Financial Performance - The Group's revenue for the fiscal year was approximately HK$5,018.7 million, a decrease of 17.3% compared to HK$6,066.3 million in 2022, driven by a 24.5% drop in sales volume and a 9.6% increase in average sales price[41]. - Profit attributable to equity holders was approximately HK$268.6 million, representing a decrease of 53.1% from HK$572.7 million in 2022, primarily due to lower sales revenue and higher fixed cost absorption[41]. - For the year ended 31 March 2023, the Group's gross profit margin decreased to 9.8% from 12.8% in 2022[27]. - The return on equity for the year ended 31 March 2023 was 8.9%, down from 16.9% in 2022[27]. - The Group's total cash and bank balances as of 31 March 2023 were HK$1,347.5 million, a decrease from HK$1,545.1 million in 2022[28]. - The Group's distributable reserves as of March 31, 2023, amounted to approximately HK$1,939 million, a decrease from HK$2,346 million in 2022[134]. - The average effective tax rate increased to approximately 13.7%, up from 10.3% in 2022, attributed to non-deductible exchange losses[45]. Assets and Liabilities - The Group's total assets as of March 31, 2023, amounted to HKD 5,529.3 million, a decrease of approximately 7.0% from HKD 5,944.2 million in 2022[26]. - Non-current assets totaled HKD 2,296.1 million as of March 31, 2023, compared to HKD 2,124.4 million in 2022[26]. - Current assets were reported at HKD 3,233.2 million as of March 31, 2023, down from HKD 3,819.8 million in 2022[26]. - As of 31 March 2023, the Group's net debt position increased to HK$99.4 million compared to HK$34.8 million in 2022[28]. - The Group had bank loans of HK$1,320.3 million as of 31 March 2023, down from HK$1,453.7 million in 2022[28]. - The Gearing Ratio increased to 47.0% in 2023 from 46.6% in 2022, and the Debt to Equity Ratio rose from 73.3% to 79.0%[54]. Operational Developments - The Group is expecting the opening of a new factory in Vietnam soon, which is anticipated to enhance production capacity and provide favorable opportunities for business growth[16]. - Capital expenditure increased by 198.3% to HK$364.3 million, primarily for the construction of a second factory in Vietnam and environmental projects[52]. - The management expects a substantial growth in capacity to fulfill customer orders with the completion of the new factory in Vietnam by the end of the financial year 2023/24[88]. - The Group is actively expanding its domestic customer base, particularly in sportswear and high-quality synthetic fabrics[88]. Shareholder Information - The Board proposed a final dividend of HK4 cents per share for the 2023 Financial Year, down from HK14 cents in 2022, resulting in a total dividend of HK19 cents per share compared to HK35 cents in 2022[62]. - The Group's issued share capital includes significant holdings by various beneficial owners, with Fidelity Funds holding approximately 5.01%[1]. - A total of 2,687,000 shares were repurchased on the Stock Exchange at an aggregate consideration of HK$7,339,040, with the shares subsequently cancelled on 8 November 2022[111]. Management and Governance - The appointment of Ms. Ling Chi Wo Teresa as an Independent Non-executive Director is expected to enhance board diversity and bring new insights to the Group[15]. - The Group's management team includes experienced professionals with extensive backgrounds in textiles and engineering[99]. - Mr. Masaru Okutomi was appointed as Chairman and CEO of the Group on October 1, 2021, after serving as Vice Chairman since July 1, 2019[119]. - The Group's management team includes professionals with diverse backgrounds in finance, human resources, and procurement management, enhancing operational efficiency[126]. Market and Strategic Outlook - The financial year ended March 31, 2023, faced stagnant demand and fierce competition, with production costs rising but not fully reflected in sales prices[62]. - The management anticipates a rise in domestic consumption and demand for fabric with the economic recovery in mainland China[66]. - The Group aims to expand its customer base and explore new markets by launching innovative functional products and promoting sustainable textiles[41]. - The Group has established long-term relationships with strategic partners, including Toray, to support its global market penetration efforts[41]. Environmental and Social Responsibility - The Group has been recognized for its environmental efforts, receiving multiple awards for excellence in environmental protection[58][60]. - The total capital expenditure for environmental protection projects reflects the Group's commitment to sustainability[76]. - The Group is committed to exploring low-emission measures to support customers aiming for carbon neutrality by 2050[89].
互太纺织(01382) - 2023 - 年度财报