Environmental Impact - The total greenhouse gas emissions related to the company's operations for Scope 1 and 2 were estimated at 787 tons of CO2 equivalent in 2023, with a significant reduction attributed to changes in the operations of Huasheng Diagnostic Center Limited[37] - The company continues to implement sustainable practices in its R&D, medical testing, and precision diagnosis businesses to minimize its environmental footprint[29] - The company has established multiple environmental policies to ensure compliance with applicable laws and regulations in China and Hong Kong[30] - The company has implemented a waste management policy to ensure compliance with local regulations regarding medical waste disposal[39] - Medical waste is separated from other waste to prevent contamination, and licensed contractors are employed for safe collection and disposal[40] - The company has successfully reduced non-hazardous waste significantly following the completion of a business unit's construction activities in 2023[42] - The company has adopted energy-saving policies and practices in the office, including adjusting air conditioning to 25.5 degrees Celsius[58] - The company has not recorded any violations of environmental laws and regulations during the reporting period[62] - The company plans to reassess its environmental key performance indicators to track performance more consistently due to fluctuations in business scale and environmental performance[68] - Total energy consumption decreased significantly to 7,204 GJ in 2023 from 103,633 GJ in 2022, representing a reduction of approximately 93%[69] - Greenhouse gas emissions totalled 843 tonnes of CO2 equivalent in 2023, down from 11,273 tonnes in 2022, indicating a reduction of about 92.5%[69] - The total amount of hazardous waste generated increased to 128.4 tonnes in 2023 from 105.7 tonnes in 2022, reflecting a rise of approximately 21.5%[69] - The total water consumption rose to 11,556 cubic meters in 2023, compared to 7,374 cubic meters in 2022, marking an increase of about 56%[69] - The density of greenhouse gas emissions per 1,000 HKD revenue improved to 0.00398 tonnes CO2 equivalent in 2023 from 0.00609 tonnes in 2022, showing an enhancement of approximately 34%[69] - The total amount of non-hazardous waste generated was 423.3 tonnes in 2023, a significant decrease from 10,137.2 tonnes in 2022, indicating a reduction of approximately 95.8%[69] - The company has set a five-year environmental goal to promote waste reduction and will review progress annually, particularly in its core operations in China and Hong Kong[93] Corporate Governance - The company encourages shareholders to participate in annual general meetings and supports principles of corporate governance[13] - The company has a shareholder communication policy that promotes two-way communication with shareholders[12] - The company has adopted corporate governance measures to maintain high standards of governance and ensure compliance with legal and regulatory requirements[151] - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2023[152] Risk Management - The company has identified and analyzed risks to achieve its group objectives through a dynamic interactive process[6] - The company has a framework for regularly reviewing its ESG performance, including stakeholder engagement and feedback collection[24] - The group has implemented various risk management assessment tools, including FMECA, FTA, and HAZOP, to minimize quality risks and develop continuous improvement strategies[192] - The group has identified key risks including intense competition in the industry, which may adversely affect demand for its products and services[179] - The group will closely monitor changes in the macroeconomic environment and adjust its product diversification plans and marketing strategies accordingly[182] Employee Management - Employee turnover rate for full-time staff was reported at 28% in 2023, while part-time staff had a significantly higher turnover rate of 60%[88] - The company provides competitive compensation and benefits plans to attract and retain elite talent for long-term structural growth[96] - Employee safety is a top priority, with a commitment to maintaining high occupational safety and health standards[97] - 53% of male employees and 36% of female employees received training, with an average training duration of 5.1 hours for males and 6.3 hours for females[106] - The company conducts safety inspections of laboratory units and surrounding areas every two years to ensure compliance with safety standards[100] - The company has not reported any significant non-compliance with safety standards or regulations regarding occupational hazards in 2023[103] - The company has implemented an eight-hour workday and a five-day workweek system to ensure fair labor practices[109] - The management regularly reviews employee compensation based on market trends, inflation, and performance metrics[97] - The group has implemented a comprehensive human resources policy that includes equal opportunity and anti-discrimination measures[127] - The group has a commitment to not tolerate forced labor or child labor, ensuring compliance with relevant labor laws[129] - The group’s employee benefits include mandatory provident fund contributions, insurance, and training programs[138] Financial Performance - The audit fees payable to the auditor for audit services amounted to HKD 1,200,000 for the year 2023, consistent with the previous year[11] - The total employee cost for the fiscal year 2023 was approximately HKD 92,607,000, a decrease of 44.4% compared to HKD 166,735,000 in 2022[138] - The group employed a total of 162 full-time employees as of December 31, 2023, down from 260 in 2022, indicating a reduction of 37.7%[138] - The overall employee turnover rate for the group during the reporting period was 29%[131] - The group made contributions of approximately HKD 2,996,000 to retirement benefit plans in 2023, compared to HKD 3,271,000 in 2022, reflecting a decrease of 8.4%[139] - The group maintains a strong liquidity position to seize growth opportunities, adhering to prudent cash management policies[135] - The group does not face significant foreign exchange risks and has not employed any financial instruments for hedging purposes[136] - The group’s management will continue to monitor and manage risks associated with interest rate and exchange rate fluctuations[136] Investments - The company holds approximately 3.01% equity interest in Pillar, valued at HKD 52,204,000 (equivalent to USD 6,684,000) as of December 31, 2023, down from HKD 69,270,000 (equivalent to USD 8,881,000) in the previous year, representing 7.88% of the company's total assets[153] - The fair value loss on the investment in Pillar for the year 2023 was approximately HKD 17,066,000, compared to a fair value gain of HKD 1,330,000 in 2022[153] - Pillar recorded an unaudited consolidated loss of approximately USD 22,100,000 for the year ending December 31, 2023[153] - The group holds approximately 1.13% equity interest in Kubo, equivalent to 5,970,160 shares, with a fair value of approximately HKD 4,716,000 as of December 31, 2023, down from HKD 13,672,000 a year earlier[154] - Kubo reported an unaudited consolidated loss of approximately USD 14.7 million for the six months ending June 30, 2023[154] - The fair value loss on the investment in Kubo for the year was approximately HKD 8,956,000, compared to HKD 39,358,000 in the previous year[154] - The group did not receive any dividend income from Kubo during the two years[154] - The group aims to strategically allocate resources towards precision diagnostics and enter the precision treatment industry through its investment in Kubo[154] Community Engagement - The group donated a total of HKD 105,000 to various charitable activities in 2023[176] - The group has established a whistleblowing channel to report misconduct and ensure transparency and accountability[174] - In the fiscal year 2023, the group made charitable donations of approximately HKD 105,000, compared to zero in the fiscal year 2022[187] - The group encourages employee participation in community service and has committed resources to support future community engagement efforts[200] Compliance and Ethics - The group strictly adheres to all relevant anti-corruption laws and has established policies to guide employees on measures against bribery and corruption[197] - There were no concluded corruption litigation cases against the company or its employees during the reporting period[199]
中国生物科技服务(08037) - 2023 - 年度财报