Financial Performance - The company's revenue decreased by 16% to HKD 79.2 million for the year ended December 31, 2023, down from HKD 94.2 million in 2022[10]. - Gross profit for the year was HKD 42.3 million, with a gross margin of 53%, compared to 52% in the previous year[10][12]. - The net loss for the year amounted to HKD 19.2 million, a significant decline from a profit of HKD 1.1 million in 2022[10]. - Operating expenses increased by 27% to HKD 62.7 million, primarily due to higher employee costs associated with overseas market expansion[13][14]. - The net asset value of the company decreased to HKD 58.2 million from HKD 77.9 million in the previous year, primarily due to the net loss incurred[13]. - Revenue from the European region fell from HKD 55.8 million in 2022 to HKD 35.8 million in 2023, significantly impacted by the ongoing war and economic downturn[11]. - The company's cash and cash equivalents decreased from HKD 40.0 million to HKD 20.2 million year-over-year, reflecting strategic allocation towards development projects and business improvements[34]. - The net assets of the company fell from HKD 77.9 million in 2022 to HKD 58.2 million in 2023, primarily due to investments in innovation and market expansion[34]. - Employee costs increased to HKD 40.2 million in 2023 from HKD 33.3 million in 2022, reflecting a rise in workforce expenses[42]. Product Development and Innovation - The company launched a low-cost contactless reader module specifically designed for the Chinese market as part of its strategy to expand its product range[5]. - The WalletMate Mobile Wallet NFC Reader was shortlisted for the Best New Product category at the 2023 RFID Journal Awards, highlighting the company's innovation efforts[5]. - The company successfully launched new products such as PocketKey and USB NFC Reader IV, reflecting its commitment to expanding its product portfolio and enhancing core product quality[18]. - The company aims to stimulate growth in 2024 through the launch of innovative products, anticipating increased market interest and higher sales revenue[6]. - The company is strategically focused on capturing the rapidly growing contactless payment solutions market, demonstrating its ability to adapt to market dynamics[20]. Market Expansion and Strategy - The company continues to strengthen its position in the fintech and smart living industries, focusing on advanced contactless readers, smart cards, and related devices[16]. - The company established a new office in Japan in 2023, marking a strategic expansion into global markets and indicating good development opportunities[22]. - The company has engaged three manufacturers for smart card production and three for smart card reader manufacturing, maintaining stable relationships to ensure product delivery timelines[26]. - The company plans to adopt a cautious pricing strategy and reduce product costs to maintain competitiveness amid global economic fluctuations[6]. - The company has implemented measures to mitigate global adverse factors, including diversifying market focus and revising pricing strategies to maintain resilience and growth[19]. Corporate Governance - The board of directors is committed to enhancing corporate governance practices and believes that good governance is essential for protecting shareholder interests and increasing group value[65]. - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and believes it has complied with the code provisions for the year ending December 31, 2023, with some exceptions noted[65]. - The board consists of five executive directors, two non-executive directors, and four independent non-executive directors, ensuring a balanced composition for independent judgment[70]. - The company has established a plan for the board to make decisions and for management to handle operational matters, which will be reviewed regularly[69]. - The company emphasizes the importance of corporate governance in ensuring accountability and independent decision-making[65]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and has dedicated resources to manage ESG risks effectively[164]. - The company has established an Environmental, Social, and Governance (ESG) working group, which includes the CEO and heads of various departments, to oversee ESG procedures and risk management[165]. - The company conducts an annual materiality assessment to understand stakeholders' expectations and concerns regarding ESG matters, enhancing decision-making and impact management[166]. - The company has implemented measures to manage and monitor environmental and social operational risks[146]. - The company aims to reduce air pollutants, greenhouse gas emissions, and waste generation by 2025, using 2021 as the baseline year for its environmental management strategy[190]. Stakeholder Engagement - The company engages with stakeholders to ensure effective communication and maintain good relationships[147]. - The company has identified key stakeholders and established various communication channels to engage with them effectively[150]. - The company aims to provide equal opportunities for all shareholders to exercise their rights and actively participate in the company's business[120]. - The company encourages shareholders to participate in annual general meetings to communicate directly with the board of directors[121]. - Employees seek job security, career development opportunities, and a safe working environment, with initiatives in place to support these needs[153]. Risk Management - The company has evaluated the effectiveness of the internal control and risk management systems, confirming their adequacy and effectiveness[112]. - The risk management working group uses a risk management matrix to assess risk levels, with all identified risks recorded in a risk register[111]. - Regular risk management meetings are held to monitor identified risks and ensure the execution of risk plans[111]. - The company is committed to ensuring compliance with relevant laws and regulations through effective internal control and risk management systems[108]. Employee Management - As of the end of 2023, 37% of the company's full-time employees are engineers, with 60% having served for over five years, highlighting the importance of retaining skilled engineers for operational success[27]. - The company had 113 full-time employees as of December 31, 2023, down from 122 in the previous year, indicating a reduction in workforce size[42]. - The company encourages continuous professional development for all directors to enhance their knowledge and skills, ensuring compliance with corporate governance codes[77]. Financial Oversight - The auditor's fee for audit services provided by KPMG for the year ending December 31, 2023, was HKD 1,000,000[117]. - There were no significant disagreements between the auditor and the company's management for the year ending December 31, 2023[118]. - The audit committee's responsibilities include reviewing financial reports and risk management systems, ensuring the integrity of financial reporting[98].
高维科技(02086) - 2023 - 年度财报