Financial Performance - For the year 2023, the Group achieved sales revenue of HK$3,019.1 million, representing an increase of 21.6% compared to the previous year[6]. - Profit attributable to shareholders was HK$686.4 million, reflecting a 29.2% increase year-on-year[6]. - Basic earnings per share increased to HK33.82 cents from HK26.18 cents in 2022[12]. - The total sales volume for the year increased by 6.9% compared to last year, with bank card chip sales rising, while sales of third-generation social security card chips and identity authentication products saw a decline[14][16]. - Gross profit rose to HK$1,298,063, representing a 16.7% increase compared to HK$1,112,245 in the previous year[198]. - Operating profit improved to HK$757,257, a 19.8% increase from HK$631,945 in 2022[198]. - Profit for the year attributable to owners of the company was HK$686,431, up 29.2% from HK$531,431 in 2022[198]. - Total comprehensive income for the year reached HK$655,928, compared to HK$417,254 in 2022, marking a 57.2% increase[199]. - Total assets as of December 31, 2023, amounted to HK$4,326,786, up from HK$4,056,750 in 2022, reflecting a growth of 6.6%[200]. - Cash and cash equivalents decreased to HK$1,107,515 from HK$1,172,748 in the previous year[200]. - Trade and other receivables decreased to HK$574,285 from HK$731,544 in 2022, indicating a reduction of 21.5%[200]. - Inventories decreased slightly to HK$848,621 from HK$884,693 in 2022, a decline of 4.1%[200]. Dividend and Shareholder Returns - The Board recommends a dividend of HK10.5 cents per share for 2023, up from HK8.0 cents in 2022[8]. - Proposed dividend for the year is HK$213,137, an increase from HK$162,390 in 2022[198]. - Distributable reserves of the Company at December 31, 2023, amounted to HK$385,468,000, down from HK$407,119,000 in 2022[104]. - The company aims to provide stable dividends to shareholders, considering financial performance and future funding requirements when formulating dividend proposals[108][112]. Research and Development - The Group obtained 30 new patents, registered 3 new software copyrights, and 2 new integrated circuits layout designs in 2023[13]. - The Group plans to strengthen research and development in secure element chips for the Internet of Things and intelligent connected vehicles[9]. - Research and development costs for the year were HK$421.4 million, maintaining a steady percentage of 14.0% of revenue[19][20]. Market and Industry Outlook - The global demand for smart cards is expected to continue in a downward cycle, with intensified competition and declining selling prices anticipated in 2024[8]. - The Group aims to adjust production and sales strategies to provide more diverse and competitive products to meet customer needs[8]. - The Group's products are primarily used in identity authentication, financial payment, government utilities, telecommunications, Internet of Things, and intelligent connected vehicles[13]. - The integrated circuits market in Mainland China is highly competitive, with the group's performance depending on the successful execution of its business strategy[117]. Corporate Governance - The Company is committed to corporate governance practices and has complied with all applicable code provisions in the Corporate Governance Code throughout 2023[27]. - The Board consists of two executive directors, two non-executive directors, and three independent non-executive directors, with a clear separation of roles between the chairman and the chief executive[33]. - 42% of the Board members are independent non-executive directors, ensuring a strong independent element within the Board[39]. - The Board meets regularly, at least four times a year, and receives regular updates from senior management regarding business activities and developments[41]. - The Board has reviewed the implementation and effectiveness of the Board Diversity Policy, confirming that diversity has been achieved among Board members[37]. - The Company emphasizes the importance of diversity in the board's composition, considering factors such as gender, age, and professional experience[46]. Audit and Financial Reporting - The consolidated financial statements for the year ended 31 December 2023 have been audited by PricewaterhouseCoopers[166]. - The consolidated financial statements provide a true and fair view of the Group's financial position as at 31 December 2023, in accordance with Hong Kong Financial Reporting Standards[170]. - The audit committee oversees the Group's financial, risk management, and internal control systems, reporting to the Board on their effectiveness annually[63]. - Key audit matters included provisions for expected credit losses of trade receivables and provisions for inventories[177]. - The auditor's objective is to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[189]. Related Party Transactions - The Company has entered into a business services agreement with CEC for continuing connected transactions from July 1, 2021, to June 30, 2024[136]. - The Company considers all independent non-executive directors to be independent as per the Listing Rules[125]. - All related party transactions have been reviewed by independent non-executive directors and confirmed to be in accordance with relevant agreements and pricing policies[147]. Employee and Workforce - Employee benefit expenses for the year amounted to HK$337.8 million, with approximately 430 employees, of which 33.7% were female[26]. - The Company will invest more resources in training and recruiting high-performing female employees to promote them to senior management or directorship positions[39]. Environmental and Regulatory Compliance - The company is committed to environmentally-friendly operations and has achieved safe and environmentally-friendly operation for the year ended December 31, 2023[119][122]. - The group has complied with all relevant laws and regulations throughout the year ended December 31, 2023[121][123].
中电华大科技(00085) - 2023 - 年度财报