased by 32% to HKD 49.4 million, down from HKD 72.2 million in 2021, primarily due to reduced depreciation and amortization expenses[14]. - The net asset value of the company as of December 31, 2022, was HKD 77.9 million, a decrease from HKD 81.4 million in 2021[15]. - The company’s basic earnings per share for the year were HKD 0.352, compared to a loss of HKD 6.673 per share in 2021[11]. - The group recorded a net cash inflow from operating activities of HKD 2.0 million for the year, compared to HKD 2.8 million in 2021, indicating increased cash consumption in daily operations[34]. - As of December 31, 2022, the group's cash and cash equivalents amounted to HKD 40.0 million, a decrease from HKD 51.5 million as of December 31, 2021[34]. Market Strategy and Development - The company plans to continue developing new products and expanding market share, particularly in the identification and payment product sectors[9]. - The company participated in multiple exhibitions to explore market opportunities, including IOTE 2022 and Identity Week America[6]. - The company aims to enhance shareholder returns while maintaining competitiveness through product innovation and market expansion[9]. - The development cost for new products and services was HKD 6.6 million, significantly higher than HKD 0.6 million in the previous year[32]. - The group plans to enhance its product line and optimize material lists to reduce costs while launching new products[24]. - The group is actively seeking development opportunities and has financial institutions ready to provide credit lines if needed[24]. - The company anticipates a revenue growth of 15% for the next fiscal year, projecting total revenues to reach approximately $115 million[56]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by the end of 2024[56]. Governance and Management - The company appointed Ms. Xu Tingting as Chief Operating Officer on March 7, 2022, who has extensive experience in accounting and finance[52]. - The board consists of six executive directors, two non-executive directors, and four independent non-executive directors, ensuring a diverse and independent decision-making process[71]. - The company has adhered to the corporate governance code, with the exception of the combined roles of the chairman and CEO, which the board believes is beneficial for strategic continuity[66]. - The independent non-executive directors make up more than one-third of the board, meeting the listing rules requirements[71]. - The company has implemented a board diversity policy, which was revised on August 24, 2022, to maintain and achieve diversity among board members[88]. - The company has established a plan for the board to make decisions and for management to handle operational matters, which will be regularly reviewed[70]. - The company has confirmed that all directors have devoted sufficient time and effort to handle the company's affairs during the year ending December 31, 2022[82]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental protection and sustainable development, with its technology reducing waste associated with various operations[171]. - The company has formed an ESG working group to oversee ESG procedures and risk management, meeting at least twice a year[166]. - The company identifies significant ESG issues through industry benchmarks and stakeholder participation, prioritizing key areas for assessment[167]. - The company aims to further reduce its carbon footprint through ongoing energy consumption reduction initiatives[179]. - The company has adopted waste management measures to minimize waste generation and environmental impact, with a focus on promoting a paperless office[182]. - The report covers sustainable initiatives from January 1, 2022, to December 31, 2022, highlighting the group's commitment to corporate social responsibility[147]. - The company has implemented a stakeholder engagement process to understand expectations and concerns, which informs decision-making and impact management[167]. Risk Management - The company emphasizes the importance of internal control and risk management systems to reduce risks and ensure operational effectiveness[115]. - The board believes that the existing risk management and internal control systems are effective and sufficient, ensuring the company's ability to continue as a going concern[122]. - Regular risk management meetings are held to monitor identified risks and evaluate the effectiveness of risk mitigation strategies[118]. - The risk management working group utilizes a risk management matrix to assess risk levels, with all identified risks recorded in a risk register and monitored by the board[118]. Employee and Workforce Management - The group employed 122 full-time employees as of December 31, 2022, an increase from 107 in the previous year[42]. - Employee costs recognized in the profit and loss statement amounted to HKD 33.3 million, down from HKD 36.8 million in 2021[42]. - The company has developed a fair promotion mechanism and established a union to provide communication platforms for employees[156]. - The company has provided necessary onboarding training and continuous professional development for all newly appointed directors to ensure they are well-informed about the company's operations and responsibilities[78].
高维科技(02086) - 2022 - 年度财报