Financial Reporting and Compliance - The company will adopt Chinese Accounting Standards for financial reporting starting from the fiscal year ending December 31, 2023, to enhance audit efficiency [18]. - The company has engaged its auditor to report on related party transactions for the fiscal year ending December 31, 2023, confirming no issues that would affect the transactions [6]. - The audit report confirms that the financial statements fairly present the company's financial position as of December 31, 2023, in all material respects [174]. - The company is committed to transparency and compliance with the regulations set forth by the China Securities Regulatory Commission [194]. - The company is required to assess goodwill impairment based on management's estimates and assumptions, particularly regarding future cash flows and discount rates, which are subject to significant uncertainty [162]. - The external auditor evaluated the competence and objectivity of the valuation experts hired by management for goodwill impairment testing [163]. - The company must ensure that all information related to goodwill impairment is appropriately reported and disclosed in the financial statements [163]. - The audit report highlighted key audit matters that were deemed most important for the financial statements [180]. - The board of directors is responsible for overseeing the financial reporting process and ensuring accuracy [185]. Corporate Governance - The company has established a board of directors responsible for formulating development policies and strategies, as well as overseeing their implementation [27]. - The board consists of nine directors, with one-third being independent non-executive directors, including two female directors [97]. - The board has reviewed its diversity strategy and considers its current structure and composition to be appropriate [97]. - The board is responsible for ensuring good corporate governance practices and compliance with relevant regulations [52]. - The company has appointed new executive directors, including Huang Honggang on December 5, 2023, and Liu Xiaoxuan on February 21, 2024 [28]. - The board of directors has a diversity policy in place, focusing on various aspects including gender, age, and professional qualifications [74]. - The company is considering setting measurable targets for its board diversity policy to ensure its appropriateness and track progress [97]. - The company emphasizes the importance of diversity in its recruitment strategy, considering factors such as gender, age, and professional experience [101]. - The company has implemented a whistleblowing policy and system, allowing employees and third parties to report suspected misconduct confidentially [167]. - The board and the audit and risk management committee will review the whistleblowing policy annually to enhance its effectiveness [168]. - The company has established anti-corruption policies to ensure integrity among management and employees, prohibiting the misuse of power for personal gain [169]. - During the reporting period, the company's directors and employees received anti-corruption training to raise awareness of ethical conduct [170]. Business Strategy and Development - The company has committed to continuous review and adjustment of its business strategies to respond to market changes and ensure sustainable development [26]. - The company has implemented a budget management system, requiring subsidiaries to prepare annual business plans for approval [57]. - The strategic development committee is responsible for proposing suggestions based on development strategy planning, major investment financing plans, and significant capital operations [135]. - The company is focused on environmental, social, and governance (ESG) initiatives as part of its strategic direction [194]. Financial Performance - The company's revenue for the fiscal year 2023 was approximately RMB 4,022,468,104.97, with industrial waste resource sales, precious metal recovery income, and waste treatment income totaling RMB 3,544,239,811.21 [77]. - The company reported a significant increase in revenue, achieving a total of 1,000,000 HKD for the fiscal year ending December 31, 2023 [186]. - As of December 31, 2023, the company's accounts receivable balance was RMB 1,100,918,082.79, with an allowance for bad debts of RMB 78,969,675.63 [144]. Shareholder Engagement - The company held a total of 4 shareholder meetings during the reporting period, reflecting active engagement with shareholders [78]. - The company is committed to maintaining multiple communication channels with shareholders, including announcements on its website and regular reports [82]. - The company has reviewed the effectiveness of its investor relations policy during the reporting period, confirming its proper execution [82]. - The company has implemented proactive investor relations policies to ensure timely communication with shareholders and potential investors [82]. - The company's non-executive directors are required to attend shareholder meetings to understand shareholders' opinions fairly [5]. Risk Management - The company has established a comprehensive internal management system and approval processes to enhance risk management and internal controls [57]. - The internal audit function has been established to ensure the effectiveness of internal control systems and risk identification [58]. - The board has reviewed and confirmed the effectiveness of the risk management and internal control systems for the fiscal year 2023 [58]. - The company has not identified any significant issues in its risk management and internal control systems during the annual review [58]. - The company recognizes the inherent risks in revenue recognition and has established internal controls to mitigate these risks [77]. - The audit and risk management committee held 5 meetings during the reporting period to discuss the group's quarterly, semi-annual, and annual financial statements [128].
东江环保(00895) - 2023 - 年度财报