Financial Performance - The company's antenna product sales decreased from approximately RMB 12.1 million in 2022 to about RMB 7.73 million in 2023, accounting for approximately 63% of the group's main business revenue [16]. - Gross profit for the year was approximately RMB 2.06 million, with a gross margin of about 16%, down from approximately 29% in 2022, primarily due to a decline in sales prices of communication products [18]. - The net loss for the year was approximately RMB 42.99 million, an increase of about 42% compared to the net loss of approximately RMB 30.27 million in 2022 [26]. - The total revenue for the year ended December 31, 2023, was approximately RMB 13.09 million, representing 64% of the revenue for the same period in 2022 [44]. - Revenue from the agricultural products segment decreased from approximately RMB 6.19 million last year to about RMB 4.55 million, accounting for 37% of the group's main business revenue [45]. - The group reported a net loss attributable to the owners of the parent company of approximately RMB 42.98 million after accounting for minority interests in the agricultural products segment [55]. - The group's net profit for the fiscal year 2023 was a loss of RMB 42,993,598.60, indicating continued losses [107]. - The net cash flow from operating activities was a negative RMB 6,683,081.18 [107]. - As of the end of 2023, current liabilities exceeded current assets by RMB 55,666,342.98 [107]. - The cash and cash equivalents balance was RMB 1,991,322.95, with overdue debts reported [107]. Expenses and Cost Management - Research and development expenses for the super-material lens antenna were approximately RMB 5.66 million, aimed at improving existing antenna products based on market and customer feedback [21]. - Management expenses decreased from approximately RMB 22.16 million in the previous year to about RMB 19.21 million, a reduction of approximately 13% [23]. - Sales expenses decreased from approximately RMB 5.73 million to about RMB 4.26 million due to reduced testing and technical service fees [20]. - The total employee costs decreased from approximately RMB 16.21 million last year to about RMB 11.88 million, primarily due to a reduction in staff following the relocation of a subsidiary [52]. - The total employee cost for the year was approximately RMB 11.88 million, a decrease from RMB 16.21 million in 2022 [65]. Strategic Focus and Future Plans - The company plans to focus on market promotion and sales of new high-gain, miniaturized super-material lens antenna products in 2024, which are expected to become a new profit growth point [29]. - The group plans to maintain its market share in mobile communications while enhancing customer demand through customized products and improving product cost-performance [58]. - The group aims to enhance its agricultural product business in 2024, promoting social responsibility through industry poverty alleviation [30]. - The group will explore applications of lens technology in various fields, including remote sensing, drone data transmission, and fire safety monitoring, to expand its customer base and create new revenue growth points [59]. Governance and Management - The board held 11 meetings during the fiscal year ending December 31, 2023, with all directors attending every meeting [89]. - The company has no CEO position as of the fiscal year ending December 31, 2023, with daily management handled by all executive directors [86]. - The remuneration committee reviewed executive director compensation and assessed their performance during the fiscal year ending December 31, 2023 [98]. - The audit committee is responsible for reviewing the company's accounting policies and financial reporting effectiveness [102]. - The company has established an effective risk management and internal control system in accordance with corporate governance principles [113]. - The board of directors is committed to providing a fair and understandable assessment of the group's current situation and prospects [106]. - The company has adopted a diversity policy for its board, which includes various measurable goals [100]. - The nomination committee established nomination policies and procedures for recommending board candidates during the fiscal year [101]. - All independent non-executive directors confirmed their independence according to GEM listing rules [93]. - The company secretary ensures compliance with all board procedures and applicable laws [90]. Stakeholder Engagement and Communication - The company has established multiple communication channels with stakeholders to address their concerns and improve relevant policies [160]. - The company has reviewed the implementation and effectiveness of its shareholder communication policy and deemed it effective [144]. - The board has conducted an annual review of the implementation and effectiveness of the shareholder communication policy [171]. - The company has a whistleblowing policy in place to provide a confidential reporting channel for employees and external parties regarding financial reporting and internal controls [173]. - The company is committed to maintaining effective communication with stakeholders, including customers, employees, and regulatory bodies [157]. Environmental, Social, and Governance (ESG) Initiatives - The group aims to invest more manpower and resources in sustainable development, focusing on resource efficiency and carbon reduction [183]. - The group has identified 16 critical ESG issues through stakeholder engagement and internal assessments during the reporting period [191]. - The group adheres to national environmental laws and regulations, ensuring compliance with standards such as ISO19001:2016 [194]. - The group emphasizes the importance of reducing electronic waste by ensuring the quality of purchased electronic products and proper disposal through certified companies [196]. - The group actively manages potential climate risks that may impact its business, with regular board meetings to assess and address these risks [200]. - The board is responsible for formulating the overall ESG strategy and implementing related management policies to achieve sustainability goals [179]. - The company emphasizes the importance of prudent management of environmental and social issues as key factors for long-term success [153]. - The company has adopted a zero-tolerance policy towards corruption, bribery, extortion, fraud, or money laundering in its business operations [148]. Innovation and Technology Development - The company has developed over 400 communication products related to Tianxian, widely used in mobile communication networks across various provinces and cities in China [152]. - The company holds more than 60 patents, indicating a strong focus on innovation and technology development [152]. - The company has been recognized as one of the first "innovative enterprises" in the country, reflecting its commitment to innovation and research [180]. - The company has established a comprehensive operating system that integrates product R&D, production, sales, installation, and service, emphasizing independent research and innovation [180]. Financial Position and Liabilities - As of December 31, 2023, the company's asset-liability ratio was approximately -46.59%, compared to 139.66% in 2022 [33]. - As of December 31, 2023, the group had short-term borrowings of approximately RMB 4.77 million, due within one year [71]. - The group has no significant asset pledges related to its business operations and liabilities, except for approximately RMB 240,000 in bank deposits classified as margin accounts and restricted accounts [36]. - The group has no significant capital expenditures contracted but not provided for in the financial statements as of December 31, 2023 [75]. - The group has no significant contingent liabilities as of December 31, 2023, except as disclosed in the financial statements [76]. - The group has no major foreign exchange contracts or financial activities, and the board considers foreign exchange risk to be minimal [63]. - The group received government subsidies, grants, and rewards totaling approximately RMB 100,000 for product development and business operations [53]. - The group did not utilize any net proceeds from capital raising activities during the year ended December 31, 2023 [37].
海天天线(08227) - 2023 - 年度财报