Financial Performance - Revenue for the year 2023 was HKD 4,604.4 million, an increase of 5.7% compared to HKD 4,354.7 million in 2022[2] - Gross profit decreased by 6.6% to HKD 1,178.3 million, with a gross profit margin of 25.6% compared to 29.0% in 2022[2] - Profit attributable to shareholders increased by 0.5% to HKD 585.1 million, while adjusted profit decreased by 18.0% to HKD 532.0 million[3] - Basic earnings per share for the year were HKD 31.0, slightly up from HKD 30.9 in 2022[3] - Total revenue for the year ended December 31, 2023, was HKD 4,604.4 million, representing a 5.7% increase from HKD 4,354.7 million in the previous year[11] - Adjusted net profit attributable to shareholders was HKD 532.0 million, a decline of 18.0% from HKD 649.1 million in 2022[22] - EBITDA for the year was HKD 1,224.9 million, reflecting a 5.1% increase compared to HKD 1,165.5 million in the prior year[22] - The net profit for the year ended December 31, 2023, was HKD 586,763,000, slightly up from HKD 582,780,000 in 2022, representing a growth of 0.4%[57] Market Performance - The sales in the aviation, energy, and medical end markets showed strong growth, with an increase of 47.7%[4] - Revenue from the aerospace, energy, and medical sectors surged by 47.7% year-on-year to HKD 696.1 million, driven by the recovery of the global aerospace market and the acquisition of Foshan Meiduan[5] - The energy end market saw a remarkable increase of 134.8% in sales, primarily due to the aforementioned acquisition[5] - The agricultural machinery end market revenue rose by 19.2% to HKD 421.0 million, benefiting from sustained demand in the U.S. region[5] - The automotive sector's total revenue was HKD 1,694.7 million, a slight decrease of 0.3% compared to the previous year[8] - The commercial vehicle segment experienced a revenue decline of 4.0% to HKD 859.8 million, influenced by decreased demand in the U.S. and European markets[6] - The precision machining and other businesses achieved a significant growth of 21.7%, driven by the acquisition of hydraulic business in the second half of 2022[9] Operational Challenges - The company faced significant challenges in the second half of 2023, with a notable decline in demand in the diversified industrial end market[4] - The new factory in Mexico recorded a tax loss of over HKD 1 million due to rising operational costs and inflation[4] - The Nantong factory is still in the reconstruction phase after a fire, leading to a tax loss of over HKD 3 million for the year[4] - Interest costs for the year increased significantly, exceeding HKD 5 million, impacting overall profitability[4] Cash Flow and Financial Management - Operating cash flow increased by 53.0% to HKD 1,281.4 million, after capital expenditures of HKD 711.4 million and dividends of HKD 301.7 million were paid[12] - The company effectively managed working capital, with trade receivables and inventory levels decreasing compared to the previous year[12] - The group recorded other income of HKD 20.0 million for the year ended December 31, 2023, compared to a loss of HKD 24.6 million in 2022, primarily due to insurance compensation of HKD 17.2 million from the Nantong fire incident and net exchange gains of HKD 7.4 million[29] - The cash flow from operating activities increased mainly due to a reduction in working capital[42] Future Outlook - The group expects sales growth in 2024 to be between 5% and 10% year-on-year, driven by order backlog and new project developments[17] - The aviation terminal business is anticipated to continue strong growth due to the ongoing recovery of the international aviation market and reduced competition in the supply chain[18] - The group plans to invest approximately HKD 550 million in capital expenditures in 2024, with around HKD 260 million allocated to the Mexico SLP area[19] - The group will continue to focus on the aviation, energy, and medical sectors, leveraging its competitive advantages in the automotive terminal market[20] Corporate Governance and Compliance - The company has adhered to all corporate governance code provisions as of December 31, 2023, with a high degree of compliance to best practices[96] - The chairman and CEO roles are held by the same individual, Mr. Lu, which the board believes benefits the management of the group[97] - All directors have confirmed compliance with the standards for securities trading as of December 31, 2023[98] - The Audit Committee reviewed the annual consolidated financial statements for the year ending December 31, 2023, and confirmed compliance with applicable accounting standards and legal regulations[103]
鹰普精密(01286) - 2023 - 年度业绩