Financial Performance - Group revenue increased by 5.9% to $1,630,800,000, driven by a 5.2% growth in average selling price[2] - Operating profit rose by 30.9% to $134,800,000, with an operating margin increasing to 8.3%, up 1.6 percentage points from the previous year[2] - Net profit increased by 29.1% to $117,200,000, reflecting strong financial performance[2] - Total comprehensive income for the year was $92,537,000, slightly up from $92,243,000 in the previous year[6] - The company reported a pre-tax profit of $133,195 thousand for the year ended December 31, 2022[18] - The company’s financial liabilities did not undergo any modifications or exchanges during the year, thus the related accounting revisions had no impact on its financial position[16] Cash Flow and Liquidity - Strong net cash position reached $206,100,000, a year-on-year increase of 61.6%[2] - Operating cash flow before tax profit increased to $133,195 thousand in 2022 from $103,488 thousand in 2021, representing a growth of 28.8%[10] - Net cash flow from operating activities reached $240,076 thousand in 2022, up from $120,256 thousand in 2021, indicating a 99.5% increase[10] - Cash and cash equivalents balance at the end of 2022 was $213,303 thousand, up from $135,170 thousand at the end of 2021, marking a 57.7% increase[11] - The current ratio improved to 3.3, indicating strong liquidity, compared to 2.9 the previous year[60] Dividends and Shareholder Returns - Declared a final dividend of 45 HK cents, totaling an annual dividend of 87 HK cents per share[2] - The proposed final dividend for the year ended December 31, 2022, is $45,520,000, compared to $56,646,000 in 2021, a decrease of approximately 19.6%[36] - The company announced a final dividend of HKD 0.45 per share, with a total annual dividend of HKD 0.87 per share, resulting in a payout ratio of approximately 75%[45] Assets and Liabilities - Current assets decreased to $725,973,000 from $734,885,000, while current liabilities also decreased to $219,869,000 from $257,562,000[8] - Total equity slightly decreased to $1,015,949,000 from $1,016,721,000, indicating stable financial health[9] - Total assets amounted to $1,258,083 thousand, with manufacturing segment assets at $1,209,631 thousand and retail and wholesale segment assets at $28,221 thousand[19] - Total liabilities were $242,134 thousand, with manufacturing segment liabilities at $237,843 thousand and retail and wholesale segment liabilities at $269 thousand[19] Revenue Segmentation - Manufacturing segment generated external sales of $1,620,045 thousand, while retail and wholesale segment generated $10,726 thousand, totaling $1,630,771 thousand in revenue[18] - North America contributed $836,053 thousand to total revenue, up from $765,257 thousand in 2021, reflecting a growth of about 9.3%[21] - Manufacturing segment revenue was $1,620,045 thousand, while retail and wholesale segment revenue was $10,726 thousand for the year ended December 31, 2022[24] - Revenue from the fashion category increased by 50.3% year-on-year, accounting for 25.5% of total manufacturing revenue, compared to 18% in the previous year[51] Cost and Expenses - The cost of sold inventory increased to $1,279,104,000 in 2022 from $1,226,930,000 in 2021, reflecting an increase of about 4.2%[28] - Research and development expenses decreased to $40,252,000 in 2022 from $42,381,000 in 2021, a reduction of approximately 5.0%[28] - Employee benefits expenses rose to $404,479,000 in 2022 from $382,063,000 in 2021, marking an increase of about 5.9%[29] Operational Strategy and Future Outlook - The company continues to invest in Indonesia as part of its capacity expansion and diversification strategy[2] - The company aims to achieve an operating profit margin of 10% and a low double-digit percentage annual growth rate in post-tax profit during the 2023-2025 three-year plan[48] - The company plans to enhance production capacity in its new factory in Solo, Indonesia, and expand capacity in its factory in Bangladesh starting in 2023[48] - The company is focusing on strengthening its product portfolio and enhancing collaboration with major global sports brands[47] - The company anticipates challenges in 2023 due to economic weakness and inventory issues among clients, but remains cautiously optimistic about growth in luxury and high-end fashion orders[56] Employee and Governance - As of December 31, 2022, the group had approximately 42,500 employees, consistent with the previous year[65] - The company has adopted long-term incentive and share reward plans to recognize and retain employees' contributions[65] - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules for the year ending December 31, 2022[67] Accounting and Compliance - The company adopted revised accounting standards effective from January 1, 2022, but these changes did not impact the financial position or performance due to no business combinations occurring during the year[16] - Ernst & Young has agreed that the figures presented in the preliminary announcement for the group's consolidated financial statements are accurate[69] - There were no purchases, sales, or redemptions of the company's listed securities during the year ending December 31, 2022[70]
九兴控股(01836) - 2022 - 年度业绩