Safety and Health Management - In 2023, the company implemented a safety production responsibility system, emphasizing accountability at all levels to enhance safety performance [2]. - The company conducted safety training and inspections, including emergency drills for hazardous chemical leaks and fire evacuations, to improve employee emergency response capabilities [5]. - Over the past three years, the company reported no fatalities due to work-related incidents, with a total of 300 workdays lost due to injuries in the reporting period [6]. - The company provided personal protective equipment such as anti-static clothing and high-pressure gloves to employees engaged in special operations [7]. - The company established a monthly performance evaluation system for production staff to enhance safety performance indicators and address potential safety hazards [2]. - The company organized a "Safety Production Month" in 2023, promoting the concept of "safety first" among employees [3]. - The company adheres to the Occupational Disease Prevention Law, conducting annual health check-ups for employees and maintaining health monitoring files [7]. - The company has implemented a comprehensive safety management system, including regular inspections and emergency response plans for various hazardous operations [2]. - The company actively promotes safety awareness through signage and LED displays in production areas [4]. Employee Management and Training - The total number of employees as of December 31, 2023, is 1,184, all of whom are full-time staff [22]. - The company hired 2 external trainers for specialized training for managerial staff and team leaders in 2023 [14]. - The company has established a comprehensive training management system, including annual and monthly training plans, to enhance employee skills and knowledge [14]. - The company offers various training opportunities, including external training, onboarding for new employees, and management training [14]. - The company aims to cultivate innovative talents and enhance operational efficiency through its training programs [14]. - In 2023, the company conducted 6 employee communication meetings to strengthen the connection between employees and management [29]. - The company emphasizes performance-based management and has optimized its performance evaluation system with four core assessment dimensions [24]. - The company is committed to providing fair treatment to all employees, ensuring compliance with labor laws and regulations [27]. - The company has implemented a "Key Department Talent Pipeline Construction Plan" to match talent with key positions and tailor training programs accordingly [20]. Financial Performance - The group experienced a significant decline in gross profit and gross margin due to a sharp drop in the selling price of carrageenan products, influenced by a substantial decrease in overseas customer demand [70]. - The group recorded an annual net loss for the fiscal year 2023, attributed to high sales costs and rising bank borrowing rates in USD and HKD [70]. - The total revenue for the fiscal year 2023 was RMB 1,174.0 million, a decrease of 16.8% compared to RMB 1,410.9 million in fiscal year 2022 [88]. - The overall gross profit was RMB 180.0 million with a gross margin of 15.3%, down 53.1% and 11.9 percentage points from RMB 384.1 million and 27.2% in fiscal year 2022, respectively [96]. - The sales value from the Chinese market was RMB 595.2 million, an increase of RMB 12.3 million or 2.1%, while the overseas market sales value was RMB 578.8 million, a decrease of RMB 249.2 million or 30.1% [81]. - The company recorded an annual net loss in fiscal year 2023 due to a significant decline in the selling price of carrageenan products and rising bank borrowing rates [79]. - The net loss attributable to the owners of the company was RMB 85.3 million, a decrease of RMB 284.5 million or 142.8% compared to a profit of RMB 199.2 million in fiscal year 2022 [100]. - The cash and bank balances increased by RMB 45.6 million or 117.8% to RMB 84.3 million as of December 31, 2023 [101]. - The current ratio as of December 31, 2023, was 1.43, down from 1.60 as of December 31, 2022 [101]. - The total bank borrowings amounted to RMB 599.1 million, with a weighted average interest rate of 5.73% as of December 31, 2023, compared to 4.59% in the previous year [107]. Corporate Governance and Compliance - The board is responsible for the group's risk management and internal control systems, ensuring their overall effectiveness [35]. - The internal audit department, led by the internal audit manager, conducts reviews of operational, financial, and compliance controls to ensure adherence to risk management policies [36]. - The board reviewed the effectiveness of the risk management and internal control systems and found them to be adequate and effective [37]. - The company has established an insider information disclosure policy to manage and disclose insider information in compliance with regulations [37]. - The company has implemented training for all directors to ensure compliance with listing rules and regulations regarding securities trading [42]. - The company secretary has completed no less than 15 hours of relevant professional training to update skills and knowledge as required by listing rules [43]. - The company's Audit Committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards [189]. - The Nomination Committee reviewed the board's structure and diversity, ensuring appropriate qualifications for board members [191]. - The Remuneration Committee assessed the remuneration of directors and senior management, ensuring transparency in compensation policies [197]. - The company confirmed no significant uncertainties affecting its ability to continue as a going concern [198]. Research and Development - The number of product R&D personnel increased to 80 in 2023, up from 63 in 2022 [58]. - Continuous investment in R&D is aimed at enhancing product offerings, with significant market potential identified for instant agar products and deep-processed carrageenan products [84]. - The group has initiated research and preliminary production of 100% biodegradable seaweed films for plastic alternative packaging and mulch [59]. Shareholder Relations and Dividends - Shareholders have the right to propose independent resolutions at general meetings on significant matters, including the election of individual directors [44]. - The company did not recommend any final dividend for the fiscal year 2023, compared to a final dividend of HKD 0.03 per share for the fiscal year 2022 [143]. - The company’s dividend policy aims to distribute at least 20% of the distributable profit attributable to shareholders, subject to operational needs and future business expansion plans [180]. - The company encourages shareholders to attend the annual general meeting to raise any questions directly to the board and management [178]. - The board has reviewed the implementation and effectiveness of the shareholder communication policy, with satisfactory results [176]. - The company has established a channel for effective communication through its website, where financial information and other relevant data are published [176]. Environmental and Social Responsibility - The company has not recorded any environmental breaches or violations during the fiscal year ending December 31, 2023 [150]. - The company emphasizes the importance of maintaining good relationships with employees, customers, and suppliers to achieve its short-term and long-term goals [149]. - The company has complied with all relevant laws and regulations that significantly impact its business and operations during the review period [151]. - The nature of the company's main business has not undergone significant changes during the year [141].
绿新亲水胶体(01084) - 2023 - 年度财报