Financial Performance - For the year ended December 31, 2022, the company reported revenue of approximately HK$408.6 million, representing a year-on-year increase of over 12.7%[10] - The profit for the year amounted to HK$12.6 million, despite facing significant cost pressures throughout the year[14] - The Group's revenue for FY2022 increased by approximately 12.7% year-on-year, amounting to HK$408.6 million, compared to HK$362.5 million in 2021[33] - The gross profit margin was maintained at 42.5% despite rising raw material costs and supply chain disruptions[33] - Gross profit increased by approximately HK$15.5 million or 9.8%, from approximately HK$158.0 million in FY2021 to approximately HK$173.5 million in FY2022, with the gross profit margin decreasing from 43.6% to 42.5%[54][59] - Other income and gains rose by approximately HK$2.9 million, from approximately HK$6.6 million in FY2021 to approximately HK$9.5 million in FY2022, mainly due to government subsidies received[55][60] - Selling and distribution expenses increased by approximately HK$7.6 million or 16.6%, from approximately HK$45.8 million in FY2021 to approximately HK$53.4 million in FY2022, primarily due to higher marketing and promotion expenses[56][61] - Administrative expenses increased by approximately HK$18.3 million or 19.2%, from approximately HK$95.1 million in FY2021 to HK$113.4 million in FY2022, due to an increase in headcount and operational expansion[62][67] Assets and Liabilities - Total assets as of December 31, 2022, were HK$395.1 million, while total liabilities stood at HK$155.8 million[10] - Equity attributable to owners of the company decreased to HK$239.3 million from HK$249.7 million in 2021[10] - As of December 31, 2022, the Group had net assets of approximately HK$239.3 million, down from approximately HK$249.7 million as of December 31, 2021[73] - The Group maintained cash and bank balances of approximately HK$62.3 million as of December 31, 2022, compared to approximately HK$102.1 million as of December 31, 2021[74] - Interest-bearing bank borrowings increased to approximately HK$20.9 million as of December 31, 2022, from approximately HK$13.6 million as of December 31, 2021[75] - The Group's net current assets decreased to approximately HK$70.4 million as of December 31, 2022, down by approximately HK$37.4 million from approximately HK$107.8 million as of December 31, 2021, resulting in a current ratio of 1.5 times, down from 1.8 times[77][81] - The gearing ratio increased from approximately 18.5% as of December 31, 2021, to approximately 21.3% as of December 31, 2022, mainly due to an increase in interest-bearing bank borrowings during the reporting period[78][82] Market and Operational Strategy - The company has established production factories in major apparel manufacturing countries, including China, Vietnam, and Bangladesh, and developed a sales network in over 40 major fashion markets globally[18] - New sales bases have been set up in Southern and Western Europe and Central America, with production bases launched in Turkey and India to support sales[18] - The company has successfully diversified its supply chain by shifting production activities to different countries, attracting more brands to cooperate and expanding its customer base[18] - The global market faced challenges due to geopolitical tensions, inflation, and disrupted supply chains, impacting consumer sentiment and market needs[13] - The company remains resilient and flexible amidst these challenges, leveraging its effective business strategies to navigate the difficult market conditions[14] - The apparel market and manufacturing industries globally faced downward pressure, but the company recorded a year-on-year growth in revenue[14] - The Group's strategic global arrangements include setting up factories in major apparel manufacturing countries, enhancing productivity in Bangladesh, and expanding into regions with development potential[38] Investments and Acquisitions - The Group strategically acquired 25% equity of Primway S.A.R.L in February 2023 to strengthen its market share in Europe[20] - The acquisition of Print100 Limited was completed on May 6, 2022, and the new factory in Kwai Chung was launched in December 2022, focusing on the fast printing business[43] - On January 27, 2022, the Company entered into a provisional sale and purchase agreement to acquire 100% of Print100 Limited, which was completed on May 6, 2022[102] - On February 24, 2023, the Group entered into an investment agreement to acquire shares in Primway S.A.R.L for a total consideration of EUR1,095,000[91][97] Corporate Governance - The company is committed to high standards of corporate governance, emphasizing accountability and transparency[126] - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors, ensuring a balanced composition for effective management[131] - Independent non-executive Directors are appointed for a term of three years, subject to retirement by rotation as per the company's Articles of Association[134] - The Nomination Committee, primarily composed of independent non-executive Directors, is responsible for recommending candidates for directorship[135] - The Board is responsible for formulating the Group's strategy, overseeing management, and ensuring sound internal control and risk management systems are in place[138] - Key decisions are fully discussed at board meetings, with all directors encouraged to contribute actively and express differing views[139] - The Company emphasizes the importance of internal control and risk management to safeguard assets and shareholder interests[158] Shareholder Communication and Dividends - The Company has adopted a Dividend Policy allowing the declaration and distribution of dividends at the Board's discretion, with interim dividends determined as appropriate[198] - The Company recognizes the importance of communication with Shareholders and has adopted a Shareholders Communication Policy to provide timely information and enable active engagement[199] - The AGM serves as a platform for communication between the Board and Shareholders, with key figures present to address questions raised by Shareholders[200] - The final dividend recommended by the Board is HK$0.20 per ordinary share, down from HK$0.25 in 2021[33]
常达控股(01433) - 2022 - 年度财报