Dividend and Financial Performance - The final dividend declared is HK4.22 cents per ordinary share for the year ended 31 December 2022, down from HK11.8 cents for the previous year[1]. - As of December 31, 2022, the company's distributable reserves amounted to approximately HK$687.8 million, with a proposed final dividend of approximately HK$43.9 million[32]. - In 2022, the overall sales revenue of the company decreased by 6.3% to approximately HK$4,492.8 million, compared to HK$4,792.7 million in 2021[194]. - The gross profit margin for the year ended December 31, 2022, was approximately 18.9%, a decrease of 4.3 percentage points from 23.2% in 2021[194]. - The net gearing ratio as of December 31, 2022, was 30.0%, compared to 28.9% in 2021, indicating a slight increase in leverage[195]. - The company generated net cash from operating activities of approximately HK$773.6 million for the year ended December 31, 2022, an increase of approximately HK$250.9 million from HK$522.7 million in 2021[195]. Economic Outlook - Global GDP is projected to fall to 2.9% in 2023 before rising to 3.1% in 2024, below the historical average of 3.8% from 2000 to 2019[1]. - Global GDP for 2022 was estimated at 3.4%, down 280 basis points from 6.2% in 2021, indicating a significant economic slowdown[186]. - Global inflation was reported to be 8.8% in 2022, leading to contractionary monetary policies adopted by most central banks[186]. - The U.S. federal funds target rate was raised 9 times consecutively in 2022, reaching between 4.75% and 5.00%, a 15-year high[186]. - The global inflation rate reached a record high of 8.8% in 2022, impacting consumer confidence and retail sales[191]. - The U.S. GDP decreased from 5.9% in 2021 to 2.0% in 2022, while the Euro area GDP fell from 5.3% to 3.5% in the same period[191]. Market and Industry Trends - Retail sentiment in China is expected to strengthen as COVID-related restrictions are relaxed, leading to a notable recovery in the sportswear and apparel market[4]. - Despite a contraction in sales revenue from elastic fabric to sportswear customers in 2022, the fundamentals of the sportswear and apparel industry remain strong, indicating potential long-term growth[11]. - The textile and garment sector faced challenges due to global economic headwinds, leading to reduced inventory levels and conservative order placements by international brand customers in the second half of 2022[54]. - Certain brand customers remained financially strong, but most retailers were expected to continue inventory optimization throughout the first half of 2023[54]. - The export value of textile products from China in the second half of 2022 was US$71.6 billion, representing a notable drop of US$5 billion or 6.5% compared to the same period in 2021[174]. - Export of textile and apparel products to the U.S. and Europe decreased by approximately 14% in the second half of 2022 compared to the corresponding period in 2021[174]. Operational Strategies - The Group plans to enhance operational efficiencies at its overseas manufacturing sites in Vietnam and Sri Lanka to better serve customer interests[3]. - The Group is committed to innovation and technological advancement to meet rising customer demand for innovative sportswear and apparel products[11]. - Best Pacific is committed to maintaining healthy cash flows and has implemented various measures, including cost controls and production efficiencies optimization[169]. - The company is focused on maintaining financial stability amid economic challenges by improving production efficiency and managing costs[176]. - The company is exploring potential adjustments to product pricing in collaboration with customers and partner brands[176]. - The international manufacturing footprint is a core competitive advantage, enabling the company to provide sustainable supply-chain solutions[177]. Supply Chain and Customer Relations - The Group is focused on maintaining strong relationships with supply chain partners to ensure quality products and services amid economic challenges[9]. - Recent improvements in inventory levels of core U.S. apparel brand customers are noted, with expectations for proactive replenishment in the second half of 2023[1]. - Sales to the group's five largest customers accounted for approximately 42.5% of total sales for the year, with the largest customer contributing approximately 13.5%[35]. - Purchases from the group's five largest suppliers represented approximately 35.1% of total purchases, with the largest supplier accounting for approximately 15.9%[35]. Investments and Future Plans - The company plans to continue investing in the second phase of its production facility in Panala, Sri Lanka, to achieve economies of scale[57]. - The company plans to expand production capacities in Vietnam in response to increased customer interest due to tightened geopolitics[199]. - The company will continue its investment in the development of phase two of its production facility in Sri Lanka as planned[200]. Employee and Community Engagement - The company emphasizes employee development through competitive compensation, performance evaluation systems, and internal promotion opportunities[30]. - The group made charitable and other donations amounting to approximately HK$659,000 during the year ended December 31, 2022[35].
超盈国际控股(02111) - 2022 - 年度财报