Financial Performance - The company achieved a net profit of approximately HKD 20,000,000 for the year ended December 31, 2023, representing a growth of 12.2% excluding government subsidies [4]. - The company's revenue increased from approximately HKD 327.6 million for the year ended December 31, 2022, to approximately HKD 331.2 million for the year ended December 31, 2023, representing a growth of about 1.1% [20]. - The net profit for the year ended December 31, 2023, was approximately HKD 20 million, a decrease of about 6.5% compared to the previous year, but the after-tax net profit increased by 12.2% [26]. - Total revenue for the year ended December 31, 2023, was HKD 331,204,000, a slight increase of 0.4% from HKD 327,646,000 in 2022 [173]. - Net profit for the year was HKD 20,045,000, down 6.5% from HKD 21,443,000 in the previous year [173]. - Basic earnings per share decreased to HKD 3.99 from HKD 4.08, reflecting a decline of 2.2% [173]. - Operating profit for the year was HKD 25,148,000, a decrease of 6.2% compared to HKD 26,796,000 in 2022 [173]. - The company's net asset value increased to HKD 113,271,000 from HKD 109,261,000, showing a growth of 3.7% [175]. - The total equity attributable to equity shareholders decreased from HKD 116,632,000 to HKD 107,007,000, reflecting a decline of approximately 8.2% [178]. - The net profit for the year ended December 31, 2023, was HKD 20,025,000, slightly down from HKD 20,486,000 in the previous year, indicating a decrease of about 2.3% [178]. Economic Environment - The GDP of Hong Kong recorded a growth of 3.2% in 2023, indicating a recovering economic environment [14]. - The number of inbound tourists to Hong Kong surged to 33,000,000 in 2023, compared to only 600,000 in 2022, reflecting a significant recovery in the tourism sector [14]. - The retail sales value index increased by 7.8% in 2023 compared to 2022, indicating a positive trend in consumer spending [14]. - The overall business environment is gradually improving, contributing to the company's solid performance and growth in 2023 [14]. Business Development - The company established a new wholly-owned subsidiary in Hong Kong for marketing and sales operations in 2023, enhancing its business model and network capabilities [15]. - The company signed a contract with a well-known European chocolate manufacturer, becoming its official distributor in Hong Kong and Macau [15]. - The company plans to continue its strategic deployment as a fourth-party logistics (4PL) service provider to enhance market share and operational efficiency [5]. - The company has successfully diversified its customer base to mitigate business risks and reduce concentration risk [15]. - The company has developed a new ERP system to support its growth as a 4PL service provider and established a distribution network with local retailers [19]. - The company has rented a new warehouse in Macau to meet the growing sales demand and new distribution brands [19]. - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth [173]. Governance and Compliance - The company has adopted the principles and code provisions of the Corporate Governance Code as per the Listing Rules, ensuring proper regulation of its operations and decision-making processes [53]. - The board consists of experienced individuals, including three independent non-executive directors, ensuring a balance of power and responsibilities [54]. - The company has established an audit committee, nomination committee, and remuneration committee to oversee governance practices [53]. - All independent non-executive directors have confirmed their independence according to the guidelines set out in the Listing Rules [58]. - The company has implemented a code of conduct for directors' securities transactions, adhering to the standards set by the Listing Rules [55]. - The board is responsible for evaluating risks faced by the company and implementing appropriate risk management measures [59]. - The company has established a formal and transparent process for the selection and appointment of directors [82]. - The board reviews the nomination policy regularly to ensure compliance with regulatory requirements and good corporate governance practices [83]. - The company has maintained compliance with all relevant laws and regulations, including the Cayman Islands Companies Law and listing rules [146]. Employee and Social Responsibility - Employee benefits expenses rose to approximately HKD 63.7 million in 2023 from HKD 61.7 million in 2022, primarily due to salary increases [22]. - The group employed 206 full-time employees as of December 31, 2023, an increase from 196 employees in 2022 [39]. - The company emphasizes the importance of maintaining good relationships with employees and customers to achieve its business goals [149]. - The company is committed to providing training and development opportunities for female employees to enhance their career progression [78]. - The company has established a whistleblowing policy to allow employees and third parties to report concerns confidentially without fear of retaliation [103]. - The company has committed to environmental protection to ensure sustainable business development [145]. - The company has implemented green office measures to reduce energy and natural resource consumption, including energy-saving lighting and eco-friendly paper [145]. Financial Position - The company recorded a net cash position of approximately HKD 38 million as of December 31, 2023, compared to HKD 54.1 million in the previous year [27]. - The cash and cash equivalents at the end of the year decreased to HKD 37,969,000 from HKD 54,149,000, a reduction of approximately 30.0% [181]. - The total liabilities decreased from HKD 9,703,000 to HKD 8,000,000, indicating a reduction of approximately 17.5% [178]. - The group has not established an internal audit function as of December 31, 2023, but the audit committee will continue to review the need for such a function annually [89]. - The auditor's fees for the year ending December 31, 2023, include HKD 1,100,000 for audit services and HKD 26,000 for non-audit services [87]. Dividends and Shareholder Information - The company declared a special dividend of HKD 0.02 per share, totaling approximately HKD 10.037 million, to be paid on January 2, 2024 [31]. - The company announced a final dividend of HKD 0.02 per share for the year ending December 31, 2023, compared to HKD 0.01 per share in 2022, amounting to approximately HKD 10,037,000 [108]. - No interim dividend was declared for the year 2023, while a special dividend of HKD 0.03 per share was paid in 2023, compared to HKD 0.03 in 2022 [109]. - The company's distributable reserves as of December 31, 2023, amounted to approximately HKD 98,001,000, an increase from HKD 96,609,000 in 2022 [122]. - The board of directors is committed to maintaining sufficient resources and flexibility to meet financial and operational needs while seeking to enhance shareholder value [110].
环宇物流(亚洲)(06083) - 2023 - 年度财报