佐丹奴国际(00709) - 2023 - 年度财报

Financial Performance - Revenue for 2023 increased to HK$3,873 million, up 2$3,799 million in 2022[3] - Gross profit rose to HK$2,263 million in 2023, with a gross margin of 58.4$503 million in 2023, with an operating margin of 13.0%, compared to HK$425 million and 11.2$1,015 million in 2023, with an EBITDA margin of 26.2%, up from HK$913 million and 24.0$345 million in 2023, with a net profit margin of 8.9%, compared to HK$268 million and 7.1$3,873 million, showing a slight increase from HK$3,799 million in 2022[5] - Gross profit for 2023 was HK$2,263 million, with a gross margin of 58.4%, up from 56.5% in 2022[5] - Operating profit for 2023 stood at HK$503 million, a significant improvement from HK$425 million in 2022, with an operating margin of 13.0%[5] - EBITDA for 2023 was HK$1,015 million, with an EBITDA margin of 26.2$913 million and 24.0% in 2022[5] - Net profit attributable to shareholders for 2023 was HK$345 million, with a net profit margin of 8.9$268 million and 7.1% in 2022[5] - Net profit increased by 28.7% to HK$345 million compared to the previous year[8] - Group revenue increased by 1.9$3,873 million (2022: HK$3,799 million), or 3.8$345 million (2022: HK$268 million)[11] - Group same-store sales increased by 6.9$2,819 million (2022: HK$2,638 million)[13] - Global brand sales grew by 2.7$4,746 million (2022: HK$4,620 million)[13] - Online sales grew by 7.1$3,873 million, with comparable retail store sales increasing by 6.9%[17] - Online sales improved by 7.1%, driven by growth in Mainland China, while offline sales increased by 4.7% despite a 2.6% reduction in store count[17] - Gross margin improved by 1.9 percentage points to 58.4%, with retail gross margin reaching 60.6%[20] - Operating profit increased by 18.4% to HK$503 million, with an operating expense-to-revenue ratio of 47.2$345 million, with a net margin of 8.9%[28] - 2023 PATS increased to HK$351 million at constant exchange rates, up from HK$268 million in 2022, representing a 31.0% growth[29] - Revenue increased by 6.5% to HK$676 million in 2023, with gross profit rising by 7.8$429 million[43] - Operating profit grew by 16.1% to HK$130 million, driven by strong performance in the GCC region[43] - Revenue increased to HK$3,873 million in 2023, up from HK$3,799 million in 2022, representing a growth of 1.9$2,263 million in 2023, compared to HK$2,146 million in 2022, reflecting a 5.5$503 million in 2023, up from HK$425 million in 2022, showing an 18.4$389 million in 2023, compared to HK$329 million in 2022, a rise of 18.2$377 million in 2023, compared to HK$250 million in 2022, a 50.8$508 million in 2023 from HK$436 million in 2022, reflecting a 16.5$942 million in 2023, up from HK$810 million in 2022, indicating a 16.3$1,093 million in 2023, compared to HK$911 million in 2022, marking a 20$345 million, contributing to the total comprehensive income of HK$333 million[168] Store Operations and Inventory - Total number of stores worldwide decreased to 1,822 in 2023 from 1,874 in 2022, with direct-operated stores at 1,055 and franchised stores at 767[3] - Inventory turnover days improved to 108 days in 2023 from 135 days in 2022[3] - The number of stores worldwide at the end of 2023 was 4,259, a significant increase from 2,733 in 2022[5] - Inventory levels were significantly reduced and variable cost ratio increased[8] - The company added 27 overseas franchised stores in 2023, primarily in emerging markets[49] - Inventory turnover days decreased by 27 days to 108 days due to stringent purchase control[57] - System inventories decreased to HK$709 million in 2023, down from HK$893 million in 2022[58] - Total store count in Greater China decreased to 695 in 2023 from 776 in 2022, primarily due to the closure of loss-making direct-operated stores in Mainland China[36] - Southeast Asia and Australia store count remained stable at 565, with Indonesia adding 5 new stores to reach 238 by year-end 2023[40] Cash Flow and Financial Position - Cash and bank balances less bank loans stood at HK$905 million in 2023, down from HK$948 million in 2022[3] - The company's total assets for 2023 were HK$3,856 million, a decrease from HK$4,008 million in 2022[5] - Total liabilities for 2023 were HK$1,544 million, down from HK$1,486 million in 2022[5] - Cash and bank balances, net of bank loans, stood at HK$905 million on December 31, 2023 (2022: HK$948 million)[11] - Capital expenditure during the year was HK$87 million (2022: HK$66 million)[11] - Cash and bank balances decreased to HK$935 million in 2023 from HK$960 million in 2022, a 2.6$1,735 million in 2023 from HK$1,977 million in 2022, a 12.2$1,544 million in 2023 from HK$1,486 million in 2022, a 3.9$2,189 million in 2023 from HK$2,317 million in 2022, a 5.5$155 million in 2023, higher than the HK$76 million outflow in 2022[166] - Dividends received from a joint venture amounted to HK$28 million in 2023, down from HK$32 million in 2022[166] - Net cash outflow from financing activities was HK$926 million in 2023, slightly higher than the HK$853 million outflow in 2022[166] - Cash and cash equivalents at the end of 2023 stood at HK$720 million, a decrease from HK$860 million at the end of 2022[166] - Purchase of property, plant, and equipment totaled HK$87 million in 2023, up from HK$66 million in 2022[166] - Interest income decreased to HK$23 million in 2023 from HK$12 million in 2022[166] - Dividends paid to non-controlling interests were HK$3 million in 2023, compared to HK$2 million in 2022[166] - Total equity decreased from HK$2,522 million at the beginning of 2023 to HK$2,312 million at the end of 2023, reflecting a reduction of HK$210 million[168] - The company paid a final dividend of HK$240 million for 2022 and an interim dividend of HK$274 million for 2023[168] - Non-controlling interests decreased from HK$205 million at the beginning of 2023 to HK$123 million at the end of 2023, a reduction of HK$82 million[168] - Retained profits decreased from HK$819 million at the beginning of 2023 to HK$611 million at the end of 2023, a reduction of HK$208 million[168] - The company issued shares worth HK$47 million upon the exercise of share options[168] - The acquisition of additional interest in a subsidiary resulted in a decrease of HK$53 million in non-controlling interests[168] - The disposal of partial interest in a subsidiary resulted in an increase of HK$2 million in non-controlling interests[168] - The fair value change on financial assets at fair value through other comprehensive income resulted in a loss of HK$8 million[168] - Exchange adjustments on translation of overseas subsidiaries, a joint venture, and branches resulted in a loss of HK$10 million[168] Dividends and Shareholder Returns - Dividend per share increased to HK$0.305 in 2023 from HK$0.235 in 2022, with a dividend payout ratio of 141.3$4,259 million in 2023 from HK$2,733 million in 2022[3] - Market capitalization for 2023 was HK$1,613,417 million, slightly up from HK$1,579,817 million in 2022[5] - Director Lau Kwok Kuen, Peter holds 27,518,000 shares, representing approximately 1.71% of the total shareholding[131] - Director Chan Ka Wai holds 8,456,000 shares, including 7,700,000 share options, representing approximately 0.52% of the total shareholding[131] - Director Mark Alan Loynd holds 9,064,000 shares through share options, representing approximately 0.56% of the total shareholding[131] - Cheng Yu Tung Family (Holdings) Limited and related entities hold 388,180,000 shares, representing 24.05% of the total issued shares of 1,613,416,518 as of December 31, 2023[135][136] - Sino Wealth International Limited, a wholly-owned subsidiary of Chow Tai Fook Nominee Limited, holds 388,180,000 shares, with Chow Tai Fook Capital Limited holding an 81.03% interest in Chow Tai Fook (Holding) Limited[135] - The company maintained sufficient public float as required by the Listing Rules, with no purchase, sale, or redemption of listed securities during the year ended December 31, 2023[140] - The total number of shares issued by the company as of December 31, 2023, is 1,613,416,518[129] Corporate Governance and Board Composition - The company emphasizes corporate governance and social responsibility, treating staff and suppliers as equal partners[9] - The Board adopted new Terms of Reference for the Remuneration Committee on January 1, 2023, and revised the shareholders' communication policy on March 9, 2023, and December 31, 2023[72] - The Board reviewed the Board Diversity Policy and the Nomination Policy on November 2, 2023[72] - The Company fully complied with the Corporate Governance Code provisions except for deviations from Code Provisions B.2.2 and C.2.1[72] - The Board is responsible for setting the Group's overall objectives, strategies, and monitoring financial performance[73] - The Board ensures independent views and input are available, with a strong independence element in its current composition[75] - The Board reviewed the implementation and effectiveness of the board independence mechanism for the year ended December 31, 2023, and considered it effective[75] - The Board is responsible for developing, reviewing, and updating corporate governance policies and practices[76] - The Board determines the nature and extent of significant risks, including ESG risks, in achieving strategic objectives[76] - The Board reviews and monitors the Group's disclosure process, including the accuracy and materiality of inside information[76] - The Board consists of three Independent Non-executive Directors, two Non-executive Directors, and three Executive Directors as of December 31, 2023[77] - The Independent Non-executive Directors and Non-executive Directors provide diverse expertise, skills, and experience, offering effective guidance and an outside perspective on major decisions[77] - The Board emphasizes diversity, including gender diversity, across all levels of the Group, with details on gender ratio available in the ESG Report[77] - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, along with a Management Committee and Risk Management Committee[77] - Dr. LAU Kwok Kuen, Peter serves as the Chairman and Chief Executive, and is a member of the Nomination Committee and Remuneration Committee[79] - Dr. Barry John BUTTIFANT is the Chairman of the Audit Committee and a member of the Nomination and Remuneration Committees[79] - Professor WONG Yuk is the Chairman of the Remuneration Committee and a member of the Audit and Nomination Committees[79] - Mr. TSANG On Yip, Patrick, a Non-executive Director, is the CEO and a director of Chow Tai Fook Enterprises Limited, a substantial shareholder[80] - Mr. LEE Chi Hin, Jacob, a Non-executive Director, serves as a senior vice president of Chow Tai Fook Enterprises Limited[80] - The Board believes that the relationships of the Non-executive Directors do not affect their independent judgment and integrity in executing their roles[81] - The appointment of a new Director is made by the Board upon recommendation by the Nomination Committee, considering diversity in accordance with the Company's Board Diversity Policy[82] - Any new Director (other than the Chairman or the Managing Director) appointed by the Board must retire and be re-elected by Shareholders at the next AGM following their appointment[82] - At each AGM, one-third (or the number nearest to, but not less than one-third) of the Directors (other than the Chairman or the Managing Director) will retire from office by rotation[82] - Non-executive Directors have an initial term of three years and can continue in office subject to termination by not less than one month's prior notice in writing[82] - The Board believes that stability and continuation are key factors to the successful implementation of business plans of the Group, and the Chairman should be exempt from retirement by rotation[82] - Dr. Barry John BUTTIFANT, an Independent Non-executive Director, has served since March 3, 1995, and continues to provide invaluable expertise and experience to the Board[83] - All Independent Non-executive Directors provided confirmation of independence in accordance with rule 3.13 of the Listing Rules, and the Board considers them independent[83] - Dr. BUTTIFANT voluntarily retired and was re-elected as Director at the AGM held on May 20, 2022, and will retire by rotation at the forthcoming AGM[83] - The Board held four regular meetings and passed six sets of written resolutions during the year ended December 31, 2023, focusing on quarterly operational updates, future strategies, policies, and budgets[84] - All Executive Directors attended 4 out of 4 Board meetings, while Independent Non-executive Directors had varying attendance rates, with some attending 3 out of 4 meetings[87] - The Company provides comprehensive induction packages to newly appointed Directors to ensure they are aware of their responsibilities as directors of a Hong Kong-listed company[90] - The Company has arranged appropriate directors' and officers' liability insurance in line with the Corporate Governance Code[91] - The Company Secretary regularly updates Directors on changes in Listing Rules, corporate governance practices, and other regulatory regimes, providing