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创科实业(00669) - 2023 - 年度业绩
2024-03-06 10:06

Financial Performance - Techtronic Industries reported record free cash flow of $1.3 billion, significantly exceeding market expectations[3]. - Sales for the fiscal year 2023 reached $13.73 billion, representing a growth of 3.6% compared to $13.25 billion in 2022[4]. - Net profit for 2023 was $976 million, a decrease of 9.4% from the previous year, partly due to increased interest expenses[5]. - Total revenue for the year was $13.7 billion, a 3.6% increase from $13.3 billion in 2022, while net profit attributable to shareholders decreased by 9.4% to $976 million[15]. - The company reported a net profit attributable to shareholders of $976,340 thousand for 2023, down from $1,077,150 thousand in 2022, reflecting a decrease of approximately 9.4%[34]. - The total comprehensive income attributable to shareholders for the year was $939,366 thousand, compared to $904,777 thousand in the previous year, indicating an increase of about 3.8%[34]. - The company reported a pre-tax profit of $1,055,616 thousand for 2023, down from $1,156,897 thousand in 2022, reflecting a decrease of 8.7%[37]. - The total tax expense for the year was $79,276,000, slightly down from $79,747,000 in 2022[61]. Gross Margin and Expenses - Gross margin increased by 14 basis points to 39.5%, driven by the success of the Milwaukee business and reduced inventory levels[5]. - Gross margin improved to 39.5% from 39.3% due to growth in Milwaukee and high-margin aftermarket battery business[16]. - Operating expenses as a percentage of sales rose by 96 basis points to 31.3%, influenced by one-time promotional spending[5]. - Total operating expenses increased to $4.302 billion, representing 31.3% of revenue, primarily due to strategic investments and promotional activities[17]. Capital Expenditures and Investments - Capital expenditures for the year were $502 million, down 13.7% from the previous year, focusing on new products and automation[6]. - Capital expenditures totaled $502,000,000, representing 3.7% of sales, down from $581,000,000 in 2022[22]. - The company invested approximately $502,000,000 in property, plant, and equipment during the year, down from $581,000,000 in 2022[65]. - Capital commitments for property, plant, and equipment amounted to $178,000,000, down from $328,000,000 in 2022[22]. Debt and Financial Health - The company's net debt ratio improved to 17.1% from 32.1% in 2022, reflecting better financial health[6]. - Long-term borrowings accounted for 53.3% of total debt, up from 38.7% in 2022[20]. - The company holds a strong financial position with healthy cash levels and robust growth prospects for 2024[32]. - The company’s total assets less current liabilities amounted to $7,618,514 thousand as of December 31, 2023, compared to $7,093,283 thousand in 2022[35]. - The company’s total liabilities decreased to $7,618,514 thousand in 2023 from $7,093,283 thousand in 2022, a reduction of 7.4%[36]. Product Performance and Innovations - Milwaukee's sales grew by 10.7% in local currency, with a notable increase of 12.7% in the second half of 2023[5]. - Milwaukee launched the new Milwaukee Forge battery technology, enhancing its market leadership in power tools[9]. - The Milwaukee M18 platform now includes 284 products, targeting various verticals such as construction and renewable energy[9]. - Milwaukee's manual tools business continued to show significant growth, with the introduction of a series of American-made electrical hand tools produced in Wisconsin[10]. - The Milwaukee PACKOUT storage solution system has 102 interchangeable products, enhancing user loyalty and overall network value[10]. - Ryobi's global performance in the second half of 2023 was strong, leading to improvements in the consumer power tools business[11]. - The Ryobi 18V ONE+ platform now includes 307 products, with the introduction of the new 18V ONE+ HP AIRSTRIKE cordless nailer showcasing innovative technology[11]. - The company has made significant investments in innovative rechargeable products, integrating advanced electronic technology and artificial intelligence, which are expected to enhance user productivity and improve gross margins[32]. Environmental and Social Responsibility - The company aims to reduce Scope 1 and Scope 2 greenhouse gas emissions by 60% by 2030, achieving an 8% reduction in emissions in 2023[13]. Shareholder Returns and Stock Activity - The company plans to distribute a final dividend of HKD 0.98 per share for the year ended December 31, 2023, totaling approximately $231,355,000, compared to HKD 0.90 per share in 2022[63]. - The company repurchased a total of 500,000 shares at prices between HK$67.90 and HK$68.70, totaling $4,408,000[29]. - The company repurchased 500,000 shares at a total cost of approximately $4,408,000 in October 2023[69]. Acquisitions - The acquisition of Green Planet Distribution Centre Company Limited was completed for $75,094,000, expected to enhance the electric tools and outdoor gardening tools business[70]. - The net assets acquired from Green Planet included property, plant, and equipment valued at $68,339,000 and goodwill of $3,964,000[71]. - The acquisition of C4 Carbides Limited was completed for $39,589,000, aimed at expanding the electric tools business[73]. - The net assets acquired from C4 included intangible assets valued at $2,015,000 and goodwill of $25,105,000[74]. Inventory and Receivables Management - Total inventory decreased to $4,098,000,000 from $5,085,000,000 in 2022, with inventory turnover days reduced from 140 to 109 days[21]. - Total accounts receivable increased to $1,811,592,000 in 2023 from $1,639,563,000 in 2022, representing a growth of 10.5%[66]. - Total accounts payable decreased to $1,655,367,000 in 2023 from $2,073,285,000 in 2022, a decline of 20.1%[67]. Accounting Standards and Compliance - The company has adopted the new Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2023, which includes HKFRS 17 on insurance contracts, impacting the recognition and measurement of insurance contracts[40]. - The application of HKFRS 17 did not have a significant impact on the company's consolidated financial statements for the current and prior years[41]. - The company has also implemented amendments to HKAS 8, clarifying the definition of accounting estimates, which did not significantly affect the consolidated financial statements[42]. - The amendments to HKAS 12 regarding deferred tax assets and liabilities have been applied, but they did not have a significant impact on the company's financial position and performance[43]. - The company has adopted the amendments related to international tax reform under HKAS 12, which will require disclosures regarding deferred tax risks associated with pillar two legislation[44]. - The revised HKAS 1 and HKFRS Practice Statement 2 have been applied, affecting the disclosure of significant accounting policies, but did not have a major impact on the financial position and performance[45]. - The company has implemented changes in accounting policies due to the cancellation of the offset mechanism for long service payments, which will officially take effect on May 1, 2025[46]. - The accounting policy changes have no significant impact on the consolidated financial statements for the current year[47]. - The company has not early adopted any of the newly issued but not yet effective Hong Kong Financial Reporting Standards, which are expected to have no significant impact on the consolidated financial statements in the foreseeable future[48]. - The company anticipates that the application of the amendments to the Hong Kong Financial Reporting Standards will not have a significant impact on its financial position and performance[49]. - The amendments to the accounting standards clarify the classification of liabilities as current or non-current, particularly regarding repayment rights that are contingent on compliance with covenants[50]. - The company views employer contributions to the mandatory provident fund as employee contributions that can offset long service payment benefits[46]. - The amendments to the accounting standards will come into effect for annual reporting periods beginning on or after January 1, 2024, with early adoption permitted[49]. - The company expects that the application of the 2020 and 2022 amendments will not affect the classification of other liabilities as of December 31, 2023[51]. - The company has adopted a retrospective approach to implement the guidance on long service payment liabilities to provide more reliable and relevant information[46].