Financial Performance - The company's revenue for the fiscal year 2023 decreased by approximately 23.0% compared to fiscal year 2022, while net profit fell by about 27.3%[13]. - The total revenue for the fiscal year 2023 was RMB 356.57 million, down from RMB 462.91 million in 2022[21]. - Net profit decreased by 27.3% to RMB 54.9 million in FY2023 from RMB 75.4 million in FY2022, with a net profit margin of 15.4% compared to 16.3% in FY2022[37]. - Revenue from cleanroom wall and ceiling systems dropped by approximately 21.9%, primarily due to the impact of US-China trade tensions and an uncertain investment environment in the semiconductor industry[17]. - Revenue from cleanroom wall and ceiling systems decreased by RMB 91.8 million or 21.9% compared to the previous fiscal year, primarily due to project delays in China[22]. - Revenue from China (excluding Hong Kong) was RMB 202.85 million, representing 56.9% of total revenue, down from 60.8% in the previous year[27]. - The gross profit margin for cleanroom wall and ceiling systems remained stable at 31.0% compared to 32.5% in the previous year[30]. - Gross margin for cleanroom equipment increased by 18.6 percentage points in FY2023 compared to FY2022, primarily due to economies of scale[31]. - Other income for FY2023 amounted to RMB 3.2 million, including approximately RMB 1.4 million in subsidies from the provincial government of China[32]. - Selling and distribution costs decreased by 53.3% to RMB 7.9 million in FY2023 from RMB 16.9 million in FY2022, mainly due to reduced commission and logistics expenses[33]. - Administrative and other operating expenses decreased by 20.2% to RMB 30.2 million in FY2023 from RMB 37.8 million in FY2022[34]. Market Outlook and Strategy - The company maintains a cautiously optimistic outlook for the future, particularly in the Southeast Asian market, anticipating continued investment in the semiconductor industry and data centers[13]. - The company plans to adapt to changing market dynamics to ensure long-term success[13]. - Revenue from Malaysia increased by about 21.5%, despite overall revenue decline, indicating successful implementation of market diversification strategies[27]. - The company has acquired approximately 16,056 square meters of land in Malaysia for the construction of a new production facility, with construction expected to commence in Q2 2024 and full operation anticipated in Q4 2024[18]. - Major contracts signed in FY2023 include a contract in Malaysia generating RMB 36.8 million, accounting for 11.2% of total revenue from cleanroom wall and ceiling systems[23]. - The cleanroom equipment segment achieved a significant growth of approximately 75.4%, reflecting the company's ability to adapt to market changes[24]. Corporate Governance - The company has adopted the corporate governance code as the basis for its governance practices, ensuring compliance throughout the fiscal year ending December 31, 2023[88]. - The board of directors consists of a balanced mix of skills and experiences to safeguard shareholder interests[94]. - The company held four board meetings during the fiscal year, adhering to governance code requirements[98]. - The company held two shareholder meetings this year, with independent non-executive directors attending to gather and balance shareholder opinions[99]. - The attendance record for board meetings shows that all executive directors attended 100% of the meetings, with independent non-executive directors also showing full attendance[101]. - The role of the CEO has been vacant this year, with the chairman Ng Yew Sum fulfilling the responsibilities, which the board believes does not compromise the balance of power and accountability[102]. - The board has committed to annually assess the independence of independent non-executive directors, ensuring compliance with listing rules requiring at least three independent directors[104]. - The company has established three board committees: Audit Committee, Nomination Committee, and Remuneration Committee, to oversee specific aspects of the group's affairs[108]. Risk Management - The company has established risk management and internal control systems to manage risks associated with achieving strategic goals[147]. - The audit committee assists the board in monitoring the effectiveness of risk management and internal control systems[148]. - The company acknowledges potential risks related to operational interruptions and fluctuations in raw material prices that could adversely affect business performance[191]. - The company’s financial performance and operational results are significantly influenced by the ability to secure new contracts and orders[188]. - The company has confirmed the effectiveness of its risk management and internal control systems as of December 31, 2023[152]. - The company has engaged an internal auditor to independently review the accuracy and effectiveness of its risk management and internal control systems[152]. Shareholder Engagement - The company has established communication channels to engage with shareholders and protect their rights[163]. - The company has a process for shareholders to propose agenda items for general meetings, requiring written requests from shareholders holding at least 10% of the paid-up capital[164]. - The company plans to distribute dividends amounting to approximately 30% to 40% of the consolidated profit attributable to shareholders annually[176]. - The company emphasizes the importance of maintaining high levels of corporate governance through timely and accurate information release[174]. - The company has established multiple channels for effective communication with shareholders, ensuring timely dissemination of information regarding business strategies and developments[175]. Employee and Management - The company has a competitive compensation package to attract and retain employees, along with ongoing training and career development opportunities[193]. - The company plans to hire more employees for sales and marketing in China and Malaysia, with 9.0% of the net proceeds, or RMB 4.3 million, allocated for this purpose[61]. - The management team has extensive experience, with key executives having over 27 years in financial and operational roles, enhancing the company's strategic direction[72]. - Liu has over 19 years of experience in the mechanical engineering industry and joined the group in December 2006[84]. - Wong has over 15 years of experience in the cleanroom engineering industry and has been with the group since April 2007[85]. Environmental and Social Responsibility - The company is committed to environmental sustainability and compliance with applicable environmental protection laws and regulations[187]. - The company has not faced any significant claims or penalties related to health, safety, social, and environmental protection during the year[190]. - The company emphasizes the importance of sustainable development and compliance with relevant laws and regulations in its operations[190]. Future Plans - The annual performance announcement is scheduled for March 27, 2024[7]. - The company plans to hold its annual general meeting on May 30, 2024, with a suspension of share transfer registration from May 24 to May 30, 2024[198]. - The company will suspend share transfer registration from June 6 to June 11, 2024, to determine eligibility for the proposed final dividend[199].
捷芯隆(02115) - 2023 - 年度财报