Financial Performance - For the fiscal year ending December 31, 2023, the company reported revenue of approximately RMB 407.1 million, a decrease of about 0.7% compared to RMB 409.9 million for the previous year[10]. - The profit for the year was approximately RMB 359.3 million, a significant increase of about 313.4% from RMB 86.9 million in the previous year, primarily due to substantial gains from the sale of the discontinued operation of the Suizhou Expressway business, amounting to approximately RMB 320.3 million[16]. - Administrative expenses for the fiscal year were approximately RMB 58.9 million, an increase of about 52.3% from RMB 38.7 million in the previous year, mainly due to one-time special bonuses paid to senior management following the completion of the sale[13]. - Total assets as of December 31, 2023, were approximately RMB 1,249.2 million, a decrease from RMB 1,955.9 million in the previous year[10]. - Total liabilities as of December 31, 2023, were approximately RMB 125.2 million, down from RMB 1,152.9 million in the previous year[10]. - Total cash and cash equivalents amounted to approximately RMB 313.7 million, an increase from RMB 205.7 million in 2022[33]. - Following the monetization of a 60% stake in the Suiyue Expressway, the group received cash inflow exceeding RMB 400 million, significantly improving liquidity and cash flow[41]. - The group declared a special interim dividend of HKD 0.121 per share, paid on May 18, 2023[38]. - The company has adopted a dividend policy that considers financial performance, business operations, and future business plans before declaring dividends[123]. Strategic Investments - The company completed the sale of a 60% stake in the Suizhou Expressway business on April 25, 2023, which significantly improved its cash position[4]. - On June 29, 2023, the company acquired a 28% stake in Huajia Wine Industry (Shenzhen) Co., Ltd., which operates in the wine trade and investment holding business in China[5]. - The company signed a share transfer agreement on June 16, 2023, to acquire a 21% stake in Guizhou Renhuai, with a total acquisition cost of RMB 105 million, resulting in a 51% ownership stake post-completion[21]. - The company completed the acquisition of an additional 21% stake in Guizhou Renhuai, making it a subsidiary with a 51% indirect ownership[129]. - The company also acquired a 28% stake in Huajia Wine Industry, which primarily engages in wine trading and has approximately 44.94% ownership in Guizhou Zunpeng[129]. Human Resources - As of December 31, 2023, the group had a total of 348 employees in China and Hong Kong, a decrease from 457 in 2022[23]. - Total employee compensation expenses for the year were approximately RMB 59.2 million, up from RMB 53.7 million in 2022[23]. - The company employed a total of 348 staff members, with 206 males and 142 females, reflecting a gender distribution of 15.0% and 32.4% respectively[182]. - The workforce is predominantly young, with 36.4% under 30 years old[182]. - There were no work-related fatalities reported from 2021 to 2023, with only one work injury recorded in 2023[187]. Corporate Governance - The board is committed to maintaining good corporate governance practices and has reviewed and improved various procedures and documentation as detailed in the report[43]. - The company has established various board committees to oversee specific areas of governance, primarily composed of independent non-executive directors[63]. - The company’s governance policies include reviewing and monitoring the training and continuous professional development of directors and senior management[54]. - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting to address specified matters[72]. - The company’s governance report includes disclosures on compliance with corporate governance codes[62]. - The audit committee reviewed the consolidated financial statements for the year ending December 31, 2023, ensuring the adoption of appropriate accounting principles and practices[64]. - The nomination committee was established to ensure the board possesses the necessary skills and experience relevant to the company's business needs[75]. - The nomination committee held two meetings during the year to review the board structure and composition, ensuring diversity in selection criteria[96]. - The company emphasizes the importance of diversity in the board selection process, considering factors such as gender, age, and professional experience[83]. - The company’s remuneration policy for employees is determined based on their value, qualifications, and capabilities[67]. - The remuneration committee held two meetings to review and approve the remuneration of directors and senior management for the year ending December 31, 2023, with total bonuses not exceeding 10% of the audited consolidated profit for the fiscal year[67]. Risk Management and Compliance - The company has established a risk management and internal control system aimed at ensuring the reliability of financial reporting and compliance with applicable laws and regulations[98]. - The board recognizes its overall responsibility for the risk management and internal control systems and continuously reviews their effectiveness[88]. - The internal audit department, composed of professionals such as practicing accountants, operates independently from daily operations to assess the effectiveness of risk management and internal control systems[100]. - The company has implemented procedures for disclosing internal information to ensure timely assessment of facts that may significantly impact the company's stock price[99]. - The company has no hedging arrangements in place to mitigate interest rate or foreign exchange risks, which may impact financial performance[34]. - The board has established an internal control and risk management system to safeguard shareholder interests and the company's assets[145]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance report covers the company's highway operations and wine trading business in China[130]. - The company recognizes the risks posed by climate change, particularly to its toll road operations, and is taking steps to mitigate these risks[177]. - In 2023, greenhouse gas emissions (Scope 1) decreased to 2,364 tons of CO2 equivalent from 3,073 tons in 2022, representing a reduction of approximately 23%[169]. - Greenhouse gas emissions (Scope 2) increased significantly to 8,074 tons of CO2 equivalent in 2023 from 2,672 tons in 2022, indicating a rise of about 201%[169]. - Total general waste generated increased slightly from 71 tons in 2022 to 72 tons in 2023[169]. - The company replaced all high mast lights with LED lights to enhance energy efficiency, contributing to overall energy savings[170]. - The company is phasing out older vehicles in favor of more fuel-efficient models to reduce fuel consumption[170]. - The company has implemented various energy-saving measures in offices and dormitories, including turning off idle lights and electronic devices[159]. - The company adheres to the "3R" principle (Reduce, Reuse, Recycle) for managing general waste, ensuring proper disposal and recycling of materials[167]. - The company has installed sound barriers along highways to mitigate noise pollution affecting nearby schools and residential buildings[166]. - The company is committed to reducing its carbon footprint despite the limited control over emissions from vehicles using its highways[141]. - Total energy consumption in 2023 was 5,948,704.6 kWh, a significant decrease compared to 2022[197]. - Electricity consumption accounted for 4,685,039 kWh, while gasoline and diesel consumption were 53,056.6 liters and 37,714.6 liters respectively[197]. - Water consumption reached 81,821 cubic meters, also showing a substantial reduction from the previous year[197]. - The company prioritizes green products in its procurement process, considering environmental and social impacts[192]. - The company has established an emergency management mechanism to handle various situations, including peak periods and extreme weather[196]. - The company has established a stakeholder engagement method to identify significant environmental, social, and governance issues[117]. - The company has implemented energy-saving measures, including replacing existing lighting and vehicles to reduce carbon emissions[178].
华昱高速(01823) - 2023 - 年度财报