Financial Performance - Revenue for the fiscal year ended December 31, 2024, reached $2,469,629,000, an increase of 13.4% from $2,177,329,000 in 2023[10] - Gross profit increased to $486,223,000, reflecting a gross margin of 19.7%, up from 19.2% in the previous year[10] - Net profit for the year was $200,828,000, representing a net profit margin of 8.1%, compared to 7.5% in 2023[10] - The total assets grew to $2,254,453,000, up from $1,974,562,000 in 2023, indicating strong asset growth[10] - The total liabilities increased to $719,007,000 from $535,660,000, reflecting a rise in financial obligations[10] - The company achieved a revenue growth of 13% to $2,470 million for the year ending December 31, 2024, compared to $2,177 million in 2023[23] - The net profit increased by 22% to $201 million for the year ending December 31, 2024, up from $164 million in 2023[24] - The gross profit margin improved to 19.7% in 2024, compared to 19.2% in 2023, while the net profit margin rose to 8.1% from 7.5%[23] - Operating cash flow for 2024 was $106 million, down from $313 million in 2023, primarily due to an increase in trade receivables[37] - The average inventory turnover days for 2024 was 48 days, compared to 54 days in 2023, indicating improved inventory management[38] - The group maintained a healthy liquidity position with a net cash position of $427 million as of December 31, 2024[37] Sustainability Initiatives - The company has set a new goal to plant 2 million trees globally by 2030 as part of its sustainability initiatives[16] - The company is focusing on minimizing environmental footprints across its supply chain as part of its sustainability strategy[16] - The company installed 8 megawatts of solar photovoltaic capacity in Bangladesh, Sri Lanka, and China in 2024, increasing total capacity to 20 megawatts[25] - Approximately 200 energy efficiency measures have been planned, with about 120 completed, expected to reduce carbon emissions by 32,000 tons[25] - The company received multiple sustainability awards, including the "EY Sustainable Development Annual Best Award 2024" and "ESG Excellence Award" in 2024[26] - The company is committed to its "Sustainable Development Vision 2030," aligning with the United Nations Sustainable Development Goals[25] Employee and Management Growth - The total number of employees increased to approximately 75,000 by the end of 2024, up from about 65,000 at the end of 2023, following the recruitment of 10,000 new employees[22] - The company has a leadership team with extensive experience in the garment manufacturing industry, with key executives having over 30 years of experience each[56] - The company has a diverse management team, with members holding significant positions in both local and international business organizations[64] - The company emphasizes gender diversity in its succession planning to maintain a pool of potential successors[151] - The company prioritizes training and development plans for directors and senior management to prepare for future leadership roles[195] Corporate Governance - The company has a strong governance structure with various committees, including audit, remuneration, and nomination committees, ensuring effective oversight and strategic direction[67] - The independent non-executive directors play a crucial role in providing oversight and strategic guidance, ensuring the company's long-term success and sustainability[73] - The board consists of five executive directors, two non-executive directors, and four independent non-executive directors as of December 31, 2024[140] - The audit committee consists solely of independent non-executive directors to ensure independence[164] - The company has complied with all applicable code provisions under the corporate governance code for the financial year ending December 31, 2024[136] Future Outlook - The company expects a strong start in 2025, aiming for significant performance breakthroughs within the year[50] - The company plans to focus on sportswear, casual wear, and intimate apparel in 2025, enhancing collaboration with major brand clients[50] - Capital expenditure for 2025 is expected to be similar to 2024, primarily for upgrading automation equipment and expanding apparel production capacity[51] - The company is well-prepared to capitalize on market trends favoring efficient replenishment and flexible production adjustments[50] Dividend and Shareholder Returns - The company plans to distribute a final dividend of HKD 0.19 per share and a special dividend of HKD 0.055 per share, totaling HKD 0.383 per share for the year[25] - The company aims to provide stable and growing returns to shareholders through dividend distribution, with potential for dividend increases based on forecasted cash flow[51] - The company will actively review its dividend distribution framework annually to align with its financial strength and long-term development goals[51] Risk Management - The company is addressing tariff and policy risks by seeking global diversification opportunities[15] - The Audit Committee continues to assess the effectiveness of the group's risk management procedures, with a focus on cybersecurity risks[172] Strategic Initiatives - The company has been involved in various strategic initiatives, including participation in trade development councils and industry associations[61] - The company is committed to enhancing productivity and innovation, as indicated by the experience of its executives in overseeing these areas[60]
晶苑国际(02232) - 2024 - 年度财报