Financial Performance - For the year ended December 31, 2024, Best Pacific achieved a record high overall sales revenue of approximately HK$5,061.3 million, marking an increase of approximately 20.5% compared to 2023[14]. - Revenue has grown significantly from approximately HK$1,860.9 million in 2014 to approximately HK$5,061.3 million in 2024, reflecting a compound annual growth rate of approximately 10.5% over the past decade[15]. - In 2024, the company's total sales revenue reached approximately HK$5,061.3 million, representing an increase of approximately 20.5% compared to HK$4,200.7 million in 2023[24]. - The overall gross profit for 2024 was approximately HK$1,356.8 million, reflecting a 35.2% increase from the previous year, resulting in a gross profit margin of approximately 26.8%, up by 2.9 percentage points[28]. - Profit attributable to owners of the company amounted to approximately HK$608.1 million for 2024, marking a 75.3% increase from approximately HK$347.0 million in 2023[29]. - Basic earnings per share for 2024 were approximately HK58.48 cents, an increase of 75.3% from approximately HK33.36 cents in 2023[29]. - The Group achieved a record high net profit of approximately HK$594.1 million for the year ended 31 December 2024, representing an increase of approximately 70.0% compared to approximately HK$349.4 million for the year ended 31 December 2023[76]. - The net profit margin increased to approximately 11.7% for the year ended 31 December 2024, up approximately 3.4 percentage points from approximately 8.3% for the year ended 31 December 2023[80]. - The Group attained an EBITDA of approximately HK$1,188.2 million for the year ended 31 December 2024, representing an increase of approximately 34.5% compared to approximately HK$883.6 million for the year ended 31 December 2023[78]. Market Trends and Expansion - The ongoing athleisure trend and consumers' growing focus on quality and functionality reveal substantial market potential in the sportswear and apparel sector[15]. - Best Pacific launched a new expansion project in Vietnam in the last quarter of 2024, leveraging nearly a decade of experience in the location[16]. - The company anticipates promising returns for shareholders and stakeholders from its continuous efforts in the new expansion project[16]. - The sportswear and apparel elastic fabric segment achieved a record revenue of approximately HK$2,805.7 million, an increase of approximately HK$625.7 million or 28.7% from HK$2,180.0 million in 2023[45]. - The company achieved a high-teens sales growth in Vietnam in 2024, continuing its strong performance from the previous year[34]. - In December 2024, the company acquired land use rights in Nghe An, Vietnam, to establish an advanced production facility, aiming to capture potential growth in sales orders[35]. - The Group plans to develop a second production base in Vietnam, with the first phase of production facilities expected to commence commercial production in 2026[129]. Economic Environment - The global economy experienced moderate growth in 2024, with an estimated world output growth of 3.2% according to the IMF[14]. - World trade volume rose, driven by robust exports from Asia, benefiting Asian textile and garment manufacturers[14]. - The U.S. experienced a year-on-year GDP growth of 2.8% in 2024, contributing to a favorable economic environment for the company's operations[23]. - Ongoing trade tensions and inflation in the U.S. pose risks to consumer confidence and spending, which could impact sales for Best Pacific[118]. - The IMF projects global GDP growth at 3.3% for both 2025 and 2026, which may influence Best Pacific's market strategies moving forward[115]. Operational Efficiency and Cost Management - The Group's cost of sales for 2024 amounted to approximately HK$3,704.5 million, an increase of approximately HK$507.4 million or 15.9% compared to HK$3,197.1 million in 2023[50]. - The gross profit margin improved to 26.8% in 2024 from 23.9% in 2023, driven by better production efficiencies and stable raw material prices[53]. - The Group's finance costs decreased by approximately 24.6% from approximately HK$116.2 million for the year ended 31 December 2023 to approximately HK$87.7 million for the year ended 31 December 2024[70]. - The average trade receivables turnover days improved to 58.3 days in 2024 from 60.5 days in 2023, a decrease of 2.2 days or 3.6%[89]. - The average inventory turnover days decreased to 111.8 days in 2024 from 122.4 days in 2023, a reduction of 10.6 days or 8.7%[89]. Shareholder Returns and Dividends - A final dividend of HK$15.91 cents per ordinary share was declared for the year ended 31 December 2024, compared to HK$11.38 cents per ordinary share for the year ended 31 December 2023[106]. - An interim dividend of HK$13.33 cents per ordinary share was paid on 4 October 2024, up from HK$5.3 cents per ordinary share in 2023[107]. - Best Pacific declared a final dividend of HK$0.1591 per share for the year ending December 31, 2024, compared to HK$0.1138 per share for the previous year, reflecting a significant increase of 40.0%[109]. Sustainability and Corporate Responsibility - Best Pacific's commitment to sustainability is highlighted by securing a sustainability-linked loan in 2024, confirming that its sustainability performance targets are relevant and ambitious[114]. - The Group made charitable donations totaling approximately HK$310,000 during the year[163]. - The Company has complied with relevant laws and regulations in the Cayman Islands, PRC, Hong Kong, Vietnam, Sri Lanka, and the U.S. for the year ended December 31, 2024[161]. Employee and Governance - The Group employed a total of 11,037 employees as of 31 December 2024, an increase from 9,604 employees as of 31 December 2023[98]. - The Group has a performance appraisal system in place to reward and recognize employees, promoting career development through training and advancement opportunities[152]. - The executive directors have renewed their service agreements for an extended term of three years starting from November 23, 2024, with amendments related to holiday and housing benefits[187]. - All directors are subject to retirement by rotation, with Mr. Lu, Mr. Wu, and Mr. Cheung eligible for re-election at the upcoming AGM[189]. - Directors' fees are subject to shareholders' approval, while other emoluments are determined by the Board based on directors' duties and the Group's performance[192].
超盈国际控股(02111) - 2024 - 年度财报