> **来源：[研报客](https://pc.yanbaoke.cn)** # 2023 Annual Report Summary ## Core Content Overview This annual report outlines the financial performance, operational strategies, and business developments of Cosmel Group for the year ended 31 December 2023. It includes details about the company's structure, management discussion, financial results, and key business segments, emphasizing the impact of global economic conditions, geopolitical tensions, and internal strategic initiatives. ## Main Operational Structure - **Board of Directors**: - **Executive Directors**: Tang To (Chairman), Tang Yu, Freeman (Chief Executive Officer) - **Non-executive Director**: Kan Wai Wah - **Independent Non-executive Directors**: Yeung Shuk Fan, Lam Kwok Ming, Lee Wai Yip, Alvin - **Committees**: - **Audit Committee**: Yeung Shuk Fan (Chairman), Kan Wai Wah, Lam Kwok Ming, Lee Wai Yip, Alvin - **Nomination Committee**: Tang To (Chairman), Lam Kwok Ming, Lee Wai Yip, Alvin, Tang Yu, Freeman - **Remuneration Committee**: Yeung Shuk Fan (Chairman), Lam Kwok Ming, Lee Wai Yip, Alvin, Tang To - **Executive Directors Committee**: Tang To (Chairman), Tang Yu, Freeman - **Authorized Representatives**: Tang To, Tang Yu, Freeman - **Company Secretary**: Wong Lai Tong - **Auditor**: Ting Ho Kwan & Chan - **Principal Bankers**: - The Hongkong and Shanghai Banking Corporation Limited - China Bank (Hong Kong) Limited - China Construction Bank (Asia) Corporation Limited - **Registered Office**: 10th Floor, Billion Plaza 2, No. 10 Cheung Yue Street, Cheung Sha Wan, Kowloon, Hong Kong - **Share Registrar**: Tricor Secretaries Limited, 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong - **Company Website**: [http://www.cosmel.com](http://www.cosmel.com) - **Investor Relations Contact**: - Address: 10th Floor, Billion Plaza 2, No. 10 Cheung Yue Street, Cheung Sha Wan, Kowloon, Hong Kong - Email: ir@cosmel.com - Telephone: (852) 2376 6188 - Fax: (852) 2375 9626 - **Stock Code**: 118 ## Main Financial Results | Item | 2023 (HK$’000) | 2022 (HK$’000) | Change | |------|----------------|----------------|--------| | Revenue | 2,176,900 | 2,339,898 | -7.0% | | Gross Profit | 369,665 | 372,304 | -0.7% | | Operating Profit | 4,743 | 29,758 | -84.1% | | Net Loss for the Year | (59,515) | 18,837 | N/A | | Other Income, Gain and Loss | 18,017 | 23,161 | -22.2% | - **Revenue** decreased by 7.0% due to weak global economic recovery and subdued consumer confidence. - **Gross profit margin** improved to 17.0% from 15.9% due to reduced labor costs and lower-cost raw materials. - **Net loss** increased significantly from a profit in 2022, primarily due to the disposal of subsidiaries and impairment of goodwill. - **Other income, gain and loss** declined by 22.2%, with a net exchange loss of HK$2,162,000 compared to a gain of HK$5,647,000 in 2022. ## Key Business Segments ### 1. Machinery Manufacturing Business - Sales of standard machines declined, but **industry-specific customized solutions** saw growth, especially in the **PET preform applications** and **medical applications**. - The **D-series all-electric machines** met sales targets, with **high precision, stability, and energy efficiency**. - Future development will focus on **reduced energy consumption** and **specialized industry applications**. - The Group is investing in **digital systems** (CRM, APS, WMS, PLM) and **sales network expansion**. ### 2. Machinery Leasing Business - The Group has expanded into **third-party machinery finance leasing**. - The business is in a **cautiously optimistic** phase, with **strict internal controls** and **careful monitoring**. - It is expected to **focus on automation and digital systems** to enhance agility and reduce labor costs. ### 3. Plastic Products Processing and Manufacturing Business - Sales and profitability increased due to **quality improvements** and **lean manufacturing**. - The Group is expanding into **Northern China**, with **factory layout planning**, **automation**, and **licensing applications** underway. - It is also focusing on **carbon footprint reduction** and **recycled materials** to meet customer demands. ### 4. Printed Circuit Boards ("PCB") Processing and Trading Business - The PCB processing business continued to **record losses**, with no improvement since 2022. - The Group decided to **dispose of two subsidiaries** (GB HK and GB Shenzhen) to reduce cash outflows and focus on more profitable segments. - The PCB trading business faced **pressure from weak markets** and **intense competition**, leading to **reduced profitability**. - The Group expects **reduced sourcing from major customers** in the future. ## Key Views and Strategies - The Group **did not cut staff** during the downturn, instead **increasing investments** in production, R&D, and digital transformation. - The **"China + N" strategy** has led to **industry relocation** and **reduced domestic demand**. - The Group is **focusing on value-added services**, **product quality**, and **customer satisfaction** rather than price competition. - The **iSee 4.0 digital platform** is being used to **enhance factory monitoring and management**. - The Group has **business expansion plans**, especially in **Northern China** and **new customer development**. - **Sustainability** and **digital innovation** are key areas for future growth. ## Conclusion The Group faces a **challenging global economic environment**, with **geopolitical tensions** and **weak market demand** impacting its performance. Despite this, the Group remains **committed to innovation**, **digital transformation**, and **strategic repositioning** to ensure **sustainable growth** and **enhanced competitiveness** in the coming year.