Financial Performance - For the fiscal year 2023, the company reported revenue of HKD 109,968,000, an increase of HKD 8,868,000 or 8.8% compared to HKD 101,100,000 in 2022[10] - The gross profit margin improved from 17.5% in 2022 to 23.8% in 2023, indicating better cost management and pricing strategies[10] - The company achieved a net profit of HKD 2,202,000 in 2023, a significant turnaround from a net loss of HKD 11,025,000 in 2022, primarily due to increased revenue and reduced administrative expenses[10] - Gross profit rose by HKD 8.52 million or 48.3% to HKD 26.18 million in 2023, with the gross profit margin increasing approximately 6 percentage points to about 23.8%[21] - The company reported a profit attributable to owners of HKD 2.20 million for the fiscal year 2023, compared to a loss of HKD 11.03 million in 2022[31] Assets and Liabilities - Total assets for the company as of December 31, 2023, were HKD 181,815,000, compared to HKD 178,683,000 in 2022, reflecting a stable asset base[9] - The company’s cash and cash equivalents decreased to HKD 80,497,000 at the end of 2023 from HKD 84,758,000 at the end of 2022, indicating cash flow challenges[9] - The company recorded a decrease in current liabilities from HKD 45,781,000 in 2022 to HKD 30,059,000 in 2023, showing improved financial stability[9] - The company's outstanding bank loans and other borrowings as of December 31, 2023, amounted to HKD 17,829,000, down from HKD 35,318,000 in 2022, indicating a reduction of approximately 49.5%[33] - The company's debt-to-equity ratio as of December 31, 2023, was 14.2%, a significant decrease from 29.4% in 2022[33] Cash Flow - Operating cash flow for 2023 was negative at HKD (2,758,000), compared to positive cash flow of HKD 9,815,000 in 2022, highlighting operational challenges[9] - Cash used in operating activities for 2023 was approximately HKD 2.76 million, a decrease from HKD 9.82 million in 2022, mainly due to a significant increase in trade receivables[32] Business Strategy and Development - The company expects demand for its products to rebound significantly in the second half of 2023, following a strong recovery in demand due to the easing of COVID-19 impacts[15] - A new business department was established in Q4 2023 to leverage the expertise of the new executive director in mobile and online marketing, aiming to explore new market opportunities[14] - The company plans to continue investing in R&D for functional knitted fabrics and dyeing methods to enhance competitiveness[16] - The company aims to strengthen its position in the research and development of new functional fabrics while expanding into different markets and increasing promotional and sales efforts to attract new customers[150] Governance and Management - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of skills, experience, and diverse perspectives[85] - The company has adhered to all applicable provisions of the corporate governance code during the fiscal year 2023[77] - The company emphasizes maintaining high standards of business ethics and corporate governance across all activities and operations[80] - The company has established a strong corporate culture as a key component of achieving its vision and strategy[78] - The company has appointed Mr. Xian Jianhang as the company secretary on August 28, 2023, who has over 17 years of experience in financial accounting, corporate finance, and private equity investment[75] Risk Management - The company faced various risks, including credit risk from customer payment delays, which could adversely affect financial performance[49] - The company has not engaged in any speculative activities using hedging contracts during the fiscal year 2023, but it will closely monitor foreign exchange risks[48] - The board believes that the risk management functions and internal control systems are effective and adequate as of the fiscal year 2023[122] - The risk management system is designed to manage existing risks and mitigate them to an acceptable level, rather than eliminate all risks[121] Employee and Stakeholder Relations - As of December 31, 2023, the group employed 66 staff, an increase from 63 staff as of December 31, 2022[56] - Employee costs for the fiscal year 2023 amounted to HKD 14,068,000, down from HKD 15,691,000 in fiscal year 2022, reflecting a decrease of approximately 10.3%[56] - The company has implemented competitive compensation packages for employees, including basic salaries, housing, and performance bonuses, to retain skilled and qualified staff[164] - The company emphasizes the importance of maintaining good relationships with employees, suppliers, customers, and other stakeholders to achieve immediate and long-term goals[162] Shareholder Communication - The company recognizes the importance of protecting shareholder interests and maintaining effective communication with them through regular reports and meetings[168] - The board is committed to enhancing communication with shareholders, particularly during the Annual General Meeting and other shareholder meetings[144] - The company has established a communication platform for shareholders and investors on its website, providing access to financial data and governance practices[135] Financial Reserves and Dividends - The company reported a total distributable reserve of approximately HKD 56,034,000 as of December 31, 2023, compared to HKD 41,670,000 in 2022, indicating a year-on-year increase of approximately 34%[159] - The board does not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with the previous year[153] - The company has adopted a dividend policy since January 1, 2019, which is reviewed annually by the remuneration committee[146] Board Committees and Diversity - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee to oversee various affairs[96] - The company currently has one female director, Dr. Chan, appointed on December 5, 2023, and is committed to gender diversity in board appointments[104] - The company has a board diversity policy to ensure a balanced skill set and diverse perspectives among board members[102] Compliance and Internal Controls - The company has adopted internal control policies regarding insider information disclosure and is not aware of any violations of the securities trading code or insider information policies as of the report date[118] - The company has not established a separate internal audit department but has implemented sufficient measures to fulfill internal audit functions through external consultants[120]
智云国际控股(08521) - 2023 - 年度财报