建滔积层板(01888) - 2022 - 年度业绩

Performance Announcement Summary Kingboard Laminates Holdings Limited's FY2022 results show significant declines in revenue, profit, and EPS, reflecting a challenging market, with basic profit attributable to owners down 70% and full-year dividend per share reduced by 77% Financial Highlights Kingboard Laminates Holdings Limited's FY2022 results show significant declines in revenue, profit, and EPS, reflecting a challenging market, with basic profit attributable to owners down 70% and full-year dividend per share reduced by 77% Financial Highlights | Metric | FY2022 (HK$ Million) | FY2021 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 22,363.7 | 28,799.8 | -22% | | EBITDA | 4,378.6 | 9,200.3 | -52% | | Profit Before Tax | 3,451.3 | 8,386.9 | -59% | | Basic Profit Attributable to Owners | 2,002.7 | 6,781.7 | -70% | | Book Profit Attributable to Owners | 1,909.1 | 6,781.7 | -72% | | Basic EPS (HK Cents) | 64.2 | 217.4 | -70% | | Book EPS (HK Cents) | 61.2 | 217.4 | -72% | | Full-Year Dividend Per Share (HK Cents) | 35.0 | 150.0 | -77% | | Net Asset Value Per Share (HK$) | 4.82 | 6.10 | -21% | | Net Debt-to-Equity Ratio | 7% | Net Cash 150.0 | - | Consolidated Financial Statements The 2022 consolidated financial statements reveal substantial declines in revenue and profit, a sharp drop in total comprehensive income due to exchange differences, and a decrease in net assets driven by increased non-current bank borrowings Consolidated Statement of Profit or Loss In 2022, the company experienced significant declines in revenue and profit for the year, with gross profit nearly halved and finance costs substantially increased, reflecting a deteriorating operating environment and rising cost pressures Consolidated Statement of Profit or Loss | Metric | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 22,363,680 | 28,799,810 | | Cost of Sales | (17,274,238) | (19,004,119) | | Gross Profit | 5,089,442 | 9,795,691 | | Other Income, Gains and Losses | 112,931 | 84,917 | | Finance Costs | (130,392) | (80,665) | | Profit Before Tax | 3,357,766 | 8,386,915 | | Profit for the Year | 1,909,384 | 6,783,479 | | Profit Attributable to Owners of the Company | 1,909,169 | 6,781,656 | Consolidated Statement of Profit or Loss and Other Comprehensive Income In 2022, the company's profit for the year significantly decreased, and substantial exchange differences arising from translation reserves led to a sharp drop in total comprehensive income for the year from HK$7.198 billion in 2021 to HK$172 million Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Profit for the Year | 1,909,384 | 6,783,479 | | Exchange Differences Arising from Translation to Presentation Currency | (1,884,486) | 561,621 | | Loss on Debt Instruments at Fair Value Through Other Comprehensive Income | (38,979) | (121,610) | | Other Comprehensive (Expense) Income for the Year | (1,736,964) | 414,989 | | Total Comprehensive Income for the Year | 172,420 | 7,198,468 | Consolidated Statement of Financial Position As of year-end 2022, total assets slightly decreased, net current assets declined, and a significant increase in non-current bank borrowings led to a substantial reduction in net assets and a corresponding decrease in total capital Consolidated Statement of Financial Position | Metric | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 10,578,519 | 10,518,503 | | Total Current Assets | 13,721,293 | 19,303,282 | | Total Current Liabilities | 4,707,566 | 9,778,095 | | Net Current Assets | 9,013,727 | 9,525,187 | | Total Non-Current Liabilities | 4,520,255 | 978,566 | | Net Assets | 15,071,991 | 19,065,124 | | Total Capital | 15,071,991 | 19,065,124 | Notes to the Financial Statements The notes detail the basis of financial statement preparation, revenue analysis showing a 22% decline, segment performance with CCL segment downturn and property segment growth, increased finance costs, and significant changes in receivables and payables Basis of Preparation and Application of Accounting Standards The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, complying with Listing Rules and the Hong Kong Companies Ordinance, with the first-time application of revised standards having no material impact on financial position or performance - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the HKICPA and comply with the disclosure requirements of the Hong Kong Stock Exchange Listing Rules and the Hong Kong Companies Ordinance[9] - Three revised Hong Kong Financial Reporting Standards were first applied this year, including References to the Conceptual Framework, COVID-19-Related Rent Concessions, and Property, Plant and Equipment—Proceeds before Intended Use[10][11] - The application of the revised Hong Kong Financial Reporting Standards had no material impact on the Group's financial position and performance for the current and prior years[11] Revenue Analysis In 2022, the Group's total revenue was HK$22.364 billion, a 22% decrease from 2021, with significant declines in sales of epoxy glass fiber and paper copper clad laminates, but a substantial increase in property sales revenue Revenue Sources | Source of Revenue | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Sales of Epoxy Glass Fiber Copper Clad Laminates | 12,443,665 | 20,795,401 | | Sales of Paper Copper Clad Laminates | 1,544,064 | 2,240,799 | | Sales of Upstream Materials | 4,035,387 | 3,857,153 | | Sales of Properties | 3,064,620 | 592,273 | | Others (Mainly Sales of Specialty Resins) | 1,111,212 | 1,100,421 | | Revenue Recognized Over Time (Hotel Accommodation) | 44,255 | 59,813 | | Total Revenue from Contracts with Customers | 22,243,203 | 28,645,860 | | Rental Income | 61,535 | 70,838 | | Interest Income from Debt Instruments | 8,433 | 37,918 | | Dividend Income | 50,509 | 45,194 | | Total Revenue | 22,363,680 | 28,799,810 | - Upstream material sales include copper foil, epoxy resin, glass fiber cloth, and bleached wood pulp paper, with payment terms ranging from 0 to 120 days[13] - Other income primarily includes sales of specialty resins totaling HK$892 million (2021: HK$776 million)[13] Segment Information The Group's operating segments include manufacturing and sales of copper clad laminates, properties, and investments; in 2022, the CCL segment saw significant declines in revenue and results, while the property segment experienced substantial growth, with China remaining the primary revenue source despite a decrease in revenue from the region - The Group's operating segments are primarily divided into three: (i) manufacturing and sales of copper clad laminates, (ii) properties, and (iii) investments[14] Segment Revenue and Results In 2022, the copper clad laminate segment experienced significant declines in both revenue and results, while the property segment achieved substantial growth in revenue and results, and the investment segment recorded a loss Segment Revenue and Results | Segment | 2022 Revenue (HK$ Thousand) | 2022 Results (HK$ Thousand) | 2021 Revenue (HK$ Thousand) | 2021 Results (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Copper Clad Laminates | 19,134,328 | 2,266,378 | 27,993,774 | 8,116,680 | | Properties | 3,170,410 | 1,560,948 | 722,924 | 320,693 | | Investments | 58,942 | (201,122) | 83,112 | 118,022 | | Consolidated Total | 22,363,680 | 3,626,204 | 28,799,810 | 8,555,395 | Geographical Revenue Analysis China (where the Group is located) remains the primary source of external customer revenue, but 2022 saw a year-on-year decrease in revenue from China, with other Asian countries, Europe, and the Americas also experiencing fluctuating revenues Geographical Revenue | Region | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | China (Country of Domicile) | 20,804,359 | 26,666,134 | | Other Asian Countries | 1,266,750 | 1,871,965 | | Europe | 135,644 | 144,357 | | Americas | 156,927 | 117,354 | | Total | 22,363,680 | 28,799,810 | - Revenue from a subsidiary of Kingboard Holdings Limited, a customer of the copper clad laminate segment, was HK$4.096 billion (2021: HK$4.857 billion), accounting for over 10% of total revenue for the year[19] Other Income, Gains and Losses In 2022, total other income, gains, and losses increased to HK$113 million, primarily driven by higher interest income from bank balances and deposits, alongside a significant reduction in losses from disposal and write-off of property, plant, and equipment Other Income, Gains and Losses | Item | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Government Grants | 56,612 | 56,491 | | Interest Income from Bank Balances and Deposits | 31,204 | 22,388 | | Loss on Disposal and Write-off of Property, Plant and Equipment | (1,821) | (20,749) | | Others | 26,936 | 26,787 | | Total | 112,931 | 84,917 | Finance Costs In 2022, finance costs significantly increased to HK$130 million, primarily due to higher interest on bank borrowings and a reduction in capitalized amounts Finance Costs | Item | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 146,117 | 94,619 | | Estimated Interest on Contract Liabilities | – | 1,810 | | Interest on Lease Liabilities | 81 | 95 | | Less: Amount Capitalized for Construction in Progress | (15,806) | (14,049) | | Amount Capitalized for Properties Under Development | – | (1,810) | | Total | 130,392 | 80,665 | - Capitalized bank and other borrowing costs in 2021 included estimated interest on contract liabilities of HK$1.81 million and bank borrowing costs from a general borrowing pool, with a weighted average capitalization rate of 1.87% per annum (2022: nil)[21] Depreciation Depreciation of property, plant, and equipment for 2022 was approximately HK$782 million, an increase from 2021 - Depreciation of property, plant and equipment for 2022 was approximately HK$781.5 million, an increase from HK$717.9 million in 2021[22] Income Tax Expense Total income tax expense in 2022 decreased to HK$1.448 billion from 2021; China's corporate income tax rate is 25%, with a 15% preferential rate for high-tech enterprises, land appreciation tax is levied at progressive rates, and Hong Kong profits tax is calculated under a two-tiered system Income Tax Expense | Item | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | PRC Corporate Income Tax | 427,922 | 1,295,764 | | PRC Land Appreciation Tax | 528,034 | 97,850 | | Total | 1,448,382 | 1,603,436 | - PRC subsidiaries are subject to a corporate income tax rate of 25%, with high-tech enterprises enjoying a preferential rate of 15% valid until 2024 or earlier[22][23] - Land Appreciation Tax is levied at progressive rates ranging from 30% to 60% on the appreciation of land value (property sales proceeds less specified direct costs)[25] - Hong Kong profits tax operates under a two-tiered system, with the first HK$2 million of assessable profits taxed at 8.25% and the remainder at 16.5%[25] Dividends The Board proposed a final dividend of HK$0.20 per ordinary share for 2022, an 83% decrease from HK$1.20 in 2021, with the 2022 interim dividend also down 50% year-on-year Dividends Declared and/or Paid | Dividend Type | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | 2022 Interim Dividend (HK$0.15 per share) | 468,000 | 936,000 | | 2021 Final Dividend (HK$1.20 per share) | 3,744,000 | 1,092,000 | | 2020 Special Final Dividend (HK$0.15 per share) | – | 468,000 | | Total Dividends Declared and/or Paid | 4,212,000 | 2,496,000 | - The Board proposed a 2022 final dividend of HK$0.20 per ordinary share (2021: HK$1.20), totaling HK$624 million (2021: HK$3.744 billion), subject to approval at the Annual General Meeting[24][26] Earnings Per Share In 2022, both basic and diluted earnings per share were HK$0.612, a significant decrease from HK$2.174 in 2021, primarily due to reduced profit attributable to owners of the company Earnings Per Share | Metric | 2022 (HK$ Thousand/Thousand Shares) | 2021 (HK$ Thousand/Thousand Shares) | | :--- | :--- | :--- | | Profit for Calculation of Basic and Diluted EPS | 1,909,169 | 6,781,656 | | Weighted Average Number of Ordinary Shares for Basic EPS | 3,120,000 | 3,120,000 | | Weighted Average Number of Ordinary Shares for Diluted EPS | 3,120,000 | Not Applicable | | Basic EPS | HK$0.612 | HK$2.174 | | Diluted EPS | HK$0.612 | Not Applicable | - The calculation of diluted EPS for 2022 did not assume the exercise of share options, as their exercise price was higher than the average market price of the company's shares during the year[27] Trade and Other Receivables, Prepayments and Bills Receivable As of year-end 2022, total trade and other receivables and prepayments amounted to HK$3.834 billion, and bills receivable were HK$2.510 billion, with the combined total significantly lower than 2021, primarily due to decreases in net trade receivables and bills receivable Trade and Other Receivables, Prepayments and Bills Receivable | Item | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Net Trade Receivables | 3,140,288 | 5,582,073 | | Prepayments to Suppliers | 183,371 | 517,652 | | Prepaid Expenses and Deposits | 84,999 | 204,704 | | Recoverable VAT | 244,531 | 190,197 | | Other Receivables | 180,552 | 144,541 | | Total Trade and Other Receivables and Prepayments | 3,833,741 | 6,639,167 | | Bills Receivable | 2,509,628 | 4,243,905 | | Total | 6,343,369 | 10,883,072 | - Trade customers are granted credit periods of up to 120 days. As of the reporting period end, the aging of trade receivables was primarily concentrated within 0 to 90 days (HK$2.672 billion), with HK$441 million for 91 to 180 days, and HK$27.34 million for over 180 days[29][30] - All bills receivable have an aging of 0 to 90 days from the invoice date and are due within one year[30] Trade and Other Payables and Bills Payable As of year-end 2022, total trade and other payables amounted to HK$2.544 billion, and bills payable were HK$474 million, with the combined total decreasing from 2021, and an average credit period of 90 days Trade and Other Payables and Bills Payable | Item | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Payables | 964,300 | 1,050,633 | | Accrued Expenses | 496,766 | 523,032 | | Payables for Purchase of Property, Plant and Equipment | 134,314 | 124,495 | | Other Taxes Payable | 661,868 | 726,214 | | VAT Payable | 136,536 | 222,553 | | Land Appreciation Tax Payable | 61,096 | 10,672 | | Other Payables | 89,485 | 75,038 | | Total Trade and Other Payables | 2,544,365 | 2,732,637 | | Bills Payable | 474,379 | 602,496 | | Total | 3,018,744 | 3,335,133 | - The aging of trade payables is primarily concentrated within 0 to 90 days (HK$859 million), with an average credit period of 90 days for goods purchased[32] - Bills payable include amounts due for the purchase of property, plant and equipment totaling HK$10.15 million (2021: HK$30.63 million), all due within 90 days after the end of the reporting period[31][32] Business Review and Outlook The business review highlights a challenging 2022 with declining CCL demand and revenue, but strong property segment growth, while the outlook anticipates industry recovery, strategic capacity expansion, and enhanced operational efficiency Business Review In 2022, geopolitical conflicts, recurring domestic epidemics, and global high inflation led to a decline in electronics industry demand, causing CCL sales volume and unit prices to fall; the Group made impairment provisions for inventory but achieved over HK$2 billion in basic profit attributable to owners through vertical integration and cost control, while the property segment saw significant revenue growth due to increased residential property deliveries, and the Group made a HK$186.5 million credit impairment provision for bond investments - The market for copper clad laminates and upstream materials saw a significant increase in supply, but demand in the electronics industry declined due to geopolitical conflicts, domestic epidemics, and global high inflation, leading to a fall in CCL sales volume and unit prices[34] - The Group made impairment provisions for inventories of copper clad laminates and upstream materials but still recorded over HK$2 billion in basic profit attributable to owners of the company, leveraging its vertically integrated industrial chain and cost control[34] - The property segment's revenue significantly increased due to a rise in residential property deliveries during the year; the Group made a credit impairment provision of HK$186.5 million for its bond investments[34] Key Financial Performance in 2022 | Metric | 2022 (HK$ Million) | 2021 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Full-Year Revenue | 22,363.7 | 28,799.8 | -22% | | Basic Profit Attributable to Owners of the Company | 2,002.7 | 6,781.7 | -70% | Financial Highlights This section reiterates key financial data for FY2022, showing significant declines in revenue, profit, and EPS, a substantial reduction in full-year dividend per share, and a shift in net debt-to-equity ratio from net cash to 7% Financial Highlights | Metric | FY2022 (HK$ Million) | FY2021 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 22,363.7 | 28,799.8 | -22% | | EBITDA | 4,378.6 | 9,200.3 | -52% | | Profit Before Tax | 3,451.3 | 8,386.9 | -59% | | Basic Profit Attributable to Owners | 2,002.7 | 6,781.7 | -70% | | Basic EPS (HK Cents) | 64.2 | 217.4 | -70% | | Full-Year Dividend Per Share (HK Cents) | 35.0 | 150.0 | -77% | | Net Asset Value Per Share (HK$) | 4.82 | 6.10 | -21% | | Net Debt-to-Equity Ratio | 7% | Net Cash 150.0 | - | Business Performance The copper clad laminate segment's revenue decreased by 32%, but product portfolio optimization and cost control mitigated the impact of declining market demand and rising costs, while the property segment's revenue surged 3.4 times due to increased residential property deliveries Copper Clad Laminates Segment The copper clad laminate segment's revenue decreased by 32% to HK$19.134 billion; despite declining electronics industry demand, the segment effectively controlled costs by expanding new markets, optimizing product mix (e.g., thin, lead-free, halogen-free, flame-retardant, high-frequency, high-speed CCLs), and improving production technology and automation, but slow inventory turnover and falling unit prices led to impairment provisions for inventory, resulting in a 65% decrease in EBITDA - The copper clad laminate segment's revenue decreased by 32% to HK$19.134 billion[36] - The segment actively expanded into new markets and optimized its product portfolio, with a significant increase in sales proportion of high-end, high-value-added products such as thin, lead-free, halogen-free, flame-retardant, high-frequency, and high-speed copper clad laminates[36] - Improvements in production technology, enhanced production efficiency, reduced energy consumption, and increased automation of production equipment effectively mitigated pressures from high commodity, energy, and transportation costs[36] - Due to slower inventory turnover and falling product unit prices in the first two months of 2023, impairment provisions were made for inventory, leading to a 65% decrease in EBITDA to HK$3.0477 billion[36] Property Segment The property segment continued to focus on its CCL business development strategy, primarily selling remaining inventory during the year; due to increased residential property deliveries, segment revenue rose 3.4 times to HK$3.170 billion, and EBITDA increased 3.7 times to HK$1.576 billion - The property segment primarily focused on selling remaining inventory during the year, with revenue increasing 3.4 times to HK$3.170 billion[37] - EBITDA increased 3.7 times to HK$1.576 billion[37] Liquidity and Financial Position The Group maintained a sound liquidity and financial position with net current assets of approximately HK$9.013 billion and a current ratio of 2.91; net working capital turnover period shortened to 86 days, and the net debt-to-equity ratio shifted from net cash to 7% primarily due to investments in new production facilities, while the successful signing of a HK$7 billion five-year sustainability-linked loan agreement reflects banking sector confidence in its ESG efforts - As of December 31, 2022, net current assets were approximately HK$9.0137 billion (2021: HK$9.5252 billion), and the current ratio was 2.91 (2021: 1.97)[38] - Net working capital turnover period decreased from 102 days in 2021 to 86 days in 2022[38] Working Capital Turnover Period | Metric | 2022 (Days) | 2021 (Days) | | :--- | :--- | :--- | | Inventory Turnover Period | 51 | 51 | | Trade Receivables Turnover Period | 66 | 83 | | Trade Payables and Bills Payable Turnover Period | 31 | 32 | - As of December 31, 2022, the net debt-to-equity ratio was approximately 7% (2021: net cash of HK$150 million), primarily due to investments of approximately HK$2.4 billion in new production facilities during the year[39] - The ratio of short-term to long-term borrowings was 5%:95% (2021: 67%:33%)[39] - The Group successfully signed a HK$7 billion five-year sustainability-linked loan agreement with 14 banks, reflecting the banking sector's confidence in the Group's ESG efforts[39] Human Resources As of year-end 2022, the Group's total headcount was approximately 10,300, an increase from 2021; the Group offers competitive remuneration and grants share options and special bonuses based on the company's financial performance and individual employee performance - As of December 31, 2022, the Group employed approximately 10,300 staff (2021: 9,900 staff)[40] - The Group offers competitive remuneration packages and grants share options and special bonuses based on the company's financial performance and individual employee performance[40] Outlook Despite weak CCL market demand in early 2023, the industry is expected to enter a new growth cycle; the Group plans to enhance competitiveness through new plant construction, expanded upstream material capacity, overseas market expansion, big data management, MES system adoption, and distributed solar PV power stations, anticipating continuous market share growth - The copper clad laminate industry is expected to enter a new growth cycle with the easing of pandemic measures and recovery of the consumer market[41] - The Group's newly built copper clad laminate plant in Shaoguan, Guangdong, has commenced full operation, accelerating the upgrade of products such as thin, flame-retardant, high-frequency, high-speed, and lead-free, halogen-free copper clad laminates[41] - The Group is actively expanding upstream material capacity, including increasing glass yarn capacity by 4,200 tons per month and copper foil capacity by 1,050 tons per month in Lianzhou, Guangdong, increasing glass fabric capacity by 13 million meters per month in Shaoguan, and planning to further increase copper foil capacity by 750 tons per month in Lianzhou in the first half of 2023[41] - The Group will increase copper clad laminate and upstream material capacity in Thailand to strengthen its expansion into overseas markets[41] - To enhance management efficiency, the Group is developing big data management and will adopt a modern Manufacturing Execution System (MES) to improve production efficiency[42] - In response to carbon neutrality goals, the Group is progressively constructing distributed solar photovoltaic power station projects at various factories, expected to recover costs within five years and generate long-term benefits[42] Other Important Matters This section covers the proposed final dividend, share transfer registration closure, adherence to corporate governance codes, confirmation of no listed securities transactions, and the Audit Committee's review of financial reporting Final Dividend The Board proposed a final dividend of HK$0.20 per share, payable on July 6, 2023, to shareholders registered on June 20, 2023, subject to approval at the Annual General Meeting - A final dividend of HK$0.20 per share is proposed, subject to approval at the Annual General Meeting on May 29, 2023[44] - The dividend will be paid on July 6, 2023, to shareholders registered on the company's share register on June 20, 2023[44] Closure of Register of Members To determine shareholders' eligibility to attend the Annual General Meeting and receive the final dividend, the company will suspend share transfer registration in two separate periods - To determine shareholders' eligibility to attend and vote at the 2023 Annual General Meeting, the share transfer registration will be suspended from May 23 to May 29, 2023[45] - To determine shareholders' entitlement to the proposed final dividend, the share transfer registration will be suspended from June 16 to June 20, 2023[45] Corporate Governance and Compliance The company's directors confirm that as of year-end 2022, the company has adopted and consistently complied with the Corporate Governance Code under Appendix 14 and the Model Code for Securities Transactions by Directors of Listed Issuers under Appendix 10 of the Listing Rules - The company has adopted and consistently complied with the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the year 2022[46] - Each director confirms compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules throughout the year 2022[47] Purchase, Sale or Redemption of Listed Securities Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Hong Kong Stock Exchange during the year 2022 - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on The Stock Exchange of Hong Kong Limited during the year 2022[48] Audit Committee The Audit Committee, in conjunction with management, reviewed the Group's accounting policies and practices, discussed audit, internal control, and financial reporting matters, including the audited financial reporting information for the year ended 2022 - The Audit Committee, in conjunction with management, reviewed the accounting policies and practices adopted by the Group and discussed matters relating to audit, internal control, and financial reporting[49] - The Audit Committee has reviewed the audited financial reporting information of the Group for the year ended December 31, 2022[49] Scope of Work of the Auditor The company has agreed with auditor Deloitte Touche Tohmatsu that the preliminary announced financial data are consistent with the amounts presented in the audited consolidated financial statements approved by the Board; Deloitte's work does not constitute an assurance engagement, thus no opinion or assurance conclusion is expressed - The company has agreed with its auditor, Deloitte Touche Tohmatsu, that the financial figures in the preliminary announcement are consistent with the amounts presented in the audited consolidated financial statements approved by the Board[50] - Deloitte's work does not constitute an assurance engagement, and accordingly, no opinion or assurance conclusion is expressed on the preliminary announcement[50] Acknowledgements The Board extends its sincere gratitude to shareholders, customers, banks, management, and staff for their unwavering support to the Group over the past year - The Board extends its sincere gratitude to shareholders, customers, banks, management, and staff for their unwavering support to the Group over the past year[43]