富士高实业(00927) - 2024 - 年度业绩

Annual Results Announcement Financial Highlights For FY2024, revenue decreased by 8.5% to HKD 992.5 million, gross margin fell to 17.7%, and profit attributable to equity holders dropped 30.2% to HKD 17.2 million, while dividends remained at 6.0 HK cents per share - The Board of Directors is pleased to announce the audited consolidated results for the year ended March 31, 2024[5] - The annual results have been reviewed by the Company's Audit Committee[1] FY2024 Financial Highlights | Metric | 2024 (HKD Thousands) | 2023 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 992,500 | 1,084,700 | Decrease 8.5% | | Gross Profit Margin | 17.7% | 19.4% | Decrease 1.7 percentage points | | Profit Attributable to Equity Holders of the Company | 17,200 | 24,600 | Decrease 30.2% | | Basic Earnings Per Share | 4.0 HK Cents | 5.8 HK Cents | Decrease 1.8 HK Cents | | Final and Special Final Dividend (Per Share) | 6.0 HK Cents | 6.0 HK Cents | Unchanged | Consolidated Financial Statements Consolidated Statement of Comprehensive Income For the year ended March 31, 2024, the Group reported HKD 992.5 million in revenue, HKD 176 million in gross profit, HKD 44.2 million in operating profit, and HKD 17.17 million in profit attributable to equity holders Consolidated Statement of Comprehensive Income Key Data | Metric | 2024 (HKD Thousands) | 2023 (HKD Thousands) | | :--- | :--- | :--- | | Revenue | 992,521 | 1,084,736 | | Cost of Sales | (816,528) | (874,369) | | Gross Profit | 175,993 | 210,367 | | Operating Profit | 44,227 | 56,748 | | Profit Before Income Tax | 57,860 | 61,118 | | Profit for the Year | 47,104 | 43,881 | | Profit Attributable to Equity Holders of the Company | 17,168 | 24,613 | | Total Comprehensive Income for the Year | 32,877 | 25,530 | - Net finance income significantly increased from HKD 4.37 million in 2023 to HKD 13.633 million in 2024[19][28] Consolidated Statement of Financial Position As of March 31, 2024, the Group reported total non-current assets of HKD 142.2 million, total current assets of HKD 799.8 million, total current liabilities of HKD 266.2 million, and net assets of HKD 672 million Consolidated Statement of Financial Position Key Data | Metric | 2024 (HKD Thousands) | 2023 (HKD Thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 142,244 | 124,013 | | Total Current Assets | 799,783 | 776,194 | | Total Current Liabilities | 266,159 | 220,128 | | Net Current Assets | 533,624 | 556,066 | | Total Non-current Liabilities | 3,825 | 6,846 | | Net Assets | 672,043 | 673,233 | | Equity and Reserves Attributable to Equity Holders of the Company | 570,949 | 600,586 | | Non-controlling Interests | 101,094 | 72,647 | - Property, plant and equipment increased from HKD 83.832 million in 2023 to HKD 106.934 million in 2024[31] - Cash and cash equivalents decreased from HKD 369.796 million in 2023 to HKD 325.842 million in 2024[9] Notes to the Consolidated Financial Statements Basis of Preparation and Significant Accounting Policies The Group's consolidated financial statements are prepared under HKFRS, with new and revised standards applied for the first time having no significant impact, and also list amendments issued but not yet effective - These consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance (Cap. 622), and on a historical cost basis[12] - The Group first applied several new and revised standards for the financial year beginning April 1, 2023, including disclosures of accounting policies and definitions of accounting estimates[13][34] - The adoption of these new and revised standards had no significant impact on the Group's consolidated financial statements for the current, any prior, or future periods[34] Segment Information The chief operating decision maker evaluates business performance by product segments, with ODM headphones and audio headphones generating HKD 649.2 million and accessories and components generating HKD 343.3 million in FY2024, primarily from Hong Kong and China - The chief operating decision maker (executive directors) assesses the performance of operating segments based on segment results, which exclude corporate expenses, other gains and losses, finance income, and costs[16][17] - The Group assesses business performance from a product perspective, specifically ODM headphones and audio headphones, and accessories and components[35] Segment Revenue and Results (2024 vs 2023) | Segment | 2024 Revenue (HKD Thousands) | 2023 Revenue (HKD Thousands) | 2024 Results (HKD Thousands) | 2023 Results (HKD Thousands) | | :--- | :--- | :--- | :--- | :--- | | ODM Headphones and Audio Headphones | 649,191 | 764,319 | (10,715) | 22,956 | | Accessories and Components | 343,330 | 320,417 | 57,231 | 36,796 | | Total | 992,521 | 1,084,736 | 46,516 | 59,752 | - External customer revenue from Hong Kong for the year ended March 31, 2024, was approximately HKD 970.5 million (2023: HKD 1,057.4 million), while total external customer revenue from China was approximately HKD 21.972 million (2023: HKD 27.338 million)[22] Operating Profit Operating profit reflects various deductions and inclusions, with a notable increase in provision for obsolete inventories to HKD 27.459 million in 2024 among other items like depreciation and impairment provisions Operating Profit Adjustment Items (2024 vs 2023) | Item | 2024 (HKD Thousands) | 2023 (HKD Thousands) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 17,547 | 16,535 | | Depreciation of Right-of-use Assets | 7,286 | 8,374 | | Amortisation of Intangible Assets | 15 | 83 | | Provision for Obsolete Inventories | 27,459 | 110 | | Impairment Provision for Trade Receivables | 141 | 19 | | Employee Expenses (including Directors' Emoluments) | 281,682 | 293,224 | - Provision for obsolete inventories significantly increased from HKD 0.11 million in 2023 to HKD 27.459 million in 2024[66] Income Tax Expense Income tax expense decreased to HKD 10.756 million in 2024, with Hong Kong profits tax at 16.5% (or 8.25% for eligible profits) and Chinese corporate income tax at 25% Income Tax Expense (2024 vs 2023) | Item | 2024 (HKD Thousands) | 2023 (HKD Thousands) | | :--- | :--- | :--- | | Current Income Tax | 17,122 | 16,600 | | Under/(Over) Provision in Prior Years | 428 | (169) | | Withholding Tax on Dividends | 139 | 5 | | Deferred Income Tax (Credit)/Expense | (6,933) | 801 | | Total | 10,756 | 17,237 | - Hong Kong profits tax provision is calculated at a 16.5% rate on estimated assessable profits arising in Hong Kong during the year, with the first HKD 2 million of assessable profits taxed at 8.25% for eligible corporations[41] - The Group's subsidiaries in China are subject to China corporate income tax at a 25% rate on estimated assessable profits, and a 10% withholding tax on dividends declared to overseas investors[41][68] Dividends The Board recommends a total final and special final dividend of 6.0 HK cents per ordinary share for FY2024, consistent with the prior year, with payment expected on September 6, 2024 - The Board recommends a final dividend of 5.0 HK cents and a special final dividend of 1.0 HK cent per ordinary share for the year ended March 31, 2024[47][69] - The proposed dividend is expected to be paid to the Company's shareholders on September 6, 2024, subject to approval at the upcoming Annual General Meeting[47] - To determine eligibility for the proposed dividend, the Company will suspend share transfers from Thursday, August 22, 2024, to Monday, August 26, 2024[48] Earnings Per Share Basic earnings per share for the year ended March 31, 2024, decreased to 4.0 HK cents from 5.8 HK cents in 2023, with diluted earnings per share remaining identical due to no potential dilutive shares Earnings Per Share (2024 vs 2023) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (HKD Thousands) | 17,168 | 24,613 | | Weighted Average Number of Ordinary Shares in Issue (Thousands) | 425,839 | 425,839 | | Basic Earnings Per Share (HK Cents) | 4.0 | 5.8 | - For the years ended March 31, 2024 and 2023, diluted earnings per share were the same as basic earnings per share due to the absence of potential dilutive shares[70] Trade Receivables As of March 31, 2024, net trade receivables increased to HKD 303.6 million, up from HKD 242.4 million in 2023, with credit terms ranging from 30 to 120 days Trade Receivables Ageing Analysis (2024 vs 2023) | Ageing | 2024 (HKD Thousands) | 2023 (HKD Thousands) | | :--- | :--- | :--- | | Current | 188,876 | 199,630 | | 1 to 30 Days | 77,517 | 19,118 | | 31 to 60 Days | 36,047 | 13,368 | | 61 to 90 Days | 723 | 6,631 | | Over 90 Days | 2,605 | 5,767 | | Total Trade Receivables | 305,768 | 244,514 | | Less: Loss Allowance for Trade Receivables | (2,217) | (2,108) | | Trade Receivables - Net | 303,551 | 242,406 | - Net trade receivables increased by 25.2% year-on-year[44] - The Group grants customers credit terms of 30 to 120 days[70] Trade Payables, Contract Liabilities, Accruals and Other Payables As of March 31, 2024, total trade payables were HKD 127.4 million, contract liabilities HKD 10.9 million, and accruals and other payables HKD 104.8 million, with a specific warranty provision of HKD 18.659 million recognized Trade Payables Ageing Analysis (2024 vs 2023) | Ageing | 2024 (HKD Thousands) | 2023 (HKD Thousands) | | :--- | :--- | :--- | | Current | 76,230 | 94,874 | | 1 to 30 Days | 40,896 | 18,626 | | 31 to 60 Days | 6,897 | 326 | | 61 to 90 Days | – | 535 | | Over 90 Days | 3,404 | 353 | | Total Trade Payables | 127,427 | 114,714 | - Contract liabilities significantly increased from HKD 2.378 million in 2023 to HKD 10.9 million in 2024[45] - For the year ended March 31, 2024, a specific warranty provision of HKD 18.659 million was recognized and charged to cost of sales due to a higher return rate for a product[72] Business Review and Outlook Business Review For the year, the Group reported HKD 992.5 million in revenue, HKD 176 million in gross profit, and a 17.7% gross profit margin, with profit attributable to equity holders decreasing to HKD 17.2 million due to a HKD 28.9 million one-off provision for obsolete inventories - For the year ended March 31, 2024, the macroeconomic environment remained clouded by several adverse factors, including geopolitical tensions, persistently high inflation, and interest rate hikes by multiple central banks[76] - Fujikon was less affected by the subdued consumer sentiment due to its market differentiation strategy, developing advanced products for discerning top-tier audio brands[76] Business Review Key Financial Data (2024 vs 2023) | Metric | 2024 (HKD Thousands) | 2023 (HKD Thousands) | | :--- | :--- | :--- | | Revenue | 992,500 | 1,084,700 | | Gross Profit | 176,000 | 210,400 | | Gross Profit Margin | 17.7% | 19.4% | | Profit Attributable to Equity Holders of the Company | 17,200 | 24,600 | - Profit attributable to equity holders of the Company was HKD 17.2 million, impacted by a one-off provision for obsolete inventories of approximately HKD 28.9 million. Excluding this one-off provision, the Group would have recorded a profit attributable to equity holders of approximately HKD 46.1 million[76] Segmental Analysis The ODM headphones and audio headphones segment maintained stable revenue but incurred a loss due to obsolete inventory provisions, while the accessories and components segment achieved significant revenue and profit growth, supported by new clients and a "China+1" strategy with an Indonesian production base - Revenue generated by ODM headphones and audio headphones remained stable at HKD 649.2 million (2023: HKD 764.3 million), accounting for 65.4% of the Group's total revenue[50] - The ODM headphones and audio headphones segment recorded a loss of HKD 10.7 million (2023: profit of HKD 23 million), primarily due to the inclusion of a one-off provision for obsolete inventories[50] - Revenue from the accessories and components segment increased to HKD 343.3 million (2023: HKD 320.4 million), accounting for 34.6% of the Group's total revenue for the year under review. Segment profit surged by 55.5% year-on-year to HKD 57.2 million (2023: HKD 36.8 million)[79] - The Group established its first offshore production base in Indonesia, enabling Fujikon to implement its "China+1" strategy with the new base[78] Outlook Management holds cautious optimism for the outlook, focusing on new revenue streams in education, automotive, and medical sectors, while implementing "make-or-buy" strategies and production automation to reduce costs and meet future demand - Fujikon will focus on exploring new revenue streams, particularly in the education, automotive, and medical sectors, which are less susceptible to fluctuations in consumer sentiment[54] - The Group launched a new product line for the education industry in April 2024 and is engaging in discussions with potential clients, leveraging relevant certifications to expand its market share in the automotive and medical sectors[54] - Management will continue to advance the restructuring and streamlining of all production stages, adopting a "make-or-buy" strategy and upgrading production lines to integrate fully automated and semi-automated processes to reduce labor and related costs[82] - According to the International Monetary Fund, global economic growth is projected to remain at 3.2% in 2024 and 2025, with the global headphone market size expected to reach USD 18 billion in 2024, growing at a CAGR of 2.4%[80] Financial Review Liquidity and Financial Resources As of March 31, 2024, net current assets were approximately HKD 533.6 million, with current and quick ratios of 3.0x and 2.4x respectively, and cash and cash equivalents decreased by 11.9% to HKD 325.8 million - The Group maintained a strong financial position[57] Liquidity and Financial Resources Key Data (2024 vs 2023) | Metric | 2024 (HKD Thousands) | 2023 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 533,600 | 556,100 | Decrease | | Current Ratio | 3.0 Times | 3.5 Times | Decrease | | Quick Ratio | 2.4 Times | 2.8 Times | Decrease | | Cash and Cash Equivalents | 325,800 | 369,800 | Decrease 11.9% | - Approximately 77.3% of total cash and cash equivalents were denominated in USD, 18.5% in RMB, and 3.1% in HKD[94] - The Group's total bank credit facilities were approximately HKD 160.6 million, with an unused balance of approximately HKD 160.6 million[94] Foreign Exchange Risk The Group recorded a net exchange gain of HKD 4.8 million, with RMB fluctuations directly impacting operating costs, and actively manages foreign exchange risk through monitoring and forward contracts - For the year, the Group recorded a net exchange gain of approximately HKD 4.8 million (2023: HKD 2.6 million)[58] - Recent fluctuations in RMB directly impact the Group's operating costs[95] - The Group continuously monitors foreign exchange risk and enters into forward exchange contracts when appropriate[95] Employee Information As of March 31, 2024, the Group employed approximately 2,200 staff, a reduction of 200, with employee expenses around HKD 281.7 million, and human resources policies based on performance, offering various benefits and training - As of March 31, 2024, the Group employed approximately 2,200 staff (2023: 2,400 staff)[59] - Employee expenses (including directors' emoluments) for the year were approximately HKD 281.7 million (2023: HKD 293.2 million)[59] - The Group formulates human resources policies and procedures based on work performance and achievements, with employee remuneration determined by customary salary and bonus schemes based on staff performance, and offers various benefits and training programs[96] Financial Guarantees As of March 31, 2024, the Company provided HKD 155.7 million in corporate guarantees for its subsidiaries' bank facilities, none of which were utilized - As of March 31, 2024, the Company provided corporate guarantees of approximately HKD 155.7 million (2023: HKD 155.7 million) as security for its subsidiaries' bank facilities[60] - As of March 31, 2024 and 2023, the subsidiaries did not utilize any credit facilities[60] Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year - During the year, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[88] Corporate Governance Model Code for Securities Transactions The Company adopted a securities transaction code of conduct, no less exacting than Listing Rules Appendix C3, which all directors and senior management complied with during the year - The Company has adopted a code of conduct for securities transactions by the Group's directors and senior management, with terms no less exacting than those set out in Appendix C3 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[89] - Following specific enquiry with all directors and senior management of the Group, all directors and senior management complied with the Model Code during the year[89] Code Provision C.2.1 of the Corporate Governance Code The Company deviates from Code Provision C.2.1, with Mr. Yeung Chi Hung serving as both Chairman and CEO, an arrangement the Board believes provides strong leadership and enhances decision-making efficiency, subject to regular review - The Company has complied with the Corporate Governance Code, except for Code Provision C.2.1, which is deviated from for the reasons stated below[90] - Mr. Yeung Chi Hung, the Chairman of the Company, also serves as the Chief Executive Officer. The Board believes that Mr. Yeung's dual role provides strong and consistent leadership for the Group, enhancing the Company's decision-making and execution efficiency[90] - In the future, the Board will regularly review the effectiveness of this arrangement and consider separating the roles of Chairman and Chief Executive Officer when deemed appropriate[90] Board of Directors and Announcement Date Board Members and Announcement Date This section details the Board of Directors' composition as of the announcement date, comprising five executive and three independent non-executive directors - As of the announcement date, the Board comprises five executive directors: Mr. Yeung Chi Hung, Mr. Yuen Yee Sai, Mr. Chow Man Yan, Mr. Yuen Tsz King, and Mr. Yeung Siu Chung, and three independent non-executive directors: Dr. Ng Wang Pun, Mr. Che Wai Hang, and Ms. Tse Kan[100] - The announcement date is Hong Kong, June 28, 2024[101]