大同机械二零二三年年报

CONTENTS CORPORATE INFORMATION As at 27 March 2024 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 FanLam Kwok MingLee Wai Yip, Alvin Audit Committee Yeung Shuk Fan(Chairman)Kan Wai WahLam Kwok MingLee Wai Yip, Alvin Nomination Committee Tang To(Chairman)Lam Kwok MingLee Wai Yip, AlvinTang Yu, FreemanYeung Shuk Fan Remuneration Committee Yeung Shuk Fan(Chairman)Lam Kwok MingLee Wai Yip, AlvinTang To Committee of Executive Directors Tang To(Chairman)Tang Yu, Freeman AUTHORISED REPRESENTATIVES Tang ToTang Yu, Freeman CORPORATE INFORMATION (CONTINUED)As at 27 March 2024 COMPANY SECRETARY Wong Lai Tong AUDITOR Ting Ho Kwan & Chan PRINCIPAL BANKERS The Hongkong and Shanghai Banking Corporation LimitedBank of China (Hong Kong) LimitedChina Construction Bank (Asia) Corporation Limited REGISTERED OFFICE 10210 10thFloor, Billion Plaza 2No. 10 Cheung Yue StreetCheung Sha WanKowloon, Hong Kong SHARE REGISTRAR 1617 Tricor Secretaries Limited17/F, Far East Finance Centre16 Harcourt RoadHong Kong http://www.cosmel.com COMPANY WEBSITE http://www.cosmel.com INVESTOR RELATIONS CONTACT 10210ir@cosmel.com(852) 2376 6188(852) 2375 9626 Address:10thFloor, Billion Plaza 2No. 10 Cheung Yue StreetCheung Sha WanKowloon, Hong KongE-mail:ir@cosmel.comTelephone:(852) 2376 6188Fax:(852) 2375 9626 STOCK CODE 118 MAIN OPERATIONAL STRUCTURE As at 27 March 2024 CHAIRMAN’S STATEMENT During the year, the traditional industrial market has continuedits weak posture since last year. Despite a decline in the inflationrate in the US, but the target of the Federal Reserve was notattained,thus interest rates remain high.In addition,Russia-Ukraine conflicts show no signs of easing, and Israel-Palestineconflicts ignited suddenly. The ongoing international geopoliticaltensions have led to the turbulence of the global environment,severely dampened the stability of international trade and theglobal supply chain, thereby further hindered economic growth. +N Numerous manufacturing enterprises, especially those that rely onthe United States market, are under pressure from a series of theUnited States targeted policies toward China. They are engagingin “China + N” strategy, shifting their operations from China toASEAN, Mexico and elsewhere. As such, this industrial relocationresults in a reduction in demand in the domestic market. After the lifting of pandemic restrictions, the China market didnot significantly recover from output levels during the pandemic.The stagnant real estate market dampened its related industries.Many enterprises chased orders by dropping their selling prices.In retrospect of the year, the market competition was intense andchallenging. However,the Group did not implement staff cutbacks duringthe challenging time, alternatively, ramped up our investments,including upgrade in production equipment and environmentalfacilities, talent recruitment and ongoing staff training, researchanddevelopment,innovation,as well as enhancement of ourdigitalmanagement and marketing systems.The Group hasfurther focused on meeting the sophisticated needs for specificindustriesand offering related products and services throughcontinuous research and development. In the intense competitivemarket,certain achievements that we have attained areattributable to our effort in helping customers to enhance theirquality and efficiency. Theprinted circuit boards processing business recorded lossesinthe past few years due to a combination of unfavourablescenarios and a simple processing model for this business. TheGrouphad previously made great efforts to turnaround fromloss into profit but did not achieve desired results. This businesswas eventually disposed of at discount, but it was still a mutuallybeneficial solution that allowed the Group to significantly reducemassive cash outflow arising from lawful cessation of business.Meanwhile, the Group does not hold an optimistic view of theprofit prospects for the printed circuit boards trading business, animpairment loss of the carrying value of goodwill of this businesswas recognized in the year to reflect its actual asset value. Thus,the Group recorded a loss for the year due to the adjustment ofthese businesses. Theglobal economic environment is unpredictable andunpromising. The international geopolitical situation will continueto be complex and subject to the impact of various elections. TheUnited States’ continued provocation of China and other majoradversaries on certain issues, such as politics, finance, technologyand military affairs, introduces more uncertainty into the globaleconomy. Our teams take an attitude for our betterment to navigate thechallenging operating environment. The Group will maintain astablecash flow,focus on research and development,adheretoenvironmental requirements,and continuously enhanceoperationsmanagement