Operations and Market Presence - Chiho operates 88 yards in Germany, covering South-West, Central, and Eastern Germany, with advanced post-shredder material recovery technology[17]. - The company has invested in the construction of end-of-life vehicles and electric lithium battery recovery projects, with the first phase officially kicked off in September 2022[14]. - Chiho is a market leader in ferrous scrap trading in Austria, operating 13 yards in a joint venture with Voestalpine Group[19]. - The company has a strong market share in the ferrous market in the Czech Republic, covering both old and new scrap markets[18]. - In Romania, Chiho operates 40 yards, focusing on heavily populated and industrialized areas, with significant scrap export capabilities to Turkey[18]. - Chiho's facilities in Hong Kong are recognized as one of the most diversified and comprehensive e-waste recycling centers[12]. - The company has joint ventures in Thailand for dismantling scrap motors and other mixed scrap metal, with ferrous scraps sold domestically and non-ferrous scraps exported[15]. - Chiho's operations in Slovenia include 17 yards with strong non-ferrous operations, including paper and plastic recycling[19]. - A new metal recycling yard in Plzen, Czech Republic commenced operations in August 2023, enhancing Chiho's business presence in Central Europe[31]. Financial Performance - The Group's total sales tonnage for 2023 was 3.64 million tonnes, with revenue of HK$16,479.7 million, representing a year-on-year decrease of 4.2% and 15.8% respectively[25]. - European operations accounted for 3.45 million tonnes in metal sales, generating revenue of HK$14,960.9 million, impacted by high inflation and the ongoing Russia-Ukraine conflict[29]. - Asian operations saw a year-on-year sales tonnage increase of 11.8%, with gross profit margin rising to 1.3%[36]. - Total revenue for 2023 was HK$16,479.7 million, a decrease of 15.8% compared to HK$19,574.3 million in 2022[61]. - Gross profit decreased by 14.1% to HK$1,038.0 million from HK$1,207.7 million in the previous year[63]. - The Group sold 3.64 million tonnes of recycled products in 2023, a 4.2% decrease from 3.80 million tonnes sold in 2022[61]. - Loss attributable to shareholders for the year was HK$9.3 million, compared to a profit of HK$264.5 million in the previous year[70]. - Loss per share for 2023 was HK$0.01, down from earnings per share of HK$0.16 in 2022[70]. - Cash generated from operations before changes in working capital was HK$543.2 million, down from HK$699.4 million in 2022[71]. - The gross profit margin slightly increased from 6.2% to 6.3% due to improved sales bargaining power[64]. Research and Development - The company is actively cooperating with European research institutes to develop lithium battery recycling technology suitable for various types and models[10]. - The Group has secured a total of seven inventions and patents related to waste lithium battery recycling, four patents for ELV recycling, and four patents for aluminum recycling in China[36]. - The Qishun Recycling Project in Zhejiang Province obtained qualification for dismantling End-of-Life Vehicles (ELV) and is experiencing increasing collection and dismantling volumes[36]. Strategic Initiatives and Goals - The Group plans to stabilize existing businesses such as metal recycling and expand into new areas like power lithium battery utilization, while investing in technological R&D[47]. - The European Union's "Fit for 55" plan aims to reduce greenhouse gas emissions by 55% compared to 1990 levels by 2030, emphasizing the recyclability of the automotive industry[44]. - The Group is committed to contributing to global carbon reduction strategies and assisting customers in achieving sustainable development goals[48]. - The Group's strategic focus includes strengthening technological innovation and enhancing development momentum in the renewable resources industry[47]. Corporate Governance and Management - The company emphasizes the importance of corporate governance and compliance, as evidenced by the public reprimand received by Mr. Tu from the Shanghai Stock Exchange[159]. - The Group's leadership is well-educated, with degrees from reputable institutions, enhancing their capability to drive the Company's strategic initiatives[167][183]. - The company is expanding its board with experienced professionals to enhance governance and strategic oversight[189]. - The board's diverse backgrounds in finance, law, and management will support the company's growth initiatives[199]. - The appointment of Mr. Liu is expected to strengthen the investment strategy and asset management capabilities of the company[186]. Employee and Labor Relations - The total staff costs for the year were approximately HK$954.3 million, a decrease from HK$975.6 million in 2022[139]. - As of December 31, 2023, the Group had a workforce of 2,617 employees, down from 2,748 employees in 2022[138]. - The Group has not experienced any significant difficulties in recruiting and retaining qualified staff, maintaining good relationships with employees[138]. - Employee compensation is determined based on market standards, individual performance, and contributions to the group[141]. Risk Management - The Group's risk management strategy includes a commodity price risk hedging policy to mitigate adverse effects on financial performance[133]. - The Group continues to monitor its foreign currency borrowings to minimize foreign currency risk due to volatile exchange rates[134].
齐合环保(00976) - 2023 - 年度财报