Financial Performance - Revenue for the year 2018 increased by approximately 10.7% to about $851 million, compared to $768.4 million in 2017[25] - Gross profit rose by approximately 7.7% to about $127.4 million, up from $118.3 million in the previous year[25] - Profit attributable to owners of the company grew by approximately 6.4% to around $23.3 million, compared to $21.9 million in 2017[25] - The basic earnings per share increased to 2.3 cents from 2.1 cents in 2017[14] - The apparel business revenue slightly decreased by 0.01% to approximately $530.96 million, but segment profit increased by about 6.4% to around $22.53 million[26] - The company reported a revenue increase of approximately 10.7% to about $851 million for the year ended December 31, 2018, driven by the growth in the apparel accessories business[55] - Gross profit rose by approximately 7.7% to about $127.4 million, contributing to a net profit increase of 6.4% to around $23.3 million compared to the same period in 2017[55] - The apparel segment generated approximately $530,958,000 in revenue for the year 2018, a slight decrease of about $63,000 or 0.01% compared to 2017[57] - The apparel segment's profit was approximately $14,938,000, a significant decrease of about 29.4% or $6,227,000 from the previous year, primarily due to a one-time tax provision of approximately $7,587,000[57] - The accessories segment contributed approximately $320,042,000 in revenue, an increase of about 34.8% compared to the previous year, with profit rising approximately 80.3% to about $19,163,000[57] Business Strategy and Development - The company has initiated a new business model through e-commerce platforms to customize products directly for customers, targeting the on-demand market[27] - The company aims to strengthen its market penetration and diversify its apparel accessory business through strategic acquisitions[28] - The company aims to achieve a balanced distribution ratio of approximately 50-50 between its apparel and accessories businesses as a strategic goal for the coming years[38] - The company anticipates a faster revenue growth in the coming years, driven by steady growth in the apparel business and strong growth in the accessories segment[38] - The company is focused on continuous improvement in its organizational structure to effectively execute its strategies and adapt to new opportunities[48] - The company is enhancing its supply chain relationships with key customers to leverage its manufacturing advantages in the growing on-demand market[38] - The company plans to expand its sportswear market share by collaborating closely with core customers to develop high-quality, uniquely designed products[70] - The company will continue to explore value-accretive acquisitions and joint ventures to strengthen its product offerings and expand capacity[65] Acquisitions and Investments - The acquisition of Universal Elite Holdings Limited and its subsidiaries was completed on October 31, 2018, enhancing the company's production capacity in GSP beneficiary countries[30] - The acquisition is expected to provide immediate capacity increases to meet the growing demand for apparel accessory products in GSP beneficiary countries[30] - The acquisition of Universal Group positively impacted the accessories segment, enhancing market penetration and customer base[63][64] - The acquisition of Universal Group provided new production facilities in Myanmar and Thailand, enhancing competitiveness in the accessories production sector[71] - The company aims to integrate production facilities in Myanmar and Thailand into its operational model to leverage trade advantages[73] Technology and Innovation - The company is investing in new technologies, including ProcessConnect 2.0 and EnterpriseConnect 2.0, to enhance its smart factory capabilities, with the goal of establishing the world's first paperless factories in Cambodia and Myanmar[47] - The introduction of IR 4.0 "smart technology" in the Cebu facility has received positive feedback and is expected to accelerate order growth and enhance the company's position among major clients[52] - The company plans to implement "smart" technology across newly acquired apparel accessory factories and various corporate functions from 2019 to 2020, paving the way for future "paperless factories"[52] - The company is reviewing its ERP functions and exploring new analytical tools to integrate into a new cloud-based ERP system, aiming for a more robust enterprise management system[49] Corporate Governance and Compliance - The company has arranged sufficient resources to ensure ongoing compliance with applicable laws and regulations in the countries where it operates[103] - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the standards set forth in the listing rules[186] - The independent auditor for the consolidated financial statements was PwC, and the company plans to propose their reappointment at the upcoming annual general meeting[183] - The group is committed to enhancing transparency and ethical conduct as part of its corporate governance practices[185] - The board of directors is responsible for reviewing and monitoring the company's compliance with legal and regulatory requirements[195] - The board consists of five executive directors, one non-executive director, and three independent non-executive directors, ensuring a high level of independence[197] Environmental and Social Responsibility - The company has implemented a multi-faceted environmental support plan across its production facilities, focusing on resource conservation, particularly in paper and water usage[44] - The company has implemented multiple environmental protection policies to minimize the impact of manufacturing activities on the environment, adhering to applicable environmental laws and regulations in the jurisdictions where its factories are located[102] - The company has established partnerships with organizations like the Tuloy Foundation to support community initiatives aimed at helping children[43] - The company made charitable and other donations amounting to approximately $391,000 during the year[123] - The group continues to implement targeted and strategic human resources strategies to align with growth and social responsibility initiatives[79] Financial Position and Capital Management - As of December 31, 2018, the group's cash and bank deposits totaled approximately $83,624,000, an increase of about $1,163,000 compared to December 31, 2017[76] - The total bank borrowings of the group as of December 31, 2018, amounted to approximately $147,343,000, an increase of about $44,204,000 compared to December 31, 2017[76] - The capital debt ratio of the group as of December 31, 2018, was 31.2%, calculated as net debt (equal to bank borrowings minus cash and bank balances) divided by shareholders' equity[77] - The group has potential contingent liabilities related to overseas import duties, taxes, and penalties amounting to approximately $5,504,000[75] - The group adopts prudent policies to hedge against exchange rate fluctuations, with most operations valued in USD, EUR, HKD, and other currencies[78] Shareholder Information - The company declared an interim dividend of $0.262 per share, totaling approximately $2.709 million, and proposed a final dividend of $0.414 per share, totaling about $4.281 million, subject to shareholder approval[99] - The company reported a reserve available for distribution to shareholders of $84,078,000 as of December 31, 2018, with details on changes in reserves provided in the consolidated financial statements[118] - The total issued share capital of the company as of December 31, 2018, is 1,034,112,666 shares[170] - The public float of the company was restored to 26.65% after the placement of 40,000,000 shares and the sale of 158,295,905 shares by major shareholders[177] - The group’s top five customers accounted for approximately 60.2% of total sales, up from 56.7% in 2017[181]