Revenue and Profitability - Revenue for the year ended December 31, 2023, was $1,492.651 million, a decrease from $1,630.771 million in 2022[4] - Adjusted net profit increased by 23.5% to $147.6 million, excluding a fair value loss of $7.3 million related to financial instruments[2] - The total comprehensive income for the year was $134.676 million, compared to $92.537 million in the previous year[5] - The company reported a pre-tax profit of $133,195 thousand for the year, compared to $141,168 thousand in the previous year, indicating a decline of approximately 5.9%[22] - The group’s profit before tax increased to $161,336 thousand in 2023 from $133,195 thousand in 2022, reflecting a growth of approximately 21.1%[38] Gross and Operating Margins - Gross profit increased to $366.728 million, with a gross margin of 24.6%, up 3.0 percentage points from the previous year[2] - Operating profit rose by 18.2% to $159.353 million, with an operating margin increasing from 8.3% to 10.7%[2] - The gross profit margin improved by 3.0 percentage points to 24.6% in 2023, driven by enhanced product offerings and operational efficiencies[53] - The operating profit margin increased by 2.4 percentage points to 10.7% in 2023, attributed to strict cost control and improved productivity[53] Cash Flow and Financial Position - The company reported a strong net cash position of $287.4 million, up from $206.1 million in 2022, with approximately $140 million reserved for capacity expansion in Bangladesh and Indonesia[2] - Cash and cash equivalents at the end of 2023 amounted to $294,471 thousand, up from $213,303 thousand in 2022, reflecting an increase of 38.0%[10] - Operating cash flow before tax profit for 2023 was $161,336 thousand, an increase from $133,195 thousand in 2022, representing a growth of 21.5%[9] - Net cash flow from operating activities for 2023 was $229,153 thousand, slightly down from $240,076 thousand in 2022, a decrease of 4.3%[9] - The net cash flow from financing activities in 2023 was a negative $90,788 thousand, compared to a negative $106,412 thousand in 2022, indicating improved cash management[10] Dividends and Shareholder Returns - The company declared a final dividend of HK$0.61 per share, resulting in a total annual dividend of HK$1.03 per share, with a payout ratio of approximately 70% based on adjusted net profit[2] - The proposed final dividend for the year ended December 31, 2023, is $62,169 thousand, up from $45,590 thousand in 2022, marking an increase of approximately 36.3%[42] - The board declared a final dividend of HK$0.61 per share, resulting in a total annual dividend of HK$1.03 per share, maintaining a payout ratio of approximately 70% based on adjusted net profit[69] Assets and Liabilities - Non-current assets totaled $532.174 million, with current assets amounting to $827.527 million, reflecting a solid asset base[6] - The total assets of the group amounted to $1,359,701,000, with segment assets of $1,315,496,000 for manufacturing and $25,576,000 for retail and wholesale[20] - The group’s total liabilities were $292,237,000, with segment liabilities of $281,529,000 for manufacturing and $1,536,000 for retail and wholesale[20] - Current assets were approximately $827,500,000, with current liabilities of about $265,200,000, resulting in a current ratio of 3.1, indicating strong liquidity[71] Investments and Capital Expenditures - Capital expenditures for the manufacturing segment were $67,616,000, while the retail and wholesale segment incurred $22,000, totaling $67,638,000[21] - The company’s investment in joint ventures amounted to $42,449 thousand, while losses from associates were $84 thousand[23] - The company plans to expand production capacity in its new factory in Solo, Indonesia, and is also advancing the construction of a new factory in Bangladesh[53] Market Performance and Strategy - The average selling price grew by 4.2%, enhancing the customer portfolio, particularly in the luxury and high-end fashion categories[2] - The company is strategically reducing the scale of its brand business, closing all retail stores and wholesale distribution points in Europe[53] - North America generated $680,183 thousand in revenue, down from $836,053 thousand in 2022, reflecting a decrease of about 18.6%[24] - The luxury and fashion category revenue increased by 4.1%, while the casual category revenue decreased by 18.0% as production capacity was reallocated[61] Employee and Operational Efficiency - The workforce decreased to approximately 39,900 employees from about 42,500 in the previous year, reflecting the company's focus on efficiency and talent retention[78] - The company is restructuring its organizational framework to improve customer service and operational efficiency[58] Compliance and Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with all relevant provisions[81] - The board confirmed that all directors have adhered to the standard code for securities trading throughout the year ending December 31, 2023[82] - The audit committee has reviewed the group's annual performance for the year ending December 31, 2023[83]
九兴控股(01836) - 2023 - 年度业绩