Financial Performance - The total revenue for the fiscal year ending December 31, 2023, was approximately HKD 298 million, an increase of about 9.2% compared to HKD 273 million in the previous year[11]. - The profit attributable to equity holders for the fiscal year was approximately HKD 5.7 million, up 18.8% from HKD 4.8 million in the previous year[11]. - Basic and diluted earnings per share increased to HKD 1.96 in 2023 from HKD 1.64 in 2022, representing a growth of 19.5%[33]. - Net asset value per share attributable to equity holders rose to HKD 7.19 in 2023 from HKD 5.35 in 2022, an increase of 34.5%[33]. - The current ratio improved slightly to 0.87 in 2023 from 0.85 in 2022[33]. - The debt-to-asset ratio decreased significantly to 167.9% in 2023 from 612.4% in 2022, indicating improved financial stability[34]. - Cash and bank balances increased to approximately HKD 62 million in 2023 from HKD 60.4 million in 2022, primarily due to increased cash generated from operations[34]. Business Operations - The revenue from the food and beverage trading and sales business in mainland China increased significantly by approximately 100.6% compared to the previous year, turning from a loss to a profit[11]. - The revenue from the frozen warehouse and related services business decreased by approximately 3.3% compared to the previous year[11]. - The company plans to enhance the operational efficiency of its frozen warehouse facilities and effectively manage costs while adjusting business strategies flexibly[9]. - The company aims to diversify its customer base to attract clients with greater demand for warehousing and logistics services[13]. - The company has noted an increasing demand for warehousing and logistics services from food grocery distributors, supermarkets, and frozen food stores during the pandemic[13]. - The group recorded a stable performance in business volume and profitability in the cold storage and logistics segment for 2023[17]. - The group successfully improved a high-margin product in collaboration with a well-known supermarket, achieving profitability in the food and beverage trading and sales segment, which had previously recorded a loss[19]. - The group plans to continue optimizing its food and beverage distribution business by focusing on high-margin wholesale channels and discontinuing low-margin distribution channels[27]. - The group is reallocating resources to higher-margin segments and core businesses, terminating non-core B2C operations in mainland China and Hong Kong[19]. - The group anticipates gradual recovery in its cold storage and logistics business in Hong Kong and food and beverage distribution in mainland China due to internal restructuring and resource reallocation[25]. - The group is actively seeking opportunities to expand its customer base in the cold storage and logistics sector by providing value-added services[26]. - The group has implemented strict cost control measures to maintain profitability in the food and beverage segment amid changing consumer demands[19]. - The group recognizes the impact of macroeconomic conditions and is prepared to adjust strategies to mitigate market risks[22]. Employee and Workforce - As of December 31, 2023, the total number of full-time employees in Hong Kong and mainland China was approximately 170 and 30, respectively, compared to 180 and 40 in 2022, indicating a decrease in workforce[46]. - The total employee-related costs for the year ended December 31, 2023, amounted to approximately HKD 66,095,000, down from HKD 69,455,000 in 2022, reflecting a reduction of about 3.4%[46]. - The company has maintained competitive employee compensation levels, with annual reviews and various benefits provided to employees[46]. Governance and Compliance - The company has adopted a set of effective governance principles and procedures to systematically review the operations of different departments[108]. - The board of directors is responsible for leading and monitoring the company, with three committees established: Audit Committee, Nomination Committee, and Remuneration Committee[109]. - The company has maintained appropriate directors and officers liability insurance for its directors and senior management throughout the year[97]. - The company has not established any management contracts related to the management of all or any significant part of its business during the year[98]. - The remuneration policy for employees is based on merit, qualifications, and capabilities[99]. - The company has confirmed the independence of all current independent non-executive directors[87]. - The company has not entered into any significant transactions or arrangements involving directors or their related entities during the year[93]. - The company has adopted an independent opinion policy effective from January 1, 2022, to ensure the board receives independent advice and information[113]. - The company has established a nomination policy requiring at least three independent non-executive directors, with specific qualifications and tenure requirements[115]. - The company has arranged training courses for directors to enhance their knowledge and skills, ensuring compliance with corporate governance code C.1.4[128]. - The company has provided appropriate insurance for directors to cover potential liabilities, in line with corporate governance code C.1.8, with annual reviews of the coverage[129]. - The company has not appointed a chairman as of December 31, 2023, which does not comply with corporate governance code C.2.7, but believes this will not negatively impact decision-making[133]. Shareholder Communication - The company emphasizes transparent communication with shareholders and investors, utilizing various channels for inquiries and suggestions[190]. - The company encourages shareholder participation in annual general meetings, ensuring that all directors and senior management actively attend[196]. - The company has adopted a shareholder communication policy to provide timely and comprehensive information to shareholders[195]. - The company’s annual report and interim reports provide extensive information about its business operations[194]. - The company ensures that sensitive information is disclosed in accordance with listing rules, maintaining equal access for all shareholders[194]. - The company has a dedicated website section for the latest updates on its business and operations[195]. - The company’s independent directors are available to address questions during the annual general meeting, ensuring transparency in decision-making[197]. - The company must provide shareholders with reasonable notice for general meetings, typically at least 21 days for annual meetings and 14 days for other meetings[199]. - The company is required to send a circular to shareholders simultaneously (or prior) to issuing the notice for the general meeting to approve transactions[200]. - The company must provide supplementary information to shareholders at least 10 business days before the relevant general meeting if any important information arises after the circular is issued[200]. - The annual report, including annual accounts and auditor's report, must be sent to shareholders at least 21 days before the annual general meeting and no later than 4 months after the financial year-end[200]. - For the first six months of each financial year, the company must send a mid-term report to shareholders no later than three months after the end of that six-month period[200]. - The company must send proxy forms along with the meeting notice to all eligible voters for all resolutions to be voted on at the meeting[200].
大同集团(00544) - 2023 - 年度财报