Financial Performance - The revenue for the year was HKD 979.2 million, a decrease of 11.0% compared to HKD 1,100.4 million for the year ended December 31, 2022[16]. - The net profit for the year was HKD 48.2 million, down from HKD 58.3 million for the year ended December 31, 2022[16]. - The basic earnings per share attributable to equity shareholders was approximately HKD 0.08, a decrease of about 20.0% from HKD 0.10 for the year ended December 31, 2022[16]. - The company's profit attributable to shareholders decreased to HKD 51,011,000 in 2023 from HKD 66,289,000 in 2022, a decline of 23%[70]. - The group's net profit for the year was HKD 48.2 million, down HKD 10.1 million or 17.3% from HKD 58.3 million for the year ended December 31, 2022, primarily due to weak consumer purchasing power and inventory destocking pressures[149]. Revenue Breakdown - Revenue from synthetic hair and related products was HKD 862,256,000, a slight decrease of 1.3% from HKD 872,398,000 in 2022[37]. - Revenue from high-end human hair extension products dropped significantly to HKD 80,423,000 from HKD 184,486,000, a decline of approximately 56.4%[37]. - Revenue from hair extensions, hair accessories, and others decreased by HKD 10.1 million to HKD 862.3 million, a decline of 1.2%, mainly due to a drop in sales of lace wigs and woven products, offset by an increase in sales of braids and specialty braids[143]. - Revenue from Halloween products decreased by 15.9% to 36.6 million HKD from 43.5 million HKD in the previous year, primarily due to weakened consumer purchasing power[118]. Cost and Expenses - The gross profit margin for the year was 23.8%, an increase of 0.4 percentage points from 23.4% for the year ended December 31, 2022[16]. - Administrative expenses decreased to HKD 119,091,000 from HKD 138,073,000, reflecting a reduction of about 13.8%[1]. - Financing costs increased to HKD 36,810,000 from HKD 29,826,000, marking an increase of approximately 23.4%[1]. - The group's cost of goods sold decreased by HKD 97.3 million to HKD 746.0 million, a reduction of 11.5%, mainly due to streamlined production processes and lower raw material costs[144]. Assets and Liabilities - The total assets less current liabilities amounted to HKD 897.5 million, compared to HKD 917.8 million in the previous year[20]. - The capital debt ratio as of December 31, 2023, was 72.8%, compared to 61.9% as of December 31, 2022[16]. - Trade payables as of 2023 were HKD 73,729,000, compared to HKD 35,380,000 in 2022, showing an increase of 108%[80]. - The company reported a total of HKD 131,629,000 in current liabilities for 2023, reflecting an increase from the previous year[80]. Dividends - The company proposed a final dividend of HKD 0.029 per share, along with an interim dividend of HKD 0.042 per share, totaling HKD 0.071 per share for the year[16]. - The board proposed a final dividend of HKD 0.029 per share for the year, down from HKD 0.037 per share in 2022[163]. Market Outlook and Strategy - The company anticipates a gradual stabilization in market demand for hair products by the end of this year[199]. - The company plans to expand its operations in Thailand, with a new lease agreement for office space amounting to HKD 2,835,000[73]. - The group plans to expand its sales team to explore new market opportunities and increase its presence on well-known cross-border e-commerce platforms[185]. - The company will continue to focus on its core business and closely monitor the latest developments in the industry[199]. Employee and Operational Metrics - The total employee costs for 2023 amounted to HKD 308,660,000, down from HKD 385,597,000 in 2022, indicating a decrease of 19.9%[89]. - The group employed 25,371 employees in Bangladesh as of December 31, 2023, compared to 25,199 employees as of December 31, 2022[155]. Other Income and Losses - The company's bank interest income for 2023 was HKD 2,082,000, significantly up from HKD 395,000 in 2022, representing a growth of 426%[60]. - Other income rose by HKD 1.8 million to HKD 7.3 million, an increase of 33.9%, mainly due to higher warehouse rental income and bank interest income[168]. - The net loss of financial assets measured at fair value through profit or loss was HKD (1,119) thousand in 2023, an improvement from HKD (4,807) thousand in 2022[43].
训修实业(01962) - 2023 - 年度业绩