Financial Performance - For the year ended December 31, 2023, the Group's revenue was RMB 85.4 million, representing a year-on-year increase of 9.3%[20] - The revenue from Smart PDLC products recorded a year-on-year increase of 38.3%, maintaining a leading market share position in the PRC[21] - In 2023, revenue from smart light-adjusting products increased by 38.3%, maintaining a leading market share in the domestic market[25] - Revenue from sales of ITO film was approximately RMB 26.9 million, representing a decrease of 24.6% from RMB 35.7 million in 2022[35] - Revenue from smart PDLC products reached approximately RMB 48.9 million, an increase of 38.1% from RMB 35.4 million in 2022[36] - Revenue from the LED Display and Projection System was approximately RMB 258,000, reflecting a significant increase of 7.3 times compared to the previous year[39] - Revenue from other products amounted to approximately RMB 9.2 million, an increase of approximately RMB 2.3 million from RMB 6.9 million in 2022[40] - The company recorded a loss attributable to equity shareholders of approximately RMB 39.8 million for the year, compared to a loss of RMB 13.1 million in 2022, primarily due to impairment losses on trade receivables[41] - The gross profit increased by approximately RMB 10.6 million or 89.1%, from approximately RMB 11.9 million in 2022 to approximately RMB 22.5 million in 2023, with the gross profit margin rising from approximately 15.2% to 26.3%[52] - The cost of sales decreased by approximately RMB 3.3 million or 5.0%, from approximately RMB 66.2 million in 2022 to approximately RMB 62.9 million in 2023[51] - The administrative expenses were approximately RMB 21.3 million for the year ended December 31, 2023, a decrease of approximately RMB 1.4 million or 6.2% from approximately RMB 22.7 million in 2022[54] Research and Development - The company applied for a total of 15 patents in 2023, including 4 inventions and 11 utility models, and obtained 13 authorized patents[27] - The company aims to strengthen its innovative chain from research to practical application to consolidate its leading position in the new material industry[30] - The Group's Directors believe that substantial resources should be devoted to research and development to maintain competitiveness in the evolving market[45] - The Group plans to remain cautious in expanding production lines and conducting research and development projects in response to future demand[46] Production and Operations - The Group effectively reduced production costs by changing the operation model and improving production techniques across all areas of operations[22] - The production of motor vehicle films continued to expand, tapping into the motor vehicle sector and joining the supplier system of well-known automotive glass manufacturers[23] - The company continues to expand its automotive film production and has joined the supplier system of well-known automotive glass manufacturers[25] Financial Position and Liquidity - As of December 31, 2023, the Group had short-term borrowings of RMB 11.8 million and long-term borrowings of RMB 18.0 million[60] - The gearing ratio remained stable at approximately 54.9% as of December 31, 2023, compared to approximately 54.7% as of December 31, 2022[62] - The Group's liquidity requirements are expected to be satisfied through a combination of cash generated from operating activities, bank borrowings, and proceeds from the Listing[60] Impairment and Credit Losses - Impairment losses on overdue trade receivables recognized during the year ended December 31, 2023, totaled approximately RMB 45.21 million, primarily from balances over three years old[73] - The recoverable amount of overdue trade receivables with aging over three years was assessed to be nil, leading to the recognition of expected credit losses[84] - The allowance for expected credit losses for trade receivables was recognized at approximately RMB 45.21 million for the year ended December 31, 2023[89] - As of December 31, 2023, the company recognized a trade receivables credit loss provision of approximately RMB 45,212,000[91] Corporate Governance - The Company has complied with all applicable code provisions of the Corporate Governance Code during the year ended December 31, 2023, except for a deviation from paragraph C.2.1[109] - Four Board meetings and one general meeting were held during the Relevant Period, with attendance rates of 100% for some Executive Directors[116][117] - The Board consists of 3 Executive Directors, 1 Non-executive Director, and 3 Independent Non-executive Directors, meeting the requirement of having at least one-third independent members[114][118] - Each Independent Non-executive Director has confirmed their independence annually, and the Nomination Committee has assessed their independence[120][123] - The Company has established mechanisms to ensure independent views are available to the Board, which will be reviewed annually[122][123] - The Company has adopted a code of conduct for directors' securities transactions, ensuring compliance with GEM Listing Rules[113] - The Board has reviewed and monitored the training and continuous professional development of Directors and senior management[112] - The Company has policies in place to ensure compliance with legal and regulatory requirements[112] - The Nomination Committee assesses the independence of new candidates for Independent Non-executive Directors before appointment[123] - The Board's current structure and composition are deemed effective in providing balanced and independent oversight of management practices[121] Shareholder Communication - The Company maintains a transparent and timely disclosure policy to keep shareholders informed of its business performance and strategies[182] - Shareholders holding at least one-tenth of the paid-up capital have the right to requisition a special general meeting[189] - Shareholders can request the Company to circulate proposals at a general meeting if they hold at least 5% of the total voting rights[190] - The Company has adopted a shareholders' communication policy to maintain effective communication channels, including general meetings and its website[196] - The annual general meeting (AGM) serves as a principal channel for shareholders to question Directors about the Company's performance[196] - The Company engages independent scrutineers to ensure proper counting of votes at general meetings[184] - All voting results from general meetings will be posted on the Company's and HKEx's websites in a timely manner[184] - The company aims to disclose relevant information to shareholders in a timely manner, including annual and interim reports that provide a comprehensive assessment of the Group's position and prospects[200] - Communication methods include press releases on major developments, disclosures to the Stock Exchange, and responses to inquiries from shareholders or media[200] - The company’s website serves as a platform for public access to corporate announcements, press releases, annual reports, and general corporate information[200]
水发兴业新材料(08073) - 2023 - 年度财报