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保宝龙科技(01861) - 2023 - 年度财报

Financial Performance - The total revenue for the group was approximately HKD 557.2 million, a decrease of about 0.5% compared to HKD 559.8 million in the previous year[5]. - The profit attributable to the owners of the parent company was approximately HKD 56.9 million, an increase of about 35.5% from HKD 42.0 million in the previous year[5]. - The automotive beauty and maintenance products segment generated revenue of approximately HKD 445.5 million, a decrease of about 2.7% from HKD 457.8 million in the previous year[17]. - The personal care products segment reported revenue of approximately HKD 111.7 million, an increase of about 9.5% from HKD 102.0 million in the previous year[18]. - The group's sales cost for the reporting period was approximately HKD 381.3 million, a decrease of about 6.0% compared to HKD 405.6 million in 2022, representing 68.4% of revenue[21]. - Gross profit was approximately HKD 175.9 million, an increase of about 14.1% from HKD 154.2 million in 2022, with a corresponding improvement in gross margin[22]. - Other income and gains amounted to approximately HKD 8.6 million, a 22.7% increase from HKD 7.0 million in 2022, primarily due to increased government subsidies and interest income[23]. - Net profit for the period was approximately HKD 56.7 million, a significant increase of about 35.3% from HKD 41.9 million in 2022[27]. Dividend and Shareholder Returns - The board proposed a final dividend of HKD 0.0364 per share, up from HKD 0.0269 per share in the previous year[6]. - The company has adopted a dividend policy prioritizing cash distributions to shareholders, with decisions based on financial performance, operational needs, and other relevant factors[103]. Market Strategy and Business Development - The group plans to enhance brand awareness through sponsorship of exhibitions and multimedia platforms to promote its corporate image and brand[15]. - The group aims to strengthen its OBM business by improving existing product lines with eco-friendly formulas and increasing product competitiveness[9]. - The group is optimistic about the domestic market and the OBM business, despite challenges posed by regulatory changes and consumer preferences for environmentally friendly products[9]. - The group will continue to participate in various exhibitions and launch new products to meet market demand[8]. - The group anticipates that the other products under the existing brand will remain the main source of revenue in the short term while new product lines are being established[15]. Financial Position and Capital Management - Current assets net value as of December 31, 2023, was approximately HKD 84.0 million, up from HKD 58.3 million in 2022, with cash and cash equivalents totaling approximately HKD 119.7 million[29]. - The group's bank borrowings decreased to approximately HKD 35.3 million from HKD 50.8 million in 2022, with available bank financing increasing to approximately HKD 351.4 million[30]. - The debt-to-equity ratio improved to approximately 8.0% as of December 31, 2023, down from 23.4% in 2022[31]. - The group has established a monthly cash budget to share cash flow risks in conjunction with bank financing plans[117]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring high independence and effective decision-making[54]. - The independent non-executive directors possess extensive professional knowledge and experience in accounting, finance, law, and business[49]. - All directors are required to confirm their independence annually, and the company believes that the independent directors meet the criteria for independence[50]. - The company has adopted a formal, prudent, and transparent procedure for assessing and selecting director candidates[58]. - The chairman and CEO roles are held by the same individual, which the board believes is necessary for strong market leadership[46]. - The board consists of 5 male and 2 female directors, with a target to increase the proportion of female directors to over 25% in the coming years[63]. - The board has adopted a nomination policy to enhance diversity and governance standards[67]. - The attendance rate for board meetings was 100% for all executive directors, with independent non-executive directors also showing high attendance[70]. - The company emphasizes the importance of independent opinions and has mechanisms in place to ensure this[69]. - The board's diversity policy considers various factors including gender, age, cultural background, and professional experience[63]. - The board has a succession plan to address potential vacancies due to resignations or other circumstances[67]. - The Audit Committee held two meetings during the reporting period to discuss audit and financial reporting matters[74]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of governance[73]. - The company is committed to maintaining high standards of corporate governance and regularly reviews its governance policies[87]. Risk Management - The board is responsible for assessing and determining the nature and extent of risks the group is willing to take to achieve strategic objectives, ensuring the establishment of effective risk management and internal control systems[114]. - The company is committed to maintaining a robust risk management framework to support sustainable growth and business objectives[114]. - The group has implemented appropriate human resource allocation and effective management incentive mechanisms to mitigate strategic risks[116]. - The group has strengthened its operational capital accounting system and established a comprehensive annual budget to manage financial risks[117]. - The group actively monitors dust, high temperatures, and chemical hazards to address operational risks related to production safety and environmental standards[120]. - The board has conducted an annual review of the effectiveness of the risk management and internal control systems as of December 31, 2023[122]. Environmental, Social, and Governance (ESG) - The group has adhered to the Environmental, Social, and Governance (ESG) reporting guidelines set by the Hong Kong Stock Exchange[129]. - The group will continue to assess its business impact on key environmental, social, and governance issues[128]. - The company has established an environmental, social, and governance (ESG) framework to promote and implement its sustainability strategy[134]. - The board of directors is responsible for the overall ESG work and will continue to enhance ESG risk management and reporting processes[134]. - The company emphasizes compliance with environmental regulations in China and Thailand, including the Environmental Protection Law and the Water Pollution Prevention Law[144]. - The company is committed to minimizing the environmental impact of its business activities and maintaining green operations[143]. - No significant violations of air and greenhouse gas emissions regulations were reported during the reporting period[144]. - The company has implemented key measures for air pollutant and waste control to comply with applicable environmental laws[144]. - The ESG working group is responsible for coordinating ESG strategies and reporting progress to the board[135]. - The company prioritizes community engagement and local economic development through volunteer activities and social investments[141]. - The company has implemented energy-saving measures, resulting in a 0.32% decrease in energy consumption in 2023 compared to 2022[157]. - The company aims to maintain zero serious violations related to emissions, waste, and resource consumption over the next five years[154]. - The company has adopted the latest 2020 National VI emission standards for its fleet to improve exhaust emissions[148]. - The company is actively researching and developing environmentally friendly formulations, such as water-based and low-VOC products[155]. - The company has initiated a "zero waste factory" plan in November 2023 to minimize environmental pollution[159]. - The company has established an environmental management system certified by ISO 14001 for aerosol and non-aerosol product production[155]. - The company has committed to reducing harmful waste and has implemented a detailed environmental protection policy to manage waste effectively[150]. - The company has engaged qualified third-party monitoring companies to review and supervise its pollutant emissions annually[150]. - The company encourages employees to reduce waste, such as reusing paper and using electronic approval systems[155]. - The company is committed to mitigating climate change and enhancing its adaptability to climate-related threats[163]. - The company has identified rising average temperatures and extreme weather events, such as typhoons and heavy rainfall, as significant physical risks affecting daily operations[164]. - The company has implemented various emergency response mechanisms, including purchasing adequate natural disaster insurance to address climate-related risks[165]. Employee Management and Training - The company emphasizes the importance of attracting and retaining talented employees as a key to its success, continuously assessing human resources to align with business development needs[167]. - The company conducts annual performance reviews to determine bonus levels, salary adjustments, and employee promotions[168]. - A total of 448 employees participated in various training sessions, accumulating 11,437 hours of training during the reporting period[178]. - Training topics included occupational health protection knowledge and safety awareness, enhancing employee participation in corporate safety management[178]. - The company has established a safety management department to ensure compliance with national and local safety production laws and regulations[169]. - The company provides regular safety training and organizes emergency drills to enhance employees' emergency awareness and capabilities[171]. - The company has implemented occupational health measures, including providing ear protection and using low-noise equipment to reduce workplace noise impact[172]. - The company is unaware of any significant violations of laws and regulations regarding workplace safety and employee protection during the reporting period[173]. - The company strictly adheres to labor laws and regulations, ensuring no employment of child labor or forced labor, with a commitment to maintaining detailed employee records[180]. Quality Control and Customer Relations - The company collaborates closely with suppliers to meet quality, environmental, health, and safety standards, avoiding over-reliance on a single supplier[182]. - Quality control measures include testing raw materials from approved suppliers and conducting inspections at various production stages to ensure compliance with industry standards[187]. - The company has received multiple certifications for its quality management systems, including ISO9001:2015 and ISO14001:2015, ensuring high standards in production and environmental management[185]. - Guangzhou Baocili Chemical Co., Ltd., a subsidiary, was recognized as one of the top 500 manufacturing enterprises in Guangdong Province in 2023, reflecting the company's commitment to quality[188]. - The company has established a policy for handling product complaints, with a dedicated customer service team to address issues[189]. - There were no disputes regarding product quality with customers during the reporting period, and no products were recalled for safety or health reasons[191]. Anti-Corruption and Compliance - The company emphasizes the importance of intellectual property in driving innovation and has implemented various management systems for patents and trademarks[192]. - The company has a whistleblowing policy in place to report suspicious corruption incidents, encouraging employees to report through multiple channels[195]. - During the reporting period, 20 employees received one hour of anti-corruption training to promote awareness within the organization[195]. - The company strictly adheres to anti-corruption laws and regulations, with no legal cases related to corruption against the company or its employees during the reporting period[198].