Financial Performance - The company's total sales revenue for the year reached approximately RMB 705.8 million, representing a year-on-year increase of about 32.0%[11]. - The net profit attributable to the company's owners was approximately RMB 43.6 million, which is an increase of about 97.3% compared to the previous year[11]. - The CMS business revenue was approximately RMB 420.6 million, reflecting a significant growth of about 56.0% year-on-year[14]. - The OBM business revenue amounted to approximately RMB 75.2 million, showing a growth of about 7.3% compared to the previous year[15]. - The wholesale business revenue reached approximately RMB 209.9 million, which is an increase of about 7.6% year-on-year[16]. - Basic earnings per share were approximately RMB 0.09, up from RMB 0.05 in the previous year[11]. - The gross profit recorded was approximately RMB 133.1 million, representing a year-on-year increase of about 59.7%, with a gross margin of 18.9% compared to 15.6% in the previous year[20]. - The net profit for the reporting period was approximately RMB 43.6 million, a significant increase of about 97.3% from RMB 22.1 million in the previous year, resulting in a net profit margin rise from 4.1% to 6.2%[21]. Cost and Expenses - The group's sales cost for the reporting period was approximately RMB 572.6 million, an increase of about 26.9% compared to RMB 451.3 million in the previous year[17]. - Other comprehensive expenses decreased by approximately 83.7% to RMB 4.5 million from RMB 27.4 million in the previous year, mainly due to currency translation differences[22]. - Selling expenses increased by approximately 35.0% to RMB 27.8 million from RMB 20.6 million in the previous year, primarily due to higher employee salaries and travel expenses[23]. - Administrative and other operating expenses rose by approximately 4.1% to RMB 58.3 million from RMB 56.0 million, mainly due to increased employee salaries and R&D costs[24]. Strategic Initiatives - The company plans to continue strengthening strategic customer relationships and actively expand the domestic market[11]. - The company is focusing on the development of high value-added products to enhance pricing power[11]. - The company is increasing investments in e-commerce to develop new sales channels[11]. - The company plans to continue upgrading existing production lines to improve automation levels and product quality, focusing on the development and sales of medicinal and edible aerosol products[51]. - For the fiscal year 2024, the company aims to strengthen supply chain construction, control procurement costs, and enhance R&D capabilities to develop high-value-added products[52]. - The company will continue to expand and explore sales networks and platforms to achieve business growth and maintain market share[52]. Corporate Governance - The company emphasizes the importance of good corporate governance for its sustainable development and is committed to establishing suitable governance practices[56]. - The board of directors is responsible for providing leadership, strategic decision-making, and oversight of financial performance, ensuring the company's success and best interests[60]. - The board consists of three executive directors and three independent non-executive directors, complying with listing rules regarding independence and expertise in accounting and finance[65]. - The company has adopted a formal nomination procedure for directors, ensuring transparency and thorough evaluation of candidates based on various criteria[73]. - The board ensures the appointment of at least three independent non-executive directors, with at least one possessing appropriate professional qualifications in accounting or related financial management[75]. - The board has reviewed the implementation and effectiveness of governance mechanisms during the year and found them appropriate and effective[79]. Risk Management - The board is responsible for maintaining effective risk management and internal control systems, aimed at achieving business objectives and safeguarding assets[112]. - The risk management system is designed to identify and manage risks at an acceptable level, providing reasonable assurance against significant misstatements or losses[114]. - The group has adopted a continuous risk assessment method to identify and evaluate inherent risks affecting its objectives[115]. - A three-tier risk management process is in place to identify, analyze, assess, and manage significant risks, with the first tier ensuring department heads understand their roles in risk management[116]. - As of December 31, 2023, the management confirmed the effectiveness of the risk management and internal control systems[119]. Environmental, Social, and Governance (ESG) - The company emphasizes sustainable growth and is increasingly aware of its responsibilities towards environmental and social governance, supporting a transition to a low-carbon future[59]. - The company has established a six-member Environmental, Social, and Governance (ESG) working group, including three executive directors and three independent non-executive directors, to oversee ESG processes and risk management[167]. - The company aims to set strategic goals for the next three to five years to focus on achieving its vision and objectives[170]. - The company has committed to maintaining high environmental management standards, certified under ISO 14001:2015[174]. - The company’s environmental, social, and governance report is prepared in accordance with the Hong Kong Stock Exchange listing rules, ensuring compliance and transparency[146]. Sustainability and Environmental Impact - The company reported a slight increase in air pollutant emissions in 2023, primarily due to increased operational activities and vehicle usage, with a target to reduce emissions by 3% by 2025[175]. - Total greenhouse gas emissions for 2023 amounted to 6,965.77 tons of CO2 equivalent, an increase from 6,019.00 tons in 2022, with a goal to reduce emissions by 5% by 2025[182]. - The company has implemented a series of internal policies and procedures to manage waste and reduce pollution, fully complying with relevant environmental laws and regulations[174]. - The total waste generated by the company in 2023 was 446.88 tons, a significant increase from 161.37 tons in 2022, reflecting a growth of approximately 176.5%[187]. - The company aims to reduce non-hazardous waste by 5% by 2025 as part of its comprehensive emission reduction goals[186]. Future Outlook - The company has provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[136]. - New product launches are expected to contribute an additional 200 million in revenue, with a focus on eco-friendly products[136]. - The company is investing in new technology development, allocating 100 million for R&D in the upcoming year[136]. - Market expansion plans include entering two new international markets, aiming for a 5% market share within the first year[136]. - The management team emphasized the importance of sustainability in their future strategies, aiming for a 30% reduction in carbon footprint by 2025[136].
中国绿岛科技(02023) - 2023 - 年度财报