Financial Performance - For the year ended December 31, 2022, the group's revenue was approximately HKD 194.8 million, a decrease of about 30.9% compared to HKD 281.8 million for the year ended December 31, 2021[10]. - The gross profit for the year ended December 31, 2022, was approximately HKD 57.1 million, compared to HKD 54.2 million for the year ended December 31, 2021, indicating an improvement in gross margin due to cost control measures[10]. - The net loss for the year ended December 31, 2022, was approximately HKD 59.7 million, an improvement from a net loss of HKD 83.1 million for the year ended December 31, 2021[10]. - Selling costs decreased by approximately 39.5% to about HKD 137.8 million for the year ended December 31, 2022, down from approximately HKD 227.6 million for the year ended December 31, 2021, primarily due to reduced sales volume[43]. - Other income decreased to HKD 6.0 million for the year ended December 31, 2022, from HKD 14.2 million for the year ended December 31, 2021, mainly due to a reduction in rental income subsidies[46]. - Administrative expenses increased to approximately HKD 55.7 million for the year ended December 31, 2022, from HKD 54.5 million for the year ended December 31, 2021, primarily due to increased maintenance and repair costs[47]. - Financial costs increased by approximately 20.3% to HKD 7.1 million for the year ended December 31, 2022, compared to HKD 5.9 million for the year ended December 31, 2021, mainly due to increased interest expenses on borrowings and lease liabilities[48]. - The company recorded a loss of approximately HKD 59.7 million for the year ended December 31, 2022, an improvement from a loss of approximately HKD 83.1 million for the year ended December 31, 2021, primarily due to a reduction in trade and other receivables impairment losses[50]. - As of December 31, 2022, the company's current liabilities exceeded current assets by approximately HKD 126.7 million, compared to HKD 72.6 million as of December 31, 2021[52]. - The group recorded a loss of approximately HKD 59,655,000 for the year ended December 31, 2022, with net current liabilities of about HKD 126,699,000[53]. - As of December 31, 2022, bank loans and overdrafts amounted to approximately HKD 138,684,000, with other loans of HKD 4,165,000 due within one year[53]. - The group’s capital expenditure for the year ended December 31, 2022, was HKD 202,620,000, an increase from HKD 196,747,000 in 2021[58]. - The group had no significant investments or acquisitions of subsidiaries, associates, or joint ventures for the year ended December 31, 2022[59]. - The group’s bank financing as of December 31, 2022, was HKD 172,855,000, compared to HKD 167,599,000 in 2021[62]. - The group had no capital commitments for the purchase of property, plant, and equipment as of December 31, 2022[64]. - The company has sufficient operating funds to meet its financial obligations for the next twelve months[114]. - The board believes that the group will have sufficient working capital to meet its financial obligations for at least the next twelve months[118]. Corporate Governance - The company does not recommend the payment of a final dividend for the year ended December 31, 2022, consistent with the previous year[10]. - The board does not recommend the payment of a final dividend for the year ended December 31, 2022[70]. - The board of directors has held four meetings during the reporting period, with all directors attending all meetings, indicating strong governance and engagement[84]. - The company has adopted the GEM Listing Rules as a code of conduct for securities trading by directors, ensuring compliance with trading standards[77]. - The board is composed of three independent non-executive directors, meeting the requirement of having at least one with appropriate professional qualifications or financial management expertise[85]. - The company has implemented a training program for directors to enhance their knowledge and skills, ensuring they are well-versed in their responsibilities under the GEM Listing Rules[91]. - The board is responsible for overseeing the company's business and affairs, ensuring management acts in the best interests of shareholders while considering other stakeholders[89]. - The company has established a clear division of responsibilities between the chairman and the CEO, aligning with best practices in corporate governance[75]. - The board has approved an annual budget that covers strategy, financial performance, key risks, and opportunities, demonstrating proactive financial management[80]. - The company has a policy for the re-election of directors, ensuring that at least one-third of the board is subject to retirement and re-election at each annual general meeting[88]. - The company has taken out directors' liability insurance to protect against legal actions arising from their duties, enhancing governance and risk management[79]. - The Audit Committee held four meetings during the reporting period, with all members attending all meetings[97]. - The Audit Committee reviewed the audited consolidated financial statements and recommended their approval to the Board[97]. - The company has established risk management procedures and guidelines to manage risks across various business functions[111]. - The Board confirmed its responsibility for the effectiveness of the risk management and internal control systems[108]. - The company has no internal audit unit due to cost-effectiveness considerations, but resources have been allocated to enhance internal control systems[111]. - The Board believes that the risk management and internal control systems are adequate and effective[111]. - The Audit Committee assists the Board in overseeing the design, implementation, and monitoring of risk management and internal control systems[109]. Environmental Commitment - The total greenhouse gas emissions for the fiscal year 2022 amounted to 6,195.03 tons of CO2 equivalent, a decrease of 27.7% from 8,576.53 tons in fiscal year 2021[141]. - Direct emissions were recorded at 21.20 tons in fiscal year 2022, down from 26.83 tons in fiscal year 2021, representing a reduction of 21.5%[141]. - Indirect emissions decreased by 27.5%, from 8,549.70 tons in fiscal year 2021 to 6,173.83 tons in fiscal year 2022[141]. - The total output in fiscal year 2022 was 8,599.59 tons, a significant decline of 39.5% compared to 14,224.08 tons in fiscal year 2021[141]. - The Shenzhen factory received a 5-year pollution discharge permit from the Shenzhen Ecological Environment Bureau, allowing for internal monitoring of wastewater and exhaust emissions[136]. - The factory's VOC emissions were reported to be compliant with Shenzhen's environmental and safety standards, with benzene and toluene levels at 0 mg/m³ in fiscal year 2022[142]. - The chemical oxygen demand (COD) in wastewater was measured at 62 mg/L in fiscal year 2022, compared to 8.50 mg/L in fiscal year 2021, indicating a significant increase[145]. - The pH level of wastewater in fiscal year 2022 was 7.1125, slightly lower than 7.300 in fiscal year 2021[145]. - The company emphasizes its commitment to environmental protection and compliance with relevant environmental regulations, including the Environmental Protection Law of the People's Republic of China[135]. - The company has established various channels for stakeholders to provide feedback on sustainability performance and future strategies[133]. - The total amount of paper materials purchased in FY2022 was 11,296.73 tons, an increase of 16.50% compared to 9,697.17 tons in FY2021, primarily due to higher inventory levels to meet production demands[146]. - In FY2022, the total amount of waste collected at the Shenzhen factory decreased to 2,240.85 tons from 3,094.12 tons in FY2021, representing a reduction of 27.58%[148]. - The amount of harmful waste generated in FY2022 was 5.80 tons, an increase of 52.63% from 3.80 tons in FY2021, mainly due to residues from wastewater treatment[152]. - Paper costs increased by 3.96% to HKD 67.85 million in FY2022, driven by the procurement of additional paper to meet various production needs[157]. - The total amount of recycled waste in FY2022 was 2,240.85 tons, achieving a recycling rate of 99.74%, comparable to 99.88% in FY2021[148]. - The company continues to encourage the use of environmentally friendly materials and aims to find alternatives to plastic film for packaging[168]. Operational Strategies - The company plans to implement strategies to improve equipment and increase automation, expand the customer base, enhance sales and marketing coverage, and continue attracting and retaining high-end talent[16]. - The company anticipates that the business environment will remain challenging in 2023 due to economic uncertainties, including the impact of COVID-19 and rising paper costs[16]. - The company expresses cautious optimism for improved performance in 2023 as COVID-19 restrictions are lifted and borders reopen[19]. - The group is focused on expanding its operations in China and enhancing its relationships with local officials[25]. - The management team has a strong educational background, with qualifications from institutions such as the Hong Kong Polytechnic University and Charles Sturt University[28][33]. - The company aims to maximize resource efficiency and enhance productivity through automated production and effective management practices[156]. - The company's automated production system has significantly improved production efficiency, reducing labor intensity and enhancing product quality and consistency[160]. - The company aims to increase the output per worker by 5% and maintain electricity consumption at production levels in fiscal year 2023[164]. Employee Management - The total number of employees decreased from 480 in fiscal year 2021 to 454 in fiscal year 2022, representing a decline of 5.42%[171]. - The average number of employees during the year fell from 518 to 466, a decrease of 10.04%[171]. - Employee costs for the fiscal year 2022 decreased by 25.41% to HKD 53.1 million from HKD 71.2 million in 2021, primarily due to reduced overtime payments to employees in the Shenzhen factory[175]. - The total number of employees who resigned decreased from 154 in the fiscal year 2021 to 79 in 2022, representing a reduction of 48.70%[178]. - The number of employees with less than 2 years of service who resigned dropped by 62.37% from 93 in 2021 to 35 in 2022[179]. - The total number of training participants increased from 2,372 in 2021 to 3,500 in 2022, with total training hours rising from 2,549 to 3,558 hours[185]. - Average training hours per employee increased to 7.6 hours in 2022 from 4.9 hours in 2021[185]. - The company aims to maintain employee turnover for those with over 2 years of service below 10%[184]. - The company provides additional employer voluntary contributions to Hong Kong employees with 4 to 10 years of service, amounting to 5% to 10% of their basic monthly salary[174]. - The company emphasizes open communication channels for employees to express opinions and suggestions, including suggestion boxes and internal meetings[180]. - The company ensures that employee compensation and benefits meet or exceed minimum legal requirements and regularly engages in communication meetings with employees[188]. - The company has implemented a policy to respect labor rights and human rights, ensuring voluntary employment and prohibiting child labor[186]. Health and Safety - In the fiscal year 2022, the number of reported injuries and incidents decreased to 17 from 28 in the previous year, representing a reduction of 39.29%[199]. - The number of lost workdays increased to 247 in fiscal year 2022, up from 182 in fiscal year 2021, marking a rise of 35.71%[199]. - The company maintained a zero fatality rate, with no work-related deaths reported in both fiscal years 2022 and 2021[199]. - The Shenzhen factory has passed safety certification from the National Safety Production Supervision Administration of China, confirming compliance with health and safety standards[198]. - Health and safety training programs have been established to enhance workplace safety awareness, with all new employees required to undergo training before assignment[200]. - The company continues to implement COVID-19 preventive measures, including entry restrictions and health checks for personnel entering the Shenzhen factory[195]. - The company has expanded its reporting scope to include minor injuries to better track health prevention measures[199]. - The company emphasizes the importance of personal hygiene and health to strengthen employees' immune systems against diseases[197]. - The company is committed to providing a supportive and healthy work environment, recognizing the importance of a passionate workforce for efficient operations[194].
万里印刷(08385) - 2022 - 年度财报