Financial Performance - The company's revenue for the year ended December 31, 2022, increased by 4.2% to approximately RMB 1,664.4 million, driven by strong domestic demand in the second half of the year, particularly in Q4 [31]. - The gross profit margin for 2022 was RMB 442 million, reflecting a compound annual growth rate (CAGR) of -1.1% compared to previous years [17]. - The net profit for 2022 decreased by 49.2% or approximately RMB 53.3 million to about RMB 55.0 million, primarily due to increased production costs from raw materials [103]. - The operating profit (EBIT) decreased by 41.3% to approximately RMB 100.3 million, with an EBIT margin of 6.0% [109]. - Net profit attributable to the company's owners was approximately RMB 57.0 million, a decrease of 50.6% compared to the previous year, with a return on equity of 3.4% [110]. - The gross profit decreased by approximately RMB 16.7 million to about RMB 442.2 million, representing a year-on-year decline of 3.6% due to rising raw material costs [102]. - The operating cash flow reached approximately RMB 68.9 million, down from approximately RMB 101.7 million in the previous year [110]. Expenses and Cost Management - Research and development expenses for 2022 were approximately RMB 59.1 million, a slight decrease of 8.6% year-on-year, accounting for 3.6% of total revenue (down from 4.1% in 2021) [29]. - Sales and distribution expenses increased by 1.4% to approximately RMB 219.4 million in 2022, with advertising and promotional expenses accounting for 8.3% of revenue (down from 8.8% in 2021) [33]. - The average price of palm oil increased by approximately 15.4%, flour by 18.3%, and sugar by 5.7% compared to the previous year, impacting profit margins [101]. - The company plans to mitigate raw material price increases through long-term contracts, supply chain management, and operational efficiency improvements [111]. Dividends and Shareholder Returns - The company plans to pay a final dividend of HKD 0.05 per share for the year ended December 31, 2022, unchanged from the previous year, with the total dividend for the year being HKD 0.05 per share (down from HKD 0.15 in 2021) [23]. - The board proposed a final dividend of HKD 0.05 per share, subject to shareholder approval [96]. Market and Product Performance - The revenue from coarse grain biscuits in 2022 was approximately RMB 83.5 million, a decline of 19.6% or about RMB 20.3 million compared to the previous year, prompting a reassessment of market positioning [32]. - Revenue from salty crackers increased by approximately RMB 2.2 million (4.1%) to approximately RMB 56.5 million in 2022, driven by effective branding and pricing strategies [51]. - Revenue from wafer biscuits was approximately RMB 180.0 million, an increase of 14.0% or about RMB 22.1 million compared to the previous year, attributed to consumer preference for the product's taste and texture [52]. Governance and Board Structure - The board held six meetings during the year, with no directors authorizing any alternate directors to attend board meetings [46]. - The board is committed to maintaining diversity, with one female director currently representing 16.7% of the board [40]. - The company has deviated from the corporate governance code by having the same individual, Mr. Huang, serve as both Chairman and CEO, which is considered appropriate due to the need for continuity and stability in operations [67]. - The audit committee, consisting of three independent non-executive directors, held four meetings during the year to oversee the integrity of financial reporting and the relationship with external auditors [76]. - The company emphasizes the importance of ongoing professional development for directors to enhance their knowledge and skills related to corporate governance and regulatory compliance [87]. Risk Management and Challenges - The company continues to face challenges from high inflation and an uncertain business environment but remains confident in its business model for strong performance [101]. - The company acknowledges risks related to consumer spending levels, impulsive purchases, and the ability to manufacture and distribute products effectively [187]. - The company faces potential negative impacts on its overall business and financial performance due to public health issues, such as the COVID-19 pandemic [187]. - The company relies on third parties for essential operational supplies, and any financial or operational difficulties faced by these parties could negatively affect its operations [188]. Strategic Initiatives - The company aims to enhance product quality and supply chain management to achieve zero customer complaints and improve production efficiency [28]. - The company is focusing on understanding and meeting diverse consumer preferences, including clean labels, convenience, nutrition, authenticity, and premiumization [29]. - The company aims to pursue acquisition opportunities to accelerate its strategic goals and expand its product portfolio into new growth areas [98]. - The company aims for long-term sustainable growth through responsible business decisions to enhance shareholder value and achieve stable revenue and dividend growth [196]. Internal Controls and Compliance - The audit committee is responsible for reviewing the effectiveness of internal financial controls and risk management systems [90]. - The board has reviewed the effectiveness of the internal control and risk management systems, confirming their adequacy in all significant aspects [172]. - The audit committee reviews the internal control system annually to ensure its effectiveness [168]. - The company has adopted governance measures to manage potential conflicts of interest with controlling shareholders [176].
嘉士利集团(01285) - 2022 - 年度财报