Financial Performance - The Group's turnover for 2023 was HK$3.7 billion, a decrease of approximately 21% compared to 2022[5] - The loss attributable to shareholders for the year was HK$132.8 million, compared to a profit of HK$71.8 million in the previous year[5] - The turnover of the Industrial Products Trading and Distribution Division was HK$1.8 billion, reflecting a decrease of approximately 26% compared to 2022[6] - The operating profit for the Trading and Distribution Division was HK$69.4 million, a decrease of approximately 67% from last year[6] - The OEM Manufacturing Division's turnover decreased by approximately 15% to HK$1.8 billion for 2023[7] - The OEM Manufacturing Division reported an operating loss of HK$122.7 million, compared to an operating loss of HK$61.1 million last year[7] - The Group's turnover for 2023 was HK$3,652 million, a decrease from HK$4,609 million in 2022, representing a decline of approximately 20.7%[44] - The net loss attributable to owners of the Company for 2023 was HK$132.8 million, compared to a profit of HK$71.8 million in 2022, indicating a significant change of 285.0%[44] Financial Ratios and Metrics - Employee benefit expenses as a percentage of revenue increased to 16.6% in 2023 from 14.9% in 2022, a rise of 1.7 percentage points[37] - The Group's operating profit margin turned negative at (1.1%) in 2023, down from a positive 3.1% in 2022, reflecting a decline of 4.2 percentage points[37] - The return on equity decreased to (6.5%) in 2023 from 6.1% in 2022, a drop of 12.6 percentage points[37] - The Group's net debts to total equity improved to 6.1% in 2023 from 9.5% in 2022, a decrease of 3.4 percentage points[37] - The current ratio increased slightly to 1.8 times in 2023 from 1.7 times in 2022, an improvement of 0.1 times[37] Future Outlook - The Group anticipates steady growth in its OEM manufacturing business throughout 2024, driven by investments in manufacturing facilities in Queretaro, Mexico[33] - Demand for industrial products distributed by the Trading and Distribution Division is expected to improve in 2023 compared to the previous year, based on increasing business inquiries[32] - The Group has received positive feedback from current and new customers regarding its supply of products to the North American market[33] Employee and Management Information - The Group employed a total of 3,793 employees as of December 31, 2023, with 210 based in Hong Kong, 2,963 in the PRC, and 620 overseas[14] - The company has seen significant leadership changes, with Zhang Ruishen appointed as Executive Director in September 2017, overseeing sales direction and market strategy[58] - Hamed Hassan El-Abd has transitioned from Executive Director to Non-Executive Director since September 2017, focusing on product development[59] - Philip Tse has been a Director since March 1990 and currently chairs both the Audit Committee and the Remuneration Committee[61] - Dr. Leung Kam Fong joined the Group in 2007 and has extensive experience in healthcare and Chinese medicine, previously serving as Chief Executive of Tung Wah Group of Hospitals[62] - Dr. Yip Wai Chun has been an Independent Non-Executive Director since January 2014, contributing significantly to medical services in Hong Kong, including liver transplant coordination[70] - The leadership team has a diverse background in various industries, enhancing the company's strategic direction and market expansion efforts[63] Corporate Governance and Shareholder Information - The Group's reserves available for distribution to shareholders amounted to HK$260,172,000 as of the balance sheet date, an increase from HK$155,740,000 in 2022[138] - The Board of Directors do not recommend the payment of an interim dividend for the six months ended 30 June 2023, nor a final dividend for the year ended 31 December 2023[126] - The total charitable donations made by the group during the year amounted to approximately HKD 864,000[156] - The Company acts as an investment holding company, with principal activities including trading and distribution of chemicals and materials for electronic products[121] - The Directors of the Company include a mix of executive and independent non-executive members, with some eligible for re-election at the Annual General Meeting[154] Share Option Scheme - As of December 31, 2023, the total number of shares available for issue under the New Share Option Scheme is 75,223,596 shares, representing approximately 10.31% of the issued share capital[176] - The New Share Option Scheme allows a maximum of 1% of the shares in issue to be granted to each participant in any 12-month period, unless approved by shareholders[180] - The New Share Option Scheme will expire at the close of business on June 21, 2026[181] - Options granted under the New Scheme will vest as to 25% on the first anniversary of the grant date and the remainder on the second anniversary[180] - The fair value of the options at the grant date was approximately HK$7,379,000[197] - The expected life of the options is 6 years[198] - The expected volatility used in the valuation is 31.93%[198] - The risk-free interest rate applied is 1.44%[198] Market Presence and Expansion - The company is expanding its market presence in Southeast Asia, with plans to enter two new countries by Q3 2024[5] - A strategic acquisition of a local competitor was completed, expected to enhance market share by 10%[6] - The company is focused on expanding its market presence in the semiconductor and electronic products sectors, leveraging the expertise of its management team[81][89] - The company has a presence in North America and Japan, with leadership experienced in sales and marketing within the electronics and computer industries[113][114]
WKK INTL (HOLD)(00532) - 2023 - 年度财报