震雄集团(00057) - 2023 - 年度业绩

Performance Highlights This section provides an overview of the group's financial performance and key indicators for the fiscal year Financial Summary For the fiscal year ended March 31, 2023, the Group's overall performance significantly declined, with revenue, profit before tax, and profit attributable to equity holders all recording double-digit decreases of 15%, 33%, and 39% respectively, reflecting operational pressures Key Financial Indicators for FY2023 | Indicator | 2023 (HKD thousands) | 2022 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue (HKD thousands) | 2,312,584 | 2,728,763 | -15% | | Profit Before Tax (HKD thousands) | 158,941 | 238,568 | -33% | | Profit Attributable to Equity Holders (HKD thousands) | 130,289 | 213,309 | -39% | | Total Assets (HKD thousands) | 4,149,309 | 4,429,327 | -6% | | Equity Attributable to Shareholders (HKD thousands) | 3,049,140 | 3,209,049 | -5% | | Basic Earnings Per Share (HK cents) | 20.7 | 33.8 | -39% | | Cash Dividend Per Share (HK cents) | 11.8 | 16.8 | -30% | | Average Return on Equity (%) | 4.2 | 6.9 | -39% | Consolidated Financial Statements This section presents the Group's consolidated income statement, comprehensive income statement, and statement of financial position Consolidated Income Statement For the current fiscal year, the Group's revenue decreased by 15% year-on-year to HKD 2.313 billion, primarily due to a disproportionate decline in cost of sales relative to revenue, resulting in reduced gross profit and a 40% drop in profit for the year to HKD 129 million Consolidated Income Statement Summary | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 2,312,584 | 2,728,763 | | Gross Profit | 548,052 | 647,275 | | Profit Before Tax | 158,941 | 238,568 | | Profit for the Year | 128,785 | 213,994 | Consolidated Statement of Comprehensive Income Despite recording a profit for the year of HKD 129 million, the Group reported a total comprehensive expense of HKD 62.5 million for the current year, primarily due to a HKD 190 million exchange difference loss from translating overseas operations, contrasting sharply with last year's total comprehensive income of HKD 318 million - Total comprehensive income for the year shifted from a HKD 318 million profit last year to a HKD 62.5 million expense, primarily due to significant exchange differences from translating overseas operations[51] Composition of Comprehensive Income/Expense | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--- | :--- | :--- | | Profit for the Year | 128,785 | 213,994 | | Other Comprehensive Income/(Expense) | (191,287) | 103,813 | | Total Comprehensive Income/(Expense) for the Year | (62,502) | 317,807 | Consolidated Statement of Financial Position As of March 31, 2023, the Group's total assets were HKD 4.149 billion, a 6% decrease from the prior year, with net assets at HKD 3.068 billion, down 5% year-on-year, while maintaining a robust financial position with net current assets of HKD 1.990 billion and no interest-bearing bank loans at year-end Key Financial Position Data | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 1,178,385 | 1,280,106 | | Total Current Assets | 2,970,924 | 3,149,221 | | Total Assets | 4,149,309 | 4,429,327 | | Total Current Liabilities | 980,520 | 1,106,731 | | Total Non-current Liabilities | 100,608 | 94,134 | | Net Assets | 3,068,181 | 3,228,462 | | Total Equity | 3,068,181 | 3,228,462 | Notes to the Financial Statements This section provides detailed notes on the basis of preparation, accounting policies, segment information, revenue recognition, dividends, earnings per share, and accounts receivable/payable Basis of Preparation and Accounting Policies These financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the HKICPA, with the Group's initial adoption of several revised standards this year having no significant impact on its financial position or performance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, with the initial adoption of certain revised standards this year having no significant financial impact[33][56][34] Operating Segment Information All of the Group's geographical segments experienced revenue declines, with Mainland China and Hong Kong, as the primary revenue source, seeing a 16% drop to HKD 1.671 billion, Taiwan experiencing the most significant decrease at 52%, and other overseas markets remaining relatively stable with a slight 5% dip, while one major customer contributed over 10% of total revenue this year Revenue by Geographical Region | Region | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--- | :--- | :--- | | Mainland China and Hong Kong | 1,670,556 | 1,986,848 | | Taiwan | 63,358 | 132,282 | | Other Overseas Countries | 578,670 | 609,633 | | Total | 2,312,584 | 2,728,763 | - For the year ended March 31, 2023, a single customer located in Mainland China and Hong Kong contributed HKD 351 million in revenue, accounting for over 10% of the Group's total revenue[40] Revenue The Group's revenue is entirely derived from the sale of injection molding machines and related products, recognized when control of the goods transfers to the customer, typically upon delivery, with payment terms generally ranging from 30 to 180 days after delivery - All of the Group's revenue is derived from the sale of injection molding machines and related products, recognized upon delivery of the goods[63] - Performance obligations for products are satisfied upon delivery, with payment terms typically ranging from 30 to 180 days[15] Dividends The Board recommended a final dividend of HKD 7.3 cents per share, bringing the total annual dividend to HKD 11.8 cents per share, including the interim dividend, representing a 30% decrease from last year's HKD 16.8 cents per share Dividend Per Share Details (HK cents) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Interim Dividend | 4.5 | 5.2 | | Proposed Final Dividend | 7.3 | 11.6 | | Total Annual Dividend | 11.8 | 16.8 | - The proposed final dividend is expected to be distributed around September 21, 2023[19] Earnings Per Share Basic earnings per share for the year decreased by 39% from HKD 33.8 cents to HKD 20.7 cents due to a decline in profit attributable to equity holders, with diluted earnings per share remaining identical to basic earnings per share as share options had no dilutive effect - Basic earnings per share is calculated based on the HKD 130 million profit for the year and a weighted average of 631 million ordinary shares outstanding[92] Earnings Per Share (HK cents) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Basic | 20.7 | 33.8 | | Diluted | 20.7 | 33.8 | Accounts Receivable and Payable Total trade receivables increased this year, with a higher proportion of receivables over 90 days, while total trade and bills payables decreased, primarily concentrated within 90 days Trade and Bills Receivables Net trade receivables increased from HKD 878 million to HKD 1.025 billion, with an aging analysis indicating a higher proportion of receivables over 90 days, suggesting a potential extension of the collection cycle Aging Analysis of Trade Receivables (HKD thousands) | Aging | 2023 | 2022 | | :--- | :--- | :--- | | Within 90 days | 337,415 | 297,820 | | 91 to 180 days | 202,952 | 159,723 | | 181 to 365 days | 319,359 | 232,306 | | Over one year | 165,373 | 187,990 | | Total | 1,025,099 | 877,839 | Finance Lease Receivables Net finance lease receivables significantly decreased from HKD 4.68 million to HKD 1.62 million, reflecting a reduction in the scale of finance lease operations Finance Lease Receivables (HKD thousands) | Item | 2023 | 2022 | | :--- | :--- | :--- | | Net Finance Lease Receivables | 1,616 | 4,682 | Trade and Bills Payables Total trade and bills payables decreased from HKD 696 million to HKD 623 million, with the aging analysis indicating that the vast majority of payables are due within 90 days Aging Analysis of Trade and Bills Payables (HKD thousands) | Aging | 2023 | 2022 | | :--- | :--- | :--- | | Within 90 days | 370,423 | 384,486 | | 91 to 180 days | 169,849 | 225,315 | | 181 to 365 days | 68,008 | 71,323 | | Over one year | 15,087 | 14,570 | | Total | 623,367 | 695,694 | Management Discussion and Analysis This section provides management's insights into the Group's business performance, market conditions, new product development, production capabilities, financial position, and future outlook Business Performance and Market Analysis This fiscal year's performance decline is primarily attributed to severe global economic conditions, where the Russia-Ukraine conflict, high global inflation, and central bank interest rate hikes led to weak consumer demand, significantly impacting export-oriented markets in Mainland China and Taiwan, while internal demand in Mainland China also softened due to a real estate downturn, and growth in individual emerging markets like India and the Middle East could not offset the substantial impact from developed European and American markets - Macroeconomic factors such as global inflation, interest rate hikes, the Russia-Ukraine conflict, and US-China trade tensions have slowed global economic growth, severely impacting the Group's export-oriented business[106][80][108] Turnover by Customer Region | Customer Region | 2023 (HKD millions) | 2022 (HKD millions) | Change | | :--- | :--- | :--- | :--- | | Mainland China and Hong Kong | 1,671 | 1,987 | -16% | | Taiwan | 63 | 132 | -52% | | Other Overseas Countries | 579 | 610 | -5% | | Total | 2,313 | 2,729 | -15% | - The Mainland China market experienced a 16% decline in performance due to shrinking export orders and weak domestic consumption caused by a sluggish real estate sector[82][83] New Technology and Product Development Facing market challenges, the Group maintained R&D investment, holding a major online launch event during the year to release six new product series and preview three higher-specification series, with new product lines targeting diverse market demands from cost-effective household items to high-precision automotive components, aiming to enhance product competitiveness - The Group held a major online launch event, introducing six new product lines and machine models for various industries and applications, and previewing three higher-specification new series[112] - New product series include the cost-effective MK6.6/A "Artisan" series, the high-precision MK6.6/B "Brilliance" series, the DM III series for high-end multi-material products, and the SPARK series for large, high-precision products[85] Production Capacity and Cost Control The Group has completed equipment automation upgrades and expanded capacity at its main production bases, with future plans for automated assembly lines to enhance efficiency, and will strengthen supply chain management and actively pursue cost control initiatives to bolster product competitiveness amidst uncertain demand - The Group has completed renovation and equipment automation upgrades at its main production bases and plans to introduce automated assembly lines and flexible processing production lines[87] - Facing market uncertainties, the Group will strengthen supply chain management and promote comprehensive production cost reduction to address intense market competition[114][133] Financial Position Review The Group's financial position remains robust, with net current assets of HKD 1.990 billion and net cash of HKD 671 million at year-end, no bank loans, and a one-time gain of HKD 31 million from the return of the Tai Po Industrial Estate factory premises in Hong Kong during the year Liquidity Indicators (HKD millions) | Indicator | 2023 (HKD millions) | 2022 (HKD millions) | | :--- | :--- | :--- | | Net Current Assets | 1,990 | 2,042 | | Cash and Bank Balances | 671 | 700 | | Bank Loans | 0 | 22 | | Net Cash Balance | 671 | 678 | - The return of the Tai Po Industrial Estate factory premises and land generated a one-time HKD 31 million gain on disposal for the Group[134] - No gearing ratio is reported as the Group maintains a net cash balance[135] Outlook for the Coming Year Management maintains a cautious outlook for the coming year, anticipating continued severe challenges from weak global consumption, high interest rates, and geopolitical risks, with the Group's strategy focusing on investing in sales and service networks, particularly in strategic overseas markets, and continuously strengthening R&D to enhance competitiveness and prepare for market recovery amidst adversity - Management anticipates very severe challenges in the upcoming fiscal year, primarily due to adverse factors such as weak global consumption, a high-interest rate environment, and geopolitical tensions[121][140] - Response strategies include strengthening sales and service networks, particularly by establishing more local service centers in overseas markets, and continuously increasing R&D investment to launch targeted new products[140][122] Other Information This section covers details regarding dividends, shareholder matters, and corporate governance practices Dividends and Shareholder Matters The company proposed a final dividend of HKD 7.3 cents per share, subject to approval at the Annual General Meeting, with the announcement detailing the book closure dates and related arrangements for determining shareholders' entitlement to the dividend - The proposed final dividend of HKD 7.3 cents per ordinary share is subject to approval at the Annual General Meeting on August 28, 2023[77] - To determine eligibility for the final dividend, share transfer registration will be suspended from September 5 to September 7, 2023[104] - The final dividend is expected to be distributed on September 21, 2023[19] Corporate Governance The company complied with the Corporate Governance Code in the Listing Rules this year, with two deviations: the roles of Chairman and Group President are not segregated and are held by the same individual, and the Chairman is not subject to retirement by rotation as per regulations, though the company believes the current structure provides strong and consistent leadership - The company deviates from the Corporate Governance Code as the roles of Chairman and Group President are concurrently held by Ms. Chiang Lai Yuen[141] - Another deviation is that the Chairman and Managing Director are not required to retire by rotation, which is in accordance with relevant Bermuda company law provisions[123]