Business Expansion and Acquisitions - The company acquired Kangli and Guangdong Fengjia Food Co., Ltd., expanding into the noodle and flour product businesses, which are now considered new reportable segments[5] - The company completed the acquisition of Guangdong Kangli and Kailan Flour in 2023, expanding its product portfolio and achieving expected results[187] - The company acquired a hotel property in Kaiping, Guangdong, China, for RMB 100,000,000 in January 2023, with the acquisition completed in October 2023[130] Financial Performance and Metrics - The company's total assets minus current liabilities increased to RMB 1,299,650 thousand in 2023, up from RMB 1,199,627 thousand in 2022[11] - Current liabilities decreased to RMB 881,142 thousand in 2023 from RMB 921,148 thousand in 2022, with a notable reduction in trade payables, notes payable, and other payables[11] - Non-current liabilities increased to RMB 295,637 thousand in 2023 from RMB 196,036 thousand in 2022, driven by higher bank borrowings and other borrowings[11] - The company's net asset value slightly increased to RMB 1,004,013 thousand in 2023 from RMB 1,003,591 thousand in 2022[11] - Current tax expenses for the year increased to RMB 30,073 thousand in 2023 from RMB 17,097 thousand in 2022, reflecting higher corporate income tax in China[7] - Deferred tax liabilities decreased to RMB 8,410 thousand in 2023 from RMB 8,664 thousand in 2022[11] - The company's equity attributable to owners of the company increased to RMB 967,379 thousand in 2023 from RMB 964,569 thousand in 2022[12] - Non-controlling interests decreased to RMB 36,634 thousand in 2023 from RMB 39,022 thousand in 2022[12] - The company's net current assets decreased to RMB 28,414 thousand in 2023 from RMB 54,110 thousand in 2022[11] - The company's statutory surplus reserve increased to approximately RMB 144,525,000 as of December 31, 2023, compared to RMB 136,643,000 in 2022 (restated)[14] - The discretionary surplus reserve rose to approximately RMB 72,021,000 as of December 31, 2023, up from RMB 68,079,000 in 2022 (restated)[14] - A non-controlling shareholder of a subsidiary contributed RMB 400,000 in cash during the year ended December 31, 2023, compared to RMB 3,000,000 in 2022[14] - Profit before tax for operating activities was RMB 90,165,000 in 2023, up from RMB 77,369,000 in 2022[15] - Depreciation of property, plant, and equipment increased to RMB 68,681,000 in 2023 from RMB 62,470,000 in 2022[15] - Net cash generated from operating activities rose significantly to RMB 176,437,000 in 2023, compared to RMB 71,584,000 in 2022[15] - The company recognized a net impairment loss of RMB 45,138,000 under the expected credit loss model in 2023, more than double the RMB 21,683,000 in 2022[15] - Amortization of intangible assets increased to RMB 8,905,000 in 2023 from RMB 5,838,000 in 2022[15] - The company's total comprehensive income for the year ended December 31, 2023 was RMB 63,020,000, compared to RMB 60,232,000 in 2022[13] - The company's total equity as of December 31, 2023 stood at RMB 1,004,013,000, slightly down from RMB 1,003,591,000 at the end of 2022[13] - Non-current assets including property, plant, and equipment increased to RMB 504,871 thousand from RMB 448,795 thousand, reflecting an addition of RMB 56,076 thousand[18] - Right-of-use assets rose to RMB 212,629 thousand from RMB 204,175 thousand, with an increase of RMB 8,454 thousand[18] - Investment properties grew to RMB 16,290 thousand from RMB 10,603 thousand, adding RMB 5,687 thousand[18] - Intangible assets, specifically goodwill, remained unchanged at RMB 31,648 thousand and RMB 38,337 thousand respectively[18] - Loans to a joint venture and a subsidiary's non-controlling shareholder amounted to RMB 158,949 thousand and RMB 4,947 thousand respectively[18] - Current assets, including inventories and trade receivables, increased to RMB 114,546 thousand from RMB 104,729 thousand, with an addition of RMB 9,817 thousand[18] - Other receivables and prepayments rose to RMB 158,369 thousand from RMB 145,376 thousand, adding RMB 12,993 thousand[18] - Cash and cash equivalents increased to RMB 320,301 thousand from RMB 310,108 thousand, reflecting an addition of RMB 10,193 thousand[18] - Total current assets grew to RMB 975,258 thousand from RMB 939,389 thousand, with an increase of RMB 36,077 thousand[18] - Revenue for the period was 1,686,182 (compared to 1,763,996 in the previous period), with a cost of sales of 1,183,299 (compared to 1,301,953)[27] - Gross profit increased to 502,883 from 462,043 in the previous period[27] - Other income and gains/losses were 62,816 (compared to 59,756), with other losses of 2,102 (compared to gains of 3,130)[27] - Selling and distribution expenses decreased to 212,007 from 225,804[27] - Administrative expenses were 102,241 (compared to 87,606), and other expenses were 80,399 (compared to 76,207)[27] - Profit before tax was 90,165 (compared to 77,369), with tax expenses of 29,035 (compared to 15,145)[27] - Net profit for the year was 61,130 (compared to 62,224)[27] - Earnings per share (basic) were 15.40 RMB cents (compared to 15.57 RMB cents)[27] - The company's share of profits from associates was a loss of 1,032 (compared to a loss of 6,738)[27] - The company's share of profits from a joint venture was a loss of 3,462 (compared to a profit of 1,593)[27] - The group's accounts receivable amounted to RMB 152,411,000 as of December 31, 2023, with an expected credit loss provision of RMB 38,283,000[48] - The group recognized impairment losses of approximately RMB 28,313,000 for the year ended December 31, 2023, based on the expected credit loss model for accounts receivable[48] - Revenue for 2023 was RMB 1,686,182 thousand, a decrease of 4.4% compared to RMB 1,763,996 thousand in 2022[71] - Gross profit for 2023 was RMB 502,883 thousand, an increase of 8.8% compared to RMB 462,043 thousand in 2022[71] - Net profit for 2023 was RMB 61,130 thousand, a decrease of 1.8% compared to RMB 62,224 thousand in 2022[71] - Total assets for 2023 were RMB 2,180,792 thousand, an increase of 2.8% compared to RMB 2,120,775 thousand in 2022[72] - Total liabilities for 2023 were RMB 1,176,779 thousand, an increase of 5.3% compared to RMB 1,117,184 thousand in 2022[72] - Net cash provided by operating activities for 2023 was RMB 176,437 thousand, an increase of 146.5% compared to RMB 71,584 thousand in 2022[72] - Net cash used in investing activities for 2023 was RMB 213,549 thousand, an increase of 331.2% compared to RMB 49,515 thousand in 2022[72] - Net cash provided by financing activities for 2023 was RMB 7,821 thousand, compared to net cash used of RMB 96,856 thousand in 2022[72] - Total equity for 2023 was RMB 1,004,013 thousand, a slight increase of 0.04% compared to RMB 1,003,591 thousand in 2022[72] - Exchange differences on translation of foreign operations resulted in a loss of RMB 898 thousand in 2023[69] - The company's consolidated financial statements for the year ended December 31, 2023, were prepared in accordance with International Financial Reporting Standards (IFRS) and provide a true and fair view of the financial position and performance[73] - Total revenue for 2023 was RMB 1,732,000, with biscuit products contributing RMB 1,375,420, noodle products RMB 129,883, flour products RMB 119,487, and other products RMB 107,210[137] - The company's segment performance for 2023 showed a profit of RMB 502,883, with biscuit products contributing RMB 448,411, noodle products RMB 22,962, flour products RMB 7,240, and other products RMB 24,270[137] - Depreciation of property, plant, and equipment for 2023 was RMB 68,681, with biscuit products accounting for RMB 54,371, noodle products RMB 7,460, flour products RMB 1,715, and other products RMB 5,135[140] - The company's pre-tax profit for 2023 was RMB 90,165, after accounting for other income, expenses, and financial costs[137] - The company's revenue from distributors in 2023 was RMB 1,658,676, while revenue from supermarkets was RMB 3,310 and from retail customers was RMB 24,196[133] - Biscuit product revenue decreased to RMB 514,034 thousand in 2023 from RMB 596,193 thousand in 2022, a decline of 13.8%[142] - Noodle product revenue decreased to RMB 1,372,622 thousand in 2023 from RMB 1,594,970 thousand in 2022, a decline of 13.9%[142] - R&D expenses decreased to RMB 57,057 thousand in 2023 from RMB 59,135 thousand in 2022, a decline of 3.5%[144] - The fair value loss of non-listed equity investment funds recognized in profit or loss was RMB 13,465 thousand in 2023, compared to a gain of RMB 2,963 thousand in 2022[153] - The carrying amount of non-listed equity investment funds decreased to RMB 93,666 thousand in 2023 from RMB 107,131 thousand in 2022, a decline of 12.6%[153] - Government subsidies increased to RMB 12,420 thousand in 2023 from RMB 10,309 thousand in 2022[161] - Interest income from bank balances and deposits decreased to RMB 3,920 thousand in 2023 from RMB 5,170 thousand in 2022[161] - Scrap and packaging material sales increased to RMB 22,081 thousand in 2023 from RMB 17,205 thousand in 2022[161] - Total impairment losses recognized under the expected credit loss model increased to RMB 45,138 thousand in 2023 from RMB 21,683,000 in 2022[166] - Financial costs decreased to RMB 29,153 thousand in 2023 from RMB 31,115 thousand in 2022[166] - Pre-tax profit increased to RMB 90,165 thousand in 2023 from RMB 77,369 thousand in 2022[168] - Income tax expense increased to RMB 29,035 thousand in 2023 from RMB 15,145 thousand in 2022[168] - The company's subsidiary, Guangdong Jiasili Food Group Co., Ltd., is eligible for a reduced corporate income tax rate of 15% from 2021 to 2023[167] - The company's subsidiary, Kailan Flour Co., Ltd., is exempt from corporate income tax for wheat flour primary processing[167] - The total remuneration for directors and key executives amounted to RMB 4,716 thousand in 2023[165] - Revenue for 2023 was RMB 1,686,182 thousand, a decrease of 4.4% compared to RMB 1,763,996 thousand in 2022[172] - Gross profit increased by 8.8% to RMB 502,883 thousand in 2023, with gross margin improving by 3.6 percentage points to 29.8%[172] - Net profit for 2023 was RMB 61,130 thousand, a slight decrease of 1.8% from RMB 62,224 thousand in 2022[172] - EBITDA increased by 11.5% to RMB 209,072 thousand in 2023, compared to RMB 187,502 thousand in 2022[172] - Operating profit (EBIT) rose by 10.0% to RMB 119,318 thousand in 2023, up from RMB 108,484 thousand in 2022[172] - The company's sweet biscuit segment accounted for 30.5% of total revenue in 2023, making it the largest product category[171] - Employee benefits expenses totaled RMB 258,068 thousand in 2023, a decrease of 4.0% from RMB 268,755 thousand in 2022[169] - Depreciation and amortization expenses increased to RMB 89,754 thousand in 2023, up from RMB 79,018 thousand in 2022[169] - The company proposed a final dividend of HKD 0.1 per share for 2023, a 100% increase compared to HKD 0.05 per share in 2022[172] - The compound annual growth rate (CAGR) for the period 2019-2023 was -1.6%, reflecting a slight decline in overall performance[173] - The company's operating profit (EBIT) increased by 10.0% to approximately RMB 119.3 million (2022: RMB 108.5 million), with an EBIT margin of 7.1% (2022: 6.1%)[187] - The company's gross profit margin increased by 3.6 percentage points to 29.8% in 2023 (2022: 26.2%)[188] - The company's net operating cash flow reached approximately RMB 176.4 million (2022: RMB 71.6 million)[187] - The company proposed a final dividend of HK$0.10 per share for the year, payable on June 14, 2024, to shareholders registered as of May 31, 2024[193] - The company expects strong cash flow generation in the new year due to improved profitability[197] - The company plans to seek M&A opportunities to expand geographically and diversify its product portfolio[197] - The company aims to achieve revenue growth, increased profit margins, strong cash flow, and enhanced shareholder returns in the coming years[197] Lease and Asset Management - The company applies the short-term lease exemption to office properties and car leases with terms of 12 months or less, recognizing lease payments on a straight-line basis[26] - The group's right-of-use assets are measured at cost less accumulated depreciation and impairment losses, adjusted for any remeasurement of lease liabilities[40] - Lease liabilities are initially recognized and measured at the present value of lease payments not yet paid at the commencement date, using the incremental borrowing rate if the implicit interest rate is not readily determinable[43] - The group remeasures lease liabilities (and adjusts related right-of-use assets) when there are changes in lease terms, assessments of purchase options, or market rent adjustments[46] - Refundable rental deposits are initially measured at fair value under IFRS 9, with adjustments to fair value treated as additional lease payments and included in the cost of right-of-use assets[42] - The group presents right-of-use assets as separate line items in the consolidated financial statements, with those meeting the definition of investment properties included under "investment properties"[41] - The group's lease payments include fixed payments (including in-kind fixed payments) less any lease incentives receivable[44] - The group's lease liabilities are adjusted for accrued interest and lease payments after the commencement date[45] - Lease modifications are accounted for as separate leases if they expand the scope of the lease by adding one or more underlying assets, and the increase in lease consideration is commensurate with the standalone price of the additional scope[74] - The company classifies leases as either finance or operating leases, with finance leases transferring substantially all risks and rewards of ownership to the lessee[76] - Refundable rental deposits are initially measured at fair value under IFRS 9, with adjustments to fair value treated as additional lease payments by the lessee[77] Tax and Accounting Policies - The company's deferred tax liabilities are recognized based on taxable temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their corresponding tax bases[100] - The company's deferred tax assets are recognized only when sufficient taxable profits are expected to be available to offset deductible temporary differences[100] - The company does not recognize deferred tax liabilities for temporary differences arising from the initial recognition of goodwill[100] - The company's deferred tax assets and liabilities are not recognized if temporary differences arise from transactions that do not affect taxable or accounting profits at the time of the transaction[100] - Current tax expense is calculated based on taxable profits for the year, using tax rates enacted or substantively enacted at the reporting date[114] - Deferred tax assets and liabilities are measured at the tax rates expected to apply in the period when the liability is settled or the asset is realized, based on tax rates enacted or substantively enacted at the reporting date[115] Impairment and Credit Risk - The company's expected credit loss model for financial assets at amortized cost is subject to estimation uncertainties, with potential variations in future settlements[132] - The company's write-off policy for financial assets is triggered when there is evidence of severe financial difficulty of the counterparty, with no realistic possibility of recovery[127] - The company's credit risk assessment includes monitoring external market indicators and adverse changes in the debtor's business, financial, or economic conditions[126]
嘉士利集团(01285) - 2023 - 年度财报