Financial Performance - For the year ended December 31, 2023, the company reported a revenue of HK$4,440,235, an increase from HK$4,118,246 in the previous year, representing a growth of approximately 7.8%[3] - The gross profit for the year was HK$321,989, compared to HK$577,817 in the previous year, indicating a decline of about 44.8%[3] - Profit before income tax expense was HK$111,128, a significant recovery from a loss of HK$20,210 in the previous year[3] - The profit for the year attributable to owners of the company was HK$67,844, a turnaround from a loss of HK$93,164 in the previous year[3] - Total comprehensive income for the year attributable to owners was HK$63,714, compared to a loss of HK$128,342 in the previous year[11] - The company’s net assets increased to HK$3,468,666 from HK$3,423,767, reflecting a growth of approximately 1.3%[13] - The finance costs for the year were HK$26,258, up from HK$21,408 in the previous year, indicating an increase of approximately 22.5%[3] - The Group's effective tax expense for 2023 was HK$43,284,000, down from HK$72,954,000 in 2022, indicating a decrease of about 40%[73] - The Group reported a net exchange loss of HK$1,543,000 in 2023, a significant improvement from a loss of HK$6,223,000 in 2022[77] - The gain on disposal of property, plant, and equipment was HK$9,600,000 in 2023, compared to HK$1,467,000 in 2022[77] - The reversal of impairment loss recognized on trade and bills receivables amounted to HK$259,011,000 in 2023, with no such amount in 2022[77] - The total other gains and losses for 2023 were HK$277,529,000, a substantial increase from HK$1,681,000 in 2022[77] - The Group's earnings attributable to owners for 2023 were HK$50,903,000, recovering from a loss of HK$115,532,000 in 2022[89] - Profit attributable to owners of the Company was HK$50,903,000 in 2023, a significant recovery from a loss of HK$115,532,000 in 2022[64] Revenue and Sales - For the year ended 31 December 2023, revenue from the production and sales of dyed fabrics and yarns was HK$4,440,235, a decrease from HK$6,053,645 in 2022, representing a decline of approximately 26.6%[44] - The Group's revenue for the year ended December 31, 2023, was HK$4,440,235,000, a decrease of 26.7% compared to HK$6,053,645,000 in 2022[100] - The core business of manufacturing and selling dyed fabrics and yarns generated revenue of approximately HK$3,639,699,000, accounting for 82.0% of total revenue, down from 85.1% in 2022[147] - Revenue from the production and sales of dyed fabrics and yarns was approximately HK$3,639,699,000, accounting for 82.0% of total revenue, down from 85.1% in 2022[168] - The Group's revenue decreased by 26.7% year-on-year, primarily due to a 22.9% decline in fabric sales volume[169] Costs and Expenses - The Group's cost of sales for 2023 was HK$4,118,246,000, a decrease from HK$5,475,828,000 in 2022, reflecting a reduction of approximately 24.8%[56] - The overall cost of sales for the year was approximately HK$4,118,246,000, down from HK$5,475,828,000 in 2022, resulting in a gross profit margin of 7.3%, compared to 9.5% in 2022[170] - Employee costs, including directors' emoluments, decreased to HK$691,167,000 in 2023 from HK$848,355,000 in 2022, a reduction of approximately 18.5%[56] - The Group's finance costs for 2023 were approximately HK$26,258,000, representing 0.6% of total revenue, compared to 0.4% in 2022[150] - Research and development costs decreased slightly to HK$56,659,000 in 2023 from HK$59,115,000 in 2022[56] Assets and Liabilities - Trade and bills receivables as of 31 December 2023 were HK$808,091, down from HK$928,721 in 2022, indicating a decrease of about 12.9%[45] - Trade receivables decreased to HK$720,569,000 from HK$797,805,000 year-on-year, while bills receivables also fell to HK$122,661,000 from HK$183,025,000[118] - The total inventories decreased to HK$783,908,000 in 2023 from HK$929,526,000 in 2022[92] - Bills payables were HK$1,103,000 as of December 31, 2023, significantly reduced from HK$19,200,000 in 2022[95] - Trade payables increased to HK$651,571,000 from HK$491,299,000, with trade payables within 1 month rising significantly to HK$430,215,000 from HK$260,063,000[120] - As of 31 December 2023, the Group's total assets were approximately HK$4,900,839,000, down from HK$5,046,765,000 in 2022[151] - The Group's inventories as of 31 December 2023 amounted to approximately HK$783,908,000, with an inventory turnover period of 69 days, an increase of 7 days compared to 62 days in 2022[150] Strategic Initiatives - The company is focusing on expanding its market presence and enhancing product offerings, although specific new products and technologies were not detailed in the report[3] - The Group aims to transform from a fabric manufacturing-oriented enterprise to a balanced fabric-to-garment integrated product and technology R&D service-oriented enterprise[183] - The Group plans to enhance product quality and competitiveness, focusing on cotton knitted fabric while addressing weaknesses in synthetic fiber fabrics[186] - The Group will prioritize developing emerging markets and domestic mid-to-high-end markets, targeting renowned international and domestic brand customers[187] - The Group is committed to improving operational efficiency and addressing challenges related to orders, layout, costs, and quality to achieve better returns for stakeholders[188] - The Group proactively adjusted production capacity and order allocation in response to the restructuring of the global textile and apparel supply chain[102] - The Group has strengthened its R&D capabilities for new fiber and functional fabric products to improve customer service levels[160] Dividends and Shareholder Information - The final dividend recommended is HK$3.00 cents per share, with a payout ratio of 71.43%, amounting to approximately HK$36,751,000[100] - The final dividend for 2023 is subject to shareholder approval at the upcoming annual general meeting[100] - The Board has proposed a final dividend to shareholders, subject to approval at the AGM, to be paid on or about 16 July 2024[194] - The Register of Members will be closed from 18 June 2024 to 21 June 2024 for the AGM, during which no share transfers will be registered[197] Governance and Compliance - The Audit Committee, consisting of three independent non-executive directors, has reviewed the Group's audited financial results for the year ended 31 December 2023[198] - The Group's segment profit does not include central administration costs and other expenses, which are essential for resource allocation and performance assessment[42] - The Group has adopted HKFRS 17 for insurance contracts, effective from 1 January 2023, but it has not materially impacted financial performance[37] - The amendments to HKFRSs had no impact on the consolidated financial statements of the Group, ensuring consistency in financial reporting[31] - The Group's financial performance was not materially impacted by the adoption of new and amended HKFRSs, but it did affect the disclosures of accounting policies[30] - The Group aims to enhance overall strategy planning by having the same individual serve as both Chairman and CEO, which is a deviation from the CG Code[193]
福田实业(00420) - 2023 - 年度业绩