Sales Performance - Total sales for the year ended December 31, 2023, were approximately RMB 24,969,792,000, a decrease of 10.1% compared to 2022[2] - Sales of sportswear products accounted for 72.2% of total sales, decreasing by 13.6% year-over-year due to reduced demand in Europe and the US[2] - Sales of casual wear products accounted for 22.7% of total sales, with a slight decrease of 1.4% year-over-year, primarily due to reduced demand in Japan and other markets[2] - Sales of underwear products increased by 30.2% year-over-year, accounting for 4.3% of total sales, driven by increased demand in Japan and other markets[3] - Revenue from Mainland China increased slightly to RMB 7,124,052 thousand in 2023 from RMB 7,074,146 thousand in 2022, a growth of 0.7%[14] - Revenue from the EU decreased to RMB 5,027,285 thousand in 2023 from RMB 6,215,018 thousand in 2022, a decline of 19.1%[14] - Revenue from the US decreased to RMB 3,879,987 thousand in 2023 from RMB 4,873,358 thousand in 2022, a decline of 20.4%[14] - Revenue from Japan decreased to RMB 3,675,539 thousand in 2023 from RMB 3,926,014 thousand in 2022, a decline of 6.4%[14] - Total revenue decreased to RMB 24,969,792 thousand in 2023 from RMB 27,781,412 thousand in 2022, a decline of 10.1%[14] - Revenue from major customer A decreased to RMB 7,696,598 thousand in 2023 from RMB 8,630,511 thousand in 2022, a decline of 10.8%[16] - Sales of sportswear products decreased by 13.6% to RMB 18,031,526,000 in 2023, primarily due to reduced demand in European and American markets[41] - Sales of lingerie products increased by 30.2% to RMB 1,066,643,000 in 2023, driven by higher demand in Japan and other markets[42] - European market sales declined by 19.1% to RMB 5,027,285,000 in 2023, while U.S. market sales dropped by 20.4% to RMB 3,879,987,000[43] - Domestic sales in China increased slightly by 0.7% to RMB 7,124,052,000 in 2023, accounting for 28.5% of total sales[43] - European market sales decreased by 19.1% to RMB 5,027,285,000 in 2023 compared to RMB 6,215,018,000 in 2022, primarily due to reduced demand for sportswear[44] - US market sales declined by 20.4% to RMB 3,879,987,000 in 2023 from RMB 4,873,358,000 in 2022, driven by lower demand for sportswear[44] - Japanese market sales dropped by 6.4% to RMB 3,675,539,000 in 2023 from RMB 3,926,014,000 in 2022, mainly due to reduced demand for casual wear and discontinuation of mask sales[44] - Other overseas markets sales decreased by 7.6% to RMB 5,262,929,000 in 2023 from RMB 5,692,876,000 in 2022, primarily due to reduced exports to Australia, India, and Mexico[44] - Domestic China market sales increased by 0.7% in 2023, with apparel sales rising by 0.9% to RMB 6,964,278,000, driven by higher demand for casual wear[44] Profitability and Financial Performance - Gross profit margin for 2023 was 24.3%, an increase of 2.2 percentage points compared to 2022, with gross profit amounting to RMB 6,059,876,000, a slight decrease of 1.1% year-over-year[3] - Net profit after tax for 2023 was approximately RMB 4,557,263,000, a slight decrease of 0.1% compared to 2022[3] - The company proposed a final dividend of HKD 1.08 per share, with a total annual dividend of HKD 2.03 per share, representing a 6.3% increase compared to 2022 and a payout ratio of 60.3%[3] - Gross profit margin improved by 2.2 percentage points to 24.3% in 2023, attributed to increased capacity utilization, improved efficiency at overseas factories, and reduced COVID-19 related expenses[45] - Basic and diluted earnings per share (EPS) for 2023 were RMB 3.03, slightly down from RMB 3.04 in 2022[29] - The company achieved sales revenue of approximately RMB 24,969,792,000 in 2023, a decrease of 10.1% compared to the previous year, with net profit attributable to shareholders slightly declining by 0.1% to RMB 4,557,263,000[38] - The gross profit margin increased by 2.2 percentage points to 24.3% in 2023, driven by improved efficiency in overseas factories and reduced fixed costs per unit[38] Assets and Liabilities - Total non-current assets increased to RMB 20,131,649,000 as of December 31, 2023, compared to RMB 17,328,331,000 in 2022[7] - Total current assets stood at RMB 28,479,488,000 as of December 31, 2023, compared to RMB 26,164,534,000 in 2022[7] - Total current liabilities increased to RMB 13,384,483,000 as of December 31, 2023, compared to RMB 10,259,437,000 in 2022[7] - Net current assets decreased to RMB 15,095,005 thousand in 2023 from RMB 15,905,097 thousand in 2022, a decline of 5.1%[8] - Total assets minus current liabilities increased to RMB 35,226,654 thousand in 2023 from RMB 33,233,428 thousand in 2022, a growth of 6.0%[8] - Total non-current liabilities decreased to RMB 2,359,338 thousand in 2023 from RMB 2,467,644 thousand in 2022, a decline of 4.4%[8] - Total equity increased to RMB 32,867,316 thousand in 2023 from RMB 30,765,784 thousand in 2022, a growth of 6.8%[8] - Accounts receivable and notes increased to RMB 5,023,635 thousand in 2023 from RMB 5,005,167 thousand in 2022, with 97.3% of receivables aged within 6 months[31] - Cash and bank balances increased significantly to RMB 10,539,092 thousand in 2023 from RMB 7,097,073 thousand in 2022, while time deposits rose to RMB 12,199,178 thousand from RMB 7,099,231 thousand[36] - Total cash and cash equivalents reached RMB 11,596,453 thousand in 2023, up from RMB 7,369,498 thousand in 2022[36] - Financial assets at fair value through profit or loss decreased to RMB 803,889 thousand in 2023 from RMB 3,195,232 thousand in 2022, primarily due to a reduction in financial products issued by financial institutions[35] - Accounts payable increased to RMB 1,198,212 thousand in 2023 from RMB 931,593 thousand in 2022, with 98.8% of payables aged within 6 months[34] - The company held RMB 10,962,855 thousand in cash and bank balances denominated in RMB as of December 31, 2023, up from RMB 6,004,624 thousand in 2022[36] Costs and Expenses - Cost of goods sold decreased to RMB 18,904,165 thousand in 2023 from RMB 21,649,619 thousand in 2022[21] - Employee benefit expenses decreased to RMB 6,982,131 thousand in 2023 from RMB 7,694,740 thousand in 2022[21] - Tax expenses decreased to RMB 438,238 thousand in 2023 from RMB 698,908 thousand in 2022[23] - Current tax in Vietnam increased to RMB 92,840 thousand in 2023 from RMB 77,529 thousand in 2022[23] - Current tax in Macau slightly decreased to RMB 187,190 thousand in 2023 from RMB 188,846 thousand in 2022[23] - Deferred tax decreased to a loss of RMB 51,540 thousand in 2023 from a gain of RMB 118,345 thousand in 2022[23] - Financing costs increased to RMB 345,805 thousand in 2023 from RMB 228,359 thousand in 2022[20] - Financing costs increased by RMB 117,446,000 to RMB 345,805,000 in 2023 due to higher interest rates on USD and HKD loans[49] - Income tax expenses decreased by RMB 260,670,000 to RMB 438,238,000 in 2023, as a result of higher contributions from overseas subsidiaries with lower tax rates[49] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 1.08 per share, with a total annual dividend of HKD 2.03 per share, representing a 6.3% increase compared to 2022 and a payout ratio of 60.3%[3] - Interim dividend per ordinary share decreased to HKD 0.95 in 2023 from HKD 1.06 in 2022, with a total payout of RMB 1,316,672 thousand compared to RMB 1,362,689 thousand in 2022[26] - Final proposed dividend per ordinary share increased to HKD 1.08 in 2023 from HKD 0.85 in 2022, with a total payout of RMB 1,471,198 thousand compared to RMB 1,141,404 thousand in 2022[26] - The company proposed a final dividend of HKD 1.08 per ordinary share (approximately RMB 0.98) for the year ended December 31, 2023, subject to approval at the Annual General Meeting on May 28, 2024[59] - The company will suspend share registration from May 23, 2024, to May 28, 2024, and from June 7, 2024, to June 12, 2024, to determine shareholders eligible for the annual general meeting and final dividend distribution[60] Operational and Strategic Highlights - Overseas factories accounted for 53% of the company's total apparel output in 2023, up from 46% in 2022, with Cambodia's output share rising to 26% from 22%[39] - The company's green energy consumption reached 50% of total electricity usage, with cumulative photovoltaic installed capacity reaching 75MW, a 65% increase year-over-year[39] - Net cash generated from operating activities increased to RMB 5,226,525,000 in 2023 from RMB 4,628,120,000 in 2022, reflecting stronger cash flow[47] - Net debt decreased by RMB 1,320,671,000 to RMB 507,515,000 in 2023, driven by higher operating cash inflows[47] - Total number of employees as of December 31, 2023, was approximately 92,030, with employee costs accounting for 28.0% of the company's sales, an increase of 0.3 percentage points from the previous year[52] - Total investment in property, plant, and equipment, and prepaid land lease payments for the year amounted to approximately RMB 1,059,526,000, with 42% allocated to purchasing production equipment and 53% to constructing and purchasing new factory buildings and prepaid land lease payments[53] - Capital commitments for land use rights, property, plant, and equipment as of December 31, 2023, were approximately RMB 956,201,000, to be funded mainly by internal resources and bank loans[53] - The company's capital-to-debt ratio as of December 31, 2023, was 36.8%, calculated as the percentage of total outstanding borrowings to equity attributable to owners of the parent[54] - The company expects global inflation pressures to ease, with potential interest rate cuts in major developed economies, which could boost consumer demand, particularly in overseas apparel markets[56] - The company plans to expand its overseas production capacity beyond existing bases in Vietnam and Cambodia to better meet customer procurement needs across different markets[56] - The company will focus on advancing smart manufacturing, digital management, green and low-carbon development systems, and diversifying and upgrading its product offerings[56] - The company aims to enhance its green development model by optimizing resource and energy usage, improving recycling processes, and increasing the use of clean energy and green materials[57] - The company plans to expand its product categories, invest in R&D for innovative and functional products, and strengthen collaboration with upstream and downstream partners in the industry chain[58] - The company aims to enhance corporate governance, focusing on net profit growth and stable cash flow, ensuring long-term development and shareholder returns[61] Corporate Governance and Committees - The board of directors complies with the requirement of having at least three independent non-executive directors, with one possessing appropriate professional qualifications or financial expertise[64] - The company has adopted a shareholder communication policy to address shareholder concerns and ensure effective communication, effective since March 26, 2012[67] - No purchases, redemptions, or sales of the company's listed securities were made during the year ended December 31, 2023[70] - The public holds at least 25% of the company's total issued share capital as of December 31, 2023[72] - The audit committee, chaired by Mr. Jiang Xianpin, consists of four independent non-executive directors and oversees financial practices, risk management, and internal controls[72] - The audit committee held two meetings with external auditors during the year to discuss audit procedures and accounting matters[73] - The company established a Remuneration Committee on October 9, 2005, responsible for recommending overall remuneration policies and structures for directors and senior management[74] - The Remuneration Committee consists of executive director Ma Renhe and three independent non-executive directors: Zhang Bingsheng, Jiang Xianpin, and Liu Chunhong, with Zhang Bingsheng as the chairman[74] - The company established a Nomination Committee on October 9, 2005, responsible for identifying and recommending suitable candidates for directorship and reviewing the board's structure and diversity[75] - The Nomination Committee includes executive director Ma Jianrong and three independent non-executive directors: Liu Xinggao, Jiang Xianpin, and Zhang Bingsheng, with Ma Jianrong as the chairman[75] - The company's auditor, Ernst & Young, confirmed that the preliminary results for the year ended December 31, 2023, matched the consolidated financial statements[76] - The annual report for the year ended December 31, 2023, will be published on the Hong Kong Stock Exchange and the company's website by April 30, 2024[77] - The Annual General Meeting will be held on May 28, 2024, at the company's office building in Ningbo, Zhejiang Province, China[78] - The company has four executive directors: Ma Jianrong, Huang Guanlin, Ma Renhe, and Wang Cunbo, and four independent non-executive directors: Jiang Xianpin, Zhang Bingsheng, Liu Xinggao, and Liu Chunhong[78] Miscellaneous - Government subsidies increased to RMB 250,305 thousand in 2023 from RMB 172,632 thousand in 2022[19] - Interest income rose significantly to RMB 778,904 thousand in 2023 compared to RMB 278,126 thousand in 2022[19] - Net exchange differences improved to RMB 150,577 thousand in 2023 from a loss of RMB 1,105,563 thousand in 2022[19]
申洲国际(02313) - 2023 - 年度业绩