Audit and Risk Management - The remuneration paid to the external auditor for audit services and non-audit services for the year ended December 31, 2023, amounted to HK$0.4 million[36]. - The Company has engaged an external professional firm to conduct an independent annual review of the adequacy and effectiveness of the risk management and internal control systems for the year ended December 31, 2023[19]. - The Board considers the risk management and internal control systems of the Group for the year ended December 31, 2023, to be effective and adequate[21]. - The Company has implemented control procedures to ensure unauthorized access and use of inside information are strictly prohibited[25]. - The Company assesses and prioritizes risks based on qualitative and quantitative analyses to identify and deal with the most important risks[17]. - The internal audit function examined key issues related to accounting practices and all material controls, providing findings and recommendations for improvement to the Audit Committee[19]. - The Company has developed a disclosure policy to guide Directors and relevant employees in handling confidential information and monitoring information disclosure[22]. - Whistleblowing procedures are established to facilitate employees in raising concerns about possible improprieties in financial reporting and internal control[21]. - The Company regularly reviews its risk management measures and reports material issues to the Directors[17]. - The company has established a risk management process to identify and categorize risks into strategic, financial, operating, and legal risks[185]. - The audit committee assists the board in overseeing the design, implementation, and monitoring of risk management and internal control systems[183]. - The company has developed internal control policies to provide reasonable assurance for effective operations and reliable financial reporting[184]. Shareholder Communication and Governance - A shareholders' communication policy is in place to ensure that shareholders' views and concerns are appropriately addressed, and this policy is regularly reviewed for effectiveness[46]. - The Company has implemented a shareholders' communication policy to ensure effective addressing of shareholders' views and concerns[58]. - All corporate communications and regulatory announcements were published in a timely manner on the Company's website and the Stock Exchange[59]. - The annual general meeting was held on May 19, 2023, with all Directors attending either in person or electronically[59]. - The company appointed Mr. Lau Kai Tai and Mr. Cheuk Ka Chun Kevin as directors on September 15, 2023, both attending all board meetings since their appointment[178]. - The company reported a single-gender board following the removal of Ms. Ng Hoi Yung Yo Yo on October 26, 2023, and the appointment of Mr. Wong Ching on November 6, 2023, which does not comply with Rule 17.104 of the GEM Listing Rules[187]. - The company aims to appoint a suitable female candidate as a director by December 31, 2024, to meet the gender diversity requirement[187]. - The board consists of seven male directors, with four being independent non-executive directors, promoting critical review and control of the management process[186]. - The company has adopted a board diversity policy to enhance diversity at the board level, recognizing its importance for maintaining competitive advantage[186]. - The board diversity policy will be reviewed annually by the nomination committee to ensure its effectiveness[186]. - The Director Nomination Policy includes factors such as character, qualifications, diversity, and commitment to ensure suitable candidates for the Board[195]. Sustainability and Environmental Impact - The Group recognizes the importance of sustainable development for long-term competitiveness and has established various policies to manage ESG-related risks[65]. - The ESG report covers the Group's environmental and social performance for the reporting period from January 1, 2023, to December 31, 2023[65]. - The Group aims to provide quality services while ensuring employee health and safety and mitigating environmental impact[75]. - The Group's commitment to sustainability is crucial for achieving business excellence and enhancing long-term competitiveness[65]. - The Group aims to achieve zero hazards, incidents, and non-compliance in its operations[76]. - The Group has committed to conserving resources and protecting the environment through effective pollution prevention[76]. - The Group is committed to continuously improving its business environmental sustainability and reducing operational impacts[107]. - The Group's operations are primarily based in Hong Kong and the People's Republic of China, with a focus on minimizing environmental impacts compared to traditional industries[107]. - The total greenhouse gas (GHG) emissions for 2023 were 15,658 kg, an increase from 11,464 kg in 2022, representing a 37.5% rise[112]. - The energy consumption for 2023 was 28,469 kWh, up from 22,479 kWh in 2022, indicating a 26.6% increase[122]. - Water consumption decreased to 59 m³ in 2023 from 89 m³ in 2022, reflecting a reduction of 33.7%[128]. - The energy intensity for 2023 was 23.88 kg/m³, significantly lower than 58.85 kg/m³ in 2022, showing improved efficiency[122]. - The Group has implemented energy-saving practices to minimize GHG emissions, including setting electrical appliances to energy-saving mode and scheduling automatic sleep mode for computers[119]. - The Group does not engage in any discharge of waste into water and land, and there was no significant generation of hazardous or non-hazardous wastes[102]. - The Group encourages staff to reduce water wastage, particularly in pantry areas, to further enhance resource efficiency[127]. - Total paper consumption during the reporting period was 212 kg, a significant increase from 74 kg in 2022[133]. - The Group has implemented measures to strengthen quality management and ensure stable production for customer satisfaction[94]. Employee and Workforce Management - The Group's total workforce increased to 20 employees in 2023, up from 6 in 2022[146]. - The overall employee turnover rate was 20% in 2023, down from 33% in 2022[150]. - Male employees constituted 70% of the workforce in 2023, compared to 33.3% in 2022, while female employees decreased to 30% from 66.7%[150]. - The age group of 36-45 years made up 40% of the workforce in 2023, an increase from 33.3% in 2022[150]. - Senior management represented 30% of the employee structure in 2023, a slight decrease from 33.3% in 2022[150]. - The Group has implemented a competitive remuneration system linking employee compensation to business performance[142]. - The Group maintained a defined contribution retirement benefits scheme for employees in Hong Kong and paid social insurance for employees in the PRC[144]. - The percentage of trained employees increased, with 36% of male employees and 50% of female employees receiving training in 2023, compared to 100% in 2022[164]. - The average training hours per employee rose significantly, with male employees averaging 10.2 hours and female employees averaging 18.3 hours in 2023, compared to 17.5 hours for all employees in 2022[164]. - The Group's commitment to employee development includes providing education allowances for external training seminars[162]. - There were no material non-compliance cases regarding employment laws during the Reporting Period[155]. - The Group strictly complies with laws prohibiting child and forced labor, ensuring all employees meet legal working age requirements[165]. Supply Chain and Supplier Management - The Group's supply chain management focuses on outsourcing apparel production to suppliers in the PRC, Madagascar, and Cambodia, leveraging competitive strengths in manufacturing costs and capabilities[170]. - The Group has implemented policies for selecting and evaluating suppliers based on factors such as technical capability, quality, and timely delivery[173]. - The Group maintained 11 suppliers in total as of December 31, 2023, with an increase in suppliers from the PRC from 5 in 2022 to 7 in 2023[173]. - The Group's suppliers in Madagascar and Cambodia benefit from lower labor costs and exemptions from import duties for exporting apparel to Europe[174]. - The Group generated no significant hazardous waste during the reporting period[133]. - The Group is not aware of any material violations of applicable environmental laws and regulations[133].
细叶榕科技(08107) - 2023 - 年度财报