Financial Performance - For the fiscal year ending December 31, 2023, the company reported a profit attributable to shareholders of HKD 11.7 million, an increase of 4.9% year-on-year, while revenue decreased by 4.4% to HKD 124.0 million[5]. - The company recorded revenue of approximately HKD 124,041,000 for the year, a decrease of 4.4% compared to HKD 129,710,000 in 2022[14]. - Revenue from printing services decreased by 20.7% to approximately HKD 64,911,000, while translation services revenue increased by 33.0% to approximately HKD 47,854,000[14]. - Gross profit decreased by 4.5% to approximately HKD 63,246,000, with a stable gross profit margin of 51.0%[16]. - Net profit for the year was approximately HKD 11,714,000, an increase of 4.9% from HKD 11,162,000 in 2022, resulting in a net profit margin of 9.4%[21]. - The company's service costs decreased by 4.2% to approximately HKD 60,795,000, aligning with the revenue decline[16]. - Financial costs decreased by 43.8% to approximately HKD 603,000 due to reduced financial expenses related to leased properties[20]. Market Conditions - The Hang Seng Index fell by 14% in 2023, and the total fundraising amount in Hong Kong dropped to HKD 46.3 billion, a significant decline of 56% year-on-year, marking a 20-year low[11]. - The company faced significant pressure on its core financial printing services due to the downturn in the Hong Kong capital market, which is closely correlated with its performance[11]. - The company anticipates economic growth slowdown and geopolitical uncertainties affecting the global macro outlook, but remains resilient in facing market challenges[38]. Strategic Initiatives - The company aims to enhance its translation services and explore new potential translation business opportunities to mitigate the impact of reduced demand for printed documents[7]. - The company plans to leverage new opportunities arising from the Hong Kong Stock Exchange's introduction of a new listing framework and GEM listing reforms aimed at high-growth enterprises[7]. - The company is focused on diversifying its revenue streams and improving operational efficiency in response to increasing competition in the market for annual reports and compliance documents[11]. - The company plans to tighten cost control measures in response to market conditions and aims to capture opportunities for long-term value and sustainable returns for shareholders[38]. Corporate Governance - The company emphasizes good corporate governance to enhance shareholder value and ensure accountability within its management structure[52]. - The company has adopted the principles and code provisions of the Corporate Governance Code as per the Listing Rules to regulate its business activities and decision-making processes prudently[54]. - The board has established an audit committee, a remuneration committee, and a nomination committee to enhance corporate governance and risk management[55]. - Independent non-executive directors constitute at least one-third of the board, ensuring independence and proper professional qualifications[65]. - The company has implemented mechanisms to ensure independent viewpoints are obtained in board decisions, with annual reviews of their effectiveness[66]. Risk Management - The company emphasizes the importance of good risk management for long-term sustainable development, with a focus on defining risk tolerance to achieve strategic goals[30]. - The risk management framework includes a three-tier approach to identify, assess, mitigate, and respond to risks, with business units responsible for the first line of defense[31]. - The board believes that the risk management and internal control systems are effective and sufficient after annual review[112]. Shareholder Engagement - The company has adopted a stakeholder engagement policy to ensure shareholders receive timely information and can actively participate in company affairs[125]. - The company ensures that shareholders can communicate directly with the board during annual general meetings[125]. - Shareholders can request a special general meeting if they hold at least 10% of the paid-up capital with voting rights[119]. Financial Reporting and Compliance - The independent auditor has confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2023[189]. - The company has engaged an external professional organization to perform internal audit functions and review the effectiveness of the risk management and internal control systems[112]. - The company has implemented control measures and processes for assessing expected credit loss provisions[198]. Board Composition and Meetings - The board of directors includes both executive and independent non-executive members, with specific terms for re-election at the annual general meeting[163]. - The board held six meetings during the year, with attendance rates of 5/6 for the chairman and 6/6 for other directors[73]. - The Nomination Committee held a meeting on March 1, 2023, to review the board structure, size, and diversity, and to assess the independence of independent non-executive directors[99]. Compensation and Remuneration - The company has established a remuneration committee to review the remuneration policies and structures for directors and senior management, considering operational performance and market standards[158]. - The total remuneration for senior management (excluding directors) includes one individual earning between HKD 1,500,001 and HKD 2,000,000, one earning between HKD 3,000,001 and HKD 3,500,000, and one earning between HKD 3,500,001 and HKD 4,000,000[106]. - The remuneration for Ms. Fan increased from HKD 65,000 to HKD 68,000 per month as of December 31, 2023[167].
REF HOLDINGS(01631) - 2023 - 年度财报