Financial Performance - The company recorded revenue of $16.4 million in 2022, a year-on-year increase of 14.5% from $14.3 million in 2021[7]. - Profit decreased from $5.8 million in 2021 to $5.5 million in 2022, with basic earnings per share at $0.0092 compared to $0.0096 in 2021[7]. - Revenue increased from $14.3 million in 2021 to $16.4 million in 2022, representing a growth of 14.5% driven by cross-border digital marketing services and cross-border online store SaaS solutions[20]. - Revenue from standardized digital marketing services rose from $7.8 million in 2021 to $9.1 million in 2022, an increase of 17.0% despite a decline in total billing amounts due to COVID-19 impacts[20]. - Revenue from cross-border online store SaaS solutions surged from $31,000 in 2021 to $1.4 million in 2022, indicating significant growth since its launch in November 2021[20]. - Gross profit increased from $12.2 million in 2021 to $13.9 million in 2022, while the overall gross margin slightly decreased from 84.8% to 84.3%[22]. - Administrative expenses rose from $3.2 million in 2021 to $4.7 million in 2022, primarily due to $2.1 million in listing expenses incurred in 2022[23]. - Net profit decreased from $5.8 million in 2021 to $5.5 million in 2022, with a net profit margin decline from 40.3% to 33.4% attributed to increased administrative expenses[26]. Market Position and Strategy - The company served over 1,900 marketing clients across various industries, including e-commerce and online gaming[7]. - The company holds a 6.2% market share in China's cross-border e-commerce digital marketing services, ranking third by total billing amount in 2021[13]. - The company plans to continue optimizing and upgrading its Adorado and Powershopy platforms through investment and innovation[10]. - The company aims to expand its customer base and establish overseas operations, particularly targeting emerging markets like Southeast Asia[10]. - The company is focused on enhancing its cross-border digital marketing services and SaaS solutions[10]. - The company has partnered with major social media operators globally, including Google, TikTok, and YouTube, to enhance its service offerings[8]. Financial Management and Capital Structure - The company emphasizes a prudent financial management approach to ensure healthy financial indicators[7]. - The company is committed to creating greater value for shareholders through business expansion in 2023[11]. - Financial costs rose from $1.2 million in 2021 to $1.9 million in 2022, mainly due to increased market interest rates resulting from multiple rate hikes by the U.S. Federal Reserve[24]. - The debt-to-equity ratio significantly decreased from 350.7% as of December 31, 2021, to 20.7% as of December 31, 2022, due to reduced bank loan balances and increased cash[35]. - The asset-liability ratio decreased from 528.8% as of December 31, 2021, to 459.7% as of December 31, 2022, despite a reduction in total equity due to dividend declaration[34]. Human Resources and Governance - The company had a total of 83 full-time employees as of December 31, 2022, down from 107 employees as of December 31, 2021[81]. - The company has established a remuneration committee to review the remuneration structure of directors and senior management based on operational performance and market practices[81]. - The company has adopted a board diversity policy to ensure a diverse range of skills, knowledge, and experience among board members[118]. - The gender ratio among employees, including senior management, is approximately 1:1.5 (male: female)[119]. - The board consists of five members, with two female directors contributing to gender diversity[119]. Corporate Governance and Compliance - The board is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[110]. - The company has adopted a code of conduct for securities trading in compliance with listing rules[124]. - The independent non-executive directors have confirmed their independence as per the listing rules[74]. - The company has established an audit committee to review and supervise its financial reporting procedures and internal control systems[142]. - The company has implemented training programs for senior management and employees on anti-corruption, anti-bribery, and anti-money laundering compliance[144]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the fiscal year from January 1, 2022, to December 31, 2022, focusing on the group's performance in sustainable development and environmental, social, and governance (ESG) strategies[155]. - The group aims to integrate sustainable development into its overall strategy, policies, and business plans to enhance value while achieving sustainability goals[162]. - The company emphasizes sustainable development and actively promotes a green supply chain and public environmental projects[168]. - The company integrates environmental, social, and governance (ESG) risks into its risk assessment and management system[167]. - The company aims to enhance transparency in data disclosure to protect shareholder interests[172]. Customer Relations and Service Quality - The company emphasizes personalized and customer-centric services, ensuring real-time follow-up on customer feedback throughout the entire process[184]. - The company received one customer complaint this year, which was resolved satisfactorily through timely communication[188]. - The company actively collects customer feedback to enhance service quality, with no complaints related to products or services reported this year[188].
力盟科技(02405) - 2022 - 年度财报