SITC(HK:01308)2024-03-07 04:05Financial Performance - For the year ended December 31, 2023, revenue was approximately $2,429.0 million, a decrease of about 40.9% compared to approximately $4,113.0 million for the year ended December 31, 2022[3]. - Gross profit decreased by approximately 68.5% from approximately $1,979.1 million for the year ended December 31, 2022, to approximately $623.0 million for the year ended December 31, 2023, resulting in a gross margin decline from approximately 48.1% to approximately 25.7%[3]. - Profit for the year decreased by approximately 72.5% from approximately $1,949.8 million for the year ended December 31, 2022, to approximately $536.2 million for the year ended December 31, 2023[3]. - Basic earnings per share for the year ended December 31, 2023, was $0.20, down from $0.73 for the year ended December 31, 2022[3]. - Total revenue for 2023 was $2,428,959 thousand, a decrease of 41% from $4,112,955 thousand in 2022[29]. - Customer contract revenue accounted for $2,422,168 thousand, down from $4,102,223 thousand in the previous year[31]. - The company reported a pre-tax profit of $17,240 thousand for the year, down from $23,235 thousand in 2022[37]. - The company's profit attributable to shareholders for 2023 was $531,393,000, a significant decrease from $1,944,425,000 in 2022, representing a decline of approximately 72.6%[42]. - Net profit for the year was approximately $536.2 million, a decrease of about 72.5% compared to $1,949.8 million in 2022[73]. Dividends and Shareholder Returns - The final dividend declared for the year ended December 31, 2023, was HK$0.50 per share (equivalent to US$0.0639)[3]. - The company plans to propose a final dividend of HKD 0.50 per share, equivalent to approximately USD 0.06, compared to HKD 1.60 per share in 2022[39]. - The proposed final dividend is $0.0639 per share, subject to shareholder approval on April 26, 2024[86]. Assets and Liabilities - Total assets less current liabilities as of December 31, 2023, was $2,149.5 million, compared to $2,594.5 million as of December 31, 2022[12]. - Non-current assets increased from $1,853.9 million as of December 31, 2022, to $2,025.9 million as of December 31, 2023[11]. - Current assets decreased from $1,228.9 million as of December 31, 2022, to $626.6 million as of December 31, 2023[11]. - Total equity decreased from $2,165.0 million as of December 31, 2022, to $1,931.1 million as of December 31, 2023[12]. - Total assets decreased by approximately 14.0% from about $3,082.9 million on December 31, 2022, to about $2,652.5 million on December 31, 2023[75]. - Total liabilities decreased by approximately 21.4% from about $917.8 million on December 31, 2022, to about $721.4 million on December 31, 2023[75]. Operational Highlights - The group operates a single business segment focused on container transportation, freight forwarding, and related services, indicating a streamlined operational structure[21]. - Container throughput decreased by approximately 1.1% from 3,261,939 TEUs in 2022 to 3,224,498 TEUs in 2023[51]. - Average freight rates dropped by approximately 43.3%, from $1,099.6 per TEU in 2022 to $623.3 per TEU in 2023[51]. - The company operates a fleet of 103 vessels with a total capacity of 162,851 TEUs, including 97 owned vessels and 6 chartered vessels, with an average vessel age of 7.9 years[50]. - Revenue from the Greater China region was $942,529 thousand, significantly lower than $1,980,749 thousand in 2022[29]. Cost Management - The cost of services provided was $1,805,925 thousand, a reduction from $2,133,873 thousand in 2022, with fuel costs decreasing from $453,084 thousand to $316,807 thousand[33]. - Financial costs increased to $18,753 thousand in 2023 from $17,492 thousand in 2022, primarily due to higher bank loan interest[32]. - Employee costs for the period were approximately $209.9 million, down from $240.1 million on December 31, 2022[80]. - Administrative expenses decreased by approximately 17.9% from about $165.7 million in 2022 to about $136.0 million in 2023[65]. Acquisitions and Investments - The company acquired 100% equity of several shipping companies for a total consideration of $39,770,000, which includes $18,681,000 for shares and $21,089,000 for unpaid shareholder loans[46]. - The company completed two acquisitions on September 21, 2023, for a total consideration of approximately $39.77 million and $18.44 million respectively[81]. - A total of 12 new container ships were delivered during the fiscal year ending December 31, 2023[83]. - The company plans to deliver 9 new container ships in 2024[84]. Governance and Compliance - The group has adopted new and revised Hong Kong Financial Reporting Standards, which did not significantly impact the financial statements[19]. - The group’s financial statements include comprehensive income attributable to shareholders and non-controlling interests, ensuring transparency in reporting[17]. - The audit committee consists of three independent non-executive directors, with Dr. 廖家瑩 serving as the chairman[95]. - Ernst & Young has been appointed as the auditor for the fiscal year ending December 31, 2023, with a resolution to reappoint them at the upcoming annual general meeting[96]. - The preliminary announcement of the group's consolidated financial statements has been verified by the auditor, confirming consistency with the financial figures reported[98]. - The annual performance announcement will be published on the Hong Kong Stock Exchange and the company's website, containing all required information[99].