Financial Performance - Revenue for the year ended December 31, 2023, was $2,177 million, a decrease of 12.6% from $2,491 million in 2022[2] - Net profit for the year ended December 31, 2023, was $164 million, down from $173 million in 2022, representing a decline of 5.2%[2] - Gross profit for the year was $417.8 million, down 10.0% from $463.4 million in 2022[3] - Basic earnings per share for the year was 5.73 US cents, compared to 6.05 US cents in 2022, reflecting a decrease of 5.3%[4] - The company's profit before tax for 2023 was $163,479,000, a decrease from $172,726,000 in 2022, representing a decline of approximately 5.4%[25] - Total revenue decreased by 12.6% year-over-year to $2,177.3 million in 2023, primarily due to weak consumer demand amid high interest rates and inflation[39] - Net profit for the year was $164 million, a decrease from $173 million in 2022, but the net profit margin improved to 7.5% from 7.0%[44] Dividends - Proposed final dividend of 13.0 HK cents per share (approximately 1.7 US cents), bringing the total dividend for the year to 18.0 HK cents per share, an increase from 16.8 HK cents in 2022[2] - The proposed final dividend for 2023 is 13.0 HK cents per share, up from 11.8 HK cents per share in 2022, which translates to approximately $47,471,000 compared to $42,988,000 in the previous year[26] - The total dividend for the year was proposed at 18.0 HKD cents per share, representing 40% of the net profit, up from 35% in 2022[37] Assets and Liabilities - Total assets as of December 31, 2023, were $1,974.6 million, an increase from $1,894.9 million in 2022[5] - Cash and cash equivalents increased to $543.4 million from $455.1 million in 2022, representing a growth of 19.4%[5] - Trade and other payables rose to $380.9 million from $340.3 million in 2022, indicating an increase of 11.9%[8] - Non-current liabilities decreased to $54.5 million from $59.8 million in 2022, a reduction of 8.8%[7] - Trade receivables from customer contracts amounted to $88,437 thousand in 2023, down from $118,922 thousand in 2022, reflecting a decrease of about 25.7%[27] - The provision for expected credit losses decreased to $5,408 thousand in 2023 from $7,879 thousand in 2022, indicating a reduction of approximately 31.3%[27] Revenue Breakdown - Segment revenue from leisurewear was $607,618 thousand, while sports and outdoor wear generated $477,521 thousand, and denim contributed $473,181 thousand[14] - Revenue from major customers contributing over 10% to total revenue was $712,836 thousand in 2023, compared to $748,592 thousand in 2022, reflecting a decline of approximately 4.8%[17] - Revenue from the Asia-Pacific region was $877,298 thousand, down from $940,759 thousand in 2022, a decrease of about 6.7%[18] - Revenue from the United States was $783,468 thousand, a significant drop from $959,853 thousand in the previous year, representing a decline of approximately 18.4%[18] - The revenue breakdown by product category showed leisurewear at $607.6 million (27.9%), sports and outdoor wear at $477.5 million (21.9%), and intimate apparel at $396.4 million (18.2%) for 2023[39] Operating Expenses - Operating expenses, including sales and distribution, administrative, and R&D expenses, totaled $244.8 million, a slight decrease from $263.6 million in 2022[3] - Total employee costs for 2023 amounted to $516,743,000, down from $593,143,000 in 2022, indicating a reduction of about 12.9%[1] - The cost of goods sold, including inventory write-downs, was $1,757,802,000 in 2023, compared to $2,013,351,000 in 2022, reflecting a decrease of approximately 12.7%[1] Cash Flow and Capital Expenditure - Cash flow remained stable with net cash reaching a record $543 million as of December 31, 2023, compared to $455 million in 2022[45] - Capital expenditures were reduced to $69 million in 2023, reflecting a strategic shift in investment focus due to anticipated market demand slowdown[37] - The capital expenditure for 2023 was $69 million, down from $106 million in 2022[46] - The company plans to increase its capital expenditure in 2024 due to vertical integration expansion and ongoing automation upgrades[55] Sustainability and Future Outlook - The company plans to implement approximately 180 short-term and long-term energy-saving measures as part of its sustainability vision for 2030[37] - The company expects a double-digit growth in order demand for 2024, driven by increased shipment volumes across all divisions[54] - The group received multiple sustainability awards, including the "Hong Kong Sustainable Development Award 2023 - Model Award" and "Excellence in Social Impact Award" in 2023[38] Accounting and Compliance - The group has applied new international financial reporting standards, which did not have a significant impact on the financial position or performance for the current and prior years[10] - The group has implemented the revised IAS 12 regarding income tax, which includes provisions for deferred tax assets and liabilities related to the OECD's Pillar Two legislation[11] - The audit committee expressed satisfaction with the external auditor's work and the application of accounting policies for the year ended December 31, 2023[60] - The audited consolidated financial statements for the year ended December 31, 2023, will be provided to shareholders in due course[61] Market Conditions - The company experienced a challenging operating environment in 2023, with a notable 24% year-over-year decrease in apparel imports to the U.S.[35] - The knitwear division achieved record performance due to improved product mix and growing demand from sports brand customers, contributing to sales growth[36] - The company is focusing on market expansion in the Asia-Pacific region, capitalizing on steady growth in demand from the Chinese market[36]
晶苑国际(02232) - 2023 - 年度业绩