Financial Performance - Revenue for 2023 was HK7,946.7 million in 2022[7] - Gross profit margin improved to 62.0% in 2023 from 57.8% in 2022[7] - Net profit attributable to equity holders was HK611.4 million in 2022[7] - Basic earnings per share decreased to HK0.1092 in 2022[7] - The final dividend per share was HK0.168 in 2022[7] - Revenue for 2023 decreased by 7.8% to HKD 7,323.5 million compared to HKD 7,946.7 million in 2022, with a 2.9% decline in RMB terms[24][26] - Net profit for 2023 decreased by 46.8% to HKD 325.3 million compared to 2022[25] - Gross profit decreased by approximately 1.2% from HK4,540.4 million in 2023, while gross margin increased from 57.8% to 62.0%[30] - Operating profit declined sharply by 80.5% from HK130.4 million in 2023[32] - Profit attributable to equity holders decreased by 46.8% from HK325.3 million in 2023[34] - Revenue for 2023 decreased to HKD 7,323,532K from HKD 7,946,733K in 2022, a decline of 7.8%[187] - Gross profit for 2023 was HKD 4,540,420K, slightly down from HKD 4,595,441K in 2022[187] - Operating profit dropped significantly to HKD 130,435K in 2023 from HKD 668,889K in 2022[187] - Net profit for the year was HKD 325,309K, a 46.8% decrease compared to HKD 611,366K in 2022[187] - Basic earnings per share dropped to 5.84 HK cents in 2023 from 10.92 HK cents in 2022[188] - Net profit for the year 2023 was HKD 325,309 thousand[193] - Total comprehensive income for the year 2023 was HKD 231,797 thousand, including other comprehensive losses of HKD 93,512 thousand[193] - The company's total comprehensive loss for 2022 was HKD 118,520 thousand, including other comprehensive losses of HKD 729,886 thousand[195] Sales and Revenue Breakdown - Online sales accounted for 52.0% of total revenue in 2023, up from 47.3% in 2022[10] - Revenue from fabric care products was HK447.0 million in 2023 from HK375.9 million in 2023, down from HK100.1 million in 2022 to HK2,651.0 million in 2022 to HK178.8 million in 2022 to HK4.0 million and HK370.6 million to HK85.3 million, primarily for expanding production capacity[35] - The company maintained a strong liquidity position with a current ratio of 6.70x as of December 31, 2023[35] - Total assets decreased to HKD 12,052,641K in 2023 from HKD 12,729,725K in 2022[189] - Cash and cash equivalents stood at HKD 4,342,528K in 2023, down from HKD 7,702,373K in 2022[189] - Trade receivables and bills decreased to HKD 1,404,647K in 2023 from HKD 2,050,546K in 2022[189] - Total equity decreased to HKD 10,379,043K in 2023 from HKD 11,072,780K in 2022[189] - Total liabilities increased slightly to HKD 1,673,598K in 2023 from HKD 1,656,945K in 2022[190] - Cash flow from operating activities for 2023 was HKD 749,316 thousand, a decrease from HKD 560,673 thousand in 2022[196] - Cash flow used in investing activities for 2023 was HKD 3,027,567 thousand, primarily due to an increase in fixed deposits of HKD 2,938,097 thousand[196] - Cash flow used in financing activities for 2023 was HKD 1,037,603 thousand, mainly due to dividend payments of HKD 936,026 thousand[196] - Cash and cash equivalents decreased by HKD 3,315,854 thousand in 2023, ending the year at HKD 4,342,528 thousand[196] - The company's total equity as of December 31, 2023, was HKD 10,379,043 thousand, compared to HKD 11,072,780 thousand at the beginning of the year[193] - The company issued ordinary shares upon the exercise of share options, resulting in an increase of HKD 3,295 thousand in equity[193] - The company allocated HKD 90,796 thousand to statutory surplus reserves[193] Market Position and Brand Strength - Blue Moon's laundry detergent has ranked first in market share for 14 consecutive years (2009-2022), and hand sanitizer for 11 consecutive years (2012-2022)[17] - Blue Moon's laundry detergent and hand sanitizer have ranked first in the China Brand Power Index for 13 consecutive years (2011-2023)[17] - Blue Moon has nearly 100 product varieties, covering various aspects of daily life[17] - Blue Moon ranked first in sales across multiple platforms during major shopping festivals like 618 and Double 11[18] - The company ranked first in sales on JD.com and Douyin during major shopping festivals, maintaining its leadership in the laundry and hand wash categories[22] ESG and Sustainability - Blue Moon has 48 products certified as "China Environmental Labeling Products," 15 as "China Water-Saving Products," 25 as "China Green Products," and 3 as "China Concentrate+"[19] - Blue Moon was rated AAA by Wind and included in the "ESG Best Practice 100," one of only 5 companies with an AAA rating[20] - The company set ESG goals covering greenhouse gas emissions, energy use, and water efficiency, with details published in the 2023 ESG report[111] - The company will continue to optimize its dividend policy and adhere to ESG principles, promoting green and low-carbon development[23] Product Development and Innovation - Blue Moon launched the "Pure Enjoy Foam Body Wash" in the second half of 2023, expanding its personal care product line[21] - The company plans to enhance its omnichannel sales network, focus on digital transformation, and introduce new products in 2024[23] Operational and Strategic Initiatives - Blue Moon optimized its offline distributor network, improving inventory management and increasing sales point coverage[21] - Blue Moon implemented a reward system to incentivize distributor sales representatives, enhancing product placement and sales[21] - Blue Moon focused on expanding its market presence in counties and townships across China, increasing offline sales coverage[21] - The company operates four production bases in Guangzhou, Tianjin, Kunshan, and Chongqing, China[12] - The company plans to enhance its omnichannel sales network, focus on digital transformation, and introduce new products in 2024[23] Corporate Governance and Board Structure - The company has adopted the "Corporate Governance Code" as its governance standard and has complied with all applicable code provisions for the year ended December 31, 2023[124] - The company has established a culture of trust, respect, and excellence, aligning with its vision and strategy to meet consumer needs and promote long-term healthy development[123] - The Board has delegated the authority and responsibility for executing business strategies and managing daily operations to the executive directors and senior management[128] - The company has implemented a "Standard Code" for directors' securities transactions, with reminders issued twice a year to ensure compliance[125] - All directors have confirmed compliance with the "Standard Code" requirements for the year ended December 31, 2023[126] - The Board has three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined terms of reference[127] - The company has purchased appropriate directors' and officers' liability insurance and will review the coverage annually[128] - Independent non-executive directors provide independent judgment on the company's development, performance, and risk management[127] - The Board regularly reviews its composition to ensure a balance of professional knowledge, skills, and experience for effective supervision[127] - The Board of Directors held a total of four meetings in 2023, in compliance with the Corporate Governance Code, with each meeting held approximately quarterly[130] - The Chairman held separate meetings with independent non-executive directors without the presence of other directors, as required by the Corporate Governance Code[130] - The Board of Directors is responsible for leading, guiding, and supervising the company's business, strategic decisions, and performance, with authority over policy matters, strategy, budgets, internal controls, risk management, and major transactions[134] - The company provides training to directors on their statutory and regulatory responsibilities as directors of a Hong Kong-listed company, including updates on significant changes to the Listing Rules and corporate governance practices[135] - All directors received continuous professional development training in 2023 through reading materials and attending briefings, lectures, meetings, courses, and seminars organized by the company or professional bodies[137] - The roles of the Chairman and CEO are clearly defined and separated to ensure independence, accountability, and a balanced distribution of power and responsibilities[140] - The Audit Committee reviewed the Group's financial reporting procedures, risk management, and internal control systems, ensuring compliance with applicable accounting standards and listing rules[141][142] - The Audit Committee held four meetings and three meetings with the external auditor during the year ended December 31, 2023[142] - The Remuneration Committee determined the remuneration policy for executive directors and assessed their performance, with no awards granted under the 2021 or 2022 Share Award Schemes[143][144] - The Remuneration Committee held one meeting during the year ended December 31, 2023[144] - The Nomination Committee reviewed the Board's structure, size, composition, and diversity, and made recommendations for changes to align with the company's strategy[145] - The Nomination Committee held one meeting during the year ended December 31, 2023[145] - The Board maintains a balance between executive and independent non-executive directors to ensure a high level of independence[146] - The company has a clear nomination and appointment process for directors, considering qualifications, skills, experience, character, integrity, independence, and diversity[147] - The Nomination Committee conducted an annual review of the mechanisms to ensure the Board receives independent views and opinions[148] - No independent non-executive director serves on the boards of more than seven listed companies or has served as an independent non-executive director of the company for more than nine years[149] - The Board of Directors consists of 4 female directors (50%) and 4 male directors, with diverse educational and professional backgrounds, aiming to maintain at least the current level of female representation and achieve gender parity over time[152] - The company's Corporate Secretary, Mr. Pan Guoliang, has completed at least 15 hours of professional training in compliance with Listing Rule 3.29 during the year ended December 31, 2023[157] Risk Management and Internal Controls - The company has established a comprehensive risk management system since 2021, involving risk identification, assessment, and management to mitigate inherent business risks[159] - The company's risk management framework includes three lines of defense: operational departments, professional departments (e.g., finance, legal), and internal audit functions[159] - The Board conducts annual reviews of the company's risk management and internal control systems, covering financial, operational, and compliance controls[160] - The company's internal audit function identifies control deficiencies and proposes improvements, with results communicated to management for corrective actions[162] - The company has implemented procedures for handling and disclosing inside information, including confidentiality protocols and communication with relevant employees[163] Shareholder and Investor Relations - The company recommended a final dividend of HK334.3 million[44] - The company has 5,862,993,406 issued shares as of December 31, 2023[45] - The company issued 876,500 fully paid shares during the year due to the exercise of pre-IPO share options, with a total consideration of HK11,897.6 million[47] - The company purchased property, plant, and equipment worth HK5.9 million for the year ended December 31, 2023[47] - The company has no borrowings as of December 31, 2023[47] - The total number of issued shares as of December 31, 2023, is 5,862,993,406 shares[54] - ZED Group Limited holds 4,446,000,000 shares, representing 75.83% of the company's total shares[54][60] - HHLR Advisors, Ltd. holds 527,422,500 shares, representing 9.00% of the company's total shares[60] - HHLR Fund, L.P. holds 526,542,800 shares, representing 8.98% of the company's total shares[60] - HCM BM Holdings Ltd. holds 500,000,000 shares, representing 8.53% of the company's total shares[60] - Pan Dong holds 4,446,000,000 shares through controlled entities, representing 75.83% of the company's total shares[54] - Luo Qiuping holds 4,446,000,000 shares through spousal interests, representing 75.83% of the company's total shares[54] - Luo Dong holds 4,800,000 shares, representing 0.08% of the company's total shares[54] - Pan Guoliang holds 1,000,000 shares directly and 3,500,000 shares through controlled entities, representing 0.02% and 0.06% of the company's total shares respectively[54] - Xiao Haishan holds 837,500 shares, representing 0.01% of the company's total shares[54] - Total issued shares as of December 31, 2023, were 5,862,993,406[61] - ZED directly holds 75.64% of the shares and indirectly holds 0.19% through VGL[61] - HCM BM Holdings, Ltd. is 95.32% owned by HHLR Fund L.P., which beneficially owns 26,542,800 shares[61] - The company has granted a total of 61,651,000 share options, representing approximately 1.05% of the total issued shares as of December 31, 2023[64][65] - Under the 2021 Share Award Scheme, 21,414,999 reward shares were granted to 366 employees[64] - The exercise price for each share option under the Pre-IPO Share Option Scheme is HK$3.76[70] - The Pre-IPO Share Option Scheme has a remaining term of 6.96 years as of December 31, 2023[71] - As of December 31, 2023, 47,676,023 shares remain available for issuance under the Pre-IPO Share Option Scheme, representing approximately 0.81% of the total shares[72] - 4,800,000 stock options granted to Ms. Luo Dong remain unexercised as of December 31, 2023, with an exercise price of HKD 3.76 per share[73] - 975,000 stock
蓝月亮集团(06993) - 2023 - 年度财报