Financial Performance - Revenue for the fiscal year ended March 31, 2024, was HKD 689,269,000, a decrease of 35.1% compared to HKD 1,061,974,000 in the previous year[2] - Gross profit fell to HKD 29,106,000, down 67.5% from HKD 89,623,000, resulting in a gross margin of 4.2%, a decline of 4.2 percentage points[2] - Profit attributable to equity holders of the company was HKD 20,221,000, a decrease of 62.1% from HKD 53,410,000[2] - Basic earnings per share decreased to HKD 3.00 from HKD 7.92, reflecting a 62.1% decline[2] - The overall profit for the year was HKD 20,057,000, a significant decline from HKD 53,936,000 in the previous year[28] - The company reported a pre-tax profit of HKD 12,622,000, down from HKD 50,320,000 in the previous year[13] - The company reported a basic earnings per share of HKD 20,221,000 for the year, compared to HKD 53,410,000 in the previous year, with a weighted average of 675,144,718 shares outstanding[59] - The company's gross profit decreased by 67.5% to approximately HKD 29,000,000, with a gross margin narrowing to about 4.2%[138] - Net profit attributable to equity holders was approximately HKD 20,000,000, down 62.1% from HKD 53,000,000 in the previous year[139] Dividends - Total dividends for the year increased by 100% to HKD 9.0 per share, compared to HKD 4.5 per share in the previous year[2] - The company has proposed a final dividend of HKD 0.2 per share, down from HKD 2.0 per share in the previous year[61] Assets and Liabilities - Total assets decreased to HKD 1,509,445,000 in 2024 from HKD 1,587,959,000 in 2023[28] - Total liabilities also decreased to HKD 323,845,000 in 2024 from HKD 373,303,000 in 2023[28] - The net asset value for the company was HKD 1,185,600,000 in 2024, a decrease from HKD 1,214,656,000 in 2023[37] - Cash and cash equivalents amounted to approximately HKD 416,000,000[2] - The company’s cash and cash equivalents increased to HKD 415,580,000 in 2024 from HKD 392,648,000 in 2023[36] - The company maintained a healthy cash level with net cash of approximately HKD 416 million, up from HKD 393 million in the previous year[118] Revenue Breakdown - Revenue from manufacturing and sales of footwear products for the year ended March 31, 2024, was HKD 689,269,000, a decrease of 35% compared to HKD 1,061,974,000 in 2023[28] - The company reported a loss of HKD 19,346,000 in the footwear segment for 2024, compared to a profit of HKD 40,712,000 in 2023[28] - The contribution of high-value footwear to total revenue increased to 78.6%, while the contribution from infant footwear decreased to 6.2%[147] - The group reported a revenue of HKD 654,738,000 for 2024, a decrease of 35.3% from HKD 1,011,615,000 in 2023[84] - The company's revenue decreased by 35.1% year-on-year to approximately HKD 689 million, down from HKD 1,062 million in the previous year, with business volume declining by 33.4%[114] Expenses and Costs - The cost of goods sold was HKD 423,414,000, down from HKD 636,119,000, reflecting a reduction of 33.5%[57] - Direct labor costs decreased by 28.1% to approximately HKD 133 million, but the proportion of direct labor costs to revenue increased to 19.3% from 17.5%[115] - Administrative expenses decreased slightly to HKD 72,491,000 from HKD 74,852,000[13] - The company has implemented strict cost control measures across its operations, including sales, marketing, and administrative functions, to better respond to the challenging business environment[125] Strategic Initiatives - The company plans to optimize its product mix and continue investing in workforce skills enhancement and facility upgrades to meet complex manufacturing demands[74] - The company is focusing on supply chain optimization and maintaining a healthy operational foundation to build resilience in the manufacturing sector[72] - The group plans to continue enhancing manufacturing execution systems (MES) to improve order fulfillment capabilities[104] - The group aims to strengthen partnerships with footwear brands by focusing on flexibility, reliability, and value-added services[101] - The group is committed to sustainable manufacturing practices, reducing carbon footprints, and prioritizing sustainability in business decisions[81] - The group has implemented lean manufacturing systems to reduce waste and achieve cost savings[105] - The company is focusing on six strategic action areas to strengthen its capabilities and adapt to the rapidly changing operating environment[122] Market and Customer Insights - The group's major customers, including Cat, Chaco, Dr. Martens, Merrell, and Wolverine, collectively accounted for 95.0% of total revenue, slightly down from 95.3% in 2023[177] - In the current year, the contribution of the US market to the group's revenue was 26.5%, down from 37.3% in 2023, while Europe contributed 26.4%, up from 22.5% in 2023, and other markets accounted for 47.1%, up from 40.2% in 2023[176] - The group has expanded its customer portfolio by adding two new brands, Axion and Palladium, during the year[177] Operational Metrics - The group operated 21 production lines with a total annual capacity of approximately 7 million pairs of footwear, with a utilization rate of 57.5%[145] - Accounts receivable increased to HKD 172,403,000 in 2024 from HKD 141,216,000 in 2023, reflecting a rise of 22.0%[91] - Accounts receivable turnover days increased to 80 days from 60 days, while accounts payable turnover days increased to 123 days from 86 days[118] Future Outlook - The group anticipates a gradual recovery in customer procurement in the second half of the fiscal year 2025 as retail inventory levels improve[100] - The group plans to adopt a more cautious approach to capacity management and business development in the next fiscal year due to ongoing macroeconomic uncertainties[154] - The board remains confident in the long-term development of its centers and has implemented measures to mitigate short-term order fluctuations[181]
信星集团(01170) - 2024 - 年度业绩