瀛晟科学二零二三年年报

Winshine Science Company Limited瀛晟科學有限公司 Stock Code: 209(Incorporated in Bermuda with limited liability) ANNUAL REPORT2023 Abbreviations In this annual report, the following abbreviations have the following meaningsunless otherwise specified: Mr. Jiang Qinghui(Chairman)Mr. Weng Zudian(Chief Executive Officer) Mr. Chan Cheuk Ho(Chairman)Mr. Kwok Kim Hung EddieMr. Zhao Yong Mr. Chan Cheuk Ho(Chairman)Mr. Kwok Kim Hung EddieMr. Zhao Yong Mr. Jiang Qinghui(Chairman)Mr. Kwok Kim Hung EddieMr. Chan Cheuk Ho Mr. Lam Koon Fai Corporate Information TRADING OF SHARES 209 The Stock Exchange of Hong Kong Limited (Stock Code: 209) REGISTERED OFFICE Clarendon House2 Church StreetHamilton HM 11Bermuda Clarendon House2 Church StreetHamilton HM 11Bermuda HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESSIN HONG KONG 168–2009907B Room 907B, 9/F., China Merchants Tower,Shun Tak Centre,168-200 Connaught Road Central,Hong Kong PRINCIPAL BANKERS The Hongkong and Shanghai Banking Corporation Limited Guangdong Development Bank Zhongshan Branch AUDITOR Confucius International CPA Limited MUFG Fund Services (Bermuda) Limited4th floor North, Cedar House,41 Cedar Avenue,Hamilton HM 12,Bermuda MUFG Fund Services (Bermuda) Limited4th floor North, Cedar House,41 Cedar Avenue,Hamilton HM 12,Bermuda HONG KONG BRANCH SHARE REGISTRAR ANDTRANSFER OFFICE 慤1617 Tricor Tengis Limited17/F, Far East Finance Centre16 Harcourt RoadHong Kong WEBSITE http://www.winshine.comhttp://www.tricor.com.hk/webservice/000209 http://www.winshine.comhttp://www.tricor.com.hk/webservice/000209 Chairman’s Statement Dear fellow shareholders: The Board herein presents the annual report for 2023 and the auditedannual financial statements for the Group for the financial year ended 31December 2023. 38.4%522.8 Our Group continued the existing toys business in the past years. With highinflation and high interest rate in many countries, particularly in the UnitedStates (“US”), the global toy industry faced new challenges and experiencedslowdown in 2023. For the year ended 31 December 2023, revenue derivedfrom the manufacturing and trading of toys decreased by approximately38.4% to HK$522.8 million, which is mainly attributable to the decrease inthe purchase orders from one major customer in the US of the toys divisiondue to the competitive market conditions during the year. 0.44 Our Group has further engaged in the plantation and sale of agriculturalproducts in Japan by acquisition during the year. For the year ended31 December 2023, revenue derived from the plantation and sales ofagricultural products is HK$0.44 million. PROSPECTS We anticipate that 2024 is a challenging year. Inflation, despite a slowdown,remains a notable challenge. The Toys Division experienced tremendouspressure on product margins and turnover in FY2023, the Toys Division isexpected to continue facing challenges in 2024. The Board is looking for different business opportunities to diversify ourprincipal business activities and moving toward more profitable businessesin order to maintain competitiveness and ensure shareholder returns. Costcutting measures within the Group were put in place to reduce operatingcosts. The Board has also decided to give the Company a better financialposition to meet the future challenges. 6.5 In order to explore opportunities and provide sufficient fund for the generalworking capital, the Group issued new shares under the General Mandate atthe amount of approximately HK$6.5 million on 15 January 2024. During theyear, the Group has acquired the subsidiary which engaged in the plantationand sale of agricultural products in Japan. This investment is in line with theGroup’s plan to develop a business in the agricultural sector. On 16 April 2024, the Company entered into a non-legally bindingmemorandum of understanding with an independent third party experiencedin the medical field, in relation to the strategic cooperation in the medicalfield, pursuant to which the parties agreed to collaborate in the research anddevelopment, manufacturing and sales and marketing of medical aestheticsrelated drugs, including drugs that promote weight loss. The Board considersthat the said cooperation is in line with the Group’s business developmentneeds and strategy to move towards business diversification, and is expectedto create higher returns to the shareholders of the Company. As at the dateof this report, no formal or legally binding agreements have been enteredinto for the said cooperation. Shareholders and potential investors of theCompany are advised to exercise caution when dealing in the shares of theCompany. Looking forward, we are cautiously optimistic as our Toys Division andAgricultural Products Division continue to improve their performances andthe Board shall continue to explore more new business opportunities on amuch lower management cost and look for more new potential customersto increase the market shares. Jiang QinghuiChairman Manag