Financial Performance - Revenue for 2023 reached HKD 4.216 billion, an increase from HKD 3.731 billion in 2022, representing a growth of approximately 13%[2] - Profit attributable to equity shareholders was HKD 171.23 million, significantly up from HKD 30.77 million in 2022, marking an increase of about 455%[2] - Earnings per share for 2023 was HKD 0.63, compared to HKD 0.11 in 2022, reflecting a substantial increase of 472%[2] - Operating profit for 2023 was HKD 308.20 million, up from HKD 182.05 million in 2022, indicating a growth of approximately 69%[2] - Gross profit for the year was HKD 1.783 billion, compared to HKD 1.449 billion in 2022, representing an increase of about 23%[2] - Total comprehensive income for the year was HKD 184.55 million, a significant increase from HKD 2.54 million in 2022[34] - The group recorded a profit attributable to equity shareholders of HKD 171 million for the year ended December 31, 2023, compared to a profit of HKD 31 million in 2022, representing a significant increase[63] - The company reported an annual profit of HKD 180,173,000 for 2023, compared to HKD 39,824,000 in 2022, indicating significant growth[131] - The total comprehensive income for the year was HKD 184,550,000, a substantial increase from HKD 2,535,000 in the previous year[134] - The company reported a net profit of HKD 180,173,000 for the year, compared to HKD 39,824,000 in 2022[186] Dividends - The company declared a final dividend of HKD 0.19 per share for the year[2] - The group declared an interim dividend of HKD 0.06 per share and a proposed final dividend of HKD 0.19 per share for 2023[75] - The company plans to declare a final dividend of HKD 0.19 per share for the year ended December 31, 2023, compared to no dividend in 2022[110] - The total dividend for the year is projected to be HKD 0.25 per share, compared to no dividends in 2022[123] Revenue Breakdown - The revenue from the apparel segment was HKD 1,932,856,000 in 2023, slightly down from HKD 1,939,077,000 in 2022, indicating a decrease of about 0.1%[42] - The brand business generated revenue of HKD 2,282,811,000 in 2023, up from HKD 1,792,117,000 in 2022, reflecting a significant increase of approximately 27%[42] - Revenue from brand operations increased from HKD 1.792 billion in 2022 to HKD 2.283 billion in 2023, with Nautica and Spyder revenues growing by 53% and 67% respectively[87] - Revenue from products sold in Hong Kong amounted to HKD 117,675,000 in 2023, down from HKD 194,067,000 in 2022, reflecting a decline in local sales[160] Expenses and Costs - The company incurred employee benefit expenses of HKD 732,940,000 in 2023, an increase from HKD 665,341,000 in 2022[163] - The cost of inventory for the year was HKD 2,432,652,000, up from HKD 2,282,219,000 in the previous year, indicating rising costs[163] - Depreciation expenses for owned properties, plants, and equipment were HKD 76,390,000 in 2023, compared to HKD 65,406,000 in 2022[163] - General and administrative expenses increased by 6% compared to 2022, primarily due to increased management costs to support business growth[90] - General and administrative expenses rose to HKD 2,894,000 in 2023 from HKD 1,831,000 in 2022, reflecting increased operational costs[144] Assets and Liabilities - The group’s total assets as of December 31, 2023, were HKD 3,116,678,000, compared to HKD 3,076,209,000 in 2022, indicating a growth of about 1.3%[44] - The group’s total liabilities decreased to HKD 1,911,620,000 in 2023 from HKD 2,036,731,000 in 2022, reflecting a reduction of approximately 6.2%[44] - Non-current assets decreased to HKD 1,272,954,000 in 2023 from HKD 1,321,384,000 in 2022, reflecting a decline of 3.7%[177] - The company’s total assets less current liabilities increased to HKD 2,009,555,000 in 2023 from HKD 1,851,086,000 in 2022, an increase of 8.5%[177] - The company’s equity attributable to shareholders rose to HKD 1,180,201,000 in 2023, compared to HKD 1,020,151,000 in 2022, reflecting a growth of 15.7%[177] Market Expansion and Strategy - The company plans to expand its market presence, particularly in China, where revenue increased to HKD 1.359 billion from HKD 1.010 billion in 2022[21] - The group’s main markets are China (32%), the UK (22%), Italy (13%), and Canada (9%), with significant revenue growth in China attributed to franchise brand performance[68] - The group maintains a diversified product strategy and strengthens service offerings to global brand clients, without heavy reliance on individual customers[95] - The group has established long-term relationships with suppliers and subcontractors, ensuring no heavy reliance on a small number of suppliers[99] Impairment and Losses - The company reported a net loss from other losses of HKD 48.93 million in 2023, compared to a net loss of HKD 18.61 million in 2022[2] - Impairment losses for property, plant, and equipment were HKD 6,176,000 in 2023, down from HKD 19,808,000 in 2022, indicating a decrease of about 68.9%[49] - Impairment losses for intangible assets were HKD 46,055,000 in 2023, compared to HKD 16,172,000 in 2022, representing an increase of approximately 184%[49] - The group incurred a net loss of HKD 49 million related to impairment losses on Reebok's franchise rights and property, plant, and equipment in 2023[89] Investments and Acquisitions - The company has made significant investments in property, plant, and equipment, totaling HKD 178.28 million in 2023, compared to HKD 192.88 million in 2022[20] - The group plans to acquire a 45% stake in MO IP Srl for EUR 3.435 million, with the option to exercise the purchase right starting January 1, 2027[80] Other Financial Metrics - The group incurred a foreign exchange gain of HKD 11,357,000 from the financial statements of overseas subsidiaries, contrasting with a loss of HKD 41,153,000 in 2022[133] - Cash and bank balances increased significantly to HKD 462,655,000 in 2023, up from HKD 301,362,000 in 2022, representing a growth of 53.5%[177] - The company has government subsidies of HKD 867,000 in 2023, a significant decrease from HKD 5,952,000 in 2022[192] Employee and Talent Management - The group supports a culture of attracting, motivating, and retaining talent, with competitive compensation and benefits based on market standards and individual performance[96]
联亚集团(00458) - 2023 - 年度业绩