Financial Performance - Revenue for the six months ended June 30, 2023, decreased by 18.7% to $1,009 million compared to $1,242 million for the same period in 2022[19] - Net profit for the six months ended June 30, 2023, decreased by 2.6% to $74 million, down from $76 million in the same period last year[19] - Total revenue for the six months ended June 30, 2023, was $1,009,191 thousand, a decrease of 18.7% compared to $1,241,643 thousand in the same period of 2022[22] - Gross profit for the first half of 2023 was $192,655 thousand, with a gross margin of 19.1%, compared to $229,502 thousand and 18.5% in the same period of 2022[24] - The net profit for the six months ended June 30, 2023, was $74 million, representing 7.3% of revenue, up from 6.1% in the first half of 2022[27] - Total comprehensive income for the period was $66,531 thousand, an increase of 31.6% from $50,554 thousand in the previous year[63] - The company reported a pre-tax profit of $90,279 thousand for the six months ended June 30, 2023, down from $92,167 thousand in the same period of 2022, indicating a decline of approximately 2.0%[85][91] Profitability Metrics - Gross profit margin improved to 19.1% from 18.5% year-on-year, while net profit margin increased to 7.3% from 6.1%[19] - The basic earnings per share for the period was 2.58 cents, slightly down from 2.64 cents in the same period last year[63] - The company reported other income, gains, or losses of $12,702 thousand for the six months ended June 30, 2023, compared to $5,972 thousand in the same period of 2022, representing an increase of approximately 112.9%[85][87] Cash Flow and Liquidity - The company maintained a cash position with short-term bank deposits of $63.7 million and cash and cash equivalents of $472.9 million[15] - Operating cash flow for the first half of 2023 was $141 million, an increase from $122 million in the same period of 2022[28] - The company maintained a healthy liquidity position with a net cash position of $463 million as of June 30, 2023[28] - The cash conversion cycle increased to 75 days from 63 days year-on-year[15] - The net cash generated from operating activities for the six months ended June 30, 2023, was $140.88 million, compared to $121.65 million for the same period in 2022, representing a year-over-year increase of approximately 15.7%[70] Inventory and Supply Chain - The company experienced a 30% decline in U.S. apparel imports, with women's apparel seeing a larger drop of 34%[18] - The average inventory turnover days increased to 64 days in the first half of 2023, compared to 53 days for the entire year of 2022[28] - The company noted that high inventory levels remain a common challenge for brand clients in the apparel industry[18] Capital Expenditures and Investments - Capital expenditures for the first half of 2023 were $33 million, down from $56 million in the same period of 2022[28] - No significant acquisitions or investments were made during the reporting period, and there are no plans for major investments or acquisitions at this time[30] Sustainability Initiatives - The company aims to achieve a 35% reduction in total greenhouse gas emissions by 2030, with a comprehensive action plan for each factory to meet this target[34] - The company's solar photovoltaic capacity has increased nearly threefold since the end of 2021, now reaching approximately 10 megawatts, with further installations planned[34] - The newly launched Vibrant Denim series utilizes natural mineral powder for dyeing and incorporates water-saving washing techniques, replacing traditional methods that consume more water[34] - The company has implemented a circular economy model, with two factories achieving 100% non-landfill waste treatment[34] - The company is committed to establishing measurable goals for its new sustainability vision by 2030, addressing various global sustainability challenges[33] Employee and Management Information - As of June 30, 2023, the company employed approximately 64,000 employees, with total employee costs accounting for 26.6% of revenue, up from 25.0% in the same period of 2022[32] - The annual salary of the CEO was adjusted to HKD 6.454 million, effective April 1, 2023[42] - The total remuneration for directors, as recommended by the company's remuneration committee, was $1,719,000 for the period, compared to $1,773,000 in the previous year, indicating a decrease of 3.1%[124] Corporate Governance - The company has established a comprehensive internal audit team in Vietnam to conduct compliance reviews[57] - The audit committee has reviewed the financial reports and internal control systems, finding no significant issues[56] - The board is committed to maintaining good corporate governance practices and has adhered to all relevant codes during the reporting period[54] - The audit committee has recommended the reappointment of Deloitte as the company's auditor for the upcoming year[56] Shareholder Information - The company declared an interim dividend of 5.0 HK cents per ordinary share, maintaining the same amount as the previous year[21] - The company has suspended the transfer of shares from September 7 to September 11, 2023, to determine the entitlement to the interim dividend[39] - The company’s chairman holds a beneficial interest in 306,610,590 shares, representing approximately 10.75% of the company’s equity[47] - The company’s vice-chairman holds a beneficial interest in 306,610,590 shares, also representing approximately 10.75% of the company’s equity[47] Financial Position - The company's total assets as of June 30, 2023, amounted to $1,975,718 thousand, up from $1,894,965 thousand at the end of 2022, representing a growth of 4.3%[65] - The total liabilities as of June 30, 2023, amounted to $607.17 million, up from $549.86 million at the end of 2022, marking an increase of approximately 10.4%[68] - The total equity attributable to owners of the company as of June 30, 2023, was $1.36 billion, an increase from $1.34 billion as of December 31, 2022, reflecting a growth of about 1.5%[68] Risk Management - The company has a written risk assessment procedure in place to identify, assess, and manage significant risks[57] - The audit committee continues to review the company's risks as a standing agenda item in meetings[57]
晶苑国际(02232) - 2023 - 中期财报