Financial Performance - Total revenue decreased by approximately 25.2% to about HKD 174.2 million for the year ended December 31, 2023, compared to HKD 232.8 million in 2022[9]. - Gross profit decreased by approximately 41.5% to about HKD 17.5 million, with a gross margin reduction of about 2.8% to approximately 10.0%[9]. - The total comprehensive expenses attributable to the company's owners decreased by approximately 24.1% to about HKD 62.6 million, down from HKD 82.5 million in 2022[9]. - The company reported a net loss of HKD 64.2 million for the year ended December 31, 2023, compared to a loss of HKD 70.8 million in 2022[10]. - The gross profit margin declined from approximately 12.8% in 2022 to about 10.0% in 2023, representing a decrease of about 2.8%[19]. - The net loss attributable to the company's owners was approximately HKD 64.2 million for the year ended December 31, 2023, a reduction of about 9.3% from a loss of HKD 70.8 million in 2022[19]. - The sales cost decreased by approximately 22.8% to about HKD 156.7 million, primarily due to reduced procurement and sales volumes[28]. - Financial asset impairment losses decreased by approximately 74.6% to about HKD 17.8 million, down from HKD 70.1 million in the previous year[30]. - The group reported a foreign exchange loss of approximately HKD 12.8 million for the year ended December 31, 2023, compared to a loss of approximately HKD 7.2 million for the previous year, primarily due to fluctuations in exchange rates among CNY, HKD, THB, and USD[34]. - Selling and distribution expenses decreased by approximately 32.7% from about HKD 5.5 million in the previous year to about HKD 3.7 million, mainly due to reduced transportation and export costs[35]. - Management expenses decreased from approximately HKD 20.7 million to about HKD 19.7 million, a reduction of about 4.8%, primarily due to lower employee costs and auditor fees[36]. - Financing costs decreased from approximately HKD 2.4 million to about HKD 1.9 million, attributed to reduced interest on bank borrowings and lease liabilities[38]. - As of December 31, 2023, the group's cash and cash equivalents were approximately HKD 14.5 million, down from approximately HKD 58.2 million in the previous year[41]. - Total bank borrowings as of December 31, 2023, amounted to approximately HKD 37.6 million, a decrease from approximately HKD 55.8 million in the previous year[42]. - The debt-to-equity ratio improved from approximately 10.9% to about 8.3% due to a reduction in bank borrowings and a decrease in total equity resulting from losses during the year[44]. - The company’s total assets decreased from approximately HKD 610.2 million in 2022 to approximately HKD 517.1 million in 2023, a reduction of about 15.3%[61]. Operational Developments - The subsidiary in Thailand is continuing to build a new factory for business expansion, with the estimated production start date postponed to January 2025[18]. - The company plans to adjust its operational model to a vertical structure, focusing on selling most products to a subsidiary in Thailand to maintain raw material supply[21]. - The company aims to enhance its competitiveness and market share while exploring new business growth points and adjusting its product and market structure[24]. - The company will continue to seek opportunities to integrate the optical fiber and cable industry chain and optimize its industry structure[23]. - The company plans to construct a new factory in Thailand as its only significant future investment and capital asset plan[62]. - The company has not reported any significant acquisitions or disposals of subsidiaries or associated companies during the fiscal year ending December 31, 2023[63]. Corporate Governance - The company has combined the roles of Chairman and CEO since July 1, 2023, which deviates from corporate governance code provisions but is believed to enhance operational efficiency[87]. - The company has adopted the standard code of conduct for directors regarding securities trading, confirming compliance by all directors for the year ending December 31, 2023[88]. - The company has arranged liability insurance for directors, enhancing risk mitigation capabilities, with annual reviews of the insurance coverage[89]. - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring compliance with listing regulations[94]. - The board held one annual general meeting, seven board meetings, five audit committee meetings, one remuneration committee meeting, and two nomination committee meetings during the year ending December 31, 2023[100]. - All independent non-executive directors have confirmed their independence in accordance with listing rules[96]. - The board is responsible for overseeing the group's business operations, strategic planning, and financial performance, with specific responsibilities delegated to executive directors and senior management[103]. - The company secretary has maintained detailed records of all board meetings, ensuring transparency and accountability[105]. - Directors are required to abstain from voting on transactions in which they or their close associates have a significant interest, as per the company's articles of association[106]. - The board of directors has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee various aspects of the group's affairs and assist in executing board responsibilities[117]. - The Audit Committee held five meetings during the fiscal year ending December 31, 2023, with all members attending each meeting[118][119]. - The Remuneration Committee conducted one meeting in the fiscal year ending December 31, 2023, to review the company's remuneration policies[120][123]. - The Nomination Committee held two meetings in the fiscal year ending December 31, 2023, to review the composition of the board and the qualifications of directors standing for re-election[126][128]. - All directors participated in continuous professional development and provided training records for the fiscal year ending December 31, 2023[112]. - The company ensures compliance with the latest developments in listing rules and regulatory requirements to enhance corporate governance practices[113]. - The board meetings are held at least four times a year, approximately once per quarter, ensuring effective communication among all directors[114]. - The attendance record for board meetings in 2023 shows that all executive directors attended all meetings[115]. - The company has adopted a written terms of reference for the Remuneration Committee in compliance with corporate governance codes[120]. - The Nomination Committee is responsible for reviewing the board's structure and diversity at least annually[126]. - The company has adopted a nomination policy to enhance board diversity and governance standards[129]. - The board aims to appoint at least one female director by December 31, 2024, to achieve gender diversity[134]. - For the fiscal year ending December 31, 2023, the total fees paid to external auditors for audit services amounted to HKD 900,000, with non-audit services totaling HKD 41,000, resulting in a total of HKD 941,000[135]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the group's overall performance in environmental and social aspects, including operations in Hong Kong and Thailand, with no significant changes compared to the previous fiscal year ending December 31, 2023[153]. - The report adheres to the ESG reporting guidelines set by the Hong Kong Stock Exchange, ensuring compliance with mandatory disclosure requirements[154]. - The company has followed three reporting principles: "Materiality," "Quantification," and "Consistency" in preparing the ESG report[155]. - A materiality assessment was conducted to identify relevant ESG issues, which were evaluated for their significance and confirmed by the board of directors[156]. - Key performance indicators were measured and disclosed according to applicable quantitative standards and practices, with details provided in the "Environmental Protection" section of the ESG report[157]. - The methodology for this year's ESG report remains consistent with previous years, with any significant changes listed accordingly[158]. - The board of directors oversees the ESG strategy and report, assessing ESG risks and ensuring effective risk management and internal control systems are in place[162]. - Stakeholder engagement is crucial for identifying important ESG issues, with regular dialogues to align with stakeholder expectations and improve ESG performance[164]. - The company has established communication channels to gather stakeholder feedback on ESG matters, ensuring continuous improvement in ESG performance[163]. - A prioritization of ESG issues was conducted, categorizing them based on their potential impact on the business and stakeholders[166]. - Total greenhouse gas emissions for the year 2023 amounted to 3,225.52 tons of CO2 equivalent, a decrease from 4,887.35 tons in 2022, representing a reduction of approximately 34%[176]. - The overall greenhouse gas emission density decreased to 0.10 tons of CO2 equivalent per square meter in 2023, down from 0.15 in 2022, indicating improved operational efficiency[176]. - Nitrogen oxides (NOx) emissions decreased to 92.61 kg in 2023 from 148.85 kg in 2022, reflecting a reduction of approximately 38%[172]. - The company achieved a total of 0.72 kg of sulfur oxides (SOx) emissions in both 2022 and 2023, maintaining consistent levels[172]. - Particulate matter (PM) emissions were reduced to 8.70 kg in 2023 from 13.43 kg in 2022, marking a decrease of about 35%[172]. - The company’s energy indirect emissions from purchased electricity accounted for 96.15% of total greenhouse gas emissions in 2023, down from 97.43% in 2022[177]. - The main sources of greenhouse gas emissions were identified as carbon dioxide and nitrogen oxides, with 96.15% of emissions attributed to electricity consumption[176]. - The company produced 0.2 tons of hazardous waste from non-halogenated solvents in 2023, consistent with the previous year[179]. - Measures implemented to reduce vehicle emissions include optimizing routes and regular vehicle maintenance, contributing to lower overall emissions[175]. - The company has established an environmental management system compliant with ISO 14001:2015 to regulate its environmental practices[170]. - In the fiscal year 2023, the total amount of non-hazardous waste generated was 102.31 tons, with a recycling rate of 89.00% for mixed metals and 96.00% for waste optical fibers[180]. - The recycling rate for paper increased to 96.3% in 2023, compared to 94.43% in 2022, while the recycling rate for plastics rose to 89.00% from 47.55%[180]. - The total energy consumption in 2023 was 6,471,110 kWh for purchased electricity, a decrease from 9,823,024 kWh in 2022, resulting in an energy usage density of 7.7674 kWh per core kilometer[188]. - Diesel consumption decreased to 27,140 liters in 2023 from 30,623 liters in 2022, with an energy usage density of 0.032577 kWh per core kilometer[188]. - Water consumption was 21,121 cubic meters in 2023, a slight decrease from 23,686 cubic meters in 2022, with a water usage density of 0.025352 cubic meters per core kilometer[190]. - The company consumed 22.19 tons of fiber optic spools in 2023, down from 44.01 tons in 2022, and 9.16 tons of cardboard boxes, reduced from 21.26 tons[192]. - The company implemented measures to reduce paper consumption, including encouraging double-sided printing and using digital communication methods[183]. - The company is actively seeking qualified wood recycling vendors to ensure proper handling of wood waste, as no suitable vendors were found in 2023[181]. - The company aims to enhance resource efficiency and reduce carbon footprint by closely monitoring monthly energy and water consumption[184]. - The company has committed to using biodegradable and recyclable packaging materials, with a focus on reducing unnecessary packaging[192]. - The company emphasizes environmental sustainability by integrating environmental protection concepts into internal management and daily operations[194]. - The company has implemented greening initiatives at its production sites, improving air quality and reducing noise levels, which enhances the working environment for employees[195]. - The production process does not generate significant noise, complying with noise emission standards by operating primarily during the day[196]. - There are no plans for factory expansions that threaten natural habitats or biodiversity, with ongoing investments in eco-friendly production technologies[197]. - The company actively monitors and prevents wastewater generation, adhering to relevant laws and regulations despite not producing large amounts of wastewater[198]. - The company recognizes the importance of identifying and mitigating climate-related risks, implementing risk management policies to address potential impacts on business operations[199]. - Regular checks are conducted on faucets and drinking machines to prevent water leakage, promoting water conservation among employees[200].
高科桥(09963) - 2023 - 年度财报