Financial Performance - For the fiscal year 2023, the company reported a revenue decrease of 31% to $8,512,000 compared to $12,372,000 in 2022[11] - The company recorded a loss attributable to owners of $3,974,000, contrasting with a profit of $1,123,000 in the previous year[11] - Basic loss per share was $0.36, compared to a basic earnings per share of $0.10 in 2022[11] - The shipping business's profit contribution decreased to $2,227,000 from $5,436,000 in 2022[11] - The company incurred a loss of $2,100,000 from the sale of a subsidiary holding an industrial property in Shanghai[11] - The overall performance for fiscal year 2023 resulted in a loss attributable to the company's owners of $3,974,000, compared to a profit of $1,123,000 in the previous year, mainly due to reduced profit contributions from the shipping business and losses from the sale of a subsidiary[26] - The investment holding business recorded revenue of $63,000, down from $293,000 in the previous year, and incurred a loss of $1,186,000, primarily due to credit loss provisions of $1,146,000 on corporate bonds[19] - The company confirmed a credit loss provision of $1,146,000 for debt instruments measured at fair value, reflecting increased credit risk due to the deteriorating financial conditions of bond issuers[20] - The company confirmed an impairment loss of $1,008,000 on vessels, an increase from $797,000 in the previous year[17] Shipping Business Outlook - The company remains cautiously optimistic about the medium to long-term outlook for its shipping business as global trade activities normalize[12] - The company plans to continue its acquisition strategy for second-hand dry bulk vessels when market conditions are favorable[12] - The company aims to identify potential investment and acquisition opportunities to enhance long-term shareholder value[12] - The overall shipping market faced challenges due to China's economic slowdown and inflationary pressures in developed economies[15] - In the fiscal year 2023, the shipping business recorded a revenue decrease of 30% to $8,449,000, and profit decreased by 59% to $2,227,000, primarily due to the overall economic slowdown in China and inflationary pressures in developed economies[16] - The Baltic Dry Index fluctuated significantly, reaching a low of approximately 500 points in February 2023 and a high of about 3,300 points in December 2023, with most of the year spent between 1,000 and 2,000 points, lower than the previous year's range of 1,500 to 2,500 points[16] Financial Position and Borrowings - As of December 31, 2023, the group reported current assets of $18,807,000, an increase from $18,277,000 in 2022, and quick assets totaling $17,849,000, up from $15,819,000 in 2022[27] - The current ratio improved significantly to approximately 9.76 from 4.78 in 2022, primarily due to net proceeds of $1,803,000 from the sale of a subsidiary used for operational funding[27] - The group's total borrowings decreased to $756,000 from $2,878,000 in 2022, resulting in a borrowing ratio of about 1%, down from 5% in the previous year[30] - Financial costs for the year were $187,000, a reduction of 46% compared to $346,000 in 2022, attributed to a decrease in average borrowings[30] - Bank interest income increased by 153% to $612,000 from $242,000 in 2022, driven by higher cash reserves and overall increases in bank deposit rates[30] Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code as of December 31, 2023[98] - The company emphasizes the importance of transparency and accountability in its corporate governance practices[96] - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[101] - The board held four regular meetings and one annual general meeting during the year ending December 31, 2023, with all directors attending at least 75% of the meetings[109] - The remuneration committee conducted three meetings to evaluate director performance and review compensation policies, ensuring alignment with corporate governance standards[114] - The nomination committee held two meetings to review board diversity policies and assess the independence of non-executive directors[117] - The company has adopted a performance assessment system to reward outstanding employees with competitive compensation and career development opportunities[97] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to long-term sustainability and adheres to regulations set by the International Maritime Organization, with annual compliance reviews conducted[49] - The group emphasizes stakeholder engagement, maintaining close communication with key stakeholders including government, shareholders, employees, and customers[164] - The group has identified key environmental, social, and governance issues through a materiality assessment, which will guide its reporting strategy and objectives[167] - The total greenhouse gas emissions for the fiscal year 2023 amounted to 8.94 tCO2e, an increase of 79.56% from 4.99 tCO2e in fiscal year 2022[179] - The company aims to reduce total greenhouse gas emissions intensity by 10% by the end of fiscal year 2026, using fiscal year 2021 as the baseline[174] - The company has implemented various measures to reduce energy consumption and improve energy efficiency, including transitioning to LED lighting by fiscal year 2026[185] - The company has established a "green office" initiative to further reduce waste generation and promote recycling[181] - The company has conducted a climate change assessment to identify and mitigate potential risks to its operations, including extreme weather events[192] Shareholder Relations - The company provides a communication platform for shareholders during the annual general meeting, allowing for questions to be addressed by the board[136] - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[137] - The company has adopted a shareholder communication policy to ensure timely and equal access to comprehensive information for shareholders, including financial performance and strategic goals[145] - The board has reviewed the effectiveness of the shareholder communication policy and found it to be properly executed during the review year[146] - The company has a dividend policy that considers actual and expected financial performance, retained earnings, and future expansion plans when deciding on dividend recommendations[147] Employee and Labor Relations - Employee costs for the year were $802,000, an increase from $703,000 in 2022, reflecting the addition of one employee to a total of 17[38] - The company is committed to providing equal employment, training, and career development opportunities for all qualified employees[118] - The employee gender ratio is approximately 1:1 as of December 31, 2023[118] - The company encourages continuous professional development for all directors to enhance their knowledge and skills[105] Risk Management - The group faces financial risks related to foreign currency, interest rates, credit, and liquidity, with detailed management policies outlined in the financial statements[42] - The company has conducted an annual risk assessment to identify and manage significant strategic, financial, operational, compliance, and environmental, social, and governance (ESG) risks[130] - The board confirmed that there are no significant internal control and risk management weaknesses as of December 31, 2023, and that the company maintains an effective risk management and internal control system[131] - The company has implemented a whistleblowing policy to encourage reporting of fraud, misconduct, and improper behavior, ensuring confidentiality for whistleblowers[134]
勇利投资(01145) - 2023 - 年度财报