Financial Performance - The company reported a net loss attributable to owners of approximately $55.74 million for the year ended December 31, 2022[14]. - Revenue for the year 2022 was $32,347,000, representing a 35% increase from $23,978,000 in 2021[24]. - The company reported a loss attributable to owners of $55,740,000, a slight improvement of 2% from a loss of $57,006,000 in the previous year[24]. - Gross profit for the year was $2,500,000, up from $200,000 in 2021, indicating significant growth in profitability[48]. - The total sales revenue for the year ended December 31, 2022, was $32.35 million, an increase of 34.9% compared to $23.98 million in 2021[79]. - Gross profit for the same period was $2.54 million, representing a significant increase of 1,448.2% from $164,000 in 2021[79]. - The gross profit margin improved to 7.85%, up by 7.17 percentage points from 0.68% in the previous year[79]. - The company recorded an annual loss of $5.5 million in 2022, a decrease of about 2% from a loss of $5.7 million in 2021[68]. Financial Position - As of December 31, 2022, the company's current liabilities net amount was approximately $95.73 million, and total liabilities net amount was approximately $80.32 million[14]. - The company has outstanding debts totaling approximately $171.57 million, which includes amounts payable to the ultimate holding company, bank loans, and guaranteed notes[15]. - The total assets decreased by 23% to $133,558,000 from $173,132,000 in 2021[24]. - The current ratio fell to 0.6 from 0.8, indicating a decline in short-term financial health[24]. - The total trade receivables decreased by 23% to $113,854,000 from $148,303,000 in the previous year[24]. - The total liabilities increased, with the debt-to-equity ratio rising to 190% from 120%, reflecting increased financial leverage[24]. - The company's asset-liability ratio as of December 31, 2022, was 187.8%, compared to 116.2% as of December 31, 2021[119]. - The company's current liabilities net increased from approximately $40.5 million as of December 31, 2021, to approximately $95.7 million as of December 31, 2022[114]. Operational Strategies - The company is actively negotiating with existing lenders for the renewal and extension of bank loans and credit financing[12]. - The company is exploring various financing options to secure operational funding and commitments for the foreseeable future[14]. - The company aims to implement measures effectively in 2023 to demonstrate sufficient operational funding for the next twelve months[14]. - The company has outsourced operations at the Ibam mine to local firms due to management and technical personnel being unable to travel to Malaysia[47]. - The company has established a wholly-owned subsidiary in Hong Kong to market plant stem cell products, contributing to diversified revenue streams[44]. - The company plans to diversify its business strategy, focusing on health products as consumer demand shifts from optional to essential[52]. - The company aims to enhance its market presence in the health supplement sector, which is witnessing significant growth in China[52]. Governance and Compliance - The company is committed to maintaining appropriate corporate governance practices to protect shareholder interests and ensure compliance with statutory regulations[155]. - The independent non-executive directors have confirmed their independence according to the listing rules[159]. - The audit committee reviewed the financial reporting procedures and internal controls, ensuring compliance with accounting standards and regulations[168]. - The board has established an audit committee, nomination committee, and remuneration committee to oversee specific matters of the company[191]. - The audit committee reviewed the audited financial statements for the year ended December 31, 2022, confirming compliance with applicable accounting standards and sufficient disclosure[193]. - The remuneration committee is responsible for proposing and approving the remuneration policy for all directors and senior management, ensuring transparency in the process[194]. - The nomination committee evaluates suitable candidates for the board, considering diversity in gender, age, cultural background, and professional experience[197]. Risk Management - The company has established a risk management framework following the COSO model to effectively manage risks[180]. - The company has identified two areas of medium to high risk, including the overall economic downturn in China and strategic risks due to global economic changes[181]. - The company aims to diversify its business and revenue sources in response to economic and political changes[182]. - The company plans to continue engaging external professionals annually to review and enhance its internal control and risk management systems[184].
恩典生命科技(02112) - 2022 - 年度财报