Revenue and Profit Performance - Revenue for 2023 was 1,331,456,000 HKD, a decrease from 1,415,709,000 HKD in 2022[1] - Gross profit for 2023 was 758,515,000 HKD, compared to 769,790,000 HKD in 2022[1] - Operating profit for 2023 was 101,774,000 HKD, down from 152,708,000 HKD in 2022[1] - Profit attributable to owners of the company for 2023 was 116,164,000 HKD, a 25% decrease from 154,462,000 HKD in 2022[25] - Net profit for the year was HKD 116,164,000, compared to HKD 154,462,000 in the previous year[69] - Operating profit fell by 33% to HKD 101,774,000, with an operating profit margin of 8%, down from 11% last year[118] Property Sales and Rental Income - The company delivered 99 residential units in 2023, generating sales revenue of 92,621,000 HKD, a 33% decrease from the previous year[31] - The company's rental and property management income in Guangzhou increased by 2% in RMB terms, with an overall occupancy rate of 83%[30] - The company's Meixian "Goldlion Garden" project has approximately 670 residential units and 47 low-rise units remaining for sale[31] - The occupancy rate of the company's "Golden Lion Group Centre" in Sha Tin was 94.3%, with overall rental and property management income decreasing by approximately 4%[48] - Rental and property management income for the year were HKD 151,489,000 and HKD 42,150,000, respectively, with a total decrease of about 1% compared to the previous year, mainly due to the depreciation of the RMB exchange rate[143] Clothing Business Performance - The company's Singapore clothing business recorded expenses of 21,012,000 HKD in 2023, up from 18,356,000 HKD in 2022[29] - The company's domestic clothing sales to agents decreased by approximately 14% in RMB terms, accounting for about 34% of domestic clothing sales[26] - Full-year cost of sales for apparel and accessories was HK475,055,000[40] - Gross margin excluding inventory impairment was 53.3%, higher than last year's 50.8%, driven by a higher proportion of self-operated retail sales[40] - Inventory impairment provision for the year was HK33,813,000 last year[40] - Group custom business sales in RMB decreased by approximately 52% compared to last year, though its contribution to overall domestic apparel sales was minimal[45] - Overall clothing sales in mainland China decreased by 2% to HKD 916,390,000, but increased by 3% in RMB terms due to a 4% depreciation of the RMB[92] - Outlet store sales in mainland China surged by 39% in RMB terms, accounting for 14% of the company's domestic clothing sales[93] - Franchise income declined by 17% to HKD 93,132,000 due to fee reductions in certain franchise agreements[94] - Self-operated retail sales in mainland China increased by 39% in RMB terms, contributing to 18% of domestic clothing sales[120] - E-commerce sales in mainland China grew by 9% in RMB terms, with 95% of sales coming from exclusive products, accounting for 29% of domestic clothing sales[121] - Singapore's clothing sales rose by 3% to HKD 35,674,000, but the segment recorded a loss of HKD 2,754,000 due to inventory impairment provisions and rising costs[122][123] Financial Position and Cash Flow - The company's cash and bank balances as of December 31, 2023, were approximately 1,088,801,000 HKD, a decrease of 88,075,000 HKD from the previous year[33] - As of December 31, 2023, the company had no bank loans or overdrafts, with a debt-to-equity ratio of zero[51] - The company's total issued shares as of December 31, 2023, were 973,844,035, compared to 978,436,035 in 2022[54] - Total non-current assets amounted to HKD 3,015,860,000, slightly lower than the previous year's HKD 3,070,818,000[70] - Net interest income rose by 20% to HKD 25,659,000, driven by higher average deposit rates[91] - As of December 31, 2023, the company provided guarantees of HKD 20,364,000 for mortgage loans of property buyers, a significant decrease from HKD 77,318,000 in 2022. The company believes the net realizable value of the properties is sufficient to cover the defaulted mortgage principal, accrued interest, and penalties, hence no provision was made in the financial statements[128] Costs and Expenses - Employee costs, including directors' remuneration, were HKD 224,016,000, up from HKD 203,617,000 in the previous year[80] - Advertising and promotion expenses increased to HKD 111,192,000 from HKD 98,235,000 in the previous year[80] - Distribution and marketing costs increased by 10% to HKD 447,488,000 compared to HKD 406,197,000 last year, due to the resumption of promotional activities that were previously canceled or delayed due to pandemic measures[90] - Direct operating expenses for investment properties for the year were HKD 37,684,000, a 2% decrease from HKD 38,483,000 in the previous year, mainly due to a 4% depreciation in the RMB exchange rate[136] - Administrative expenses for the year were HKD 162,187,000, a 5% increase from HKD 153,775,000 in the previous year, driven by non-sales staff costs, depreciation, amortization, impairment expenses, and other miscellaneous expenses[137] Share Repurchase and Earnings - The company repurchased a total of 4,592,000 shares in 2023 at a total cost of HK$4,838,510 (before expenses)[54] - Basic earnings per share were calculated based on a net profit attributable to shareholders of HKD 116,164,000 and a weighted average of 978,385,013 shares issued during the year[83] - The company repurchased 4,592,000 ordinary shares at a total cost of HKD 4,879,000 (including transaction costs and expenses of HKD 40,000), with an average price of HKD 1.054 per share. The repurchased shares were canceled, and the company believes this will improve earnings per share and return on assets, benefiting capital structure and shareholder equity[148] Investment Property and Valuation - Investment property fair value loss was HKD 47,066,000, down from HKD 57,110,000 in the previous year[79] - Investment property fair value loss decreased by 18% to HKD 47,066,000, primarily driven by valuation declines in domestic properties, particularly in Guangzhou[96][117] Environmental and Energy Initiatives - The company's Meizhou factory and Guangzhou Yuancun property have installed photovoltaic facilities to promote environmental protection and save electricity costs. A new energy company engaged in photovoltaic business was established domestically, with operations expected to further develop in 2024[126] Employee and Compensation - The company employed approximately 1,800 employees as of December 31, 2023, with total employee costs, including directors' remuneration, amounting to HKD 224,016,000. Competitive compensation is ensured based on job nature, market conditions, individual performance, qualifications, and experience[129] Tax and Provisions - The company's provision for Hong Kong profits tax was calculated at a rate of 16.5% on the estimated taxable profit for the year[82] - The company's gross margin, excluding inventory impairment changes, was 55%, higher than the previous year's 51%, due to the sale of higher-margin new products. Inventory impairment provisions for the year were HKD 1,019,000, compared to a reversal of HKD 3,746,000 in the previous year[142] Future Outlook and Challenges - The company expects the weak domestic economic situation to persist, making the operating environment in 2024 very challenging[49] - The company plans to improve the leasing situation of "Golden Lion Digital Network Building" and other properties to reduce vacancies and enhance leasing potential[50] Brand and Cultural Initiatives - The company operates three "Goldlion 3388" cultural life museums in Shanghai and Guangzhou, promoting the "Goldlion" brand culture and the new "3388" brand concept. The operating loss for the year, after accounting for various expenses and provisions, was approximately HKD 29,730,000[140] Domestic Clothing Sales Strategy - The company's domestic clothing sales continue to focus on wholesale business to agents in multiple provinces, self-operated retail and outlet stores in cities like Guangzhou, Shanghai, Beijing, Chongqing, Liaoning, Jilin, and Shandong, as well as e-commerce and group customization[139]
金利来集团(00533) - 2023 - 年度业绩