Financial Performance - The revenue from the metal casting business increased by approximately 29.9% compared to the previous year, indicating a recovery in the core markets of Europe and the United States [12]. - Total revenue for the year ended December 31, 2022, decreased by approximately 10.3% to about HKD 74.90 million compared to HKD 83.49 million in 2021 [16]. - The financial printing services revenue dropped by about 65.4% compared to pre-COVID-19 levels and significantly impacted the overall performance [14]. - Gross profit for the year was approximately HKD 18.79 million, down from HKD 20.20 million in 2021, maintaining a gross profit margin of around 25% [17]. - The company reported a loss attributable to owners of approximately HKD 12.14 million, a reduction of about 13.29% from HKD 14.00 million in 2021 [21]. - The company's cash and cash equivalents increased to approximately HKD 2.80 million from HKD 1.31 million in 2021 [22]. Market and Business Strategy - The company maintains a cautious optimism regarding the macroeconomic recovery following the easing of pandemic control measures in early 2023 [9]. - The company plans to continue its flexible and targeted sales and marketing strategies to enhance its market position and expand its customer base [9]. - The company aims to seek potential investment opportunities in mainland China, Hong Kong, and overseas to diversify its business and create new revenue sources [9]. - The company plans to continue monitoring the COVID-19 situation and seek diversification opportunities in mainland China, Hong Kong, and overseas markets [14]. Operational Efficiency - The average selling price of products increased, but was nearly offset by rising general costs of raw materials [12]. - Administrative expenses slightly decreased to approximately HKD 28.00 million from HKD 29.18 million in 2021 [19]. - The employee count decreased from 169 to 133, with total employee costs amounting to approximately HKD 27.04 million, down from HKD 32.15 million in the previous year [52]. - The company has established joint ventures with a partner, contributing HKD 1,020,000 and HKD 980,000 respectively [34]. Corporate Governance - The board consists of two executive directors and three independent non-executive directors, with a total of 16 board meetings held during the year [61]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM Listing Rules [55]. - The company has appointed three independent non-executive directors, meeting the requirement of having more than one-third of the board [67]. - The chairman and CEO roles are clearly separated, with the chairman leading the board and the CEO overseeing overall management [68]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, with written terms of reference for each [71]. - The company has complied with all applicable provisions of the corporate governance code as of December 31, 2022 [54]. Risk Management - The company faces market risks including currency, interest rate, credit, and liquidity risks, which may impact its business performance [40]. - The board has adopted a three-tier risk management approach to identify, assess, and manage significant risks, with operational units responsible for the first line of defense [89]. - The board reviewed the effectiveness of the risk management and internal control systems and found no significant weaknesses or deficiencies during the review process [90]. Sustainability and ESG - The company is committed to integrating sustainable development principles into its strategic planning and daily operations to maintain competitive advantages in its industries [108]. - Key environmental, social, and governance (ESG) issues identified include environmental protection, employee welfare, and supply chain management [118]. - The company aims to create sustainable growth and long-term value for its stakeholders through effective communication and feedback mechanisms [115]. - The board is responsible for overseeing the company's sustainability efforts, including risk management related to ESG issues [113]. - The company aims to reduce energy consumption, greenhouse gas emissions, and water resources by 5% by 2030 based on 2022 levels [119]. Employee Engagement and Welfare - The employee gender ratio as of December 31, 2022, was 78.2% male and 21.8% female among 133 employees, indicating gender diversity within the workforce [81]. - The employee turnover rate for males was 15.4%, while for females it was significantly higher at 69.0% [130]. - The company provides training materials to all directors to ensure they are updated on legal, regulatory, and corporate governance developments [84]. - In 2022, the average training hours per employee were 22 hours for both male and female employees [136]. - 100% of male employees and 79.3% of female employees received training during the reporting period [136]. Shareholder Relations - The company expresses gratitude to shareholders, customers, suppliers, and business partners for their ongoing support [9]. - The company held its annual general meeting on June 29, 2022, with attendance from the board and committee chairs to ensure effective communication with shareholders [99]. - There is no predetermined dividend payout ratio, and the board considers various factors, including financial performance and cash requirements, when determining dividend payments [96]. - The company reported no dividend recommendation for the year ending December 31, 2022 [160]. Compliance and Ethics - The company recognizes the importance of compliance with regulatory requirements and has allocated resources to ensure ongoing adherence [36]. - The company has implemented anti-corruption and whistleblowing policies to promote integrity in operations [58]. - The company has a zero-tolerance policy towards bribery and corruption, with no violations reported during the period [143][144]. - The company provides regular anti-corruption training to employees to ensure compliance with legal obligations [143]. Financial Position - The debt-to-equity ratio as of December 31, 2022, was 38.82%, up from 36.53% in 2021 [23]. - The company issued a total of 52 million shares in a rights issue, raising approximately HKD 9.3 million for general working capital [26]. - Proceeds from the placement of shares amounted to approximately HKD 2.6 million, allocated for repaying other borrowings and potential new projects [30].
吉盛集团控股(08133) - 2022 - 年度财报