Financial Performance - The company's revenue for the fiscal year ending March 31, 2024, was HKD 4,665,165,000, a decrease from HKD 5,018,735,000 in the previous year, representing a decline of approximately 7%[33] - The net profit for the fiscal year was HKD 172,458,000, down from HKD 273,649,000 in the previous year, indicating a decrease of about 37%[33] - The basic earnings per share for the year were HKD 0.12, compared to HKD 0.19 in the previous year, reflecting a decline of 36.8%[20] - The total comprehensive income for the year was HKD 48,582,000, down from HKD 73,959,000, a decrease of approximately 34%[34] - Gross profit for the same period was HKD 423,592, down from HKD 489,987, resulting in a gross margin of 9.1%, compared to 9.8% in the previous year[45] - Net profit attributable to equity holders was HKD 167,118, down from HKD 268,572, reflecting a net profit margin of 3.6%, compared to 5.4% in the prior year[45] - The company reported a pre-tax profit of HKD 202,862,000 in 2024, down from HKD 317,196,000 in 2023, a decrease of approximately 36.00%[75] - Profit attributable to equity holders was approximately HKD 167.1 million, a decrease of 37.8% from HKD 268.6 million in 2023[92] Assets and Liabilities - Non-current assets increased to HKD 2,816,635,000 from HKD 2,296,109,000, representing a growth of about 22.6%[23] - Current assets decreased to HKD 2,749,336,000 from HKD 3,233,208,000, a decline of approximately 15%[23] - The company's total assets amounted to HKD 5,565,971,000, slightly up from HKD 5,529,317,000, indicating a marginal increase of 0.66%[23] - Total liabilities increased to HKD 2,599,517 from HKD 2,440,740, indicating a rise in the company's debt levels[45] - The net debt level as of March 31, 2024, was HKD 585.7 million, up from HKD 99.4 million in 2023, attributed to the ongoing construction of the second factory in Vietnam[100] Cash Flow and Liquidity - Cash and bank balances decreased to HKD 894,940 from HKD 1,347,493, indicating a significant reduction in liquidity[45] - The current ratio as of March 31, 2024, was 1.2, down from 1.5 in 2023, indicating a decrease in liquidity[103] - The company’s liquidity position is supported by cash and bank balances totaling HKD 894.9 million as of March 31, 2024, down from HKD 1,347.5 million in 2023[122] Shareholder Value and Dividends - The company plans to enhance shareholder value through share buybacks authorized at the annual general meetings held on August 11, 2022, and August 10, 2023[2] - The company proposed a final dividend of HKD 0.05 per share for the year ending March 31, 2024, compared to HKD 0.04 in 2023[82] - The company declared an interim dividend of HKD 0.07 per share for the six-month period ending September 30, 2023, compared to HKD 0.15 per share in 2023[107] Operational Efficiency - Operating expenses increased to HKD 237,487, up from HKD 203,193, leading to an operating expense ratio of 5.1%, compared to 4.0% in 2023[45] - Inventory turnover days improved to 86 days from 89 days, suggesting better inventory management[45] - Accounts receivable turnover days decreased to 61 days from 65 days, indicating a slight improvement in collection efficiency[45] Market Performance - Revenue from Vietnam significantly increased from HKD 811,215,000 in 2023 to HKD 1,493,673,000 in 2024, representing an increase of approximately 83.96%[51] - The group's revenue for the year was approximately HKD 4,665.2 million, a decrease of 7.0% from HKD 5,018.7 million in 2023, driven by a 2.1% increase in sales volume and an 8.9% decrease in average selling price[89] Employee and Operational Developments - Employee benefits expenses increased from HKD 575,059,000 in 2023 to HKD 602,823,000 in 2024, an increase of about 4.83%[54] - The company employed 4,874 full-time employees as of March 31, 2024, compared to 4,484 in 2023[130] - The company’s administrative expenses increased to HKD 194.3 million in 2024 from HKD 162.1 million in 2023, mainly due to pre-operating expenses related to the new factory in Vietnam[117] Future Outlook and Strategic Initiatives - Management anticipates a rebound in sales and profits for the fiscal year 2024/25, believing the company will enter a mid-term growth trajectory[161] - The company aims to stimulate demand through innovative product development and market penetration strategies despite ongoing geopolitical and inflationary challenges[135] - The new factory in Vietnam's Nam Dinh Province began trial production in April 2024 and is expected to be fully operational by the second half of the fiscal year ending March 31, 2025, enhancing overall capacity and product offerings[159] - The company has initiated a solar energy project at its Panyu factory to enhance renewable energy utilization, with plans to expand this initiative to the factory in Vietnam's Hai Duong Province[160] Corporate Governance - The company has established an audit committee to ensure compliance with corporate governance standards as per the listing rules[170] - The board will consider various factors, including financial performance and future funding needs, when deciding on dividend distributions[137] - The company will hold its annual general meeting on August 15, 2024[172]
互太纺织(01382) - 2024 - 年度业绩