Financial Performance - The company's revenue increased from approximately RMB 37.0 million in the year ended December 31, 2022, to approximately RMB 48.5 million in the year ended December 31, 2023, representing an increase of about RMB 11.5 million or approximately 31.1%[14] - The loss for the year ended December 31, 2023, was approximately RMB 27.0 million, a significant reduction from the loss of approximately RMB 104.0 million for the year ended December 31, 2022, primarily due to a decrease in impairment losses on property, plant, and equipment[14] - Revenue increased by approximately RMB 11.5 million or 31.1% to RMB 48.5 million for the year ended December 31, 2023, compared to RMB 37.0 million for the year ended December 31, 2022[21] - Cost of sales rose by approximately RMB 14.2 million or 43.2% to RMB 47.1 million for the year ended December 31, 2023, compared to RMB 32.9 million for the year ended December 31, 2022[22] - Gross profit decreased from approximately RMB 4.1 million to RMB 1.5 million, with gross margin dropping from 11.1% to 3.0% for the year ended December 31, 2023[23] - Other income and losses improved from a loss of approximately RMB 4.8 million to a loss of RMB 0.7 million, a reduction of about 85.4% for the year ended December 31, 2023[24] - Administrative and other expenses decreased by approximately RMB 0.9 million or 6.1% to RMB 13.9 million for the year ended December 31, 2023, compared to RMB 14.8 million for the year ended December 31, 2022[26] - Financing costs decreased by approximately RMB 1.6 million or 34.0% to RMB 3.1 million for the year ended December 31, 2023, compared to RMB 4.7 million for the year ended December 31, 2022[27] - Loss for the year ended December 31, 2023, was approximately RMB 27.0 million, a decrease from a loss of RMB 104.0 million for the year ended December 31, 2022[28] Market Strategy and Operations - The company plans to further consolidate its market share in the tinplate packaging industry and expand its domestic business by participating in several exhibitions related to paints and coatings[15] - The company intends to expand its sales channels to seek new customers for its product portfolio, aiming for stable growth despite uncertainties from the US-China trade war and slowing economic growth in China[15] - The management believes that the company's experienced team and market reputation position it favorably against competitors and future challenges[16] Corporate Governance - The board is committed to maintaining good corporate governance standards, which enhances accountability to shareholders and creditors[49] - The board consists of two executive directors and three independent non-executive directors as of December 31, 2023[51] - The board held a total of 6 meetings during the fiscal year ending December 31, 2023, with all directors attending every meeting[57] - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of the company's affairs[60] - The board is responsible for leading and controlling the group, focusing on overall strategy, financial performance monitoring, and internal control effectiveness[52] - Independent non-executive directors provide extensive business and financial expertise, contributing positively to the company's strategy and policy[52] - The company has adopted rules for securities trading by directors and employees, ensuring compliance with relevant regulations[50] - The board regularly reviews its functions to ensure alignment with the company's needs[52] Risk Management - The company emphasizes the importance of risk management and internal controls in its operational planning and decision-making processes[67] - The board of directors is responsible for identifying and analyzing risks related to their functions and reporting on risk management status[68] - The company has appointed internal control consultants to regularly advise on internal control matters[70] Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers significant ESG issues relevant to stakeholders and business operations[89] - The company emphasizes the importance of a stable and efficient governance framework to address potential ESG risks and seize sustainable development opportunities[91] - The ESG working group, composed of representatives from various departments, has been established to plan and coordinate the implementation of ESG measures[92] - The company will assess the need to set performance targets related to environmental and social aspects, subject to board review[92] Employee and Labor Practices - The company has a factory located in Foshan, Guangdong Province, primarily engaged in the sale of tinplate packaging products in China[87] - The total number of full-time employees decreased from 130 in 2022 to 92 in 2023, resulting in a turnover rate of 34.23%[112] - The employee turnover rate for females was 56% in 2023, while for males it was 16%[114] - The average training hours provided per employee decreased to 3.0 hours in 2023 from 10.0 hours in 2022, with 71% of employees receiving training[121][123] - The company adheres to labor laws and regulations, ensuring equal employment opportunities regardless of age, gender, or other factors[111] Financial Position and Liabilities - Total cash and cash equivalents amounted to approximately RMB 20.3 million as of December 31, 2023, down from RMB 25.8 million as of December 31, 2022[30] - The debt-to-asset ratio increased from 101% as of December 31, 2022, to 106% as of December 31, 2023[30] - As of December 31, 2023, the company's current liabilities and total liabilities were approximately RMB 17,413,000 and RMB 87,335,000, respectively[191] - The company's reserves available for distribution to shareholders as of December 31, 2023, were approximately RMB 0 million[152] Customer and Supplier Relationships - The largest customer accounted for approximately 33.6% of total revenue for the year ended December 31, 2023, up from 27.5% in 2022[153] - Revenue from the top five customers represented about 72.2% of total revenue for the year ended December 31, 2023, compared to 76.6% in 2022[153] - The largest supplier accounted for approximately 31.1% of total procurement for the year ended December 31, 2023, down from 42.5% in 2022[153] - Total procurement from the top five suppliers constituted about 80.0% of total procurement for the year ended December 31, 2023, compared to 67.5% in 2022[153] Compliance and Legal Matters - The company has not identified any violations related to child labor or forced labor laws during the reporting period[125] - The company has not identified any incidents of corruption or fraud during the reporting period[134] - The company has established a whistleblowing policy to encourage employees to report illegal or unethical behavior[134] - The company has complied with all relevant laws and regulations in China and Hong Kong in all material aspects[160] Audit and Financial Reporting - The audit committee reviewed the consolidated financial statements for the fiscal year ending December 31, 2023, confirming compliance with applicable accounting standards and GEM listing rules[186] - The audit was conducted in accordance with the Hong Kong Financial Reporting Standards, ensuring fair presentation of the financial statements[188] - The auditor's responsibility is to provide reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[200]
万成金属包装(08291) - 2023 - 年度财报