Financial Performance - For FY2023, the Group's consolidated turnover increased to HK$1,362,732,000, representing an increase of approximately 28.19% compared to the previous year[14]. - The net profit for FY2023 was HK$67,871,000, reflecting an increase of approximately 122.50% from HK$30,504,000 in FY2022, resulting in basic earnings per share of 13.54 Hong Kong cents[14]. - Cash generated from operations was HK$101,559,000 in FY2023, with net cash and cash equivalents at the end of the year amounting to HK$367,415,000, up from HK$334,379,000 at the beginning of FY2023[15]. - The current ratio improved to 3.51 as of December 31, 2023, from 3.42 in the previous year, while the quick ratio increased to 2.84 from 2.46[30]. - Trade receivables turnover increased to 60 days in FY2023, up from 55 days in FY2022, while inventory turnover decreased to 45 days from 78 days[31]. - Bank balances and cash rose to HK$367,415,000 as of December 31, 2023, an increase of HK$33,036,000 compared to HK$334,379,000 in FY2022[31]. - The gearing ratio remained stable at 0.32 as of December 31, 2023, unchanged from the previous year[30]. - The Board proposed a final dividend of HK$0.04 per ordinary share and a special dividend of HK$0.06 per ordinary share for the year ended December 31, 2023[34]. - An interim dividend of 3 Hong Kong cents per share was paid for the six months ended June 30, 2023, and a final dividend of 4 Hong Kong cents per share and a special dividend of 6 Hong Kong cents per share are proposed for the year ended December 31, 2023[113]. Investments and R&D - The Group invested HK$40,505,000 in FY2023 for new injection moulding machines and high precision laboratory testing equipment, compared to HK$20,102,000 in FY2022[19]. - The Group's investment in research and development aims to improve operational efficiency and enhance sales revenue from new product launches[19]. - The Group's investment in R&D has allowed it to maintain HNTE status for the seventh consecutive year, enabling growth through new knowledge and innovations[49]. - In 2024, the Group will continue to invest in the computerization of manufacturing, completing ERP system integration with a new barcode system to enhance real-time inventory data[50]. Strategic Focus and Market Adaptation - The Group's strategic focus on product diversification included launching innovative beverage products for both premium and affordable markets[10]. - The Group's financial prudence included lowering safety stock and optimizing fixed costs in response to global sales demand fluctuations[9]. - The Group's management emphasizes the importance of adapting to new business ecosystems and forming stronger partnerships with strategic customers[49]. - The Group plans to enhance its risk management protocols in response to extreme climate events to minimize future property losses[26]. - The Group anticipates strong challenges in 2024 due to ongoing geopolitical tensions and economic uncertainties[49]. Corporate Governance and Management - The Company has a diverse board with members holding various qualifications, including CPA and CFA[80][81]. - The management team has extensive experience in engineering, operations, and finance, contributing to the company's strategic direction[69][80]. - The Company emphasizes corporate governance with active committees for remuneration, audit, and nominations[80][81]. - The leadership structure includes a mix of executive and independent non-executive directors to ensure balanced decision-making[80][81]. - The board of directors reviewed the effectiveness of the internal control system for the company and its subsidiaries[200]. - The board held a total of 4 meetings during the fiscal year 2023[200]. - The board meetings were conducted in accordance with listing rules and corporate governance codes, ensuring directors had access to relevant information[200]. Compliance and Certifications - On May 4, 2023, the Group obtained ISO27001 certification, ensuring satisfactory cybersecurity measures for data privacy protection[20]. - The Group achieved ISO27001 certification on May 4, 2023, indicating satisfactory cybersecurity measures for data protection[22]. - The Company complied with the applicable code provisions of the Corporate Governance Code throughout the year ended December 31, 2023[186][188]. Employee Relations and Social Responsibility - The Company maintains good relationships with its employees by improving policies on remuneration and benefits, training, and occupational health and safety[104]. - Charitable donations made by the Group during the year ended 31 December 2023 amounted to approximately HK$1,390,000, compared to HK$1,462,000 in 2022[172][177]. - The Group operates a Mandatory Provident Fund scheme covering all employees, with details provided in note 20 to the financial statements[171][176]. Operational Challenges - The Group experienced losses of several million Hong Kong dollars due to severe flooding at the Nansha factory on September 8, 2023[24]. - The Group is preparing to comply with the Carbon Border Adjustment Mechanism (CBAM) and is focused on developing environmentally friendly products[54]. - The Group's R&D team will consider new ESG requirements in product development to manage climate change risks[54]. Shareholding and Directors - As of December 31, 2023, the total number of issued shares of the Company is 501,324,860 ordinary shares[141]. - The interests of the Directors in the shares of the Company included Dr. WONG, Man Hin Raymond with 3.30% and Mr. WONG, Ying Man John with 11.74% of total issued shares[134]. - The Company did not purchase, sell, or redeem any of its shares during the year ended December 31, 2023[118]. - The largest customer accounted for 33.94% of the Group's total revenue from sales of goods, while the five largest customers together represented 87.44%[111]. - The largest supplier accounted for 13.79% of the Group's total purchases, while the five largest suppliers together represented 22.20%[111]. - The Company has received annual confirmations of independence from all independent non-executive Directors, considering them independent[125].
利民实业(00229) - 2023 - 年度财报