Economic Environment - In 2023, the Group faced a challenging macro environment with high inflation and continuous interest rate hikes, leading to a low-growth trend in the economy and affecting order and shipment volumes[9]. - Looking ahead to 2024, the Group anticipates continued uncertainties in the global economy, with weak international trade and cautious customer ordering behavior expected to persist[14]. - The overall economic recovery in 2023 was slower than expected, impacting the Group's trading performance due to high customer inventory levels and weak demand[9]. - The Group's trading and supply chain management services will continue to face challenges due to geopolitical tensions and supply chain disruptions[14]. Business Performance - The Group's revenue decreased by approximately 14.5% to approximately US$44.4 million from approximately US$51.9 million in the previous year[23]. - The trading and supply chain management services segment's revenue fell by approximately 34.1% to approximately US$17.6 million, accounting for approximately 39.7% of the Group's total revenue[24][40]. - Shipment volume for trading and supply chain management services declined by approximately 19.7% to approximately US$130.8 million[24][34]. - Revenue from the online social platforms business increased by approximately 6.3% to approximately US$26.7 million, driven by the relaxation of COVID-related restrictions in the PRC[25][41]. - The gamified social and online entertainment business recorded moderate growth, with revenue increasing to approximately US$23.3 million from approximately US$21.3 million[44]. Profitability and Cost Management - The Group achieved a profit for the year of approximately US$2.0 million, nearly double the profit for the year in 2022[29]. - Operating expenses decreased by approximately 6.5% to approximately US$15.9 million, primarily due to reduced personnel costs[27]. - Gross profit slightly decreased by approximately 0.3% to approximately US$17.1 million, with improved gross margin in the online social platforms business offsetting overall revenue decline[26]. - Total staff costs for the year ended December 31, 2023, were approximately US$11.0 million, down from US$12.2 million in 2022[53]. - The Group aims to improve operational efficiency and focus on profitability enhancement through stringent cost control and quality service improvements[19]. - Cost control measures have been implemented to meet customer demands and provide excellent service, ensuring long-term value creation for stakeholders[65]. Strategic Initiatives - The Group plans to expand its claw crane games into overseas markets to broaden its income base and enhance market share[15]. - The Group will explore more popular products in the pop toys segment and customize exclusive intellectual property products to meet consumer demand for unique items[15]. - The Group aims to expand its claw crane online games into overseas markets to drive business growth and increase overall revenue[61]. - The company plans to enhance user acquisition by collaborating with popular social media influencers on platforms like Douyin, aiming to expand its user base[64]. - Continuous upgrades to the gaming system and online claw machine games are intended to improve user engagement and satisfaction, thereby increasing user loyalty and attracting new users[64]. Corporate Governance - The Company has adopted the Corporate Governance Code (CG Code) and is committed to complying with its provisions to ensure effective governance and accountability to shareholders[93]. - The corporate governance principles emphasize an effective Board, sound internal controls, and transparency to all shareholders[94]. - The Company complied with all applicable code provisions of the CG Code throughout the year ended December 31, 2023, with some deviations discussed in the report[95]. - The Company has established written guidelines for securities transactions by relevant employees, with no incidents of non-compliance noted during the year[97][100]. - The Company aims to achieve gender diversity by appointing one female director on or before December 31, 2024[118]. Board Composition and Diversity - As of December 31, 2023, the Board consisted of five Directors, including two executive Directors and three independent non-executive Directors[102]. - The Board's composition reflects a diverse range of skills, knowledge, and experience, which is essential for effective governance[113]. - The Nomination Committee is responsible for reviewing and assessing the diversity of the Board to maintain an appropriate mix of skills and perspectives[113]. - The Company has committed to developing a pipeline of potential successors to achieve gender diversity in senior management positions[118]. - The workforce gender ratio is 49% male and 51% female, achieving gender diversity in the company[119]. Board Meetings and Responsibilities - The Board met regularly during the year to review and approve financial and operational performance, compliance with the CG Code, and overall strategies[132]. - The Audit Committee is responsible for reviewing the Company's annual reports and accounts, interim reports, and results announcements[181]. - The Audit Committee held three meetings during the year ended December 31, 2023, to review financial statements and reports, ensuring the integrity of the Group's financial reporting system[183]. - The Remuneration Committee met once during the year ended December 31, 2023, to review and determine the remuneration policy for executive Directors and senior management[194]. - The Nomination Committee conducted two meetings during the year ended December 31, 2023, focusing on the structure, size, and composition of the Board[197].
道和环球(00915) - 2023 - 年度财报