On behalf of the Board of Crystal International Group Limited, I am pleased to present the annual results of the Group for the year ended 31 December 2023. Despite a year fraught with challenges and unprecedented changes, our Group has put persistent efforts into making significant strides in various facets of our business.
2023 has been a complex year, with the global economy continuing to navigate through post-pandemic recovery amidst geopolitical tensions and customers’ inventory reduction. During these tough times, the Group has showcased a steadfast commitment to operational excellence and strategic growth.
Under the strategic leadership of Mr. Andrew LO, our CEO, the Group has initiated the execution of a comprehensive strategy aimed at enhancing profitability and optimising capabilities to ensure that we are positioned to maximise our operational potential and achieve significant cost reductions. The management has meticulously crafted a forward-thinking agenda, focusing on streamlining processes, investing in technologies that promote efficiency, and fostering an innovative culture that encourages sustained improvement. This strategy is not just about cutting costs, but about smart investments and resource management that lead to leaner, more agile operations, capable of delivering superior value to our stakeholders. Manufacturing excellence remains as our competitive edge in enhancing efficiency and driving innovations. Modernisation Centre in Vietnam was established, where our innovative ideas are incubated after a series of design, fabrication, programming and testing processes. The Group’s vision is clear: to build a robust foundation that supports sustainable growth and solidifies our market position while honouring our commitment to excellence and customer satisfaction.
Crystal is continuing the digital transformation and automation journey. We are now exploring cutting-edge digital solutions that will streamline our operations, enhance our customer service delivery, and unlock new value within our business model by automation. Embracing digital technologies not only improves our operational efficiency but also provides us with valuable insights to drive informed decision-making, trim costs and foster innovation.
Our corporate governance has consistently been maintained at a high standard, and with the Board evaluation undertaken last year, we have taken deliberate steps to review and enhance Board efficiency and effectiveness. We have streamlined decision-making processes, facilitated better communication among Board members, and empowered the committees and Board members with well-defined roles and responsibilities, all of which contribute to a more dynamic and responsive governance framework. Alongside these improvements, optimising our risk management processes has been crucial for the Board to proactively and strategically identify, assess, and mitigate potential risks. These integrated efforts, which combine best practices with a robust approach to risk management, ensure that our activities are conducted with transparency and accountability, fortifying our commitment to exemplary corporate governance.
The strength of the Group’s international operations lies in the diversity and talent of our people, including our leadership. We take pride in the diverse composition of our Board of Directors, which brings together a wide array of perspectives, experiences, and skills. This diversity enriches our discussions, informs our decision-making, and enhances our governance, manufacturing and technology capabilities, helping us to better reflect and serve the communities in which we operate.
Our dedication to sustainability has been the prime concern of our operations. We are conscious of our environmental footprint and have continued to implement measures that foster sustainable growth. These investments ensure that Crystal remains a leader in the industry by raising the bar in quality, efficiency, and sustainability.
Continuing the momentum of our accomplishments over the three cycles of Global 5-year Sustainability Targets since 2007, Crystal embarked on the new journey of Crystal Sustainability Vision 2030 (“CSV2030”) in 2023. This serves as an ambitious milestone guiding our sustainability agenda forward. With reference to the United Nations Sustainable Development Goals, stakeholder concerns and industry traits, CSV2030 sets out eight impact areas in both environmental and social aspects. CSV2030 provides strategic directions for our operating facilities to devise sustainability initiatives that address the emerging environmental, social and governance issues in a broader scope.
Climate change continues to be our major focus. The Group stepped up the advancement for our Net Zero 2050 vision and the interim target of 35% absolute carbon reduction by 2030. In 2023, the Group exerted unwavering efforts to develop, refine and implement our company-wide Net Zero Roadmap across all factories. Around 180 energy efficiency measures across global operations are identified to be adopted by 2028. In addition to enhancing energy efficiency, the Group-wide solar photovoltaic (“PV”) plan has been optimised to maximise the PV potential and strategise installations systematically. Our total solar PV capacity has reached 12 Megawatts (“MW”), a threefold increase compared with that in 2021. The management are motivated to embrace more partnership opportunities amidst various challenges with our customers and other industry peers. In 2023, sustainability efforts were expanded due to our vertical integration in fabric production. I welcome you all to peruse our Sustainability Report 2023 for details of our achievements.
Dedicated to sustainable development and climate poverty relief, Crystal, in partnership with Crystal Climate Charity Foundation, a charitable trust in Hong Kong, installed 268 solar streetlights in communities near our Cambodia and Vietnam factories in 2023, illuminating around 6.7 kilometers of roads in a climate positive way and enhancing local living conditions and communal safety after dark. In 2024, we set to add 366 more solar public lightings in Bangladesh, Cambodia, and Vietnam, furthering our commitment to social responsibility and a sustainable future for our communities.
Looking to the future, we remain focused on our mission to deliver excellence in all aspects of our business. With our strategic objectives, we are poised to continue our trajectory of growth and success. We are enthusiastic about the opportunities that digital transformation will continue to bring, and we are committed to maximising the benefits of a diverse and inclusive corporate culture.
I want to express my sincere gratitude to our shareholders for your continued trust and support. I also extend my thanks to our customers, partners, and suppliers for their loyalty and collaboration. Most importantly, I commend our dedicated employees whose hard work and passion are the cornerstones of our success.
In closing, we are confident that the strategies we have in place will steer us toward a future marked by growth, innovation, and sustainable success. We look forward to sharing this journey with all our stakeholders.
Mr. LO Lok Fung Kenneth
Chairman of the Board
Hong Kong, 21 March 2024