Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately HKD 146.2 million, a decrease of about 24.9% compared to HKD 194.8 million for the year ended December 31, 2022, primarily due to reduced sales orders influenced by global economic uncertainty [11]. - The gross profit for the year ended December 31, 2023, was approximately HKD 34.9 million, down from HKD 57.1 million for the year ended December 31, 2022, attributed to aggressive pricing policies and decreased sales orders due to global economic uncertainty [11]. - The net loss for the year ended December 31, 2023, was approximately HKD 23.0 million, an improvement from a net loss of approximately HKD 59.7 million for the year ended December 31, 2022, mainly due to reduced impairment losses on receivables and cost savings in distribution and administrative expenses [11]. - The company reported a significant increase in revenue, achieving a total of 48 million shares held through First Tech, which is fully owned by Mr. Lin [21]. - Other income increased by approximately 12.6% to about HKD 6.7 million for the year ended December 31, 2023, primarily due to a one-time government subsidy received in China [43]. - Administrative expenses decreased from approximately HKD 55.7 million for the year ended December 31, 2022, to HKD 50.9 million for the year ended December 31, 2023 [44]. - The company recorded a loss of approximately HKD 23.0 million for the year ended December 31, 2023, compared to a loss of HKD 59.7 million for the year ended December 31, 2022 [47]. - The total amount of bank loans, other loans, overdrafts, and lease liabilities as of December 31, 2023, was approximately HKD 135.8 million, down from HKD 172.4 million in the previous year [49]. - The group's capital expenditure for the year ended December 31, 2023, was HKD 132.83 million, a decrease from HKD 202.92 million in 2022 [55]. - The group maintained a current ratio of 0.3 as of December 31, 2023, compared to 0.4 as of December 31, 2022 [49]. Corporate Governance - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with the previous year [11]. - The company has complied with the corporate governance code during the reporting period, except for a deviation regarding the separation of the roles of Chairman and CEO [75]. - The board held four meetings during the reporting period, with all directors attending all meetings [86]. - The company aims to maintain high standards of corporate governance to ensure transparency and accountability, which is crucial for long-term shareholder value creation [74]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance during the reporting period [79]. - The board believes that the current structure, with the Chairman also serving as the CEO, is in the best interest of the company for effective management and business development [76]. - The company has appointed three independent non-executive directors, ensuring they constitute at least one-third of the board, with at least one possessing appropriate professional qualifications [87]. - The independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules, and their initial term is set for two years starting from December 13, 2023 [87]. - The audit committee held four meetings during the reporting period, with all members attending all meetings, and reviewed the audited consolidated financial statements for the reporting period [99]. - The remuneration committee held one meeting during the reporting period to provide recommendations on the remuneration of all directors and senior management [102]. - The nomination committee was established to provide recommendations for filling vacancies on the board and senior management, having held one meeting during the reporting period [106]. - The risk management committee assists the board in overseeing compliance with laws and regulations related to business operations, having held one meeting during the reporting period [109]. - The board is responsible for assessing and determining the nature and extent of risks the company is willing to take to achieve its strategic objectives [110]. - The company has established a robust internal control and risk management system aimed at managing risks rather than eliminating them [110]. - The board has reviewed and discussed the effectiveness of the corporate governance policies in place [91]. Future Strategies - The company remains cautiously optimistic about the future, believing that the printing market will continue to be stable and healthy, while planning to enhance its competitive advantages to increase market share and profitability [15]. - Future business strategies include improving equipment and increasing automation, expanding the customer base, enhancing sales and marketing coverage, and continuing to attract and retain high-end talent in the industry [15]. - The company aims to expand its customer base and strengthen sales and marketing coverage as part of its future strategies [38]. - The management is committed to developing new products and technologies to stay competitive in the printing industry [22]. Risk Factors - The company faces several risks in future development, including weak market demand, economic uncertainties from the Russia-Ukraine conflict, rising paper costs, and challenges from technological advancements in the publishing and information dissemination sectors [15]. - The company faced various risks including economic uncertainties due to tightening monetary policy and geopolitical tensions, but remains cautiously optimistic about the printing market's stable development [38]. Environmental Sustainability - The company emphasizes sustainable development and social responsibility, aiming to create long-term value for stakeholders [134]. - The Shenzhen factory has been certified to comply with environmental management standards ISO 14001:2015 since February 2019 [142]. - The company has received a 5-year pollution discharge permit from the Shenzhen Ecological Environment Bureau, allowing internal monitoring of wastewater and gas emissions during production [143]. - The company is committed to reducing greenhouse gas emissions and hazardous waste levels to create a cleaner environment and minimize adverse weather conditions [143]. - The company ensures compliance with multiple environmental regulations, including the Environmental Protection Law of the People's Republic of China and various pollution control ordinances in Hong Kong [140]. - The company has implemented a quality management system certified to ISO 9001:2015 standards since February 2019 [142]. - The company continues to promote digital data usage to save on printing and enhance recycling of waste paper [165]. - The company has installed more efficient digital printing machines to increase production capacity and reduce energy and ink consumption compared to traditional printing methods [167]. - The total amount of FSC paper used in production decreased from 673.23 tons in FY2022 to 321.34 tons in FY2023, representing a decline of 52.4% [174]. - The percentage of FSC paper in total production dropped from 14.31% in FY2022 to 10.15% in FY2023 [174]. - Total greenhouse gas emissions for FY2023 were 6,048.30 tons CO2 equivalent, a decrease of 2.37% from 6,195.03 tons in FY2022 [148]. - The total waste collected in FY2023 was 1,725,050 kg, a reduction of 23.22% from 2,246,656 kg in FY2022 [155]. - The amount of hazardous waste generated decreased by 30.30% to 4.05 tons in FY2023 from 5.81 tons in FY2022 [159]. - The chemical oxygen demand in wastewater decreased to 17.75 mg/L in FY2023 from 62 mg/L in FY2022 [152]. - The company achieved a recycling rate of 99.77% for waste materials in FY2023, slightly up from 99.74% in FY2022 [155]. - The company installed environmental air filters in its Shenzhen factory to reduce VOC emissions, which include benzene, toluene, and xylene [148]. - Environmental monitoring costs increased by 5.31% from HKD 657,699 in FY2022 to HKD 692,628 in FY2023, primarily due to higher testing fees for emissions at the Shenzhen factory [161]. Employee Management - The company aims to provide a safe and healthy working environment for employees, recognizing them as valuable assets [134]. - Employee headcount at the end of FY2023 was 393, down from 454 in FY2022, a reduction of 13.44% [180]. - Total employee costs decreased from HKD 59.85 million in FY2022 to HKD 55.86 million in FY2023, a decline of 6.66% [186]. - The number of employees resigning in FY2023 increased to 82 from 79 in FY2022, a rise of 3.80% [188]. - The average number of employees in FY2023 was 423, down from 467 in FY2022, a decrease of 9.42% [180]. - The company aims to enhance production efficiency by increasing output per worker by 5% [176]. - The company plans to maintain competitive compensation to attract and retain employees [182]. - Employee training participation increased from 3,500 in FY2022 to 3,566 in FY2023, with total training hours rising from 3,558 to 3,566 hours [196]. - Average training hours per employee increased to 8.4 hours in FY2023 from 7.6 hours in FY2022 [196]. - Employee turnover rate for those with over 2 years of service maintained below 10% [193]. - The company conducted fraud alert training in FY2023 due to the rise in various forms of fraud [196]. - No employee disputes were recorded during FY2023, and the audit committee chair received no assistance requests [191]. - The company emphasizes open communication channels for employees to express opinions and suggestions [193]. - The company provides training on industry safety, fire drills, and emergency procedures to enhance employee preparedness [195]. - The company respects labor rights and human rights, ensuring voluntary employment conditions [199]. - The company does not employ forced or child labor, adhering to local and international laws [200]. - The company encourages employees to explore their potential and provides opportunities for skill development [197].
万里印刷(08385) - 2023 - 年度财报