Financial Performance - In 2023, the Group's revenue increased to US$173,979,000, up 9.3% from US$159,239,000 in 2022[18]. - Gross profit decreased to US$33,766,000, down 13.8% from US$39,189,000 in 2022[18]. - Profit attributable to shareholders was US$2,553,000, a significant recovery from a loss of US$6,677,000 in 2022[18]. - Basic and diluted earnings per share improved to 1.01 US cents, compared to a loss of 2.64 US cents in the previous year[18]. - For the year ended December 31, 2023, the Group's revenue increased by 9.3% to US$174.0 million, compared to US$159.2 million in 2022[25]. - Profit attributable to shareholders was US$2.6 million, a turnaround from a loss of US$6.7 million in 2022, primarily due to improved performance in the industrial business[26]. - Basic and diluted earnings per share were both 1.0 US cents, compared to a loss of 2.6 US cents in 2022[27]. Asset and Debt Management - Total assets increased to US$377,374,000, up from US$350,585,000 in 2022[18]. - Total bank borrowings rose to US$78,168,000, compared to US$49,102,000 in 2022, indicating increased leverage[18]. - As of December 31, 2023, the Group's net debt was US$40.6 million, an increase from US$18.2 million as of December 31, 2022, resulting in a debt-to-equity ratio of 0.16 compared to 0.07 in the previous year[45][49]. - The Group's total borrowings increased to US$78.2 million as of December 31, 2023, up from US$49.1 million as of December 31, 2022, with secured borrowings accounting for 27.7% of total borrowings[48][51]. - Cash and cash equivalents rose to US$37.6 million as of December 31, 2023, an increase of US$6.7 million from US$30.8 million as of December 31, 2022[47][50]. Business Segments and Strategy - The animal health business achieved a major milestone, with its revenue exceeding 50% of the Group's biochemical business for the first time in 2023[5]. - The Group is focused on strategic transformation towards becoming a leading biotechnology company, enhancing core competitiveness through R&D investment[4]. - The Group continues to strategically broaden its product portfolio in the animal health segment, deploying additional marketing resources[34]. - Revenue contribution from CTC products decreased from 53% in 2022 to 41% in 2023, while revenue contribution from animal health products increased from 47% to 59%[32]. Market Outlook and Challenges - The Group maintains a cautious outlook for 2024 due to economic uncertainties but aims to capitalize on market opportunities as conditions normalize[11]. - The Group remains cautious about its performance in 2024 due to uncertainties in the biochemical business and intense competition in the industrial sector[40]. Corporate Governance and Board Activities - The company held one annual general meeting, one special general meeting, seven Board meetings, six Audit Committee meetings, one Remuneration Committee meeting, one Nomination Committee meeting, and two Corporate Governance Committee meetings in 2023[82]. - Directors confirmed their responsibility for preparing financial statements that reflect the financial position, performance, and cash flows of the Group in accordance with International Financial Reporting Standards[93]. - The company emphasizes the importance of accountability and audit in its governance practices[96]. - The Board's commitment to corporate governance is reflected in its structured meeting schedule and training initiatives for directors[87]. - The Audit Committee held six meetings in 2023, reviewing the annual results for the year ended December 31, 2022, and recommending the Board to approve the related financial information[120]. Risk Management and Internal Controls - The Board conducted an annual review of the effectiveness of the Group's risk management and internal control systems in 2023, finding them effective and adequate[196]. - No significant control failings or weaknesses were identified in 2023, indicating the Company's ability to respond adequately to changes in its business and external environment[196]. - The Group has established a Risk Management Policy to manage risks associated with achieving business objectives[192]. - The Audit Committee is responsible for reviewing the effectiveness of the Group's risk management and internal control systems[193]. Diversity and Inclusion - The Board Diversity Policy aims to achieve a diverse Board, considering factors such as gender, age, and professional experience, with an annual review of its effectiveness[154]. - The Board set a target to appoint at least one female Director by December 31, 2024, which was achieved on February 23, 2024, with the appointment of Ms. Cheung Marn Kay[160]. - The Company plans to increase the percentage of female employees from 27% to 30% within five years, by December 2027, to enhance gender diversity in the workforce[165]. - The Company emphasizes the importance of diversity in its Board composition, considering factors like gender, age, and professional experience[173].
正大企业国际(03839) - 2023 - 年度财报