Financial Performance - The Group's revenue for the year ended December 31, 2023, was approximately HK$809.1 million, a decrease of approximately 9.5% compared to HK$894.1 million in 2022[13]. - The Group reported a loss of approximately HK$61.1 million for the year, compared to a loss of approximately HK$52.8 million in 2022[13]. - Basic loss per share amounted to approximately HK$0.52 cent, an improvement from HK$0.74 cent in the previous year[17]. - The Board has resolved not to recommend any final dividend for the year ended December 31, 2023[18]. - For the year ended December 31, 2023, the Group's revenue and gross profit were approximately HK$809.1 million and HK$471.3 million, representing a decrease of approximately 9.5% and 6.9% compared to the previous year[39]. - The Group's net loss for the year was approximately HK$61.1 million, a decrease of approximately HK$48.6 million compared to a net loss of approximately HK$109.7 million in 2022[42]. Business Segments - The pharmaceutical business will face increased price competition due to changes in market demand and supply, but the Group aims for moderate growth through new product development and online marketing strategies in 2024[26][27]. - The Group plans to enhance its product mix and consolidate market share to create new earning growth opportunities in the pharmaceutical sector[26]. - The fitness business is expected to achieve sustainable year-on-year growth in new member sales and personal training revenue through innovative marketing strategies and personalized services[31][32]. - The Group's fitness business in Singapore has significantly improved as it recovers from the COVID-19 pandemic, partially offsetting the negative impacts from the pharmaceutical segment[44]. - The Group aims to enrich its product offerings and leverage emerging trends in the fitness industry to capitalize on growth opportunities in 2024[31]. - For the year ended December 31, 2023, the revenue and gross profit of the pharmaceutical business were approximately HK$607.1 million and HK$467.2 million, representing a year-on-year decrease of approximately 16.0% and 10.5% respectively[50]. One-time Gains and Losses - A one-time gain of approximately HK$110.5 million from the disposal of its entire equity interest in Shaanxi Life Care contributed to the improvement in the Group's performance despite unfavorable conditions[42]. - The significant increase in profit for the pharmaceutical business was mainly due to a one-off gain of approximately HK$110.5 million from the disposal of 66% equity interest in Shaanxi Life Care on May 9, 2023[52]. Challenges and Strategies - The decline in pharmaceutical revenue was attributed to adverse impacts from medical insurance policy adjustments and a weak macroeconomic environment affecting customer demand[51]. - The company is actively seeking new customers and orders in response to the challenges faced by Chongqing Kangle due to reduced export demand[60]. - Tongfang Pharmaceutical is facing pressures from new competitive products and is actively seeking countermeasures[58]. - The company’s fitness business was negatively impacted by increased salaries and commissions, reduced government subsidies related to COVID-19, and increased expected credit losses on receivables[63]. Cash Flow and Borrowings - As of 31 December 2023, the Group maintained bank balances and cash reserves of approximately HK$77.7 million, down from approximately HK$122.6 million in 2022[73]. - The Group's outstanding borrowings repayable within one year as of 31 December 2023 were approximately HK$39.5 million, significantly reduced from approximately HK$158.8 million in 2022[74]. - The gearing ratio (total borrowings over total assets) improved to 3.0% in 2023 from 12.4% in 2022[76]. - The Group's bank borrowings were approximately HK$28.824 million as of 31 December 2023, a decrease from approximately HK$206.555 million in 2022[82]. ESG and Corporate Governance - The Group has established a robust ESG governance structure consisting of three levels: the Board, the Executive Committee and management, and the working group and functional departments[108][109]. - The Board is responsible for overseeing the effective implementation of the Group's ESG policies and regularly reviewing the progress of relevant performance and objectives[115][116]. - The Executive Committee and management are tasked with developing and implementing relevant policies and measures in accordance with the ESG strategies set by the Board[116][119]. - The Group emphasizes the importance of stakeholder engagement, incorporating ESG elements into daily operations and assessing their long-term impact[125][126]. - The Group has appointed internal departments and external advisors to review operations and identify relevant ESG issues[126][127]. Environmental Management - The company is committed to operating sustainably while balancing stakeholder interests and positively impacting society[100]. - The Group aims to comply with all applicable environmental requirements and continuously improve its environmental management practices[119][122]. - The Group aims to reduce emissions, water consumption, and resource usage to minimize environmental impact[144]. - The establishment of an energy management system is expected to lower production costs and enhance economic efficiency[143]. - The Group emphasizes strict compliance with environmental protection laws and actively manages exhaust emissions, including formaldehyde and dust[143]. Waste Management - The company has centralized the handling of hazardous wastes and ensured detoxification treatments by qualified vendors before disposal[163]. - The company has implemented waste classification and signed agreements with local waste disposal companies to ensure proper handling of solid waste[162]. - The company aims to reduce hazardous and non-hazardous waste generation through material recovery and negotiation with suppliers[163]. - The Group has implemented waste sorting across all operations, enhancing hazardous waste management to reduce environmental risks[187]. Energy Consumption and Emissions - The company has implemented a Solar Energy Generation Project and various energy conservation measures to reduce emissions[184]. - The company has phased out high-pollution production lines and adopted natural gas as a fuel source to lower emissions[184]. - The clean energy generated from solar power as of 2023 was approximately 1,910,000 kWh, a decrease from approximately 2,490,000 kWh in 2022[194]. - The pharmaceutical business achieved energy savings of up to 40% through the implementation of frequency-controlled refrigeration units[195].
华控康泰(01312) - 2023 - 年度财报