Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue decreased by 2.4% to approximately HKD 212.6 million from about HKD 217.9 million in 2022[9]. - The company's gross profit for the fiscal year was approximately HKD 54.9 million, a decrease of 5.3% from about HKD 58.0 million in 2022, resulting in a gross margin of 25.8%, down from 26.6% in the previous year[9]. - Profit attributable to the owners of the company was approximately HKD 0.5 million, significantly down from HKD 8.6 million in 2022[9]. - EBITDA for the fiscal year was approximately HKD 28.6 million, compared to about HKD 34.1 million in 2022[9]. - The company's administrative expenses increased to approximately HKD 36.2 million, primarily due to rising employee costs and legal fees for significant related transactions[21]. - Financial costs surged by 115.4% to approximately HKD 4.1 million due to increased bank borrowings and rising interest rates[21]. - The company's net current assets were approximately HKD 70.6 million, down from HKD 111.4 million in the previous year, with a current ratio of about 1.6[24]. - As of December 31, 2023, the company's distributable reserves were approximately HKD 143.3 million, down from HKD 156.2 million as of December 31, 2022[137]. - The company did not declare an interim dividend and does not recommend a final dividend for the year ending December 31, 2023, compared to dividends of HKD 0.0031 and HKD 0.0022 per share for the previous year[126]. Market and Product Development - The company focused on expanding its customer base, particularly in high-power semiconductor devices like IGBTs, and continued to enhance its R&D capabilities[10]. - The company added several leading IGBT customers in China during the fiscal year, indicating a positive trend in customer acquisition[15]. - The company expects significant growth in demand for IGBT and other high-power semiconductor products due to the rapid development of 5G technology[15]. - Revenue from bonding wire products decreased by 5.9% to approximately HKD 99.7 million, while revenue from packaging adhesive products increased by 5.6% to approximately HKD 106.0 million[17]. - The average selling price of the group's products is expected to decline due to intense market competition, but sales volume is anticipated to increase due to rising demand for bonding wires and packaging adhesives[27]. - The group plans to launch three new series of die attach adhesives, including epoxy insulation adhesive, silicone insulation adhesive, and conductive silver adhesive for LEDs, to capitalize on the growth opportunities in the 5G industry[27]. - A new type of copper alloy bonding wire has been developed specifically for high-power integrated circuits and IGBT products, with orders already received from one of China's top semiconductor power integrated circuit companies[27]. - The group aims to strengthen its R&D capabilities to develop advanced products targeting emerging markets such as 5G networks, electric vehicles, industrial automation, IoT, and artificial intelligence[28]. - Future outlook indicates a projected revenue growth of 15% for the upcoming fiscal year, driven by new product launches and market expansion strategies[49]. Corporate Governance - The board consists of seven members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[73]. - The company has adhered to the GEM Listing Rules and corporate governance code, enhancing accountability and transparency for shareholders[72]. - The independent non-executive directors have confirmed their independence according to GEM Listing Rules, ensuring unbiased oversight[77]. - The company is committed to improving its corporate governance practices to align with statutory requirements and recent developments[72]. - The chairman and CEO roles are clearly separated, with distinct responsibilities outlined in writing[74]. - The company has a three-year term for independent non-executive directors, with provisions for renewal and termination[77]. - The company has a financial management and corporate governance framework in place, led by experienced individuals in the board[73]. - The audit committee held five meetings during the review year to review the group's quarterly, interim, and annual performance, financial reporting, and compliance procedures[96]. - The remuneration committee convened once during the review year to assess the remuneration policy and structure[98]. - The audit committee consists of three independent non-executive directors, with Mr. Pan serving as the chairman, possessing appropriate professional qualifications[95]. - All directors participated in continuous professional training to update their knowledge and skills, ensuring informed contributions to the board[92]. - The company has adopted a board diversity policy to enhance board efficiency by considering various factors such as gender, age, and professional experience[85]. - The board's composition currently includes only male members, highlighting the need for improved gender diversity[88]. - The company has maintained effective internal control measures to ensure compliance with corporate governance codes and applicable laws and regulations during the review year[107]. - The board is responsible for overall risk management, which is reviewed at least annually, ensuring operations align with corporate governance standards[109]. - The company has adopted a policy for timely and accurate disclosure of significant information, ensuring potential inside information is identified and assessed promptly[113]. Sustainability and Social Responsibility - The management team emphasizes a focus on sustainability, with plans to reduce carbon emissions by 30% over the next five years[54]. - The company has implemented green office measures to reduce energy consumption, such as encouraging double-sided printing and turning off unnecessary lighting and appliances[149]. - The company is committed to complying with environmental laws and regulations to ensure long-term sustainability[149]. - The ESG report highlights the company's commitment to sustainable development, focusing on environmental protection, employee welfare, and community investment[199]. - The ESG report covers the group's main operations, including the development, production, and sales of semiconductor packaging materials, for the review year from January 1, 2023, to December 31, 2023[200]. Risk Management - The company continues to monitor foreign exchange risks, particularly fluctuations in the RMB, and will consider hedging strategies if necessary[31]. - The board has appointed senior management to closely monitor economic, political, legal, and social developments in China to manage risks effectively[144]. - The company has expanded its supplier base to mitigate risks associated with reliance on a few suppliers[143]. - The company has maintained a prudent treasury policy, including holding cash in Hong Kong, to manage financial risks[144]. Shareholder Engagement - The company held its annual general meeting on June 14, 2023, and a special general meeting on August 2, 2023, to enhance communication with existing and potential investors[116]. - The company has adopted a shareholder communication policy to facilitate timely access to comprehensive information for shareholders and potential investors[115]. Employee and Management Structure - The company has a total issued share capital of HKD 7,055,000, divided into 705,500,000 shares with a par value of HKD 0.01 each[176]. - The company has not made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the review period[29]. - The company has not entered into any significant contracts with its controlling shareholders during the review year[173]. - There are no management or administrative contracts established for the company's major business during the review year[174]. - The company has confirmed the independence of all independent non-executive directors as per GEM Listing Rules[169]. - There are no significant transactions or arrangements involving directors' interests in the company's business during the review year[170]. - The group made charitable donations of HKD 147,000 in the review year, compared to HKD 33,500 in 2022[190]. - The company has adopted a dividend policy prioritizing cash distributions to shareholders, with the payout ratio to be determined by the board based on financial performance and future outlook[191].
骏码半导体(08490) - 2023 - 年度业绩