Financial Performance - Total revenue for 2023 was HKD 4,050,581, a decrease of 30.9% from HKD 5,867,037 in 2022[10] - Gross profit for 2023 was HKD 1,062,171, down 50.1% from HKD 2,123,541 in 2022[10] - Net profit for the year was HKD 400,665, a decline of 65.3% compared to HKD 1,156,775 in 2022[10] - Basic earnings per share for 2023 were 48.6 HKD cents, a decrease of 65.3% from 140.2 HKD cents in 2022[10] - The company reported a total comprehensive income of HKD 348,214 for 2023, down from HKD 627,552 in 2022, a decline of 44.5%[10] - Profit for 2023 dropped by 65.3% to HKD 401 million[35] - The company reported a net profit of HKD 400,665,000 for 2023, a significant decrease of 65.3% compared to HKD 1,156,775,000 in 2022[59] - The basic earnings per share for the year ended December 31, 2023, was 48.6 HKD cents, a decrease from 140.2 HKD cents in 2022[99] Revenue Breakdown - Revenue decreased by 31.0% to HKD 4,051 million due to falling prices[35] - Revenue from the chemical manufacturing and sales segment was HKD 3,980,919, down 30.9% from HKD 5,772,679 in 2022[44] - The revenue from the property sales segment decreased to HKD 67,552 from HKD 94,358, representing a decline of 28.5%[44] - Total revenue from external customers for the chemical segment was HKD 5,772,679 thousand[31] - The group recorded a revenue of approximately HKD 3.981 billion, a decrease of HKD 1.792 billion or 31.0% compared to the previous year, primarily due to a significant drop in average product prices influenced by weak market conditions[121] Government Support - The company received HKD 19,061,000 from the Chinese government for innovation technology projects, down from HKD 27,304,000 in 2022[2] - The company plans to allocate the government funding towards relevant R&D expenses[2] - The company recognized government subsidies of HKD 64,660, an increase of 42.2% from HKD 45,446 in 2022[52] Assets and Liabilities - Non-current assets totaled HKD 5,392,810 in 2023, slightly down from HKD 5,392,810 in 2022[12] - Total assets less current liabilities amounted to HKD 5,857,151 thousand[38] - The net asset value of the company was HKD 5,799,755 thousand as of December 31, 2023[38] - The company’s total liabilities decreased to HKD 408,230 from HKD 338,392, indicating a rise in trade and other payables[65] - As of December 31, 2023, the total liabilities for trade and other payables amounted to HKD 408.242 million, down from HKD 522.936 million in 2022[92] Dividends - The company plans to declare a final dividend of HKD 0.14 per share, totaling HKD 0.19 per share for 2023, down from HKD 0.55 per share in 2022[35] - The board proposed a final dividend of HKD 0.14 per share, down from HKD 0.17 per share in 2022, totaling HKD 115.5 million[87] Operational Efficiency - The company plans to continue investing in automated production across three sites to enhance production efficiency and cost-effectiveness[71] - The company is focusing on improving production processes and implementing energy efficiency and water conservation initiatives to reduce carbon emissions[72] - The group aims to maintain low borrowing levels to protect operating profits from high interest rates[71] Market Conditions - The company anticipates that 2024 will be a year of testing operational resilience amid ongoing challenges in consumer and manufacturing market confidence[71] - The average selling prices per ton for various chemical products decreased significantly, with methylene chlorides down approximately 50%, 31%, and 41%, and caustic soda down about 26%[100] Inventory and Receivables - The inventory value for 2023 was HKD 787,749, a decrease of 6.7% from HKD 844,137 in 2022[63] - The inventory turnover days increased to 100 days from 82 days in the previous year, indicating a longer time to sell inventory[105] - The accounts receivable turnover days were controlled at 22 days, compared to 18 days last year, consistent with the normal credit period given to customers of 7 to 150 days[130] Research and Development - Research and development costs amounted to approximately HKD 121 million, representing about 3.0% of total revenue, with continued investment in new product development and optimization of technology[128] - The group is focusing on research and development of high value-added chemical products to strengthen its competitive advantage[119] Financing and Debt - Bank borrowings increased to HKD 671,767 in 2023 from HKD 523,156 in 2022, an increase of 28.4%[13] - The group is actively optimizing its financing cost structure and increasing the proportion of RMB-denominated loans[107] - As of December 31, 2023, the group's bank balance and cash were HKD 264 million, down from HKD 422 million in 2022, while net debt increased to HKD 408 million from HKD 322 million in 2022[132] - The net debt to equity ratio as of December 31, 2023, was 7.04%, up from 5.72% in 2022[132]
理文化工(00746) - 2023 - 年度业绩