Financial Performance - The company achieved a revenue growth of approximately 51.2%, reaching a historical high of about $217.2 million[5]. - Net profit for the reporting period was approximately $14.5 million, which is about 3.4 times higher than the previous year's profit of approximately $4.3 million[5][33]. - The gross profit increased by approximately 55.2% from about $39.7 million in 2021 to about $61.6 million in 2022[14]. - The company's revenue increased from approximately $143.7 million in 2021 to about $217.2 million in 2022, representing a growth of approximately 51.2%[80]. - Gross profit rose from approximately $39.7 million in 2021 to about $61.6 million in 2022, an increase of approximately 55.2%, with a stable gross margin of about 28.3%[50]. - The company achieved a net profit increase of approximately $10.2 million compared to 2021, attributed to various factors[103]. - The total revenue for the year ended December 31, 2022, was $217,209,081, an increase from $143,687,303 in the previous year, representing a growth of approximately 51%[172]. - The gross profit for the same period was $61,575,281, compared to $39,674,164 in the prior year, indicating a year-over-year increase of about 55%[172]. - The net profit for the year was $14,513,339, significantly up from $4,317,877 in the previous year, reflecting an increase of approximately 236%[172]. - The company reported a basic and diluted earnings per share of 2.28 cents, compared to 0.68 cents in the previous year, marking an increase of approximately 235%[172]. - The total comprehensive income for the year was $13,962,389, compared to $4,435,218 in the previous year, indicating a growth of approximately 215%[172]. Cash and Debt Management - The company recorded a net cash position of approximately $12.8 million in 2022, compared to a net debt of approximately $4.7 million in 2021[15]. - Current assets increased by approximately $13.5 million to about $41.9 million as of December 31, 2022, compared to about $28.4 million in the previous year[17]. - The debt-to-equity ratio improved to approximately -26.8% in 2022 from 13.2% in 2021, indicating a strong cash position[18]. - The asset-liability ratio decreased to approximately 22.5% in 2022 from 68.6% in 2021, primarily due to a reduction in bank borrowings[37]. - The financing cost increased from approximately $0.6 million in 2021 to about $1.3 million in 2022 due to rising bank interest rates[51]. - The company has available bank financing of approximately $55.9 million as of December 31, 2022, with $42.7 million remaining unused, deemed sufficient to support operations[54]. - Non-current liabilities decreased to $1,479,309 from $3,229,436 in the previous year, a reduction of about 54%[175]. - The company's reserves increased to $46,899,146 from $35,022,830, reflecting a growth of approximately 34%[175]. Strategic Initiatives - The company plans to accelerate its growth through mergers and acquisitions while focusing on digital transformation[11]. - The company is enhancing its technology leadership team by bringing in experienced personnel to drive digital transformation strategies[8]. - The company aims for organic growth while addressing challenges posed by inventory surplus and reduced orders from brands and retailers[9]. - The company is investing in digital talent and infrastructure, viewing it as a strategic opportunity despite potential short-term profit impacts[76]. - The company is focusing on the full digitalization of its supply chain platform to provide faster, more responsive, and flexible services to customers[96]. - The company is expanding its technology-driven apparel supply chain platform, currently supporting over 100 brands with approximately 100 partner factories[94]. - The company is in an ideal position to expand its business through acquisition opportunities, leveraging a strong balance sheet, net cash position, and ample debt capacity gained from five acquisitions during the COVID period[121]. Market and Operational Challenges - The company anticipates that organic growth in 2023 may become more moderate due to industry demand decline and inventory surplus issues[77]. - The company plans to tighten credit risk control measures to avoid bad debts, which may limit organic growth potential[77]. - The company anticipates that 2023 will be a challenging year for the entire industry, with many apparel companies considering partnerships with stronger firms[98]. - The company successfully gained new customers and increased market share in procurement portfolios, driven by a leading product range and flexibility in meeting retail demands[80]. Corporate Governance - The board of directors emphasizes the importance of good corporate governance and is committed to maintaining high standards to protect shareholder interests and enhance corporate value[124]. - The company complied with all provisions of the corporate governance code for the year ended December 31, 2022[125]. - The board reviewed its diversity policy, believing that achieving diversity among board members enhances effective governance and operational efficiency[131]. - The board consists of three executive directors, one non-executive director, and four independent non-executive directors, ensuring a balance of power and authority[126]. - The company has a share option plan in place to recognize and reward contributions to growth and development, effective for ten years from October 18, 2021[138]. - There were no reward shares vested during the year, indicating a focus on long-term performance and retention strategies[144]. Impairment and Asset Management - A impairment loss of $2,726,328 was recognized for customer lists as of December 31, 2022, due to recoverable amounts being less than their carrying values[53]. - The recoverable amount of trademarks was determined to be greater than their carrying amount, thus no impairment loss was recognized[105]. - The company conducted an impairment assessment of trade receivables, focusing on the risk of significant misstatements due to fraud or error[190]. - The overall presentation, structure, and content of the consolidated financial statements were evaluated to ensure fair representation of transactions and matters[196]. - The recoverable amount of assets is determined as the higher of fair value less costs to sell and value in use, with future cash flows discounted to present value[198]. - If the estimated recoverable amount of an asset is less than its carrying amount, the carrying amount will be adjusted down to the recoverable amount[198]. - Any reversal of impairment losses will be recognized immediately in profit or loss, but the increased carrying amount will not exceed the amount that would have been determined had no impairment loss been recognized in prior years[200].
利华控股集团(01346) - 2022 - 年度财报