Executive Compensation - The basic salary of Executive Director Mr. Yang Shujian has been adjusted to HKD 189,500 per month starting from January 1, 2023[1]. - The basic salary of Executive Director Mr. Yang Hong has been adjusted to HKD 148,500 per month starting from January 1, 2023[2]. - The basic salary of executive director Yang Shujia will be adjusted to HKD 137,500 per month starting January 1, 2023[42]. - The basic salary of CEO Yang Shuxiong will be adjusted to HKD 175,000 per month starting January 1, 2023[43]. Shareholder Information - As of December 31, 2022, Mr. Yang Shujian holds 12 shares in Prosperous Holdings, representing 12% of the issued shares[29]. - As of December 31, 2022, Mr. Yang Shujia holds 6 shares in Prosperous BVI, representing 6% of the issued shares[29]. - As of December 31, 2022, Mr. Yang Hong holds 6 shares in Prosperous BVI, representing 6% of the issued shares[29]. - Prosperous BVI holds 588,000,000 shares, representing 52.5% of the company's equity[33]. - Great Pacific Investments Limited and its affiliates collectively own 252,000,000 shares, accounting for 22.5% of the company's equity[33]. - No shareholders known to the directors hold more than 5% of the company's shares among major customers and suppliers[39]. Financial Performance - The company's total revenue for the fiscal year ended December 31, 2022, surged to approximately $218.2 million, an increase of about $71.5 million or 48.8% compared to approximately $146.7 million in 2021[66]. - The profit attributable to shareholders for the year was approximately $10.3 million, an increase of about $6.4 million or 165.1% compared to approximately $3.9 million in 2021[71]. - The gross profit for the year was approximately $40.6 million, up from approximately $31.3 million in 2021, while the gross margin decreased from 21.3% in 2021 to 18.6% due to changes in sales mix and rising raw material and labor costs[69]. - The company's revenue for the year ended December 31, 2022, was $157.176 million, representing a 72.0% increase in sales volume to 14,719 thousand units with an average selling price of $10.7 per unit[109]. - Revenue for the year 2022 was $218,188,000, an increase of 48.8% compared to $146,673,000 in 2021[184]. - Net profit for 2022 was $10,345,000, representing a significant increase of 164.5% from $3,902,000 in 2021[184]. - Basic and diluted earnings per share for 2022 were 0.92 cents, compared to 0.35 cents in 2021[184]. Operational Highlights - Total sales volume increased from approximately 16.9 million units in 2021 to approximately 20.8 million units in the current year, representing an increase of about 3.9 million units or 23.1%[69]. - The average selling price per unit increased from $8.7 to $10.5 due to strong demand from two major customers[69]. - The company's production capacity in Vietnam and Cambodia accounted for approximately 90% of total capacity, reflecting a strategic shift from China[66]. - All product categories experienced strong double-digit growth, with the fashion and leisure category nearly doubling its revenue compared to 2021[69]. - The group has maintained a strong financial position with cash and cash equivalents of approximately $44.0 million and no external borrowings as of December 31, 2022[93]. - The group successfully acquired several new clients during the year and aims to continue attracting well-known brand owners to expand its customer base[88]. Expenses and Investments - Administrative expenses for the year were approximately $16.5 million, a decrease of about $0.6 million or 3.5% compared to approximately $17.1 million in 2021, attributed to stricter cost control measures[70]. - Sales and distribution expenses for the year were approximately $12.2 million, an increase of about $1.0 million or 8.8%, primarily due to increased shipment volumes[110]. - Capital expenditures for the year amounted to $2.5 million, primarily due to the acquisition of properties, plants, and equipment[93]. - An investment of HKD 30.8 million is designated for upgrading existing production machinery and establishing R&D centers to improve production efficiency and capacity[105]. - The group plans to enhance manufacturing capabilities and flexibility through the expansion of its Cambodian manufacturing platform, with an allocation of HKD 135.5 million for this purpose[105]. Dividends and Reserves - The company's available reserves for distribution as of December 31, 2022, amounted to $68.7 million, of which $6.1 million has been proposed for distribution as the final dividend for the year[142]. - The board has proposed a final dividend of 4.2 HK cents per share to shareholders listed on the register on June 29, 2023[118]. - Proposed final dividend for 2022 is 4.2 HK cents per share, compared to 1 HK cent per share in 2021[189]. Market Outlook and Strategy - The company remains cautiously optimistic about the global economic recovery post-COVID-19, despite challenges from inflation and rising interest rates[67]. - The company plans to continue monitoring market conditions and collaborating closely with partners to achieve sustainable business growth[67]. - The company is committed to ongoing business development and market expansion strategies[174]. - The company continues to focus on sustainable growth and improving customer satisfaction with quality products and services[174]. Risks and Compliance - The company faces foreign exchange risks as its procurement and operating costs are primarily denominated in RMB, VND, and USD, while most sales are collected in USD[117]. - The effective tax rates remained stable across regions, with Hong Kong at 16.5%, Vietnam at 20%, and mainland China at 25%[187]. - The company has purchased and maintained liability insurance for directors and executives to provide appropriate protection against certain legal actions[150]. - The company has no significant acquisitions or disposals of subsidiaries or associates for the year ended December 31, 2022[112]. - The company has no significant investments as of December 31, 2022[115]. - The company has no pledged assets as of December 31, 2022[116]. - The company has not made any charitable donations during the year[124]. - The company has not entered into any management or administrative contracts related to any significant part of its business during the year[27]. - There are no significant contracts established with the controlling shareholder or its subsidiaries during the year[28].
其利工业集团(01731) - 2022 - 年度财报