2024-04-25-港交所-大同机械_二零二三年年报_253页_5mb

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

• 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

• 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.