Financial Performance - Revenue from continuing operations decreased by 24.7% to HKD 3,073,686,000 compared to HKD 4,084,162,000 in the previous year[4] - Gross profit fell by 38.7%, with a gross margin of 16.4%, down 3.7 percentage points from 20.1%[4] - The company reported a net loss of HKD 382,608,000 for the year, compared to a profit of HKD 23,631,000 in the previous year[9] - The production business revenue decreased by 30.7% to HKD 2,466,000,000, primarily due to excess inventory in the sportswear market[6] - The high-end fashion retail business saw a revenue increase of 15.5% to HKD 607,700,000, despite ongoing challenges[6] - Revenue for the year ended December 31, 2023, was HKD 3,073,686 thousand, a decrease of 24.8% compared to HKD 4,084,162 thousand in 2022[16] - Gross profit decreased to HKD 504,136 thousand, down 38.8% from HKD 822,451 thousand in the previous year[16] - The operating loss for the year was HKD 231,371 thousand, compared to an operating profit of HKD 107,964 thousand in 2022[16] - The net loss attributable to equity holders of the company for continuing operations was HKD 255,181 thousand, compared to a profit of HKD 67,681 thousand in 2022[16] - Total comprehensive loss for the year was HKD 412,584 thousand, compared to a total comprehensive income of HKD 83,640 thousand in the previous year[17] - Total revenue for the year ended December 31, 2023, was approximately HKD 1,670,127,000, a decrease of 32.4% from HKD 2,473,096,000 in 2022[28] - Revenue from the production segment was HKD 1,880,216,000, while the high-end fashion retail segment generated HKD 607,726,000, contributing to total revenue of HKD 3,073,686,000 for continuing operations[30] - The production segment reported an operating loss of HKD 187,726,000, while the high-end fashion retail segment incurred a loss of HKD 47,105,000, leading to a total operating loss of HKD 231,371,000 for continuing operations[30] - The company recorded a net loss attributable to equity holders of HKD 120,110,000 for the year, compared to a loss of HKD 57,611,000 in 2022[51] - The company recorded a post-tax loss of HKD 120,100,000 for the year ending December 31, 2023, compared to a loss of HKD 57,600,000 in 2022[65] Assets and Liabilities - Non-current assets decreased to HKD 1,154,857 thousand from HKD 1,272,836 thousand in 2022, reflecting a decline of 9.2%[19] - Current assets decreased to HKD 1,675,186 thousand, down from HKD 2,192,348 thousand, a reduction of 23.5%[19] - Total liabilities decreased to HKD 1,389,262 thousand from HKD 1,605,419 thousand, indicating a reduction of 13.5%[19] - The equity attributable to equity holders of the company decreased to HKD 1,461,686 thousand from HKD 1,866,137 thousand, a decline of 21.6%[20] - Total assets as of December 31, 2023, amounted to HKD 2,830,043,000, down from HKD 3,465,184,000 in the previous year, reflecting a decrease of 18.4%[34] - Total liabilities as of December 31, 2023, were HKD 1,389,262,000, compared to HKD 1,605,419,000 in 2022, indicating a reduction of 13.5%[34] Cash Flow and Financing - Cash and bank balances as of December 31, 2023, were HKD 209,500,000, down from HKD 370,500,000 in the previous year[9] - The net debt-to-asset ratio improved to 18.4% from 22.8% year-on-year[9] - Financing costs increased to HKD 47,884,000 in 2023 from HKD 39,696,000 in 2022, representing a rise of 20.5%[38] - The financing costs increased by HKD 6,900,000 to HKD 44,900,000, primarily due to an increase in bank borrowing interest[53] - As of December 31, 2023, the company had cash and bank balances of HKD 209,500,000, down from HKD 370,500,000 in 2022, but increased to HKD 298,000,000 by February 29, 2024, following the sale proceeds[73] - The net debt-to-equity ratio as of December 31, 2023, was 18.4%, a decrease from 22.8% in 2022, indicating improved financial stability[73] Market Outlook and Future Expectations - Future revenue for the production business is expected to significantly increase in the first half of 2024 as inventory issues improve[10] - The high-end fashion retail business will continue to focus on the mainland China market, facing uncertain recovery prospects[10] - The company expects revenue for the first half of 2024 to grow by over 20% compared to the same period in 2023, driven by improved customer orders in Western markets[69] - The company anticipates continued challenges due to geopolitical tensions, high interest rates, and inflation, but believes its diversified business model will support sustainable development[68] Corporate Governance and Shareholder Information - The company plans to retain financial resources and will not recommend a dividend due to the challenging outlook[13] - The company did not recommend the payment of a dividend for the year ended December 31, 2023, consistent with 2022[49] - The company plans to closely monitor market conditions and review its dividend policy periodically[55] - The board of directors did not recommend the payment of a dividend for the year ending December 31, 2023[84] - The company has adhered to the principles and provisions of the corporate governance code as per the listing rules during the year[86] - The annual report for the year ending December 31, 2023, will be sent to shareholders and published on the company's website[87] - The audit committee has reviewed the internal controls and financial reporting matters related to the consolidated financial statements for the year ending December 31, 2023[88] - The preliminary announcement of the consolidated profit and loss statement has been agreed upon by the auditors, confirming alignment with the audited financial statements[90] - The annual general meeting is scheduled for June 13, 2024, with further details to be provided in the notice to shareholders[91] - The board of directors consists of both executive and independent non-executive members, ensuring a diverse governance structure[92] Operational Changes - The company completed the sale of the "Champion" fashion brand inventory and retail assets, resulting in the reclassification of related business as discontinued operations[29] - The total number of stores decreased to 123 as of December 31, 2023, down from 222 in 2022, primarily due to the completion of the sale of the "Champion" brand[66] - The company has approximately 16,000 employees as of December 31, 2023, down from about 19,000 in 2022[77] - The company has pledged bank deposits of HKD 1,200,000 and properties valued at HKD 71,300,000 as collateral for bank financing[78] - The company does not have any significant contingent liabilities or major litigation as of December 31, 2023[79]
永嘉集团(03322) - 2023 - 年度业绩