Financial Performance - The total revenue for the year ended December 31, 2023, was HKD 233,990,000, a decrease of 10.0% compared to HKD 260,142,000 in 2022[3] - The gross profit for the year was HKD 75,125,000, down from HKD 79,797,000, reflecting a gross margin of approximately 32.1%[3] - Operating profit increased to HKD 28,589,000 from HKD 27,667,000, indicating a growth of 3.3%[3] - Net profit attributable to equity holders of the company rose to HKD 16,282,000, compared to HKD 13,805,000 in the previous year, representing an increase of 17.7%[4] - Earnings per share for the year was HKD 8.14, up from HKD 6.90, reflecting a growth of 17.9%[4] - The company reported a comprehensive income of HKD 13,365,000 for the year, compared to HKD 3,753,000 in 2022, indicating a significant improvement[6] - The net profit for the year was HKD 16,282,000, an increase of 17.9% from HKD 13,805,000 in 2022[26] - The group’s net profit attributable to shareholders increased by approximately HKD 2.5 million or about 17.9% to approximately HKD 16.3 million for the year ended December 31, 2023, driven by improved gross margins and reduced selling expenses[38] - The group recorded a net profit attributable to equity holders of approximately HKD 16.3 million for the year ended December 31, 2023, up from HKD 13.8 million in the previous year, mainly due to improved gross margin and reduced sales expenses[53] Revenue Breakdown - Revenue from OEM business customers decreased to HKD 221,914,000 from HKD 241,119,000, a decline of 7.9%[17] - Revenue from self-branded products fell to HKD 12,076,000 from HKD 19,023,000, a significant decrease of 36.5%[17] - Revenue from the United States was HKD 220,866,000 in 2023, a decrease of 4.3% from HKD 230,550,000 in 2022[20] - The largest customer contributed HKD 145,523,000 in revenue for 2023, an increase of 12.4% from HKD 129,449,000 in 2022[21] - The largest customer contributed approximately HKD 145.5 million in revenue, an increase of about 12.4% from HKD 129.4 million in 2022, while the second largest customer saw a revenue decrease of about 23.3% to HKD 67.8 million[43] - The YoYoMilo business recorded revenue of approximately HKD 12.1 million, a significant decrease of about 36.5% from HKD 19.0 million in 2022, primarily due to intense local market competition[44] Assets and Equity - Total assets as of December 31, 2023, amounted to HKD 255,142,000, an increase from HKD 249,286,000 in 2022[8] - Total equity attributable to equity holders of the company was HKD 209,567,000, slightly up from HKD 207,814,000[8] Expenses and Financial Management - The total tax expense for 2023 was HKD 7,718,000, an increase from HKD 6,411,000 in 2022[25] - Sales expenses for the year ended December 31, 2023, were approximately HKD 9.2 million, a decrease of about 31.1% from HKD 13.3 million in the previous year[47] - Administrative expenses for the year ended December 31, 2023, were approximately HKD 38.3 million, down about 6.9% from HKD 41.2 million in the previous year, maintaining around 15.8% and 16.4% of total revenue respectively[48] - The net financing income for the year ended December 31, 2023, was approximately HKD 4.1 million, an increase from HKD 0.8 million in the previous year, attributed to higher interest income from bank deposits[50] Cash Flow and Capital Expenditures - Cash and cash equivalents as of December 31, 2023, were approximately HKD 126.3 million, down from HKD 134.8 million in the previous year, primarily due to dividend payments and capital expenditures[54] - Capital expenditures for the year ended December 31, 2023, amounted to approximately HKD 10.7 million, significantly higher than HKD 1.8 million in the previous year, mainly for new machinery and equipment[56] Market Conditions and Strategic Focus - The overall economic environment remains challenging, with ongoing global issues such as the COVID-19 pandemic and geopolitical tensions impacting market conditions[39] - The OEM business is facing challenges due to reduced product demand from clients, leading to weak sales performance in 2023[69] - The "Youyou Mami" brand is positioned in the high-end infant market in China, but sales are negatively impacted by fierce local competition and declining birth rates[70] - The group is focusing on expanding its global customer base and enhancing production capacity to diversify its product offerings, particularly in the OEM business[40] - The group is exploring better utilization of online sales platforms to align with the growing trend of e-commerce in China[40] - The company is exploring potential acquisition targets globally to achieve production synergies and accelerate business development[71] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions as of December 31, 2023[80] - The financial data for the year ending December 31, 2023, has been reviewed by the audit committee and verified by PwC, although it does not constitute an audit under Hong Kong auditing standards[81] - The annual performance announcement and annual report will be published on the Hong Kong Stock Exchange and the company's website at an appropriate time[83] Employee and Shareholder Matters - The group employed 626 full-time employees as of December 31, 2023, a decrease from 666 employees in the previous year, primarily due to reduced production needs[65] - The company granted 6,000,000 share options to directors, senior management, and employees as recognition for their contributions[66] - The company plans to distribute a final dividend of 3 HKD per share, consistent with the previous year, totaling HKD 6,000,000[29] - The board proposed a final dividend of HKD 0.03 per ordinary share, totaling approximately HKD 12 million, consistent with the previous year[74]
万成集团股份(01451) - 2023 - 年度业绩