Financial Performance - The company reported a profit attributable to owners of approximately HKD 18.9 million for the fiscal year 2023, compared to a loss of approximately HKD 12.1 million in fiscal year 2022[3]. - Revenue for the fiscal year 2023 was approximately HKD 165.0 million, representing a year-on-year increase of approximately 20.1% from HKD 137.4 million in 2022[14]. - Gross profit increased to approximately HKD 87.1 million in 2023, up from approximately HKD 75.2 million in 2022, with a gross margin of approximately 52.8%[19]. - The company's total revenue for the fiscal year 2023 increased by approximately 20.1% to about HKD 165.0 million, up from approximately HKD 137.4 million in the fiscal year 2022[41]. - The company's financing costs decreased by approximately 17.7% to about HKD 9.3 million in fiscal year 2023, down from approximately HKD 11.3 million in fiscal year 2022[46]. - The company's audited net profit for the year ending December 31, 2023, is estimated to be less than HKD 30 million, with a fair value gain of HKD 44 million recognized in other comprehensive income[71]. Market Performance - Revenue from the Chinese market, the company's main sales market, accounted for approximately 79.9% of total revenue in fiscal year 2023, with a slight increase of 0.04% from the previous year[18]. - The company experienced a significant increase in sales in Hong Kong and Macau, with revenue rising by 67.5% to approximately HKD 5.6 million in 2023[18]. - Revenue from the Hong Kong and Macau markets rose by approximately 67.5% to about HKD 5.6 million in fiscal year 2023, compared to approximately HKD 3.3 million in fiscal year 2022[42]. - Other Asian markets, primarily Vietnam, Korea, and Southeast Asia, contributed approximately 15.4% to total revenue in fiscal year 2023, amounting to about HKD 25.5 million[40]. Business Expansion and Strategy - The company acquired a smartwatch accessory processing factory, diversifying its business into the research and production of smartwatch accessories[29]. - The company completed the acquisition of a smart watch manufacturer on April 19, 2023, to strengthen its revenue base in the smart watch market[60]. - The company plans to enhance its overseas brand promotion efforts and expand its market presence, particularly in the smart watch segment, which shows strong growth potential[60]. - The company plans to expand its sales in Southeast Asia and North America, with a focus on enhancing brand image in Singapore's duty-free stores and launching a new duty-free store in Thailand in Q2 2024[81]. - The company aims to focus its R&D resources on overseas markets and develop more new products in the coming year[61]. - The company is implementing various strategies to address market challenges, including enhancing design solutions and increasing promotional efforts[30]. Operational Challenges - The company faced challenges in the retail sector due to slow economic recovery and conservative purchasing demands from distributors[5]. - The company's administrative expenses rose by approximately 60.5% to about HKD 50.4 million in 2023, compared to approximately HKD 31.4 million in 2022[20]. - Inventory increased from approximately HKD 322.3 million as of December 31, 2022, to approximately HKD 324.8 million as of December 31, 2023[21]. - The company's trade and other receivables increased by approximately 44.9 million to about HKD 134.7 million as of December 31, 2023, from approximately HKD 89.8 million as of December 31, 2022[47]. - Trade and other payables increased from approximately HKD 33.7 million as of December 31, 2022, to approximately HKD 67.2 million as of December 31, 2023, an increase of about 33.5 million HKD[68]. Corporate Governance - The company is committed to good corporate governance principles, adhering to the corporate governance code as per the listing rules[67]. - The board consists of 4 male and 2 female members, reflecting a commitment to diversity in skills and experience[108]. - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring unbiased oversight[111]. - The audit committee met without management to review the audited annual results for the year ended December 31, 2022, and the unaudited interim results for the six months ended June 30, 2023[129]. - The remuneration committee held two meetings this year, ensuring no directors participated in determining their own remuneration[130]. - The chairman and CEO roles are held by separate individuals, ensuring clear division of responsibilities[109]. - The board has adopted a diversity policy to enhance the benefits of diverse perspectives in decision-making[108]. - The company has established a nomination committee on June 24, 2014, to regularly review the board's structure and recommend suitable candidates to ensure fairness and transparency in nominations[131]. - The board has conducted an annual review of the effectiveness of the internal control systems to protect the group's assets and shareholder investments[157]. - The company has implemented measures to identify insider information and maintain its confidentiality until proper disclosure through the stock exchange[157]. Sustainability and ESG - The company emphasizes sustainable development, with the board leading discussions and decisions on significant environmental, social, and governance matters[192]. - The company is focused on enhancing its environmental, social, and governance performance to achieve future sustainable development[190]. - The company has identified key environmental, social, and governance issues to focus on, including employee rights, safety and health, green building opportunities, product quality and safety, and innovation management[182]. - The company is committed to continuously adjusting its sustainable development management strategies based on stakeholder expectations and actual business conditions[190]. - The company will continue to engage with various stakeholders to listen to their voices and grow together[182]. Shareholder Communication - The company emphasizes maintaining clear, timely, and effective communication with shareholders and investors to ensure high transparency[178]. - The company has a process for shareholders to request special meetings if they hold at least 10% of the voting shares[179]. - The board will continue to review the dividend policy and has the discretion to amend it at any time, with no guarantee of declaring any specific amount of dividends[177]. - The company is committed to providing stable and sustainable returns to shareholders, considering capital needs and future expansion plans when deciding on dividends[177]. - The board of directors has decided not to recommend a final dividend for the fiscal year 2023, consistent with the previous fiscal year[198].
依波路(01856) - 2023 - 年度财报