旷世控股二零二三年年报

CONTENTS 02Definition04Corporate information08Chairman’s statement10Management discussion and analysis20Directors and senior management28Report of the directors39Corporate governance report54Independent auditor’s reportConsolidated financial statements61Consolidated statement of profit or loss andother comprehensive income63Consolidated statement of financial position65Consolidated statement of changes in equity67Consolidated statement of cash flows69Notes to the consolidated financial statements168Summary financial information In case of any inconsistency between the English version and theChinese version of this annual report, the English version shallprevail. And if there is any inconsistency between the Chinesenames of the entities or enterprises established in the PRCmentioned in this annual report and their English translations,the Chinese names shall prevail. The English translations of theChinese names of such PRC entities or enterprises are providedfor identification purposes only. In this annual report, unless the context otherwise requires, thefollowing terms shall have the meanings set out below: CORPORATE INFORMATION BOARD OF DIRECTORS Executive directors Mr. JIN Jianxin (Chairman)Mr. TIAN Dong Non-executive director Mr. SHAO Patrick Independent non-executive director Mr. LAI Chun YuMs. XU QiongMr. ZHOU Kai COMPANY SECRETARY Mr. LAU Chung Wai (FCPA (Practising)) AUDIT COMMITTEE Mr. LAI Chun Yu (Chairman)Mr. SHAO PatrickMr. ZHOU Kai REMUNERATION COMMITTEE Mr. ZHOU Kai (Chairman)Mr. JIN JianxinMr. LAI Chun Yu NOMINATION COMMITTEE Ms. XU Qiong (Chairlady)Mr. JIN JianxinMr. LAI Chun Yu AUTHORISED REPRESENTATIVES (for the purpose of the Listing Rules)Mr. LAU Chung WaiMr. TIAN Dong EXTERNAL AUDITOR PricewaterhouseCoopersCertified Public AccountantsRegistered Public Interest Entity Auditor22nd FloorPrince’s BuildingCentral, Hong Kong 22 REGISTERED OFFICE 89 Nexus WayCamana BayGrand CaymanKY1-9009Cayman Islands 89 Nexus WayCamana BayGrand CaymanKY1-9009Cayman Islands PRINCIPAL PLACE OF BUSINESS IN HONG KONG 84111102 Unit 1102, 11th FloorBrill Plaza, No. 84 To Kwa Wan RoadTo Kwa Wan, KowloonHong Kong HEAD OFFICE AND PRINCIPAL PLACE OFBUSINESS IN THE PRC 827 827 Qixiang RoadNingbo City, Zhejiang ProvincePRC PRINCIPAL SHARE REGISTRAR Ogier Global (Cayman) Limited89 Nexus WayCamana BayGrand CaymanKY1-9009Cayman Islands Ogier Global (Cayman) Limited89 Nexus WayCamana BayGrand CaymanKY1-9009Cayman Islands HONG KONG SHARE REGISTRAR 1617 Tricor Investor Services Limited17th Floor, Far East Finance CentreNo. 16 Harcourt RoadHong Kong STOCK CODE 1925 1925 WEBSITE http://www.kwungs.com(information on the website does not form part of this annual report) http://www.kwungs.com CHAIRMAN’S STATEMENT Dear Shareholders, Greetings! Over the past year, our company has achieved remarkable growthin performance. Our total revenue exceeded RMB 800 million,representing a year-on-year increase of 12%, while our net profitreached RMB 60.8 million, a remarkable 16% increase compared tothe previous year (see page 117 of this report). In the domestic market,we also delivered an outstanding performance, with sales revenueincreasing by 48% year-on-year, and our brand business achieving animpressive 60% year-on-year growth. 812%6,08016%11748%60% To meet the growing market demand, we have been actively expandingour production capacity. Our new production base in Wuhu, AnhuiProvince, is under construction at full speed and is expected to beofficially operational soon, significantly enhancing our productioncapabilities and supply chain responsiveness. CHAIRMAN’S STATEMENT(CONTINUED) Since our listing, we have adhered to the corporate spirit of jointendeavor and share success. By strengthening our supply chain andmarket management, we have ensured ample cash flow, not onlysafeguarding the company’s sustainable development but also enablingus to continuously reward our investors with a stable annual dividenddistribution. As fragrance products become increasingly prominent in healthylifestyles, as a industry leader, we will fully leverage this market trendto drive the continued growth and prosperity of the company. I firmlybelieve that Kwung’s Holdings has a promising future and is worthy ofevery investor’s trust and support! Chairman of the BoardJIN Jianxin 2024328 28 March 2024 MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW The Group provides solutions to customers on design and manufactureof home decoration products and home fragrance products, comprisingcore products such as home fragrance candles and home fragrancediffusers, which are considered to be widely used in people’s daily life. The Group has taken some measures during the year ended 31December 2023 to further improve on the production management,product development and sales channel, which are considered to beone of the reasons for achieving a steady growth on the revenue inspite of the relatively sluggish econo