Financial Performance - Revenue for 2023 decreased to HK$257.5 million, down 4.5% from HK$268.7 million in 2022[6] - Profit attributable to shareholders fell to HK$33.4 million, a decline of 29% compared to HK$47.0 million in 2022[6] - Basic earnings per share (EPS) decreased to HK$13.5, down 28.9% from HK$19.0 in 2022[6] - The Group's consolidated net profit attributable to shareholders decreased by HK$13.7 million, or 29.1%, to HK$33.4 million for the year ended 31 December 2023[33] - Basic earnings per share fell to 13.50 HK cents, down from 19.02 HK cents in 2022[33] - Overall profitability declined by HKD 9.2 million, or 6.3%, to HKD 135.8 million, with a gross profit margin slightly dropping to 52.8% from 54.0% in the previous year[63] Revenue Streams - Solutions and Integration Services revenue decreased by HK$6.5 million or 6.0%, totaling HK$102.8 million in 2023[15] - The Group's other income and gains increased to HK$16.3 million, up from HK$13.6 million in 2022, due to improved bank interest income[8] - Revenue from solutions and integration services decreased by HK$6.5 million, or 6.0%, to HK$102.8 million, but operational efficiency improved[41] - The Group's GETS business revenue experienced a slight decline due to the impact of slowing economic growth, but effective cost management measures helped stabilize overall financial performance[57] Strategic Initiatives - The Group plans to invest in R&D for Generative AI and LLM technologies to expand market presence in Greater China and overseas[19] - The Group aims to enhance its SaaS offerings and recurring revenue through a strengthened software product portfolio featuring cloud-native architecture[19] - The Group plans to launch a new Human Capital Management SaaS platform in the first half of 2024, aimed at enhancing competitiveness in Mainland China and Hong Kong SAR[37] - The new software platform will utilize modular architecture to expand enterprise applications and improve the SaaS business model[37] - The Group is expanding its software development centers in Mainland China to address IT resource shortages and rising staff costs in Hong Kong[19] Governance and Board Structure - The Audit Committee was established to oversee the financial reporting process, risk management, and internal controls[53] - The Company has not established a separate committee for corporate governance; this function is collectively performed by the Board[88] - The Company aims to enhance the proportion of female members on the Board over time when selecting suitable candidates for appointments[92] - The Board consists of seven directors, including six males and one female, indicating a commitment to gender diversity[92] - The Nomination Committee is tasked with reviewing the Board Diversity Policy and ensuring at least one-third of the Board comprises Independent Non-Executive Directors (INEDs)[109] Risk Management - The Risk Management Committee reviews the Group's risk management and internal control strategies and submits them to the Audit Committee for approval[158] - The Risk Management Committee is responsible for monitoring compliance with approved risk tolerance levels and policies[158] - The management has established a risk identification and management process, with risk profiles reported regularly to the Risk Management Committee, Audit Committee, and the Board[182] - The Company has sufficient and effective risk management and internal control systems to address significant financial, operational, compliance, and IT control risks[186] - The Board has reviewed and considers the Company's risk management and internal control systems to be effective and adequate[188] Shareholder Engagement - The Company has adopted a Shareholders Communication Policy to ensure balanced and understandable information about its financial performance and strategic goals is readily available to shareholders[197] - The annual general meeting in 2023 was held on June 5, 2023, with all directors and the external auditor in attendance[197] - The Company encourages shareholders to participate in general meetings or appoint proxies to vote on their behalf if unable to attend[197] - The Company Secretary and Senior Vice President of Corporate Development and Communications are available for shareholder inquiries via email or mail[199] Audit and Compliance - Auditing services amounted to HK$1,460,000, while non-auditing services totaled HK$180,000[190] - The Audit Committee monitored the integrity of the Company's financial statements and reviewed significant financial reporting judgments[122] - The Audit Committee reviewed and monitored the Group's financial reporting processes and internal control systems during the year[122] - The Company has established a formal and transparent procedure for developing remuneration policy for all directors and senior management[126]
科联系统(00046) - 2023 - 年度财报