Gender Diversity and Board Composition - The company's board is currently composed of approximately 70% male and 30% female, indicating a gender diversity ratio in the workforce [5]. - The company aims to appoint a suitable female candidate to the board by December 31, 2024, to comply with GEM Listing Rule 17.104 [4]. - The company has adopted a director nomination policy to ensure a balanced board with appropriate skills and diversity [5]. Internal Control and Risk Management - The company has established a series of internal control policies to ensure effective operations and reliable financial reporting [12]. - An external professional firm was engaged to conduct an independent annual review of the risk management and internal control systems for the year ended December 31, 2023 [20]. - The company has identified and categorized risks into strategic, financial, operating, and legal risks to manage its business operations effectively [13]. - The company has implemented control procedures to prevent unauthorized access to internal information [21]. Employee Health and Safety - The company is committed to providing healthy and safe working conditions for all employees and stakeholders [36]. - The Group aims to provide high-quality services while ensuring employee health and safety and reducing environmental impact [58]. - The Group has developed a fair promotion mechanism and established labor unions to safeguard employee rights and interests [65]. Shareholder Engagement and Communication - The company engages with shareholders through various communication channels to address their views and concerns [26]. - The Company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance [54]. Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG report is prepared in accordance with the Environmental, Social and Governance Reporting Guide, focusing on its principal activities [56]. - The Company has engaged with major stakeholders to identify key ESG issues through regular communication [40]. - The Group's reporting principles include materiality, quantitative information, balance, and consistency to provide a comprehensive overview of ESG performance [39]. - The Group is committed to improving its business environmental sustainability and has not identified any material environmental liability risks or compliance costs [73]. - The annual materiality assessment was conducted to identify significant operating, environmental, and social impacts on the business [88]. - The Group actively undertakes social responsibilities and complies with government regulations regarding tax payments and safety management [40]. Financial Performance and Challenges - The Group's profitability has been severely affected by the aftermath of the COVID-19 pandemic, prompting management to implement cost-control measures to reduce unnecessary operating costs [70]. - The Group's revenue decreased by approximately 45.6% from HK$160.4 million for the year ended 31 December 2022 to approximately HK$87.2 million for the year ended 31 December 2023 [117]. - Administrative expenses increased significantly from approximately HK$8.3 million in 2022 to approximately HK$26.1 million in 2023, primarily due to one-off director bonuses and increased professional fees and staff salaries [99]. - Finance costs rose from approximately HK$1.6 million in 2022 to approximately HK$2.6 million in 2023, attributed to an increase in loan interest rates [101]. - The Group recorded a tax credit of approximately HK$0.2 million for the year ended 31 December 2023, compared to a tax expense of approximately HK$0.5 million in 2022, mainly due to losses incurred in 2023 [101]. - The Group's total comprehensive expense for the year ended 31 December 2023 was approximately HK$34.2 million, compared to a profit of approximately HK$4.9 million for the year ended 31 December 2022 [101]. - The significant decrease in profitability was primarily due to a substantial decline in sales volume of apparel products, increased cost of sales, and higher administrative and selling expenses [171]. Supply Chain Management and Business Development - The Group has established a framework cooperation agreement with an e-commerce platform to promote innovative supply chain management solutions to online merchants in 2023 [42]. - In 2023, the Group entered into a service agreement to enhance its supply chain management (SCM) services with anti-counterfeit traceability technology, which is applicable beyond apparel products [77]. - The Group has started exploring new business opportunities to expand its customer base and improve SCM services [80]. - The innovative SCM solutions are designed to be applicable to a diverse range of products, not limited to apparel [81]. - The Group has advanced its supply chain management (SCM) services to include anti-counterfeit, traceability, and marketing functions for brand protection on both apparel and other products [179]. - The Group aims to enhance competitiveness in the market through innovative SCM solutions and strategic partnerships, including collaborations with two subsidiaries of Shanghai Film Co., Ltd. in 2024 [171]. Financial Position and Liquidity - As of December 31, 2023, the total equity of the Group was HK$62.4 million, an increase from HK$53.8 million as of December 31, 2022 [194]. - The Group's cash and cash equivalents as of December 31, 2023, were HK$22.1 million, significantly up from HK$0.7 million as of December 31, 2022 [194]. - The Group's bank borrowings decreased to HK$30.9 million as of December 31, 2023, down from HK$42.6 million as of December 31, 2022 [194]. - The current ratio improved to 2.0 times as of December 31, 2023, compared to 1.7 times as of December 31, 2022 [194]. - Trade receivables turnover days increased to 267.0 days for the year ended December 31, 2023, from 176.1 days for the year ended December 31, 2022 [194]. - The gearing ratio decreased to 49.6% as of December 31, 2023, from 79.3% as of December 31, 2022 [194]. Employee and Operational Changes - The Group employed a total of twenty full-time employees as of December 31, 2023, up from six full-time employees as of December 31, 2022 [196]. - Staff costs for the year ended December 31, 2023, were approximately HK$16.1 million, compared to HK$3.8 million in 2022 [196]. - The Group did not make any material acquisitions or disposals of subsidiaries, associates, and joint ventures for the year ended December 31, 2023 [196].
细叶榕科技(08107) - 2023 - 年度业绩