Revenue and Profitability - The group's revenue from pig slaughtering and meat trading slightly decreased from approximately RMB 65,900,000 in 2022 to RMB 65,200,000 in 2023, with pork prices fluctuating between RMB 14.20 and RMB 17.50 per kilogram[6]. - For the fiscal year ending December 31, 2023, the group recorded revenue of approximately RMB 68,300,000, a decrease of about 6.4% or RMB 4,700,000 compared to approximately RMB 72,900,000 in 2022[13]. - The gross profit for the year was approximately RMB 100,000, down from RMB 1,800,000 in 2022, primarily due to a decrease in revenue from pipeline system products[13]. - The group reported a loss attributable to owners of the company of approximately RMB 144,400,000 for 2023, compared to a loss of RMB 5,600,000 in 2022, with the increase in loss mainly due to impairment losses and depreciation[15]. - The company reported a total loss for the year of RMB 150,282,000, compared to a loss of RMB 8,957,000 in the previous year, reflecting a substantial increase in losses[191]. - Basic and diluted loss per share was RMB 16.39, compared to RMB 0.64 in 2022, highlighting a significant deterioration in earnings per share[194]. - The total comprehensive loss for the year was RMB 148,289,000, compared to RMB 13,159,000 in 2022, indicating a significant increase in overall losses[194]. Asset and Liquidity Management - As of December 31, 2023, the group maintained cash and bank balances of approximately RMB 389,800,000, down from RMB 416,400,000 in 2022[17]. - The current ratio as of December 31, 2023, was 5.9, compared to 5.1 in 2022, indicating improved liquidity[17]. - Non-current assets decreased from RMB 195,521,000 in 2022 to RMB 73,675,000 in 2023, indicating a substantial reduction in asset base[196]. - Current assets also declined from RMB 455,991,000 in 2022 to RMB 413,802,000 in 2023, reflecting a decrease in liquidity[196]. - Cash and cash equivalents decreased from RMB 416,389,000 in 2022 to RMB 389,836,000 in 2023, reflecting a decline in cash reserves[196]. - Total net assets decreased from RMB 560,977 thousand in 2022 to RMB 416,688 thousand in 2023, representing a decline of approximately 25.7%[199]. - Equity attributable to owners of the company fell from RMB 563,583 thousand in 2022 to RMB 420,888 thousand in 2023, a decrease of about 25.3%[199]. Impairment and Losses - The company recognized impairment losses of approximately RMB 59.9 million due to severe weather conditions affecting its farms[10]. - The Group recognized an impairment loss of approximately RMB 59,869,000 for property, plant, and equipment this year, compared to no impairment loss in 2022[178]. - The impairment assessment was influenced by factors such as prolonged low domestic pork prices and the ongoing outbreak of African swine fever, indicating a need for significant management judgment[177][178]. - The audit focused on the management's judgments and estimates related to the impairment assessment due to its significance[179]. Business Operations and Strategy - The company plans to restart its slaughtering business, which is expected to improve profit margins after obtaining operational and slaughtering permits[7]. - The company has adopted a conservative strategy in its breeding business, refraining from large-scale breeding operations due to low pork prices and the impact of African swine fever[9]. - The company has established a joint venture with partners to restore its pig slaughtering operations, which is anticipated to lower production costs further[7]. - The company has taken measures to outsource pig slaughtering processes to independent slaughterhouses to maintain operations[6]. - The group plans to optimize resource allocation between slaughtering and pipeline system product businesses to enhance cost control and shareholder benefits[32]. Corporate Governance and Compliance - The company has adopted all corporate governance codes as per the listing rules and has complied with these codes throughout the year[102]. - The board consists of four members, including one executive director and three independent non-executive directors, meeting the requirement of at least three independent directors[103]. - The independent non-executive directors have confirmed their independence as per the listing rules, ensuring no conflicts of interest[109]. - The company has established a written guideline for employees regarding securities trading to prevent insider trading violations[120]. - The board is responsible for overseeing the company's strategy, financial performance, and risk management policies[107]. Employee and Director Matters - The company emphasizes employee development and has established long-term relationships with suppliers to ensure quality and ethical standards[65]. - The executive directors' service contracts are for an initial term of three years, automatically renewing for one year unless terminated[70]. - The remuneration committee held two meetings in 2023 to review the compensation policies for all directors and senior management, with full attendance from its members[125]. - The company aims to attract and retain talent through the stock option plan, providing additional rewards for contributions to the company's value[79]. Environmental and Sustainability Efforts - The group has installed waste treatment facilities at its farms and production bases to promote environmental sustainability[62]. - The company has established a Mandatory Provident Fund scheme for all eligible Hong Kong employees, contributing 5% of relevant income, capped at HKD 30,000 per month[57]. Dividend Policy - The board does not recommend the declaration of a final dividend for the year ending December 31, 2023[27]. - The company has adopted a dividend policy since December 31, 2018, which considers factors such as profitability and financial condition when declaring dividends[166]. - The board will review the dividend policy periodically, with no guarantee of specific dividend amounts being declared at any given time[168].
惠生国际(01340) - 2023 - 年度财报