Financial Performance - Other income for 2023 was HKD 30,477,000, a decrease of 10.5% from HKD 33,729,000 in 2022[3] - Bank interest income increased significantly to HKD 4,789,000 in 2023 from HKD 656,000 in 2022[3] - The group's pre-tax profit was impacted by a tax refund of HKD 32,300,000 received from the Japanese tax authority, which was not present in 2022[6] - Revenue for the year ended March 31, 2023, was HKD 4,150,886 thousand, a decrease of 12.2% from HKD 4,729,976 thousand in 2022[37] - Gross profit for the same period was HKD 879,314 thousand, down from HKD 937,558 thousand, reflecting a gross margin of approximately 21.2%[37] - Net profit for the year was HKD 43,358 thousand, significantly up from HKD 19,812 thousand in the previous year, representing a year-over-year increase of 118.5%[38] - Basic and diluted earnings per share attributable to ordinary equity holders was HKD 10.6 cents, compared to HKD 3.3 cents in the prior year[37] - The company reported a net comprehensive loss of HKD 28,541 thousand for the year, contrasting with a comprehensive income of HKD 40,966 thousand in 2022[46] - Other comprehensive loss for the year, after tax, was HKD 71,899 thousand, compared to a gain of HKD 21,154 thousand in the previous year[70] - The company experienced a foreign exchange loss of HKD 68,692 thousand related to overseas operations, compared to a gain of HKD 25,003 thousand in the previous year[39] Revenue Breakdown - Revenue from the Japan region for 2023 was HKD 1,569,018,000, a decline of 19.8% from HKD 1,956,089,000 in 2022[19] - Revenue from the Hong Kong market was HKD 1,831,336,000 in 2023, slightly down from HKD 1,843,958,000 in 2022, accounting for 44% of total revenue[134] - Revenue from mainland China decreased to HKD 750,532,000 in 2023 from HKD 929,929,000 in 2022, reflecting a decline of approximately 19.2%[113] - Revenue from Japan was HKD 1,569,018,000 in 2023, down from HKD 1,956,089,000 in 2022, indicating a decrease of about 19.8%[113] Assets and Liabilities - Non-current liabilities decreased to HKD 187,102 thousand from HKD 347,463 thousand, indicating a reduction of 46.1%[50] - The net asset value of the company as of March 31, 2023, was HKD 1,304,882 thousand, down from HKD 1,370,689 thousand in 2022[50] - Non-current assets decreased from HKD 1,407,100,000 in 2022 to HKD 1,308,900,000 in 2023, representing a decline of approximately 7%[73] - Current assets decreased from HKD 1,945,141,000 in 2022 to HKD 1,752,086,000 in 2023, a reduction of about 10%[73] - Total equity attributable to owners decreased from HKD 1,370,689,000 in 2022 to HKD 1,304,882,000 in 2023, a decrease of about 5%[74] - The company’s total liabilities increased from HKD 1,634,089,000 in 2022 to HKD 1,935,170,000 in 2023, an increase of approximately 18%[73] - The company’s net current assets decreased from HKD 311,052,000 in 2022 to HKD 183,084,000 in 2023, a decline of about 41%[73] Operational Strategy - The group plans to expand its market presence in mainland China, leveraging its advantages and actively developing its own brand[28] - The group operates 17 factories in Hong Kong and mainland China, focusing on a one-stop production and sales strategy to maintain its industry leadership[34] - The group has adopted a dual online and offline business strategy to enhance sales and increase market share in mainland China[24] - The group anticipates long-term growth potential in the mainland market, with GDP growth expected to reach 5%[28] - The company plans to continue focusing on market expansion and new product development to drive future growth[62] Cost Management - The company faced rising operational costs due to inflation and interest rate hikes, impacting profit margins throughout the year[131] - The company plans to adjust product prices to counteract increased sales costs, which have risen as a percentage of revenue[133] - The group plans to adjust product prices to offset rising costs due to inflation while continuing to control production, sales, and administrative costs[169] Corporate Actions - The company declared an interim dividend of HKD 3.0 per share, consistent with the previous year, totaling HKD 11,528[96] - The group has proposed a final dividend of HKD 0.065 per share, maintaining the total dividend for the fiscal year at HKD 0.095 per share[155] - In January 2023, the company repurchased 6,000 shares at a maximum price of HKD 2.42, totaling HKD 14,000[193] - In February 2023, the company repurchased 30,000 shares at a maximum price of HKD 2.60, totaling HKD 78,000[193] - All repurchased shares have been cancelled, reducing the issued share capital accordingly[193] Market Expansion and Product Development - The group has fully acquired the Japanese snack and candy distributor, Miyata Co., Ltd., to enhance business expansion and synergy[158] - The group aims to maintain its market leadership in Hong Kong's food agency and retail sectors while increasing market share by introducing more Japanese products[143] - The group plans to leverage its extensive distribution network to strengthen cross-brand and sales channel synergies[143] - The group will continue to introduce more products from Miyata to meet customer demands in Hong Kong and mainland China[158] - The group has diversified its food agency business by introducing products such as Japanese eggs, milk, tofu, and rice, which have received positive market feedback[164] - The group has developed a new ice cream product under the "Miyata" brand, which has been well-received in the Hong Kong market, showcasing the synergy from the acquisition of Miyata[164] - The group is the largest importer of ice cream products from Japan to Hong Kong, significantly benefiting its food agency business in the region[164] - The company aims to source more Japanese food products through Miyata's procurement network for the Hong Kong and mainland markets, supporting long-term development[191] Employee and Community Engagement - The group operates approximately 2,800 employees, with salaries reviewed annually based on performance and market conditions[173] - The group has committed to corporate social responsibility initiatives, focusing on community development and youth affairs during the pandemic[142] - The group has received multiple awards for outstanding sales performance, including recognition from 7-Eleven and the Hong Kong Council of Social Service[188] Acknowledgments - The audit committee consists of three independent non-executive directors, overseeing accounting policies and financial reporting matters[197] - The company expresses gratitude to shareholders and business partners for their continuous support throughout the reporting year[200]
四洲集团(00374) - 2023 - 年度业绩