Financial Performance - For the year ended December 31, 2023, total revenue was HKD 303,527,000, a decrease of 6.5% from HKD 324,524,000 in 2022[3] - Gross profit increased to HKD 86,426,000, up 8.4% from HKD 79,385,000 in the previous year[3] - Operating profit decreased to HKD 18,301,000, down 18.8% from HKD 22,472,000 in 2022[3] - Profit attributable to shareholders was HKD 15,746,000, a decline of 15.1% compared to HKD 18,510,000 in 2022[3] - Basic and diluted earnings per share were HKD 7.9, down from HKD 9.3 in the previous year[3] - The operating profit for 2023 was HKD 15,746,000, a decrease from HKD 18,510,000 in 2022, representing a decline of approximately 9.5%[48] - The company's net profit margin for 2023 was 5.2%, a slight decrease from 5.7% in 2022, with net profit dropping by 14.9% to approximately HKD 15,746,000 from HKD 18,510,000 in 2022[73] - EBITDA for 2023 was approximately HKD 28,278,000, down from about HKD 34,585,000 in 2022[73] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 454,852,000, a decrease from HKD 467,328,000 in 2022[6] - Total liabilities decreased to HKD 45,328,000 from HKD 63,158,000 in 2022, reflecting a significant reduction of 28.3%[8] - Total equity increased to HKD 409,524,000 from HKD 404,170,000 in 2022, reflecting a slight growth of 1.1%[8] - The company's total equity decreased to HKD 566,105,000 from HKD 569,058,000, indicating a slight decline of about 0.3%[33] Cash Flow - Cash and cash equivalents increased to HKD 39,008,000 from HKD 21,048,000 in 2022, showing a growth of 85.5%[6] - Operating cash flow generated from operations for the year ended December 31, 2023, was HKD 63,226,000, a decrease of 0.9% from HKD 63,807,000 in 2022[12] - Net cash generated from operating activities for the year was HKD 58,535,000, down from HKD 59,916,000 in the previous year[12] - The net increase in cash and cash equivalents for the year was HKD 18,046,000, compared to HKD 2,265,000 in the previous year[12] - Cash and cash equivalents at the end of the year stood at HKD 39,008,000, up from HKD 21,048,000 at the beginning of the year[12] Expenses and Costs - Total employee costs for 2023 amounted to HKD 74,894,000, down from HKD 79,570,000 in 2022, indicating a reduction of about 5.5%[51] - The cost of inventory recognized as an expense for 2023 was HKD 151,691,000, compared to HKD 170,192,000 in 2022, reflecting a decrease of approximately 10.9%[55] - The depreciation expense for property, plant, and equipment in 2023 was HKD 9,977,000, down from HKD 12,113,000 in 2022, reflecting a decrease of about 17.6%[6] - The interest expense on bank borrowings for 2023 was HKD 672,000, significantly lower than HKD 1,952,000 in 2022, indicating a reduction of approximately 65.6%[7] Revenue Sources - The company had two major customers contributing over 10% of total revenue, with Customer A generating HKD 107,914,000 and Customer B generating HKD 78,571,000[40] - Revenue from the Americas increased by 13% to approximately HKD 212.3 million, accounting for 70% of total revenue[87] Strategic Initiatives - The company plans to strategically reduce debt and has suspended dividend payments to conserve cash amid anticipated declines in property values in China and Hong Kong[88] - The company is transitioning labor-intensive processes to its wholly-owned factory in Vietnam, which accounted for 59% of total revenue in 2023[85] - The company plans to expand production capacity in Southeast Asia and continue developing and launching new harness products to maintain profitability in a changing business environment[90] Market Outlook - The company anticipates ongoing macroeconomic challenges, including unpredictable fluctuations in the US dollar and uncertainties surrounding the November presidential election, which may impact the US economy, its primary market[90] - Despite economic pressures from inflation and high interest rates, the company achieved stable business growth and is focused on meeting customer demands[90] - The company is prepared to capture new opportunities as the market is expected to gradually recover, entering 2024 with cautious optimism after experiencing economic uncertainty and war impacts in 2023[91] Shareholder Information - The total dividend declared for 2023 was HKD 5,969,000, an increase from HKD 3,979,000 in 2022, representing a growth of approximately 50%[49] - The company has not repurchased any shares during the year and has not engaged in buying or selling its own shares[100] - The company will hold its annual general meeting on May 21, 2024, with a suspension of share transfer registration from May 16 to May 21, 2024[103] Auditor Review - The company’s preliminary financial results for the year ending December 31, 2023, have been reviewed by its auditor, confirming the accuracy of its financial statements[105]
恒都集团(00725) - 2023 - 年度业绩