星光集团(00403) - 2024 - 年度业绩

Financial Statements Consolidated Statement of Profit or Loss For the year ended March 31, 2024, group revenue declined 9.6% to HKD 835 million, but effective cost control led to a 4.2% gross profit increase, an 87.7% surge in operating profit to HKD 26.31 million, and a 221.8% rise in profit for the year to HKD 16.99 million, boosting basic EPS from 1.26 to 3.45 HK cents Key Consolidated Statement of Profit or Loss Metrics (For the Year Ended March 31) | Metric | 2024 (HKD '000) | 2023 (HKD '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 834,749 | 923,236 | -9.6% | | Gross Profit | 171,207 | 164,363 | +4.2% | | Operating Profit | 26,309 | 14,018 | +87.7% | | Profit Before Tax | 25,071 | 9,623 | +160.5% | | Profit for the Year | 16,992 | 5,280 | +221.8% | | Profit Attributable to Owners of the Company | 17,422 | 6,478 | +169.0% | | Basic Earnings Per Share (HK cents) | 3.45 | 1.26 | +173.8% | Consolidated Statement of Comprehensive Income Despite a profit of HKD 16.99 million for the year, a HKD 29.71 million exchange difference loss resulted in a total comprehensive loss of HKD 12.81 million, which narrowed from HKD 20.25 million in the prior year Consolidated Comprehensive Income/(Loss) (For the Year Ended March 31) | Metric | 2024 (HKD '000) | 2023 (HKD '000) | | :--- | :--- | :--- | | Profit for the Year | 16,992 | 5,280 | | Other Comprehensive Loss (primarily exchange differences) | (29,801) | (25,534) | | Total Comprehensive Loss for the Year | (12,809) | (20,254) | Consolidated Statement of Financial Position As of March 31, 2024, the group's total assets were HKD 891.44 million and total liabilities were HKD 266.35 million, both decreasing year-on-year, while total equity slightly declined to HKD 625.09 million, maintaining a net cash position Consolidated Statement of Financial Position Summary (As of March 31) | Metric | 2024 (HKD '000) | 2023 (HKD '000) | | :--- | :--- | :--- | | Non-current Assets | 400,030 | 419,738 | | Current Assets | 491,409 | 533,754 | | Total Assets | 891,439 | 953,492 | | Current Liabilities | 256,783 | 298,852 | | Non-current Liabilities | 9,571 | 10,504 | | Total Liabilities | 266,354 | 309,356 | | Total Equity | 625,085 | 644,136 | Notes to the Financial Statements General Information and Basis of Preparation The group primarily engages in printing and manufacturing packaging materials, labels, and paper products, with financial statements prepared under HKFRS; new accounting standard amendments adopted this year had no significant impact on financial position - The group's principal business involves printing and manufacturing packaging materials, labels, and paper products, including eco-friendly paper products[8] - The group first applied several newly revised accounting standards for the financial year beginning April 1, 2023, with no significant expected impact on current or future periods[12] Revenue and Segment Information Group revenue primarily stems from packaging materials, labels, and paper products sales, with South China contributing the most revenue and East China achieving the highest operating profit; notably, both South China and Southeast Asia segments successfully turned profitable this year Segment Performance Summary (For the Year Ended March 31, 2024) | Segment | Revenue from External Customers (HKD '000) | Profit/(Loss) for the Year (HKD '000) | 2023 Corresponding Period Profit/(Loss) (HKD '000) | | :--- | :--- | :--- | :--- | | South China | 567,983 | (5,999) | (4,574) | | East China | 122,453 | 14,397 | 20,031 | | Southeast Asia | 144,313 | 8,594 | (10,177) | | Total | 834,749 | 16,992 | 5,280 | - Despite South China segment revenue decreasing from HKD 615 million to HKD 568 million, its operating profit significantly increased from HKD 38 thousand to HKD 2.682 million; Southeast Asia segment revenue also fell from HKD 163 million to HKD 144 million, but successfully turned profitable from a HKD 9.98 million loss to an HKD 8.52 million profit[21][23] Dividends The Board recommends a final dividend of 1.5 HK cents per share, bringing the full-year dividend to 2.5 HK cents per share, including the 1 HK cent interim dividend, representing a 150% increase from last year's 1 HK cent Annual Dividend Details | Dividend Type | FY2024 (Per Share) | FY2023 (Per Share) | | :--- | :--- | :--- | | Interim Dividend | 1.0 HK cents | 1.0 HK cents | | Proposed Final Dividend | 1.5 HK cents | Zero | | Full-Year Dividend | 2.5 HK cents | 1.0 HK cents | Management Discussion and Analysis Performance Review Despite a 9.6% revenue decline due to global economic uncertainty, the group maintained core profit and significantly grew annual profit through cost optimization, falling raw material prices, and RMB depreciation gains, with key factories exceeding expectations and Shaoguan and Southeast Asia operations turning profitable - Revenue decreased by 9.6% to approximately HKD 835 million, but profit for the year increased from approximately HKD 5 million last year to approximately HKD 17 million[39] - Key drivers for profit growth include falling prices of major raw materials, effective implementation of cost optimization measures, and exchange gains from RMB depreciation[40] - Performance across factories exceeded expectations: Guangzhou factory remained profitable, Shaoguan factory turned profitable, Suzhou factory recorded profit despite a slight business decline, and the Southeast Asia region also turned profitable despite a sales decrease[40] Business Overview and Outlook Facing global economic slowdown and geopolitical risks, the group adopted a prudent strategy, enhancing core competitiveness through AI-driven operations, advanced equipment investment, new business expansion (food, pharmaceutical packaging), and strengthened ESG practices, with regional strategies tailored to market dynamics South China Operations South China operations enhanced efficiency through targeted investments, including a new Heidelberg eight-color UV printing machine, a food-safe packaging workshop, and an automated children's book production line in Shaoguan, significantly reducing labor costs, while also establishing a printing cultural education base and promoting the 'TEAM GREEN®' eco-friendly brand - Shaoguan factory made significant investments, including acquiring a new Heidelberg eight-color UV printing machine, constructing a new food-safe packaging workshop, and establishing a fully automated smart production line for children's books to enhance automation[50] - The eco-friendly brand 'TEAM GREEN®' actively expanded its market presence, participating in multiple exhibitions and broadening its online and offline sales channels[52] East China Operations To counter domestic market contraction, East China operations diversified into biotechnology, pharmaceuticals, and game cards, while innovating new materials and technologies, collaborating with CAS on automation, and implementing ESG initiatives like a zeolite rotor system and solar photovoltaic power generation at the Suzhou factory - To counter domestic sales contraction, business expanded into new areas such as biotechnology, pharmaceuticals, and game cards[53] - ESG initiatives: The Suzhou factory's invested zeolite rotor collection system and solar photovoltaic power generation system were put into operation by year-end, increasing clean energy usage[54] Southeast Asia Operations Despite a revenue decline due to global economic slowdown, Southeast Asia operations successfully turned profitable by leveraging global industrial transfer trends, accelerating capacity expansion with a new Penang plant to serve North Malaysia clients, and reducing production costs through enhanced lean operations and supply chain management - Despite a decline in revenue, the business successfully turned profitable[55] - To address geopolitical and supply chain changes, the group established a new plant in Penang, intensifying efforts to expand into the electronics and pharmaceutical business markets[55] Liquidity and Financial Resources The group maintains a robust financial position with approximately HKD 218 million in cash and bank balances as of March 31, 2024, and a net cash status, with the debt-to-equity ratio decreasing from 14% to 11%, indicating lower financial leverage Financial Position Metrics (As of March 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Cash and Bank Balances (HKD) | Approx. HKD 218 million | - | | Working Capital Surplus (HKD) | Approx. HKD 235 million | Approx. HKD 235 million | | Net Cash Position (HKD) | Approx. HKD 149 million | Approx. HKD 150 million | | Debt-to-Equity Ratio | 11% | 14% | Future Outlook Management remains cautious about future economic prospects, citing IMF reports of slow global expansion, and will continue to implement cost-saving and revenue-generating measures, including enhanced automation, innovation, business diversification, and investments in human capital and green energy, to navigate geoeconomic fragmentation and create long-term shareholder value - Citing the International Monetary Fund (IMF) report, global economic growth is projected to remain at 3.4% for 2024 and 2025, indicating a historically low expansion rate[65] - Group strategy: The group will continue to actively adopt measures to increase revenue and reduce costs, enhance automation, drive innovation and diversified business development, and continuously invest in human capital, digitalization, and green energy[65] Corporate Governance and Other Information Share Repurchases During the year ended March 31, 2024, the company repurchased 6,002,000 ordinary shares on the Stock Exchange for approximately HKD 1.22 million, all of which were cancelled, with the Board believing this action enhances earnings per share and net asset value per share Annual Share Repurchase Details | Date | Number of Shares Repurchased | Purchase Price Per Share (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | | July-October 2023 | 6,002,000 | 0.193 - 0.207 | 1,215,986 | Code on Corporate Governance Practices The company largely complied with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are combined under Mr. Lam Kwong Yu, an arrangement the Board believes enhances strategic development and execution, with the board composition ensuring power balance - There is a deviation from Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are not segregated, both held by Mr. Lam Kwong Yu[75] - The Board believes this arrangement allows the company to develop long-term business strategies more effectively and efficiently, and the Board's structure is sufficient to ensure a balance of power[75]