Financial Performance - For the year ended December 31, 2024, the company's profit before income tax expense increased to HK$77.06 million, compared to a loss of HK$147.88 million in 2023 after excluding a one-time gain from land acquisition[5]. - Revenue for 2024 was HK$4,426.56 million, slightly down from HK$4,440.24 million in 2023, while gross profit rose significantly to HK$529.41 million from HK$321.99 million, resulting in a gross margin increase from 7.30% to 12.00%[6]. - The total comprehensive income for the year was HK$23.86 million, down from HK$63.71 million in 2023, primarily due to increased foreign exchange losses[8]. - Basic and diluted earnings per share for 2024 were HK$1.20, a decrease from HK$4.20 in 2023, which included a one-time gain[6]. - Earnings attributable to owners of the Company for 2024 decreased to HK$14,262,000 from HK$50,903,000 in 2023, representing a decline of approximately 72%[80]. - The Group's net profit attributable to shareholders for the year ended December 31, 2024, was approximately HK$14,262,000, a decrease of 72% from HK$50,903,000 in 2023, with a corresponding profit margin of 0.3% compared to 1.1% in 2023[142]. Dividends - The company plans to pay a final dividend of HK$1.16 per share, with a payout ratio of 100%, compared to HK$3.00 per share and a 71.43% payout ratio in 2023[5]. - A final dividend of HK1.16 cents per share has been proposed for the year ended 31 December 2024, with a payout ratio of 100%[184]. - The Group will also distribute a special dividend of HK4.34 cents per share in celebration of its 55th anniversary, pending shareholder approval[184]. - The company aims to maintain a similar payout ratio to provide substantial returns to shareholders in the coming years[189]. Cost Management - Selling and administrative expenses decreased from 13.00% to 11.60% of revenue, reflecting effective cost control measures[5]. - Finance costs decreased significantly from HK$26,258,000 in 2023 to HK$13,126,000 in 2024, indicating improved financial management[59]. - Overall cost of sales decreased by approximately HK$220,000,000, representing a reduction of 5%, from HK$4,118,246,000 in 2023 to HK$3,897,147,000 in 2024[123][122]. Assets and Liabilities - The company's cash and short-term bank deposits totaled HK$1,295.48 million as of December 31, 2024, compared to HK$1,379.00 million in 2023, with net cash per share increasing to HK$1.02 from HK$0.96[5]. - The company reported a decrease in bank borrowings due within one year to HK$48.80 million from HK$108.47 million in 2023, indicating improved liquidity management[10]. - Non-current liabilities decreased significantly from HK$266,882,000 in 2023 to HK$185,856,000 in 2024, representing a reduction of approximately 30.4%[11]. - The total assets less current liabilities stood at HK$3,641.63 million as of December 31, 2024, compared to HK$3,735.55 million in 2023[10]. - The Group's total assets amounted to approximately HK$4,614,618,000, down from HK$4,900,839,000 in 2023, indicating a decrease of about 5.8%[149]. Operational Efficiency - The Group's profitability improved in 2024 due to increased order volumes from strategic clients and optimized production processes, leading to a decrease in unit production costs[89]. - The Group implemented refined management and technological upgrades in production, contributing to improved operational efficiency[89]. - The Group's production capacity at Yancheng Fuhui Textiles Limited was stabilized, and fabric production capacity at Jiangyin Fuhui was proactively reduced in response to market dynamics[96]. - A comprehensive quality control system was instituted in fabric production, leading to significant customer acclaim and recognition, including awards from Victoria's Secret & Co. and NEXT brand[97]. Market Conditions - The textile and apparel sector faced declining factory prices, intensifying price competition amid evolving consumer demand for personalization and quality[91]. - The Group experienced a positive recovery in the US and Japan markets, with key clients actively replenishing inventories, contrasting with weaker domestic sales in China[90]. - The textile and apparel industry is facing challenges due to supply chain restructuring and increased tariffs, but opportunities arise from emerging markets and domestic economic recovery[166]. Future Outlook - The Group is focusing on international investment projects to expand production capacity and mitigate geographical risks, aiming to enhance its global footprint and operational resilience[164]. - The Group's long-term strategic plans aim to deliver superior returns and benefits for shareholders, customers, employees, and society[171]. - The Group plans to enhance its international investment projects in 2024 to expand knitted fabric production capacity and mitigate geographical risks[166]. Compliance and Governance - The independent auditor's report for both years was unqualified, indicating no significant issues with the financial statements[15]. - The company has established an audit committee comprising three independent non-executive directors to oversee financial reporting and risk management[193]. - The audit committee reviewed the audited consolidated final results and internal control systems for the year ended December 31, 2024[193].
福田实业(00420) - 2024 - 年度业绩