Financial Performance - Total revenue for 2023 was $208,529,489, a decrease of 4.1% from $217,209,081 in 2022[7] - The company reported a basic and diluted earnings per share of $2.45 for 2023, up from $2.28 in 2022, indicating a growth of approximately 7.4%[12] - In 2023, the company's revenue experienced a moderate decline, reflecting a 20% reduction in U.S. apparel imports compared to 2022, indicating continued market share gains[25] - The company recorded a net profit of approximately $15.6 million for the year ending December 31, 2023, compared to $14.5 million in 2022, marking the highest net profit in its history[35] - Net profit increased by 7.6% to $15.6 million, marking a record high for the company[52] - Total comprehensive income for the year was $15,484,056, compared to $13,962,389 in 2022, reflecting a growth of 10.9%[95] Assets and Liabilities - Non-current liabilities decreased significantly from $1,479,309 in 2022 to $765,951 in 2023, representing a reduction of approximately 48.2%[3] - Net assets increased from $47,758,935 in 2022 to $53,557,070 in 2023, reflecting an increase of about 12.3%[3] - The company’s total assets decreased slightly from $83,701,851 in 2022 to $82,684,999 in 2023, a decline of about 1.2%[13] - The company has no debt, with a net cash position of $18.1 million, representing 33.8% of the net asset value of $53.6 million[52] - As of December 31, 2023, the group had no significant or contingent liabilities, consistent with the previous year[80] Cash Flow and Dividends - As of December 31, 2023, the company had cash and cash equivalents of approximately $18.1 million, a historical high, with no bank borrowings[37] - The board has proposed a final dividend of 6 HKD cents per ordinary share for the year ending December 31, 2023, totaling approximately 38.3 million HKD (equivalent to about 4.9 million USD), representing about 31% of the group's net profit for the year[69] - The company declared an interim dividend of 3 HK cents per share, compared to no dividend in the previous year[109] Operational Highlights - Trade receivables rose sharply from $25,046,126 in 2022 to $38,698,894 in 2023, marking an increase of approximately 54.8%[13] - Inventory increased from $14,464,428 in 2022 to $16,289,093 in 2023, which is an increase of about 12.6%[13] - The company’s sales cost decreased by approximately 4.5% from about $155.6 million in 2022 to about $148.6 million in 2023, with sales cost as a percentage of total revenue slightly decreasing from approximately 71.7% to 71.3%[34] - Gross profit fell from approximately $61.6 million in 2022 to about $59.9 million in 2023, a decrease of about 2.7%, while gross margin slightly increased from approximately 28.3% to 28.7%[35] - The company faced challenges in inventory management due to supply chain disruptions and a rebound in consumer demand, impacting purchasing decisions in 2023[113] Strategic Initiatives - The company is focusing on expanding its market presence and enhancing product offerings to drive future growth[19] - The company plans to leverage acquisitions as a primary source of growth due to economic difficulties, enhancing the visibility of its flexible production platform[26] - The company aims to establish a centralized product development model to enhance production mobility and standardize product cost calculations with its manufacturing partners[29] - The company aims for greater growth through mergers and acquisitions in 2024 and 2025, leveraging a strong net cash position[55] - The company is targeting to become the "Uber of the apparel supply chain," emphasizing ongoing progress in digitalization and platformization[138] Employee and Governance - The company employed 343 full-time employees as of December 31, 2023, with total employee compensation remaining stable at approximately $20.4 million[40] - The company has established a remuneration policy that is regularly reviewed based on employee performance, qualifications, and industry practices[81] - The company has adopted corporate governance guidelines and believes it has complied with all relevant rules for the fiscal year ending December 31, 2023[44] - The audit committee has reviewed the accounting principles and policies adopted by the group for the year ending December 31, 2023[88] Challenges and Outlook - The company is facing challenges in 2023 and 2024, with expectations for more realistic valuation outlooks amid economic uncertainties[115] - Digitalization and platformization efforts are expected to slightly impact profitability in 2024, but benefits are anticipated to materialize by 2025[30]
利华控股集团(01346) - 2023 - 年度业绩