Financial Performance - The company reported a revenue of HKD 982 million for the year 2023, representing a 2.6% increase from HKD 958 million in 2022[5]. - The net profit attributable to shareholders increased by 72.0% to HKD 60 million, compared to HKD 35 million in the previous year[5]. - Basic and diluted earnings per share rose to HKD 0.050 from HKD 0.029 in the previous year[9]. - Total sales and distribution expenses and administrative expenses decreased by 10.7% to HKD 285.4 million, down from HKD 319.7 million in 2022[10]. - Other income and gains increased by 3.4% to HKD 55.5 million, compared to HKD 53.7 million in the previous year[10]. - The company's cash and cash equivalents increased by 2.1% to HKD 749 million from HKD 733 million in 2022[5]. - The total liabilities decreased by 15.5% to HKD 366 million, down from HKD 434 million in the previous year[5]. - As of December 31, 2023, the total assets of the group amounted to HKD 1,466,400,000, with liabilities of HKD 366,300,000 and equity of HKD 1,100,100,000[36]. - The net asset value per share increased to HKD 0.92 as of December 31, 2023, up from HKD 0.88 as of December 31, 2022, due to profits and foreign exchange gains[36]. - The group recorded a total cash and bank balance of HKD 753,900,000 as of December 31, 2023, compared to HKD 738,300,000 as of December 31, 2022[37]. - The group’s current ratio improved to 3.39 as of December 31, 2023, from 2.78 as of December 31, 2022[37]. - The group achieved a 15.2% decrease in prepaid expenses, totaling HKD 47,200,000 as of December 31, 2023, due to reduced procurement volumes[37]. - The total value of major contracts on hand was approximately HKD 329,200,000 as of December 31, 2023, an increase from HKD 260,800,000 as of December 31, 2022[42]. Product Development and Market Position - The company launched 468 new font designs in 2023, enhancing its product offerings in the font design market[11]. - The company is focusing on AI-assisted font design technology to improve design efficiency while maintaining quality[11]. - The company achieved over 80% year-on-year growth in sales and installation of high-speed inkjet printing equipment in the first half of 2023[17]. - The company launched several new products, including the Fangzheng Jiying P6600CHD 3.0 and S330 inkjet printing machines, which received positive market feedback during major exhibitions[16]. - The company was selected as one of the eight pilot units for the digital development reform of the printing industry, indicating its leadership in technological advancement[15]. - The company plans to expand its international market presence, having made its first exports of large inkjet printing equipment to Europe and Southeast Asia in 2023[17]. - The company launched the new generation of intelligent media open platform "Fangzheng Yunque Media Platform" in the first half of 2023, focusing on the development of data and AI platforms, utilizing cloud computing and microservices architecture[25]. - The company released the 4.0 version of the intelligent proofreading system, enhancing capabilities in ideological content review, intelligent error correction, and knowledge checking[26]. - The service-oriented business revenue accounted for over 40% in 2023, indicating a shift from product solution sales to a collaborative business model including SaaS and data services[28]. - The company introduced the "Fangzheng Magic Cube Media Large Model" in the second half of 2023, which supports content creation, intelligent response, and multi-modal services[25]. Governance and Compliance - The board of directors consists of six executive directors and three independent non-executive directors as of December 31, 2023[51]. - The company held four regular board meetings during the year, approximately one per quarter, and additional meetings as needed[53]. - All directors confirmed compliance with the standards set forth in the Listing Rules for securities trading throughout the year[50]. - The chairman and CEO roles are separated, with Qi Zixin serving as the chairman and Shao Xing as the president responsible for daily operations[58]. - The company has adopted the corporate governance code and has complied with all provisions except for one deviation related to the absence of the former chairman at the annual general meeting due to health reasons[49]. - The company has established three board committees: the remuneration committee, nomination committee, and audit committee[54]. - The board is responsible for the overall strategy, major acquisitions, capital investments, and significant changes in accounting policies[51]. - The company has arranged appropriate directors' liability insurance to provide indemnity coverage for legal liabilities arising from company activities[53]. - The independent non-executive directors have signed one-year appointment letters, ensuring their independence from the company[59]. - Liu Jiayong resigned as an independent non-executive director on March 16, 2023, leading to non-compliance with listing rules until Zhai Zhisheng was appointed on June 12, 2023[61]. - The remuneration committee held one meeting in 2023 to review the remuneration policy for directors, ensuring competitive compensation based on market rates and workload[62]. - The board consists of nine directors, including three independent non-executive directors, promoting effective oversight and management[66]. - The nomination committee evaluates candidates based on character, qualifications, and commitment to board responsibilities[67]. Environmental, Social, and Governance (ESG) Initiatives - The company has developed appropriate and effective management policies and internal control systems regarding environmental, social, and governance matters[97]. - The report covers significant operational activities of the group, with Founder Electronics accounting for approximately 100% of the group's total revenue[95]. - The board is responsible for assessing and determining the group's environmental, social, and governance-related risks, ensuring the implementation of effective risk management and internal control systems[100]. - The company maintains high transparency and regularly communicates with shareholders to ensure they have access to comprehensive and understandable information[83]. - The environmental, social, and governance report follows the guidelines set out in the Stock Exchange's listing rules, ensuring the principles of materiality, quantification, balance, and consistency are adhered to[96]. - The company has a communication policy aimed at establishing mutual relationships and communication with shareholders, with all financial and disclosure information available on its website[85]. - The company has established a sustainable corporate governance framework to integrate sustainability measures into its business operations[100]. - The group welcomes stakeholder feedback on its sustainability performance and encourages suggestions for improvement[98]. - The total greenhouse gas emissions from purchased electricity in 2023 amounted to 980,223 kg CO2 equivalent, a decrease from 1,218,133 kg in 2022[107]. - The per capita greenhouse gas emissions increased slightly from approximately 665 kg in 2022 to about 670 kg in 2023[112]. - The company has implemented energy-saving measures to encourage employees to reduce electricity consumption[112]. - The company has developed a "Fully Integrated Printing Factory Solution" to optimize material usage and reduce waste in the printing process[115]. - The high-end digital inkjet printing technology developed by the company maximizes ink utilization and reduces non-recyclable waste[116]. - The company has set the minimum air conditioning temperature at 25.5 degrees Celsius during office hours to optimize resource use[119]. - The company has not produced any hazardous waste during the reporting year and has ensured proper disposal of non-hazardous waste[114]. - The company continues to focus on improving resource utilization rates and recycling efforts across its operations[114]. Employee Engagement and Welfare - The company employs 1,043 staff, with 425 females, representing 40.7% of the workforce, indicating a commitment to gender diversity[66]. - A total of 2,045 participants engaged in various training activities in 2023, enhancing employee integration into company culture and improving overall capabilities[139]. - The company has implemented measures to encourage carpooling and the use of public transportation to reduce road congestion and vehicle emissions[125]. - The company has established a high-quality accommodation environment for employees, enhancing their living conditions and overall morale[176]. - The training program for new managers includes online learning and offline workshops to clarify key competencies and management knowledge[150]. - The company emphasizes equal employment opportunities and strictly adheres to principles of fairness and non-discrimination in salary and promotion[155]. - The company has a quarterly onboarding training program for new employees to help them understand the company's strategy and culture[154]. - The company organized a Mid-Autumn Festival event with over 500 employees participating, enhancing team cohesion and company culture[180]. Supply Chain Management - The company emphasizes supply chain management quality, prioritizing local suppliers to reduce transportation costs and greenhouse gas emissions[182]. - The company has established strict supplier selection criteria, requiring suppliers to have environmental assessment qualifications to avoid negative environmental impacts[185]. - The company conducts comprehensive evaluations of suppliers based on their operational qualifications and financial status to ensure reliability[193]. - The company regularly assesses existing suppliers on various dimensions, including product quality, delivery timeliness, and service satisfaction, with a scoring system that can terminate partnerships if scores fall below 60[195]. - The company has implemented a supplier introduction process that adheres to principles of fairness, justice, and openness, ensuring thorough evaluations before new partnerships[190]. - The company focuses on selecting suppliers that can provide environmentally friendly products and services, aligning with sustainability goals[196]. - The company holds regular evaluations of suppliers, either quarterly or annually, based on different assessment factors[197]. - The company rewards employees for effective environmental improvement suggestions, fostering a culture of innovation and responsibility[180]. - The company has a structured approach to supplier management, ensuring that all suppliers meet specific business and environmental standards before engagement[189]. - The company emphasizes strategic partnerships with environmentally compliant suppliers to provide high-quality products in line with national environmental policies[198]. - New suppliers in specialized product areas must provide relevant certifications, such as 3C certification, before collaboration is approved[198]. - The company aims to reduce unnecessary packaging for short-distance shipments to lower procurement costs and conserve resources[198]. - For liquid product suppliers, the company will optimize packaging materials and specifications to reduce overall packaging usage while meeting market demands[198]. - The company has increased management oversight of suppliers to address damages during transportation, requiring appropriate insurance and potential compensation for losses[200]. - On-site evaluations of production suppliers will include assessments of production environment, personnel management, and equipment management[200].
方正控股(00418) - 2023 - 年度财报