Financial Performance - Total revenue for the fiscal year 2022 was approximately HKD 674.4 million, a decrease of about 24.5% compared to HKD 892.5 million in fiscal year 2021[13]. - Air freight forwarding revenue decreased by approximately 28.9% to about HKD 599.3 million in fiscal year 2022, down from HKD 843.3 million in fiscal year 2021[16]. - Sea freight forwarding revenue increased by approximately 52.6% to about HKD 75.1 million in fiscal year 2022, up from HKD 49.2 million in fiscal year 2021[17]. - Gross profit decreased by approximately 67.2% to about HKD 27.2 million in fiscal year 2022, down from HKD 82.9 million in fiscal year 2021[20]. - Gross margin decreased to approximately 4.0% in fiscal year 2022, compared to 9.3% in fiscal year 2021[20]. - The company recorded a net loss of approximately HKD 27,600,000 in fiscal year 2022, compared to a net profit of approximately HKD 23,000,000 in fiscal year 2021[27]. - Other income for fiscal year 2022 was approximately HKD 700,000, an increase from HKD 300,000 in fiscal year 2021[22]. - Financing costs increased by approximately 70.0% to about HKD 1,700,000 in fiscal year 2022, compared to HKD 1,000,000 in fiscal year 2021, primarily due to increased short-term bank borrowings and higher interest rates[25]. - Income tax expenses decreased by approximately 99.4% to about HKD 30,000 in fiscal year 2022, down from HKD 5,100,000 in fiscal year 2021, reflecting a loss recorded in fiscal year 2022[26]. Costs and Expenses - Service costs decreased by approximately 20.1% to about HKD 647.1 million in fiscal year 2022, compared to HKD 809.6 million in fiscal year 2021[18]. - Administrative and other operating expenses for the fiscal year 2022 were approximately HKD 54,000,000, a slight decrease from HKD 54,500,000 in the fiscal year 2021[23]. - Cash and bank balances as of December 31, 2022, were approximately HKD 29,600,000, a decrease from HKD 64,900,000 on December 31, 2021[30]. - Trade receivables decreased by approximately 40.4% to about HKD 138,800,000 as of December 31, 2022, from HKD 232,700,000 as of December 31, 2021, consistent with the decrease in revenue[31]. - Trade payables decreased by approximately 56.1% to about HKD 67,900,000 as of December 31, 2022, down from HKD 154,500,000 as of December 31, 2021[31]. - As of December 31, 2022, interest-bearing borrowings amounted to approximately HKD 24,500,000, a decrease from HKD 40,300,000 on December 31, 2021[33]. Shareholder Information - The company does not recommend paying any final dividend for the fiscal year 2022, compared to no dividend in the fiscal year 2021[73]. - As of December 31, 2022, the distributable reserves available for shareholders amount to approximately HKD 30,438,000, a decrease from HKD 32,082,000 as of December 31, 2021[79]. - Major shareholders Zhao Tong and Wang Xuanlu each hold 225,000,000 shares, representing 75% ownership[90]. - Profit Virtue and Peak Connect each hold 112,500,000 shares, accounting for 37.5% of the total shares[93]. Employee and Workforce - As of December 31, 2022, the group had 41 full-time employees, with total employee costs of approximately HKD 19.1 million for the fiscal year 2022, down from HKD 28.6 million in 2021[46]. - The total employee count decreased from 42 in 2021 to 41 in 2022, indicating a slight reduction in workforce[46]. - The group has implemented a stock option plan to incentivize and reward employees for their contributions[46]. - The management emphasizes the importance of employee training and development to maximize their potential, which is crucial for the group's continuous growth[46]. Market Position and Strategy - The group aims to become a leading cargo transshipment operator in Hong Kong and a major market player in the global logistics industry, with satisfactory progress reported in achieving these long-term business goals[47]. - The group plans to strengthen its market position in Hong Kong and China by purchasing more cargo space to meet customer demand[50]. - The group continues to improve its ability to secure cargo space through closer collaboration with airlines[50]. Risk Management and Compliance - The company has identified major risks including economic, social-political, sales and pricing, and credit risks that could significantly impact its financial performance and growth prospects[111]. - The company has established risk management and internal control systems to identify and mitigate existing risks[110]. - The company has maintained compliance with the GEM Listing Rules and has adopted the corporate governance code as its own[133]. - The company has established and adopted internal control measures to ensure compliance with applicable laws and regulations, including GEM listing rules[172]. Corporate Governance - The board of directors consists of six experienced members, ensuring a balanced power structure despite the chairman also serving as the CEO[139]. - The company has committed to regular reviews of the necessity to separate the roles of chairman and CEO to maintain good corporate governance[135]. - The audit committee has reviewed the consolidated financial statements for the fiscal year 2022, ensuring compliance with applicable accounting standards[130]. - The company emphasizes the importance of effective accountability through good corporate governance practices[132]. - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Financial Reporting Committee to oversee specific aspects of the group's affairs[153]. Shareholder Communication - The company has adopted a shareholder communication policy to ensure timely, transparent, and accurate communication with shareholders, reflecting regular communication practices[187]. - The board is satisfied with the implementation and effectiveness of the shareholder communication policy during the fiscal year 2022[189]. - The company provides various communication channels for shareholders, including financial reports and announcements published on the stock exchange website[188]. - The company emphasizes the importance of shareholder feedback through designated contacts and inquiry hotlines[188]. Environmental and Social Responsibility - The company has implemented environmental policies to minimize operational impacts on the environment and promote sustainability[121]. - The company made charitable donations totaling HKD 30,000 in the fiscal year 2022, compared to none in the fiscal year 2021[80].
裕程物流(08489) - 2022 - 年度财报