Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately HKD 185.67 million, a decrease of about 31.88% compared to HKD 272.56 million for the year ended December 31, 2022[20][23]. - Gross profit decreased by approximately HKD 12.90 million or about 22.95% to approximately HKD 43.32 million for the year ended December 31, 2023, compared to approximately HKD 56.22 million for the year ended December 31, 2022[26]. - The pre-tax loss increased by approximately HKD 18.74 million, resulting in a pre-tax loss of approximately HKD 29.26 million for the year ended December 31, 2023, compared to approximately HKD 10.52 million for the year ended December 31, 2022[30]. - The net loss for the year ended December 31, 2023, was approximately HKD 19.93 million, compared to approximately HKD 11.12 million for the year ended December 31, 2022[32]. - The income tax expense increased by approximately HKD 0.59 million or about 98.33% to approximately HKD 1.19 million for the year ended December 31, 2023, compared to approximately HKD 0.60 million for the year ended December 31, 2022[31]. Cost Management - The cost of sales decreased to approximately HKD 142.35 million, down about 34.20% from HKD 216.34 million in the previous year, primarily due to the reduction in revenue[24]. - Administrative expenses decreased by approximately HKD 8.84 million or about 15.39% to approximately HKD 48.60 million for the year ended December 31, 2023, compared to approximately HKD 57.44 million for the year ended December 31, 2022[28]. - The group aims to maintain strict control over operating costs and improve operational efficiency to enhance profitability[13]. Market Outlook - The outlook for overseas markets remains uncertain, with risks of economic slowdown or recession posing challenges for future export performance[14][22]. - The company will closely monitor market trends in Southeast Asia, where demand for automatic and quartz watches remains strong[14]. - The Hong Kong Trade Development Council's export index rose from 29.7 in Q4 2022 to 35.0 in Q4 2023, indicating a slight improvement in export confidence[13]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a diverse composition[77][78]. - The company has confirmed that all independent non-executive directors are independent according to the GEM Listing Rules[88]. - The audit committee held four meetings during the reporting period to review the group's accounting standards and discuss audit, internal control, risk management, and financial reporting matters[91]. - The company has established sufficient checks and balances to ensure effective governance despite deviations from certain corporate governance codes[86]. Shareholder Relations - The company expresses gratitude to the board, shareholders, and employees for their support and contributions[17]. - The board is committed to a sustainable dividend policy, balancing shareholder interests with prudent capital management[112]. - The company has implemented a shareholder communication policy to ensure timely and clear information dissemination to shareholders and potential investors[115]. - The company encourages shareholder participation in annual general meetings as a platform for communication with the board[116]. Risk Management - The company acknowledges the impact of rising interest rates by the US Federal Reserve, which may lead to increased market volatility and higher capital costs[14]. - The board believes that the major risks of the group are controlled at an acceptable level, with management continuing to monitor residual risks and report regularly to the board[109]. - Financial risks are detailed in the consolidated financial statements, indicating potential vulnerabilities[173]. Employee and Diversity Initiatives - Approximately 63.96% of the company's overall workforce is female, with ongoing efforts to maintain this ratio[84]. - The company has taken measures to promote gender diversity at all levels, including the board and senior management[83]. - The company adopts a people-oriented approach, focusing on human resource management and providing attractive compensation and career development opportunities for employees[162]. Compliance and Legal Matters - The company maintained compliance with all relevant laws and regulations, with no violations reported for the year ended December 31, 2023[160]. - The company has received confirmation from major shareholders regarding compliance with the non-competition agreement since the listing date[67]. - The company has adopted a code of conduct for securities trading, confirming compliance with the GEM Listing Rules for the year ending December 31, 2023[72]. Strategic Initiatives - The company plans to focus on enhancing product design and development capabilities to maximize long-term returns for shareholders[15]. - New product launches are expected to contribute an additional $200 million in revenue, with a focus on smartwatches and wearable technology[126]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[126]. - Research and development expenses increased by 30%, totaling $150 million, to support innovation in product design[126].
恒伟集团控股(08219) - 2023 - 年度财报