Financial Performance - In 2022, the group's sales amounted to HKD 874,011,000, representing a 23.5% increase from HKD 707,752,000 in 2021[6] - The group's gross profit for 2022 was HKD 133,205,000, up 32.0% from HKD 100,918,000 in 2021, with a gross margin of 15.2% compared to 14.3% in the previous year[6] - The group's operating profit for 2022 was HKD 16,329,000, compared to an operating loss of HKD 9,332,000 in 2021[15] - The profit attributable to the company's owners for 2022 was HKD 8,317,000, a significant recovery from a loss of HKD 38,984,000 in 2021[14] - Basic earnings per share for 2022 were HKD 0.0361, compared to a loss per share of HKD 0.1694 in 2021[16] - The net profit margin improved to approximately 1.0% in 2022, compared to (5.5%) in 2021, mainly due to increased sales in the electric vehicle sector and the elimination of a financial impact from a subsidiary's dissolution[31] - The return on equity for the group was approximately 1.7% in 2022, up from (8.6%) in 2021, reflecting the rise in profit[32] Income and Expenses - Other income and gains totaled HKD 6,311,000 in 2022, a decrease of 38.3% from HKD 10,221,000 in 2021[7] - The group's financing expenses for 2022 were HKD 9,598,000, an increase of 144.7% from HKD 3,923,000 in 2021, primarily due to rising market interest rates[10] - The income tax expense for 2022 was HKD 3,355,000, down 27.5% from HKD 4,625,000 in 2021[12] Dividends - The proposed final dividend for the year ended December 31, 2022, is HKD 0.01 per share, totaling HKD 2,301,000, which, combined with a special dividend of HKD 0.08 per share paid on January 4, 2023, results in a total dividend of HKD 0.09 per share for the year, compared to HKD 0.05 per share in 2021[18] - The company reported a final dividend of HKD 0.01 per share, totaling HKD 2,301,000, and a special interim dividend of HKD 0.08 per share, resulting in a total dividend of HKD 0.09 per share for the year, compared to HKD 0.05 per share in the previous year[53] Assets and Liabilities - The group's cash balance as of December 31, 2022, was HKD 63,438,000, similar to HKD 65,522,000 in the previous year[28] - The group's inventory balance as of December 31, 2022, was HKD 92,890,000, down from HKD 111,908,000 in 2021, with inventory turnover days decreasing from 67 days to 46 days[28] - The accounts receivable balance as of December 31, 2022, was HKD 263,661,000, up from HKD 109,980,000 in 2021, with accounts receivable turnover days increasing from 57 days to 110 days[28] - The net asset liability ratio as of December 31, 2022, was approximately 33.5%, up from 26.4% in 2021, due to increased borrowing levels[29] - The net debt-to-equity ratio increased to approximately 33.5% as of December 31, 2022, compared to 26.4% in 2021, due to increased bank borrowings supporting sales growth[32] Market and Industry Outlook - The production of new energy vehicles in China increased by 90.5% in 2022, contributing to the success of the group's machine tool and electronic equipment division[21] - The group expects to focus on the new energy vehicle industry in 2023, supported by government initiatives including tax reductions for new energy vehicle purchases[24] - The GDP growth rate target set by the Chinese government for 2023 is 5%, with encouraging signs from the manufacturing PMI reaching 52.6% in February 2023[24] - The group anticipates improved financial performance in 2023 compared to 2022, with lower currency volatility expected to reduce foreign exchange risks[25] Employee and Workforce - The group employed 237 staff as of December 31, 2022, a decrease from 250 staff in 2021[38] - The company had a total of 237 employees as of December 31, 2022, with a gender distribution of 160 males and 77 females[165] - Employee turnover rates were 10.5% for males and 7.2% for females, with a notable 12.2% turnover rate in mainland China[166] - The average training hours for employees were 14.8 hours for males and 10.1 hours for females, with 72.8% of trained employees being female[173] - The company emphasizes employee growth and development through various internal training programs and encourages participation in external training and educational activities[172] Corporate Governance - The company confirmed compliance with the corporate governance code as of December 31, 2022[95] - The audit committee consists of three independent non-executive directors who reviewed the group's accounting principles and financial reporting[97] - The board of directors held a total of nine meetings and one annual general meeting during the fiscal year ending December 31, 2022[114] - The company has established a defined contribution retirement plan for eligible employees in Hong Kong, with a contribution rate of 5% of salary[101] - The company has arranged for directors' liability insurance to cover potential costs and liabilities arising from claims against directors[105] Risk Management - The company has established risk management systems to identify and manage significant risks that could adversely affect its performance[56] - The board is responsible for overseeing the company's risk management and internal control systems, ensuring they are effective in managing operational risks[139] - The internal audit department ensures the effectiveness of internal controls to protect shareholder investments and company assets[141] Environmental, Social, and Governance (ESG) - The company emphasizes its commitment to reducing environmental impact and promoting sustainable community development[164] - The board is responsible for managing environmental, social, and governance (ESG) matters, ensuring alignment with the company's strategy[155] - The company has identified 16 significant ESG issues, including energy efficiency and waste management, which will be detailed in the report[162] - The company aims to optimize waste, energy consumption, and natural resource management as part of its future development and sustainability plans[164] - Greenhouse gas emissions from electricity consumption decreased from 249 tons CO2 equivalent in 2021 to 211 tons in 2022, representing a reduction of approximately 15.3%[200] Compliance and Legal Matters - There were no significant violations of applicable laws and regulations that had a major impact on the group's business and operations during the fiscal year[64] - The company has not experienced any legal cases related to corruption in the fiscal years 2021 and 2022[189] - The company strictly adheres to local labor laws, prohibiting forced labor and child labor in its operations[175] Procurement and Supply Chain - The company has 116 suppliers located in mainland China, 44 in Hong Kong, and 41 outside of China[193] - The company emphasizes responsible procurement as an integral part of its procurement and supply chain management processes[191] - The company adheres to ISO 9001:2015 quality management system standards, covering various aspects including customer satisfaction monitoring[183]
力丰(集团)(00387) - 2022 - 年度财报