Financial Performance - Total revenue for the fiscal year ended December 31, 2023, was HKD 326,713,000, a decrease of 17.3% from HKD 394,867,000 in 2022[7]. - The operating profit before tax for 2023 was HKD 19,021,000, compared to HKD 21,009,000 in 2022, reflecting a decline of 9.5%[7]. - The sales of transformers decreased significantly to HKD 146,176,000 in 2023 from HKD 219,390,000 in 2022, representing a drop of 33.3%[17]. - The sales of electronic components increased to HKD 174,750,000 in 2023, up from HKD 171,260,000 in 2022, showing a growth of 2.9%[17]. - The group's revenue decreased by approximately HKD 68.2 million or 17.3% from about HKD 394.9 million in 2022 to approximately HKD 326.7 million in 2023, primarily due to a reduction in transformer procurement orders[23]. - Gross profit decreased by approximately HKD 7.0 million or 12.1%, from about HKD 57.7 million in 2022 to approximately HKD 50.7 million in 2023, while the gross profit margin increased from 14.6% to 15.5%[23]. - The net profit for the year was approximately HKD 17.2 million, compared to HKD 16.8 million in 2022, reflecting a stable performance despite revenue decline[28]. Assets and Liabilities - The total assets as of December 31, 2023, were HKD 210,474,000, a decrease from HKD 238,222,000 in 2022[8]. - The total liabilities decreased to HKD 112,338,000 in 2023 from HKD 156,417,000 in 2022, a reduction of 28.2%[8]. - As of December 31, 2023, the group's net asset value reached approximately HKD 98.1 million, an increase from HKD 81.8 million as of December 31, 2022[35]. - The group's current assets were approximately HKD 175.5 million as of December 31, 2023, down from HKD 223.2 million as of December 31, 2022[35]. - The group's debt-to-equity ratio decreased to approximately 0.26 as of December 31, 2023, compared to 0.41 as of December 31, 2022, primarily due to a reduction in bank loans[36]. Operational Challenges and Strategies - The company faced challenges in material and product delivery due to geopolitical tensions and export restrictions from the US to China[10]. - The company anticipates ongoing challenges including unstable demand patterns and rising delivery and material costs, but aims to maintain sufficient buffer stock to address uncertainties[31]. - The company plans to increase production capacity for clean energy products in response to rising global demand[10]. - The company has reallocated resources for electronic healthcare products to meet changing customer demands, although transformer product demand is expected to continue to decline[31]. Corporate Governance - The company has adopted the principles and code provisions of the GEM Listing Rules Appendix C1 for corporate governance, ensuring proper regulation of its operations and decision-making processes[69][70]. - The board consists of six directors, including three executive directors and three independent non-executive directors, with all directors attending 100% of the meetings held[78][79]. - The board emphasizes the importance of corporate culture as a foundation for long-term business development and economic success, aiming for sustainable growth[71][73]. - The company has confirmed compliance with the code provisions regarding securities trading for the fiscal year ending December 31, 2023[75]. - The company has adopted a nomination policy that outlines the main selection criteria and principles for recommending candidates for the board[105]. Risk Management - The group maintains an effective risk management and internal control system, which is subject to annual review to ensure adequacy in accounting and financial reporting functions[128]. - The internal control system is designed to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or losses[139]. - The company has adopted a whistleblowing policy to encourage employees and associates to report suspected misconduct confidentially[134]. - The risk management framework includes identifying, analyzing, prioritizing risks, and maintaining a risk register to monitor identified risks[136]. Shareholder Communication - The company aims to provide high levels of disclosure and financial transparency to shareholders and investors through various communication channels[144]. - The company has established multiple communication channels with shareholders, including quarterly, interim, and annual reports, as well as annual general meetings[152]. - The board has committed to regularly reviewing the effectiveness of the shareholder communication policy, which has been deemed sufficient and effective[153]. - The company encourages shareholders to attend the annual general meeting and provides at least 20 business days' notice for such events[144]. Stock Option Plan - The stock option plan allows for a maximum of 20,000,000 shares to be issued, representing 10% of the total issued shares as of the report date[195]. - The maximum number of stock options granted to any individual participant under the stock option plan cannot exceed 1% of the total issued shares as of the grant date[198]. - The stock option plan aims to incentivize participants to enhance performance and attract talent beneficial to the group's long-term development[194]. - Performance targets may need to be met before the recipients can exercise the granted stock options[200].
侨洋国际控股(08070) - 2023 - 年度财报