CHINA LESSO(02128)2024-04-29 08:14Financial Performance - Revenue for the year ended December 31, 2023, was RMB 30,868,289, representing a slight increase of 0.3% compared to RMB 30,767,211 in 2022[8]. - Gross profit decreased by 1.5% to RMB 8,121,014 from RMB 8,241,423 in the previous year[8]. - Finance costs increased significantly by 63.4% to RMB 1,112,761 from RMB 681,084 in 2022[8]. - Profit before tax declined by 16.5% to RMB 2,664,169 compared to RMB 3,190,424 in the prior year[8]. - Profit for the year decreased by 7.9% to RMB 2,320,346 from RMB 2,520,550 in 2022[8]. - Total assets increased by 1.7% to RMB 60,031,270 from RMB 59,004,001 at the end of 2022[8]. - Cash and bank deposits decreased by 11.0% to RMB 6,552,984 from RMB 7,361,770 in the previous year[8]. - Total equity rose by 7.4% to RMB 24,311,078 compared to RMB 22,641,086 in 2022[8]. - Proposed final dividend per share decreased by 33.3% to HK 20 cents from HK 30 cents in the previous year[8]. - Profit attributable to owners of the Company for 2023 was RMB 2,368 million, down from RMB 2,521 million in 2022, representing a decrease of approximately 6.06%[13]. Assets and Liabilities - Non-current assets increased to RMB 39,217 million in 2023 from RMB 35,011 million in 2022, reflecting a growth of approximately 6.29%[12]. - Total liabilities decreased to RMB 35,720 million in 2023 from RMB 36,363 million in 2022, a reduction of approximately 1.77%[12]. - Total assets reached RMB 60,031 million in 2023, compared to RMB 59,004 million in 2022, indicating a growth of about 1.73%[12]. - Equity attributable to owners of the Company rose to RMB 23,503 million in 2023 from RMB 21,842 million in 2022, marking an increase of about 7.58%[12]. Strategic Initiatives - China Lesso aims to enhance its core competency by establishing smart factories that integrate intelligent manufacturing and automated production[21]. - The company plans to capitalize on ongoing demand for infrastructure construction driven by state policy and economic recovery[21]. - China Lesso continues to focus on product innovation and quality improvement in its core piping business to maintain its market leadership[15]. - The company is committed to providing high-quality green, low-carbon, and environmentally friendly products and solutions, actively managing its operational environmental impact to reduce its operational footprint[24]. - The company plans to leverage national policies and the recovering economy to meet the ongoing demand for infrastructure construction, focusing on deepening its pipeline sector and expanding its industrial layout[24]. - The company aims to enhance its core capabilities through the integration of AI, Internet, and IoT technologies, creating smart manufacturing and automated production facilities[24]. - Despite facing challenges and uncertainties, the management team is confident in continuing to innovate and upgrade in line with market trends, while seizing overseas opportunities[24]. - The company is focused on optimizing its product mix and increasing market share in its main industry products[24]. Corporate Governance - The company emphasizes good corporate governance practices and business ethics as essential for sustainable development and investor confidence[72]. - The Board currently comprises 14 directors, including 9 executive directors and 5 independent non-executive directors[79]. - The company has adopted a Model Code governing securities transactions by directors, ensuring compliance throughout the year[74]. - The company has confirmed compliance with all applicable code provisions during the reporting period[73]. - The company has a commitment to continuous improvement in corporate governance practices to meet shareholder expectations[73]. - The independent non-executive directors have confirmed their independence under Rule 3.13 of the Listing Rules[164]. - The Board reviews its independence and effectiveness annually[163]. - The Company follows a formal and transparent procedure for the appointment of new directors[148]. - The Board diversity policy aims to enhance diversity through factors such as gender, age, cultural background, and professional experience[169]. - The Nomination Committee believes the existing Board is adequate in size, diversity, and composition for effective decision-making[177]. Risk Management - The Group has established a risk management and internal control system aligned with COSO standards to manage operational risks[182]. - The Audit Committee continuously monitors and annually reviews the effectiveness of the risk management and internal control system[183]. - The Group has developed a risk management project team responsible for assessing the Group's risk profile and tracking mitigation plans[184]. - The comprehensive risk management program aims to enhance the implementation of risk management across all functional departments[200]. - The internal control team assists in formulating internal control plans based on risk assessment results[199]. - The internal audit department evaluates the effectiveness of risk management through measures such as walk-through tests and analytical reviews[199]. Board Composition and Diversity - The Company has achieved the requirement of at least one female director on the Board according to the Listing Rules[171]. - The Board consists of 14 directors, with 3 female directors, achieving the target of at least one female director[175]. - Over one-third of the Board members are independent non-executive directors, promoting critical review and control of management processes[176]. - Women employees represent 30.1% of the Group's total workforce and 16.0% of middle or above managerial levels[178]. - The Board believes that the current gender ratio in the workforce is appropriate for the Group's development[180].