Financial Performance - For the fiscal year ending December 31, 2023, the total revenue was approximately HKD 4,145,653,000, a decrease of 3% compared to the previous year[19] - The profit attributable to shareholders for the year was approximately HKD 138,921,000, an increase of 84% from the previous year[19] - Revenue for the year was approximately HKD 2,976,735,000, a decrease of 2% compared to the previous year[24] - Profit before interest and tax was approximately HKD 165,403,000, an increase of 94% year-on-year[24] - Gross profit increased to HKD 625,238, up 38.2% from HKD 452,886 in the previous year[198] - Net profit for the year was HKD 160,892, representing an increase of 77.5% compared to HKD 90,538 in 2022[198] - Basic earnings per share rose to HKD 24.19, up from HKD 13.17 in the prior year, reflecting a growth of 83.4%[198] - Total comprehensive income for the year amounted to HKD 150,418, significantly higher than HKD 36,442 in 2022, marking a growth of 312.5%[198] - The company reported a decrease in sales costs to HKD 3,520,415 from HKD 3,818,275, a reduction of 7.8%[198] - Administrative expenses increased to HKD 184,967, up from HKD 159,890, reflecting a rise of 15.7%[198] - Financial expenses rose to HKD 52,880, compared to HKD 41,517 in the previous year, an increase of 27.4%[198] - The company recognized an impairment loss of HKD 14,715 under the expected credit loss model, compared to HKD 2,752 in 2022[198] Business Segments - The construction materials segment accounted for 72% of total revenue, while metal products accounted for 28% in 2023[20] - The metal products business generated revenue of approximately HKD 1,172,339,000, a decrease of 4% year-on-year, but the operating profit before interest and tax increased by 6% to approximately HKD 83,666,000[22] - The company ended its steel processing business during the year, impacting overall revenue[19] - The construction materials business is expected to face short-term challenges due to a weak property market and increased competition[24] Assets and Liabilities - The total assets as of December 31, 2023, were HKD 2,919,328,000, while total liabilities were HKD 1,532,201,000[8] - The net asset value increased to HKD 1,387,127,000 in 2023, compared to HKD 1,278,136,000 in 2022[8] - Total borrowings amounted to approximately HKD 906,133,000, down from HKD 1,250,243,000 a year earlier[26] - The net asset liability ratio was 0.18:1 as of December 31, 2023, compared to 0.55:1 the previous year[27] - The group's cash and bank balances totaled approximately HKD 652,131,000 as of December 31, 2023, compared to HKD 541,569,000 a year earlier[26] Corporate Governance - The company has maintained good corporate governance practices throughout the year ending December 31, 2023[43] - The board consists of four executive directors and three independent non-executive directors[45] - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with the standards set out in the listing rules[44] - The independent non-executive directors have confirmed their independence according to the listing rules[47] - The company encourages all directors to participate in external training courses to enhance their knowledge of their roles and responsibilities[49] - The company has arranged for directors and senior management to have liability insurance[48] - The board is responsible for overseeing overall business management and strategic development[47] - The company has complied with the corporate governance code, with exceptions noted for attendance at the annual general meeting[43] - The company has established a nomination policy outlining the selection criteria and procedures for appointing new and reappointed directors[65] Risk Management and Internal Controls - The company emphasizes effective risk management as an integral part of its business strategy, with regular evaluations of potential risks by the board[71] - The company has established internal audit functions to assess the adequacy and effectiveness of its risk management and internal control systems[75] - The board continuously monitors the risk management and internal control systems, ensuring they are effective and sufficient[75] - The company has implemented a comprehensive internal control system to manage risks and ensure the reliability of financial information[71] - The company’s governance practices include regular reviews of policies and procedures related to risk management and internal controls[72] Sustainability and Environmental Management - The company is committed to high standards of environmental management and aims to reduce carbon emissions, monitoring emissions monthly to ensure compliance with legal limits[96] - The company has established a sustainability committee led by the board to oversee environmental, social, and governance (ESG) initiatives and performance[85] - The company has identified four major ESG areas: occupational health and safety, environmental impact, social responsibility, and governance practices[90] - The company continues to invest in facilities equipped with the latest technology to reduce energy consumption and greenhouse gas emissions[95] - The company aims to integrate sustainability into its business strategy and daily operations, reflecting its commitment to long-term positive returns[84] - The company has adopted measures to comply with local and national environmental laws and standards[95] - Total direct and indirect carbon emissions for the fiscal year 2023 amounted to 1,856 tons of CO2 equivalent, an increase of 7.91% compared to 2022[1] - Chemical waste totaled 0.80 tons, representing a 5% decrease from 2022, while non-hazardous waste increased by 7.69% to 11,811 tons[2] - Total electricity consumption was 1,311,929 kWh, a 2.55% increase from 2022, with consumption per production unit decreasing by 3.76% to 3.07 kWh[3] - Total water consumption reached 92,764 cubic meters, a 2.68% increase, while per production unit consumption decreased by 4.35% to 0.22 cubic meters[4] Employee and Labor Practices - The group employed 1,482 staff members as of December 31, 2023, with compensation based on performance and industry standards[28] - The company reported a total workforce of 1,368 employees, with 95% being male and 77% being female[94] - Employee headcount as of December 31, 2023, was 1,482, with a turnover rate of 20%, slightly higher than the previous year's 19%[5] - A total of 1,368 employees, or 92% of the workforce, received training during the reporting period, with an average training time of 41 hours per employee, totaling around 56,000 hours of training[115] - The group has a commitment to respect labor rights and human rights, with no reported violations of child labor or forced labor during the reporting period[119] Shareholder Engagement and Dividends - The company paid an interim dividend of HKD 0.025 per share, totaling approximately HKD 14,360,000[149] - The proposed final dividend is HKD 0.035 per share, amounting to around HKD 20,103,000, subject to shareholder approval[149] - The company is committed to enhancing communication with shareholders through annual and special general meetings, providing a platform for direct interaction[78] - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting within two months[79] Supplier and Customer Relations - The group has established long-term strategic partnerships with reputable suppliers, focusing on quality products and services[122] - The group conducts annual assessments of suppliers and subcontractors to monitor their performance in quality, environmental, and occupational safety aspects[123] - The top five customers contributed less than 30% of the total revenue for the year, while the top five suppliers accounted for approximately 48% of total procurement, with the largest supplier representing about 17%[167] - The group maintains close and mutually beneficial relationships with customers to ensure timely delivery of products and services[125]
高力集团(01118) - 2023 - 年度财报