Financial Performance - Revenue for the year 2023 was HKD 898,733,000, a decrease of 6.6% compared to HKD 962,566,000 in 2022[2] - Gross profit for 2023 was HKD 222,824,000, down from HKD 274,187,000 in 2022, reflecting a decline in gross margin[2] - Operating profit decreased to HKD 41,770,000 in 2023 from HKD 45,012,000 in 2022, indicating a reduction of 5.5%[2] - Net profit for the year was HKD 15,645,000, a significant drop of 43.7% from HKD 27,741,000 in the previous year[3] - Basic and diluted earnings per share for 2023 were HKD 0.54, down from HKD 0.83 in 2022, representing a decline of 34.9%[2] - The gross profit margin for the year was 24.8% (2022: 28.5%) [85] - Profit for the year decreased by 43.6% to HKD 15,600,000 (2022: HKD 27,700,000) [85] - Basic earnings per share for the year were HKD 0.54 (2022: HKD 0.83) [85] - The total sales revenue for the year was HKD 898,733,000, a decrease of HKD 63,833,000 or 6.6% compared to the previous year[162] Assets and Liabilities - Total non-current assets amounted to HKD 1,082,453,000 in 2023, an increase from HKD 874,540,000 in 2022[4] - The total assets less current liabilities stood at HKD 2,119,470,000 in 2023, slightly up from HKD 2,087,401,000 in 2022[4] - The company’s non-current liabilities decreased to HKD 155,280,000 in 2023 from HKD 175,315,000 in 2022, showing a reduction in long-term debt obligations[5] - The company’s total borrowings decreased to HKD 185,546,000 in 2023 from HKD 195,849,000 in 2022, a reduction of 5.2%[47] Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to HKD 674,400,000 in 2023 from HKD 729,058,000 in 2022, reflecting a liquidity challenge[4] - The company reported a net cash inflow from operating activities for the year of HKD 147,606,000, a substantial increase of HKD 143,196,000 compared to last year's net cash inflow of HKD 4,410,000[63] - The company's net cash position as of December 31, 2023, was HKD 488,854,000, a decrease of HKD 44,355,000 from HKD 533,209,000 on December 31, 2022[64] - The company’s cash per share was HKD 0.66, down from HKD 0.71 last year, while the net asset value per share increased to HKD 1.87, up 2.7% from HKD 1.82[171] Expenses and Cost Management - The company reported a decrease in financing costs to HKD 11,239,000 in 2023 from HKD 6,832,000 in 2022, indicating increased financial pressure[2] - The total bank loan interest increased to HKD 10,112,000 in 2023 from HKD 5,379,000 in 2022, reflecting a rise of 87.5%[30] - Sales and distribution expenses increased to HKD 28,947,000 in 2023 from HKD 26,178,000 in 2022, an increase of 10.7%[45] - Administrative expenses were reduced by HKD 34,506,000 or 18.8% to HKD 149,368,000 compared to the previous year[169] - The interest expense for the year increased to HKD 9,985,000 from HKD 4,688,000 due to rising bank loan interest rates[172] Business Operations and Strategy - The company completed the acquisition of Yutai Hydraulic Technology (Shanghai) Co., Ltd. for a total consideration of RMB 228,428,000, supported by bank loans[40] - Capital expenditures for maintaining production capacity and upgrading technology amounted to HKD 102,929,000 in 2023, similar to the previous year[48] - The company plans to expand its production capacity with a new factory of 28,977 square meters at a cost of RMB 66,660,000, to prepare for market recovery[39] - The company plans to diversify its business, focusing on expanding hydraulic operations and new energy vehicle parts, as well as developing new products and customers through acquisitions[166] Workforce and Human Resources - The company has reduced its workforce to 2,065 employees, down by 139 from 2,204 employees at the end of the previous year[66] - The company is actively enhancing its automated production model and adopting advanced multifunctional production equipment to reduce the need for basic personnel[66] - The company has implemented a talent incentive program to retain key technical personnel, with 24 employees receiving lean talent certification in 2023[65] Market Performance - Revenue from the mainland China market reached HKD 984,862,000 in 2023, up from HKD 761,773,000 in 2022, representing a growth of 29.3%[28] - Sales of traditional mechanical hard drives (HDD) significantly declined, dropping from HKD 91,151,000 last year to HKD 36,192,000 this year, representing only 4.0% of total sales[60] - The automotive parts business generated sales of HKD 445,241,000 for the year, down 2.9% year-on-year[160] - The hydraulic parts business recorded sales of HKD 364,444,000, a decline of HKD 29,852,000 or 7.6% compared to last year[160] Other Income and Grants - Other income for the year was recorded at HKD 62,015,000, with rental income from investment properties rebounding to HKD 9,753,000, an increase of HKD 7,540,000 year-on-year[61] - Government grants received amounted to HKD 10,872,000 (2022: HKD 8,204,000) [113] - The company reported a total of HKD 62,015,000 in other income (2022: HKD 45,606,000) [113] Risk Management - The company continues to assess foreign exchange risks, particularly the impact of RMB appreciation on profitability, and takes necessary measures to mitigate these risks[74]
国际精密(00929) - 2023 - 年度业绩