Financial Performance - Revenue for 2023 reached 16.4 million in 2022[6] - Total billings for 2023 were 485.6 million in 2022[6] - Profit increased to 5.5 million in 2022[6] - Basic earnings per share for 2023 were 0.92 in 2022[6] - Revenue increased by 30.9% from 21.5 million in 2023, driven by growth in cross-border digital marketing services and cross-border e-commerce SaaS solutions[14] - Total billings grew from 682.6 million in 2023[10] - Gross profit rose by 38.6% from 19.2 million in 2023, with gross margin improving from 84.3% to 89.3%[16] - Net profit increased by 30.8% from 7.2 million in 2023, maintaining a stable net profit margin of 33.4%[21] - Revenue from customized digital marketing services surged by 79.2% from 7.0 million in 2023[14] - Revenue from cross-border e-commerce SaaS solutions soared by 143.2% from 3.3 million in 2023[14] Client and Partnership Growth - The company served over 2,800 marketing clients by the end of 2023, up from over 1,900 in 2022[7] - Established partnerships with 19 global media publishers, including Meta, Google, and TikTok[7] - Collaborated with over 50 industry-specific media publishers[7] - The company served over 2,800 marketing clients and collaborated with 19 major global media publishers, including Meta, Google, and TikTok, as of December 31, 2023[11] Strategic Plans and Investments - Plans to enhance SaaS platforms Adorado and Powershopy using AI and RPA technologies[8] - Aims to expand into emerging markets such as Southeast Asia and the Middle East[8] - Seeks strategic partnerships and investments to complement existing business capabilities[8] - The company plans to enhance its Adorado and Powershopy platforms using AI technology and expand its global business network[13] Financial Position and Liabilities - Trade receivables increased from 203.6 million as of December 31, 2023, primarily due to higher billings in Q4 2023[22] - Trade and other payables increased from 129.0 million as of December 31, 2023, primarily due to business growth[23] - Bank loans increased from 61.0 million as of December 31, 2023, driven by higher marketing expenses and increased working capital needs[24] - Cash and cash equivalents decreased from 21.8 million as of December 31, 2023, mainly due to increased media publisher expenses in Q4 2023[25] - Net current assets surged from 24.7 million as of December 31, 2023, driven by increased annual profits and IPO proceeds[25] - The debt-to-equity ratio rose from 20.7% as of December 31, 2022, to 132.8% as of December 31, 2023, primarily due to increased bank loan balances[28] - Interest expenses on bank loans increased from 4.1 million in 2023, reflecting higher variable interest rates[31] - The gearing ratio decreased from 459.7% as of December 31, 2022, to 206.7% as of December 31, 2023, due to increased equity from the IPO[27] Corporate Governance and Leadership - Yu Lu was appointed as one of the company's joint company secretaries on January 21, 2022[41] - Lin Yingzhi was appointed as another joint company secretary on January 21, 2022, assisting Yu Lu in compliance matters related to listing rules and other Hong Kong regulatory requirements[41] - Fan Qiyao was appointed as the head of e-commerce marketing on January 21, 2022, responsible for the overall management of the company's e-commerce business sales and operations[40] - Cao Xin was appointed as the head of the technology department on January 21, 2022, responsible for providing technical support for business technology and product development and maintenance[40] - Gong Peiyue was appointed as an independent non-executive director on March 3, 2023, responsible for supervising the board and providing independent opinions[37] - Li Guotai was appointed as an independent non-executive director on March 3, 2023, responsible for supervising the board and providing independent opinions[37] - Zhao Yan was appointed as an independent non-executive director on March 3, 2023, responsible for supervising the board and providing independent opinions[36] - Yu Lu has over 14 years of sales and strategic planning experience, previously serving as a channel account manager at Intel (China) Ltd.[36] - Zhao Yan has over 15 years of experience in law and finance, previously serving as a senior partner at Zhengxin Law Firm[36] - Gong Peiyue has over 23 years of experience in auditing, business consulting, and asset management, currently serving as the legal representative and executive director of Huifutiger (Xiamen) Asset Management Co., Ltd.[37] Customer and Supplier Concentration - The company's total revenue from its top five customers accounted for approximately 72.3% of its total revenue in 2023, up from 47.4% in 2022[47] - The company's single largest customer contributed approximately 29.4% of its total revenue in 2023, compared to 17.3% in 2022[47] - The company's top five suppliers accounted for 96.1% of its total procurement in 2023, down from 100.0% in 2022[47] - The company's single largest supplier accounted for 33.3% of its total procurement in 2023, down from 56.9% in 2022[47] Proceeds Allocation - The company allocated 41.7% of its net proceeds (HKD 40.3 million) to strengthen its R&D capabilities, with HKD 12.7 million utilized and HKD 27.6 million remaining as of December 31, 2023[45] - The company allocated 13.3% of its net proceeds (HKD 12.9 million) to promote its cross-border e-commerce SaaS solutions, with none utilized as of December 31, 2023[45] - The company allocated 15.0% of its net proceeds (HKD 14.5 million) to enhance its localized service capabilities in overseas markets, with none utilized as of December 31, 2023[45] - The company allocated 10.0% of its net proceeds (HKD 9.7 million) to upgrade its business and internal management systems, with none utilized as of December 31, 2023[45] - The company allocated 10.0% of its net proceeds (HKD 9.7 million) to seek strategic partnerships or investment opportunities, with none utilized as of December 31, 2023[45] - The company allocated 10.0% of its net proceeds (HKD 9.7 million) for working capital and general corporate purposes, with the full amount utilized as of December 31, 2023[45] Employee and Workforce Management - Total employee cost during the reporting period was approximately $3.7 million, with 86 full-time employees as of December 31, 2023, compared to 83 in 2022[52] - Total workforce as of December 31, 2023, was 86 employees, compared to 84 in 2022[168] - Full-time employees accounted for 100% of the workforce in 2023, up from 98.81% in 2022[169] - Female employees made up 53.49% of the workforce in 2023, down from 60.71% in 2022[169] - Senior management increased to 4.65% of the workforce in 2023, up from 2.38% in 2022[169] - Employee turnover rate decreased to 17.44% in 2023 from 48.81% in 2022[170] - Turnover rate for female employees was 21.74% in 2023, down from 50.98% in 2022[171] - No turnover occurred in senior management in 2023, compared to 18.18% in middle management in 2022[171] - Employees aged 18-25 had the highest turnover rate at 66.67% in 2023, down from 112.50% in 2022[171] - The company strictly adheres to labor laws and regulations, ensuring no child labor or forced labor cases were reported[172] - Employees are entitled to five national statutory social insurances and commercial accident insurance in China[173] - 109.30% of employees received training in 2023, with an average training duration of 1.12 hours per employee[179] - Female employees had a training participation rate of 115.22% with an average of 1.15 hours, while male employees had a rate of 105.50% with an average of 1.08 hours[180] - Senior management received 2.00 hours of training, middle management received 1.00 hour, and frontline and other employees received 1.08 hours on average[180] - The company maintained a zero record of workplace accidents, injuries, or fatalities over the past three years, including 2023[178] - The company conducted fire drills annually to enhance employee fire safety awareness and emergency response capabilities[177] - The company provided comprehensive welfare programs, including employee recognition programs, afternoon tea, holiday benefits, and workplace celebrations[177] - The company strictly adheres to anti-discrimination laws and provides equal opportunities in recruitment, promotion, rewards, and training[176] - The company established multiple communication channels for employees to share feedback, including email, QQ, Weibo, and WeChat[175] - The company prohibits any form of child labor or forced labor and conducts thorough identity checks during recruitment[181] - The company ensures diversity and inclusion in recruitment, training, and career development, promoting a balanced work-life culture[181] Shareholder and Equity Information - Mr. Li holds a 12% equity interest in the company through controlled entities, and an additional 18% through a discretionary trust, totaling 30% of the company's equity[55] - Ms. Yu holds a 0.75% equity interest in the company through a controlled entity, and an additional 44.25% through a discretionary trust, totaling 45% of the company's equity[55] - The company's issued share capital as of December 31, 2023, was 800,000,000 shares[55] - Mr. Li and Ms. Yu, as spouses, are deemed to have interests in each other's shares, with Mr. Li holding 45% and Ms. Yu holding 30% of the company's equity through spousal interests[55][56] - Common Excellence holds 354,000,000 shares, representing 44.25% of the total issued shares[60] - Into One holds 144,000,000 shares, representing 18.00% of the total issued shares[60] - Xiang Cai holds 90,000,000 shares, representing 11.25% of the total issued shares[60] - Total Mice holds 354,000,000 shares, representing 44.25% of the total issued shares, through Tranquil Trust[60][61] - Honest Beauty holds 144,000,000 shares, representing 18.00% of the total issued shares, through Imperial Trust[60][61] - The company has not entered into any stock-linked agreements during the reporting period[61] - No purchases, sales, or redemptions of listed securities were made by the company or its subsidiaries during the reporting period[61] - The company maintains sufficient public float as required by listing rules[67] Legal and Compliance - No significant legal proceedings or claims were reported during the reporting period[64] - No significant events occurred after December 31, 2023, that would adversely affect the company's operations or financial performance[66] - The company will suspend share transfer registration from June 13, 2024, to June 18, 2024, to determine shareholder eligibility for the Annual General Meeting[68] - KPMG has been appointed as the auditor for the fiscal year ending December 31, 2023, and will retire at the upcoming Annual General Meeting, with a resolution for their reappointment to be proposed[69] - The company adheres to high standards of corporate governance, focusing on sustainable returns for shareholders, risk management, and maintaining high ethical standards[70] - The company maintains a high level of corporate governance to protect shareholder rights and enhance corporate value and accountability, with continuous review and monitoring of governance practices[71] - Mr. Li Xiang serves as both the Chairman and CEO, with the Board believing that combining these roles benefits the company's management, though it will continue to review the separation of these roles if necessary[72] - The Board is responsible for overseeing the company's strategic decisions and performance, with three committees established to handle specific aspects: Audit, Remuneration, and Nomination Committees[73] - The Board consists of two executive directors and three independent non-executive directors, ensuring compliance with regulatory requirements regarding board composition[74] - Independent non-executive directors bring diverse expertise and experience to the Board, with mechanisms in place to ensure their independence and contribution[76] - The company has adopted a Board Diversity Policy to achieve an appropriate level of diversity, considering factors such as skills, experience, and cultural background when appointing directors[77] - The gender ratio of employees (including senior management) is approximately 1:1.5 (male:female)[78] - The board of directors consists of five members, with two female directors, aligning with the company's board diversity policy[78] - All directors attended 4 out of 4 board meetings and 1 out of 1 annual general meeting during the reporting period[82] - The audit committee, chaired by an independent non-executive director, held 2 out of 2 eligible meetings during the reporting period[87] - The company provides necessary induction training and materials to newly appointed directors to ensure they understand operations and legal responsibilities[79] - Directors are encouraged to participate in continuous professional development to enhance and update their knowledge and skills[79] - The board of directors retains decision-making authority over major matters, including policy approval, overall strategy, and budget oversight[84] - The audit committee is responsible for reviewing and monitoring the independence and effectiveness of external auditors[86] - The company has adopted a code of conduct for securities transactions, and all directors confirmed compliance during the reporting period[83] - The board holds regular meetings at least four times a year, with agendas and documents provided at least three days in advance[81] - The Nomination Committee consists of three members, chaired by Executive Director Mr. Li, with the other two members being Independent Non-Executive Directors Ms. Zhao Yan and Mr. Gong Peiyue[88] - The Nomination Committee evaluates candidates based on integrity, experience, skills, and the time and effort dedicated to their duties[88] - All members of the Nomination Committee attended 1 out of 1 meeting during the reporting period[89] - The Remuneration Committee is composed of three members, chaired by Independent Non-Executive Director Mr. Gong Peiyue, with the other members being Executive Director Ms. Yu and Independent Non-Executive Director Ms. Zhao Yan[93] - The Remuneration Committee is responsible for reviewing and approving the remuneration of directors and senior management, ensuring it aligns with the company's goals and market standards[93] - All members of the Remuneration Committee attended 1 out of 1 meeting during the reporting period[95] - The company's directors and senior management remuneration includes袍金, salaries, pension contributions, allowances, non-cash benefits, and discretionary bonuses, determined based on market benchmarks and performance[96] - The company's senior management salaries range from HKD 0 to 1,000,000, with 2 individuals falling within this range[97] - The company's risk management and internal control systems were deemed effective and sufficient as of December 31, 2023[101] - The company's audit committee reviewed and supervised financial reporting procedures and internal control systems, chaired by Mr. Li Guotai[102] - The company appointed external legal advisors to ensure compliance with listing rules and regulatory requirements[103] - The company provided anti-corruption, anti-bribery, and anti-money laundering compliance training to senior management and employees[103] - The company's total fees for audit and non-audit services during the reporting period amounted to USD 455,000[106][107] - The company's joint company secretaries, Ms. Yu and Ms. Lam, completed at least 15 hours of professional training related to listing rules[108] - The company emphasized timely disclosure and transparency to enable informed investment decisions by shareholders and investors[109] - The company's annual general meeting provides shareholders with the opportunity to directly communicate with the board, and the CEO and chairman of the board committee will attend to answer questions[110] - Shareholders holding at least one-tenth of the company's paid-up share capital with voting rights can request the board to convene a special general meeting within two months of submitting the request[113] - The company adopted revised and restated articles of association effective from the listing date on March 3, 2023[115] Environmental, Social, and Governance (ESG) - The company published its second Environmental, Social, and Governance (ESG) report, detailing policies, measures, and performance from January 1, 2023, to December 31, 2023[118] - The company conducts annual materiality assessments to identify and evaluate important ESG issues for stakeholders[119] - The company records and collects ESG key performance indicators (KPIs) data and discloses relevant quantitative information and historical data for comparison
力盟科技(02405) - 2023 - 年度财报