Procurement and Customer Concentration - The top five suppliers accounted for approximately 34% of total procurement, with the largest supplier representing 11%[2] - The top five customers contributed about 22% to total sales, with the largest customer accounting for 8%[2] Employee and Management Information - The group employed approximately 1,771 full-time employees as of December 31, 2023, an increase from 1,683 in 2022[8] - The remuneration of senior management for the year ending December 31, 2023, is detailed according to salary grades[31] - The company encourages directors to participate in professional development courses related to listing rules and corporate governance[22] Corporate Governance and Board Structure - The board of directors consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[11] - The company has adopted a diversity policy for its board members, currently including two female directors[11] - The company confirmed that all independent non-executive directors are independent individuals as per the listing rules[6] - The company has maintained the required public float as stipulated by the listing rules during the fiscal year ending December 31, 2023[11] - The company will propose the reappointment of its auditor at the upcoming annual general meeting[9] - The board of directors held four meetings and one annual general meeting in 2023, with full attendance from all directors[15] - The nomination committee was formed in February 2012 and consists of executive and independent non-executive directors, with the chairman being Mr. Liu[29] Risk Management and Compliance - The company has established a continuous process to identify, assess, and manage significant risks, with management responsible for reporting risk assessment results[20] - The company has implemented appropriate policies and controls to ensure asset protection and compliance with relevant rules and regulations[20] - The independent qualified accountant conducted an annual review of the internal control system, finding no significant defects and confirming its effectiveness[20] - The company has a whistleblowing policy to encourage employees to report any suspected misconduct[20] - The company is committed to maintaining compliance with corporate governance codes and has made progress in implementing these regulations[40] Financial Performance - The company's revenue increased by 3% to HKD 2,563,000,000 in 2023, compared to HKD 2,496,000,000 in 2022[98] - The net profit after tax decreased by 16% to HKD 240,700,000 in 2023, down from HKD 285,800,000 in 2022, primarily due to a one-time gain of HKD 31,000,000 recorded in 2022[98] - The company's profit attributable to owners for the year ended December 31, 2023, was HKD 185,200,000, a decrease of 15.8% compared to HKD 219,900,000 in 2022[120] Dividend Policy - The company has adopted a dividend policy that considers actual and expected financial performance, operational capital requirements, and future expansion plans[42] - The company proposed a final dividend of HKD 0.08 per share, totaling HKD 0.11 per share for the year, reflecting confidence in long-term prospects[101] - The board proposed a final dividend of HKD 0.08 per share for the year ended December 31, 2023, compared to HKD 0.07 and a special dividend of HKD 0.03 in 2022[122] Acquisitions and Market Strategy - The company plans to diversify its supply chain and markets to address geopolitical risks and trade policies, enhancing dialogue with overseas customers and regional suppliers[99] - The company is focusing on digital printing technology, which is expected to revolutionize the industry by reducing operational time and inventory costs[93] - The company is adopting a diversification strategy to mitigate risks associated with geopolitical tensions affecting the Chinese manufacturing sector[114] Financial Position and Assets - The goodwill and intangible assets related to acquisitions amounted to HKD 321,331,000 and HKD 741,713,000, respectively, as of December 31, 2023[53] - As of December 31, 2023, the carrying amount of trade and other receivables was HKD 702,868,000, representing 37% of the group's current assets[60] - The group's net current assets as of December 31, 2023, were approximately HKD 991,500,000, up from HKD 869,300,000 in 2022, with cash and cash equivalents around HKD 780,100,000[120] Shareholder Information - The company has established a shareholder communication policy to ensure effective communication with shareholders through various channels[46] - The company reported a total of 325,609,275 shares held by Liu Zhu Jian, representing 65.30% of the issued share capital of the associated entity, Aoshih Global Group Limited[157] - Major shareholders include Qingtian Group Limited with a total interest of 266,432,717 shares, accounting for 34.60% of the issued share capital[167] Audit and Financial Review - The audit committee held three meetings in 2023, with full attendance from its members[43] - The company’s financial reports for the interim period of 2023 and the annual report for 2022 were reviewed by the audit committee and deemed compliant with applicable accounting standards[40] - The audit committee is responsible for overseeing the relationship with external auditors and reviewing the group's financial information[39] Challenges and Market Conditions - The company is facing challenges from the increasing shift towards digital media, which may impact the demand for printed materials[93] - The global book market faced significant challenges, with U.S. printed book sales declining by 3%, while children's books dropped by 5%[110] - The company expects the Chinese book market to remain weak in 2024, prompting local printers to diversify towards overseas publishing clients[117]
狮子山集团(01127) - 2023 - 年度财报