Financial Performance - Total revenue for the year ended December 31, 2023, decreased by approximately 10.1% to HKD 233.99 million from HKD 260.14 million in 2022[9]. - The gross profit for 2023 was HKD 75.13 million, with a gross margin improvement in the OEM business despite a decline in sales orders[11]. - Net profit attributable to shareholders increased by approximately HKD 2.5 million or 17.9% to HKD 16.28 million in 2023 from HKD 13.80 million in 2022[12]. - The total assets as of December 31, 2023, were HKD 255.14 million, compared to HKD 249.29 million in 2022[9]. - The total liabilities as of December 31, 2023, were HKD 45.58 million, an increase from HKD 41.47 million in 2022[9]. - Financing income increased to HKD 4.05 million in 2023 from HKD 827,000 in 2022, positively impacting net profit[9]. - The group recorded a net profit attributable to equity holders of approximately HKD 16.3 million, an increase from HKD 13.8 million in the previous year, driven by improved gross margins and reduced selling expenses[28]. Sales and Market Performance - The number of third-party retail stores selling the company's products in China decreased from 170 at the end of 2022 to 159 at the end of 2023[12]. - Revenue from the OEM business was approximately HKD 221.9 million, down about 8.0% from HKD 241.1 million in the previous year, with the largest customer contributing HKD 145.5 million, an increase of 12.4%[19]. - The YoY revenue for the Youyoumali business decreased by approximately 36.5%, from HKD 19.0 million to HKD 12.1 million, primarily due to intense local market competition[20]. - The OEM business faced weak sales performance in 2023 due to reduced product demand from clients, attributed to a cautious procurement approach in an uncertain industry environment[45]. Cost Management - Selling expenses decreased by approximately 31.1% to HKD 9.2 million from HKD 13.3 million, attributed to cost control measures[22]. - Administrative expenses were approximately HKD 38.3 million, a decrease of about 6.9% from HKD 41.2 million, consistent with the decline in total revenue[24]. - The company anticipates continued challenges and uncertainties for both OEM and Youyou Monkey businesses due to global economic issues and declining birth rates in China[14]. Employee and Workforce Management - The total employee benefits expenditure for the year ended December 31, 2023, was approximately HKD 65.7 million, down from approximately HKD 73.9 million in 2022[41]. - The group employed 626 full-time employees as of December 31, 2023, a decrease from 666 employees in the previous year, primarily due to reduced production needs[41]. - The employee turnover rate is monitored, and the company encourages open communication to address any issues related to employee satisfaction[194]. - The company emphasizes a fair and non-discriminatory work environment, promoting diversity and equal opportunities for all employees[189]. Corporate Governance - The company adopted the principles of the corporate governance code and complied with its provisions as of December 31, 2023[68]. - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced composition with diverse knowledge and experience[74]. - The company has a mechanism for directors to seek independent professional advice at the company's expense, ensuring compliance with applicable rules and regulations[76]. - The board has established a clear directive for management, requiring approval for key matters such as the publication of annual and interim results, dividend decisions, and significant structural changes[80]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the group's overall performance in environmental and social aspects for the year 2023, from January 1 to December 31[128]. - The company has identified 21 ESG-related issues categorized into four areas: environment, employment and labor practices, operational practices, and community[148]. - Total greenhouse gas emissions decreased by approximately 12% from 5,076 tons CO2 equivalent in 2022 to 4,469 tons CO2 equivalent in 2023[160]. - The company has been awarded the International Sustainability and Carbon Certification (ISCC) for its production facilities, indicating a commitment to sustainable development[170]. Future Outlook and Strategic Plans - The company has set a future revenue guidance of $150 million for the next fiscal year, representing a 20% increase from the current year[54]. - New product launches are expected to contribute an additional $30 million in revenue, with a focus on expanding the "Yoyo Monkey" brand[56]. - The company plans to enhance gender diversity on the board by appointing at least one female director by December 31, 2024, in compliance with listing rules[96]. - The group plans to explore suitable business and investment opportunities globally, including potential acquisitions that could provide production synergies[47].
万成集团股份(01451) - 2023 - 年度财报