Financial Performance - The company's revenue for the year ended December 31, 2024, was 6,039,000 in 2023[10]. - The company recorded a pre-tax loss of 1,876,000 from a pre-tax profit of 1,060,000, compared to a profit of 0.15[10]. - The gross profit margin for the year turned to 62.1%[10]. Liquidity and Financial Health - The company maintained a current ratio of 5.4, up from 3.8 in 2023, reflecting a total current asset value of 2,310,000[12]. - The company had cash and cash equivalents of 9,858,000 in 2023[12]. - The company continues to adopt a conservative policy in resource allocation, maintaining a low level of debt ratio[11]. Corporate Governance - The board of directors consists of five executive directors and three independent non-executive directors, ensuring compliance with listing rules[25]. - The company held four board meetings during the year, adhering to the requirement of at least four meetings annually[28]. - Independent non-executive directors confirmed their independence in accordance with listing rules, ensuring governance integrity[27]. - The roles of the chairman and the CEO are clearly separated to enhance accountability and governance[36]. - The chairman is responsible for leading the board and ensuring effective operation and decision-making[38]. - The company has established procedures for directors to seek independent professional advice at the company's expense[32]. - All directors are provided with appropriate insurance coverage for legal proceedings they may face[32]. - The company has implemented a structured approach to ensure all directors are adequately informed of current matters[37]. - The board meetings are documented with sufficient detail to record discussions and decisions made[30]. - The company ensures that all directors receive timely and complete information for board discussions[39]. - The company has established effective corporate governance practices, ensuring compliance with relevant guidelines[40]. - The board composition is balanced with a mix of executive and independent non-executive directors, promoting independent judgment[41]. - The nomination committee is composed entirely of independent non-executive directors, enhancing governance transparency[50]. - The company has a diversity policy for the board, ensuring no single-gender board composition and considering various factors for member selection[55]. - Independent non-executive directors are subject to re-election every three years, ensuring accountability[48]. - The company has implemented a formal and transparent process for appointing new directors, including succession planning[43]. - The nomination committee evaluates the independence of non-executive directors and recommends suitable candidates for the board[52]. - The company provides sufficient resources for the nomination committee to fulfill its responsibilities, including independent professional advice[54]. - The board regularly reviews its structure and composition to align with the company's strategic needs[41]. - The company has established effective communication channels with shareholders to convey their opinions to the board[40]. - The board appointed a new female director on March 28, 2024, aiming for gender diversity and balanced perspectives in strategic decision-making[57]. - The attendance rate for board meetings and committee meetings was satisfactory, with a total of 4 board meetings, 2 audit committee meetings, 2 remuneration committee meetings, and 2 nomination committee meetings held during the year[61]. - All directors participated in ongoing professional development to enhance their knowledge and skills, ensuring they contribute effectively to the board[70]. - Independent non-executive directors actively contributed to the company's affairs and attended shareholder meetings to address shareholder inquiries[78]. Employee and Environmental Policies - The company has adopted written guidelines for employee trading of the issuer's securities, ensuring compliance with the standard code of conduct[68]. - All newly appointed directors received comprehensive and formal onboarding to understand their responsibilities and the company's operations[63]. - The company provided various training types to directors, including regulatory updates and relevant business operations[71][72]. - The board ensures that adequate and timely information is provided to directors to facilitate informed decision-making[80]. - The company encourages female employees to participate in organizational activities and express their opinions in various employee groups[57]. - The board's commitment to gender diversity is reflected in its ongoing efforts to create an equitable work environment for all employees[57]. - The company has established a remuneration committee composed entirely of independent non-executive directors to review the remuneration of all directors annually[86]. - The remuneration committee has the authority to consult the chairman and/or CEO regarding the remuneration of other executive directors and may seek professional advice if necessary[87]. - The company has disclosed the remuneration ranges for senior management in its annual report, ensuring transparency in compensation practices[90]. - The board has provided monthly updates to all directors regarding the company's performance, condition, and prospects, facilitating informed decision-making[95]. - The company has conducted an annual review of its internal control systems, covering all significant monitoring aspects, including financial, operational, and compliance controls[102]. - The internal control system is designed to provide reasonable assurance against material misstatements or losses, ensuring the safeguarding of the company's assets[98]. - The board is responsible for evaluating the nature and extent of risks acceptable to the company in achieving strategic objectives[98]. - The company has committed to maintaining adequate resources and training for its accounting and financial reporting functions[101]. - The remuneration committee's terms of reference have been published on both the stock exchange and the company's website, enhancing accountability[90]. - The company aims to provide a balanced, clear, and comprehensive assessment of its performance and prospects in its annual report[99]. - The company engaged an independent professional firm to assist the board and audit committee in continuously monitoring the group's risk management and internal control systems[106]. - The audit committee held 2 meetings during the year to review financial performance and compliance procedures[111]. - The company has established clear guidelines for the delegation of management and administrative functions to ensure accountability[124]. - The board is responsible for setting the company's strategic development and monitoring management performance[124]. - The audit committee is tasked with ensuring fair and independent investigations of any misconduct issues[122]. - The company has disclosed the responsibilities and contributions of both the board and management appropriately[124]. - The audit committee's scope of work has been revised to cover the responsibilities outlined in the code[116]. - The company has confirmed the effectiveness of its financial reporting and compliance procedures[109]. - The board acknowledges its responsibility for the effectiveness of the risk management and internal control systems[108]. - The company has established procedures for handling and disclosing insider information[108]. - The board has established three committees with specific mandates: Audit Committee, Remuneration Committee, and Nomination Committee[126]. - The board is responsible for corporate governance duties, which include developing and reviewing governance policies and practices[131]. - The company has implemented a shareholder communication policy that is regularly reviewed for effectiveness[143]. - The company has a dividend distribution policy, details of which are disclosed in the annual report[144]. - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting within two months of submission[133]. - The company ensures that the chairman of the board and committee chairs attend the annual general meeting to address shareholder questions[141]. - The company has provided sufficient notice to shareholders prior to the annual general meeting, ensuring compliance with regulations[143]. - The board has a clear understanding of their powers and responsibilities, as documented in written terms of reference[129]. - Committees are required to report their work, results, and recommendations to the board[126]. - The company has established procedures for shareholders to propose candidates for directorships at the annual general meeting[137]. Environmental Performance - The company is one of the largest shoe manufacturers in China and has been listed in Hong Kong since 1996, emphasizing environmental protection and corporate governance[165]. - The company’s risk management and internal control systems are deemed effective, with annual reviews conducted by the board[158]. - The company secretary has undergone no less than 15 hours of professional training during the year to ensure compliance with governance practices[156]. - The company will propose a resolution for dividend distribution at the annual general meeting, subject to the board's assessment of financial conditions and reserves[145]. - The company has a nomination committee composed entirely of independent non-executive directors to review the board's structure and composition regularly[161]. - The company is committed to timely public disclosure of any inside information, ensuring that all material facts are presented clearly and fairly[160]. - The company has established a risk mitigation plan for significant risks identified by senior management at least once a year[157]. - The company’s articles of association have not changed for the fiscal year ending December 31, 2024[151]. - The company has not received any complaints regarding its environmental performance or faced any regulatory investigations in 2024[175]. - The main source of emissions for the company is electricity consumption, with a focus on adopting green power in line with China's carbon peak commitments[176]. - The company has implemented a "Waste Gas Emission and Control Guidelines" to monitor factory activities and strictly control waste gas emissions[178]. - The company is actively phasing out traditional industrial adhesives in favor of lower VOC alternatives to reduce emissions[180]. - The company has not been involved in any violations of local waste gas emission laws during the year[180]. - The company is committed to conducting a comprehensive climate risk assessment and implementing climate change adaptation and mitigation plans[177]. - The company has established internal environmental management policies focusing on waste management and energy efficiency[174]. - The company has identified key sources of waste gas emissions, including VOC emissions from various manufacturing processes[179]. - The company collaborates with local governments to reduce production during periods of severe air pollution[180]. - The company aims to create long-term value for investors while addressing key environmental challenges such as climate change[173]. - Total greenhouse gas emissions decreased from 980 tons CO2 equivalent in 2023 to 525 tons in 2024, representing a reduction of approximately 46.2%[195]. - Energy consumption decreased from 5,384 GJ in 2023 to 4,261 GJ in 2024, a reduction of about 21%[195]. - The energy density for 2024 was recorded at 201.75 kWh per $1,000 revenue, down from 366.67 kWh in 2023[191]. - The total hazardous waste generated increased from 0.95 tons in 2023 to 1.82 tons in 2024, an increase of approximately 91.6%[195]. - The total non-hazardous waste generated decreased from 2.46 tons in 2023 to 1.72 tons in 2024, a reduction of about 30%[195]. - Water consumption decreased significantly from 162,396 cubic meters in 2023 to 17,429 cubic meters in 2024, a reduction of approximately 89.3%[195]. - The wastewater generated dropped from 147,695 cubic meters in 2023 to 12,736 cubic meters in 2024, a decrease of about 91.4%[195]. - The company aims to reduce carbon emissions density by 5% annually starting from 2021[184]. - The company has set a target to reduce water consumption density by 5% per unit of production over the next five years[194]. - The company has implemented energy efficiency measures, aiming for a 5% reduction in energy consumption per unit of production over the next five years[191]. - The group's energy consumption and related greenhouse gas emissions are expected to decrease in 2024 compared to 2023, partly due to reduced production activities from decreased sales orders[198]. - The replacement of high-power water heaters in employee dormitories with low-power alternatives is projected to save approximately 3,000 kWh of electricity per month[198]. - The group is committed to monitoring water resource usage and implementing various measures to promote continuous water conservation improvements in 2024[198]. Employee Welfare - All employees receive compensation above the statutory minimum wage, with voluntary overtime capped at three hours per day, compensated at up to three times the normal wage[200]. - The group provides a range of paid leave options, including annual leave, bereavement leave, maternity leave, and sick leave, with management reviewing leave applications based on production schedules[200]. - Maternity allowances are provided to support employees during childbirth and recovery periods, ensuring compliance with relevant social welfare regulations in China[200]. - The group implements a reward and punishment system to recognize outstanding employees and impose disciplinary actions for serious misconduct, promoting a culture of accountability[200].
创信国际(00676) - 2024 - 年度财报