Financial Performance - The Group's turnover for the year ended December 31, 2023, was approximately HK$185.8 million, a decrease of 31.7% from HK$272.1 million in 2022[12][22] - Loss attributable to owners of the Company was approximately HK$26.1 million, compared to a loss of HK$0.5 million in 2022[12][22] - Basic loss per share for the year was HK9.77 cents, up from HK0.19 cent in the previous year[12][22] - Overall gross profit decreased to approximately HK$25.6 million, representing a decline of 53.6% from the previous year[12][22] - The precision parts and components segment's turnover also decreased by 31.7% to approximately HK$185.8 million compared to 2022[22][24] - Overall gross profit decreased by 53.6% to approximately HK$25.6 million, resulting in a gross profit margin decline of 6.5 percentage points to 13.8%[28][31] - Loss attributable to shareholders was approximately HK$26.1 million, compared to a profit of HK$0.5 million in 2022, with basic loss per share of HK$0.0977[26][29] Market Conditions - The challenging market conditions were attributed to the ongoing war in Ukraine, inflation pressures, and interest rate hikes, which weakened consumer sentiment, particularly in Europe[22][23] - The decline in revenue led to lower capacity utilization of the Group's production facilities, while direct costs were not proportionately reduced[22][24] Financial Position - The Group's equity decreased to HK$299.8 million from HK$350.3 million in 2022[12] - Property, plant, and equipment value decreased to HK$192.4 million from HK$201.3 million in 2022[12] - The Group's financial position remains healthy, with bank balances and cash totaling approximately HK$100.4 million as of December 31, 2023[39] - Total borrowings from banks amounted to approximately HK$7.0 million, indicating a "net cash" positive status[38][45] - The Group distributed interim and final dividends totaling approximately HK$21.3 million in 2023, maintaining a strong financial position for future operations[29][32] Cost Management - The selling and distribution costs decreased by 13.4% to approximately HK$16.8 million, while administrative expenses slightly decreased by 1.0% to approximately HK$23.2 million[28][31] - The finance costs remained stable at approximately HK$0.5 million despite a rise in market interest rates[28][37] Workforce and Employment - The Group's workforce totaled approximately 729 employees, with the majority based in Mainland China[49] - The group had approximately 729 employees as of December 31, 2023, with around 694 based in mainland China, 30 in Hong Kong, and 5 overseas[55] Corporate Governance - The Board of Directors includes a balanced composition of Executive Directors and Independent Non-executive Directors, ensuring strong independent judgment[64] - The company has complied with all provisions of the Corporate Governance Code throughout the year ended December 31, 2023, except for the separation of the roles of Chairman and CEO[62] - The Board is collectively responsible for overseeing the management of the business, focusing on enhancing shareholder value and monitoring financial performance[75] - The company has established Board committees to delegate various responsibilities as outlined in their respective terms of reference[75] - The Company has established a Board Independence Evaluation Mechanism to ensure strong independent judgment and safeguard shareholders' interests[95] - The Company has not established a corporate governance committee; the Board is responsible for corporate governance duties[85] Board Meetings and Committees - The Board held five regular meetings and one annual general meeting during the year ended December 31, 2023, with full attendance from all directors[83] - The Remuneration Committee held two meetings during the year, with all members attending 100% of the meetings[119] - The Nomination Committee held two meetings during the year, with full attendance from its members[138] - The Audit Committee held three meetings during the year, with all members attending at least two meetings[180] Risk Management and Internal Controls - The Board acknowledges its responsibility for ongoing risk management and internal control systems, which are designed to manage risks rather than eliminate them[186] - The Group's risk management processes include identifying risks that may affect business operations and assessing their potential impact and likelihood of occurrence[196] - The internal audit function is performed by a dedicated team that reports directly to the Audit Committee and the Board, conducting reviews on material controls and compliance[198] - The Board has overall responsibility for maintaining effective risk management and internal control systems, which were reviewed for effectiveness and adequacy during the year[192] Diversity and Inclusion - The company emphasizes the importance of board diversity, considering factors such as age, gender, skills, and professional experience in its composition[141] - The Company aims to foster an inclusive environment to enhance employee loyalty and motivation, which is crucial for optimal performance[144] - The Board achieved its diversity objectives in 2023, including at least one female member and at least 33% of members being non-executive or independent non-executive directors[150] - The Company appointed one female director on April 30, 2023, to enhance gender diversity in the Board and senior management[151] Remuneration Policies - The remuneration policy ensures that compensation for employees, including directors and senior management, is based on skills, knowledge, responsibilities, and involvement in the company's affairs[129] - Executive directors' remuneration includes basic salary, pensions, and discretionary bonuses, reflecting the company's performance and profitability[129] - Individual directors and senior management do not participate in determining their own remuneration, ensuring fairness in the process[129] Auditor and Financial Reporting - The auditor's remuneration for the year includes HK$880,000 for audit services and HK$72,000 for non-audit services, totaling HK$952,000[177] - The directors are responsible for preparing the consolidated financial statements for the year ended December 31, 2023, ensuring compliance with statutory requirements and applicable accounting standards[184] - The Audit Committee reviewed the consolidated financial statements for the year ended December 31, 2023, and the interim financial statements for the six months ended June 30, 2023[181]
坚宝国际(00675) - 2023 - 年度财报