Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately RMB 106,584,000, a decrease of about RMB 150,165,000 or approximately 58.5% compared to RMB 256,749,000 in 2022[10]. - The company recorded a profit attributable to owners of approximately RMB 2,870,000 for the year ended December 31, 2023, compared to a loss of RMB 11,547,000 in the previous year[10]. - The company's business revenue for the year ended December 31, 2023, was approximately RMB 106,584,000, a decrease of about 58.5% compared to RMB 256,749,000 for the year ended December 31, 2022[20]. - Gross profit for the year ended December 31, 2023, was approximately RMB 30,581,000, an increase of about 29.8% from RMB 23,565,000 in 2022[28]. - Other income and gains for the year ended December 31, 2023, amounted to approximately RMB 4,141,000, representing a 55.7% increase from RMB 2,659,000 in 2022[29]. - The group's cost of sales for the year ended December 31, 2023, was approximately RMB 76,003,000, a decrease of about 67.4% compared to RMB 233,184,000 in 2022[27]. - Administrative expenses decreased by approximately 21.1% to RMB 19,865,000 for the year ended December 31, 2023, down from RMB 25,197,000 in 2022[32]. - Other expenses decreased by approximately 64.3% to RMB 2,090,000 for the year ended December 31, 2023, compared to RMB 5,853,000 in 2022[33]. - The group's total equity attributable to shareholders as of December 31, 2023, was approximately RMB 75,006,000, an increase from RMB 71,053,000 in 2022[36]. - The group's cash and cash equivalents as of December 31, 2023, were approximately RMB 53,360,000, a slight decrease from RMB 55,260,000 in 2022[36]. - The debt-to-equity ratio as of December 31, 2023, was 57%, down from 72% in 2022[39]. Revenue Breakdown - Revenue from EPC projects was approximately RMB 62,342,000, while revenue from equipment projects was RMB 27,077,000 and revenue from service concession arrangements was RMB 12,636,000[10]. - Revenue from EPC projects increased significantly to approximately RMB 62,342,000, up about 486.3% from RMB 10,634,000 in the previous year, primarily due to the recognition of revenue from a large EPC project in Vietnam[22]. - Revenue from construction projects decreased by approximately 76.7% to RMB 390,000, down from RMB 1,675,000 in 2022, due to the recognition of revenue from only four construction projects[23]. - Revenue from equipment projects fell by approximately 87.6% to RMB 27,077,000, compared to RMB 218,795,000 in 2022, mainly due to the recognition of revenue from five equipment projects[24]. - Revenue from service concession arrangements decreased by about 21.1% to RMB 12,636,000, down from RMB 16,014,000 in the previous year, primarily due to lower service and interest income[25]. - Maintenance service revenue decreased by approximately 57.0% to RMB 4,139,000, compared to RMB 9,631,000 in 2022, attributed to fewer technical consulting projects contributing to revenue[26]. Strategic Plans and Market Focus - The company plans to increase investment in the Vietnamese market, believing it will become a key market for sustainable development[14]. - A new business contract worth several tens of millions of RMB was signed in early 2023 for a project in Vietnam, expected to commence construction between late 2024 and early 2025[14]. - The company aims to maintain a conservative operational strategy to stabilize cash flow and gradually recover in the post-pandemic market environment[12]. - The company will continue to focus on the Guangdong-Hong Kong-Macao Greater Bay Area, leveraging established customer relationships for better performance[14]. - The company is seeking deeper cooperation with clients who have environmental needs, aiming to secure long-term business opportunities[14]. Employee and Management Information - The company employed 52 employees as of December 31, 2023, down from 69 employees in 2022[75]. - Employee costs for the year ended December 31, 2023, were approximately RMB 15.9 million, compared to RMB 21.5 million in 2022[75]. - The company will review and determine the remuneration of directors and senior management based on recommendations from the remuneration committee[75]. - The company emphasizes the importance of training for directors and employees to maintain and enhance their professional skills[76]. - The company aims to ensure employee compensation levels are aligned with industry standards and linked to performance[75]. Stock Option Plan - The stock option plan allows for a maximum issuance of 18,000,000 shares, representing 6% of the total shares issued as of the plan adoption date and the current year's performance announcement date[60]. - The maximum number of shares that can be issued to any participant in a 12-month period cannot exceed 1% of the company's issued share capital[62]. - The vesting period for the stock option plan is set at a minimum of 12 months[65]. - The exercise price for the stock options will be the higher of the closing price on the grant date or the average closing price over the five trading days preceding the grant date[66]. - The stock option plan is valid for a period of 10 years from the adoption date, with approximately 8 years remaining as of the report date[69]. - The company granted stock options with an exercise price of HKD 1.19, with a fair value of HKD 670,352 for options granted in 2022[70]. - As of December 31, 2023, there are 1,200,000 stock options outstanding, with no options exercised or forfeited during the period[70]. - The company has additional stock options with a fair value of HKD 502,764, set to expire on December 31, 2024, with 900,000 options outstanding[70]. - Another set of stock options, also with a fair value of HKD 502,764, is scheduled to expire on December 31, 2025, with 900,000 options outstanding[70]. - The options granted have a vesting period from the grant date until the end of the respective financial years[70]. - The company plans to continue its stock option program to incentivize key personnel and align their interests with shareholders[70]. - The total number of stock options granted and outstanding reflects the company's commitment to employee retention and motivation[70]. - The exercise price of HKD 1.19 is set to encourage participation in the company's growth[70]. - The company is focused on maintaining a robust stock option plan as part of its overall compensation strategy[70]. - The stock options are part of a broader strategy to enhance employee engagement and performance[70]. Corporate Governance and Compliance - The audit committee has reviewed the audited consolidated financial statements for the year ending December 31, 2023, confirming compliance with applicable accounting standards and GEM listing rules[130]. - The company has maintained sufficient public float as required by GEM listing rules as of December 31, 2023[133]. - The board consists of four executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2023[144]. - The company has adopted the corporate governance code effective until December 31, 2023, ensuring the roles of chairman and CEO are separate[141]. - The board plans to meet at least four times a year to review financial and operational performance and discuss the group's direction and strategy[149]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, to oversee specific aspects of the company's affairs[161]. - The chairman of the audit committee is Mr. Xie Zhiwei, an independent non-executive director[164]. - The company arranged training sessions for all directors on GEM listing rules and relevant regulations, ensuring they are well-informed of their responsibilities[160]. - The company has a clear separation of roles between the chairman and the CEO, with Mr. Xie serving as both, providing strong leadership[154]. - The audit committee is responsible for reviewing the effectiveness of the company's financial reporting procedures and risk management systems[162]. - The company has a policy for the appointment and re-election of directors, with a minimum service contract period of three years for executive directors[156]. - The board chairman met with non-executive directors at least once during the year to discuss board matters[155]. - The company ensures that all directors have access to necessary information and can seek independent professional advice when needed[159]. - The company has established a shareholder communication policy to provide timely and comprehensive information to shareholders and investors[196]. Market Risks and Challenges - The company faces significant risks from regulatory changes that could impact its operations in the wastewater treatment sector[98]. - The company anticipates increased competition in the wastewater treatment market from both existing competitors and new entrants[100]. - The board believes that the business environment may not improve immediately due to various challenges, including global political situations and the pace of China's reintegration into the global trade system[16]. - The company faces risks in attracting and retaining skilled personnel essential for achieving its business objectives, and it offers competitive compensation packages to mitigate this risk[104]. Shareholder Information - The company has no plans to declare a final dividend for the year ended December 31, 2023[82]. - The company's distributable reserves as of December 31, 2023, amounted to approximately RMB 63.3 million[94]. - The company did not engage in any purchase, sale, or redemption of its listed securities during the year ended December 31, 2023[93]. - The company has not adopted any predetermined dividend payout ratio[85]. - The board of directors retains discretion to declare dividends, subject to applicable laws and regulations[87]. - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[197].
中国天亿福(08196) - 2023 - 年度财报