Financial Performance - Revenue for the year ended December 31, 2023, was HKD 291,560,000, a decrease of 26% from HKD 394,119,000 in 2022[2] - The net profit for the year was HKD 1,088,000, compared to a loss of HKD 466,000 in the previous year[4] - Basic and diluted earnings per share for 2023 were HKD 0.09, compared to a loss per share of HKD 0.05 in 2022[6] - The gross profit margin for the year was approximately 14.5%, down from 14.9% in the previous year[4] - The company reported a total comprehensive income of HKD 2,245,000 for 2023, compared to a loss of HKD 2,016,000 in 2022[6] - The company generated rental income of HKD 348 thousand in 2023, compared to HKD 503 thousand in 2022, reflecting a decrease of approximately 31%[31] - The company recorded a loss of HKD 4,552 thousand from the fair value changes of financial assets in 2023, compared to a loss of HKD 3,780 thousand in 2022, indicating a worsening of about 20%[31] - For the fiscal year ending December 31, 2023, the total expenses amounted to HKD 303,388,000, a decrease of 23.1% compared to HKD 394,680,000 in 2022[32] - The cost of goods sold for 2023 was HKD 249,259,000, a decrease of 25.7% from HKD 335,278,000 in 2022[32] - Administrative expenses for 2023 were HKD 42,180,000, slightly up from HKD 41,519,000 in 2022, reflecting a 1.6% increase[32] - The company reported a significant decrease in sales and marketing expenses, which were HKD 11,949,000 in 2023 compared to HKD 14,255,000 in 2022, a reduction of 16.1%[32] - Financing costs decreased to approximately HKD 2.4 million from HKD 3.9 million for the year ending December 31, 2022[58] Assets and Liabilities - Total assets decreased to HKD 252,905,000 from HKD 275,875,000, reflecting a decline of approximately 8%[2] - Current liabilities increased to HKD 113,398,000 from HKD 138,463,000, indicating a reduction of about 18%[2] - Non-current assets were valued at HKD 69,694,000, a decrease from HKD 72,616,000 in the previous year[2] - Total assets increased from HKD 252,905,000 to HKD 275,875,000, representing a growth of approximately 9.05% year-over-year[8] - Total liabilities decreased from HKD 141,644,000 to HKD 116,429,000, indicating a reduction of about 17.74%[9] - The net value of current assets rose from HKD 64,796,000 to HKD 69,813,000, reflecting an increase of approximately 7.77%[9] - The company's retained earnings increased from HKD 70,002,000 to HKD 71,090,000, showing a growth of about 1.55%[8] - The total equity increased from HKD 134,231,000 to HKD 136,476,000, which is an increase of approximately 1.67%[8] - The company's total liabilities to equity ratio improved from 1.05 to 0.85, indicating a stronger financial position[9] - The company's total current liabilities decreased from HKD 58,380,000 to HKD 65,959,000, reflecting a decrease of about 12.00%[9] - The company's total non-current liabilities decreased from HKD 83,264,000 to HKD 50,470,000, indicating a reduction of approximately 39.50%[9] Market and Operations - The company operates primarily in investment holding and its subsidiaries are engaged in the design, development, procurement, manufacturing, and sale of a full range of bags, luggage, and accessories, as well as medical-related products[12] - The group conducts its business activities in Hong Kong, Denmark, and the People's Republic of China, with major export markets in Europe and North America[12] - The company plans to focus on market expansion and new product development in the upcoming year[3] - The company expects to face various competitive pressures, including rising material and labor costs in China, pricing strategies from competitors, and changes in customer preferences and consumption trends[92] - The company plans to continue expanding its customer base and optimizing its cost structure to maintain profitability and growth[53] Taxation and Compliance - The effective tax rate for Hong Kong profits tax was maintained at 16.5% for both 2023 and 2022, with a two-tiered system applicable for qualifying entities[34] - The corporate income tax rate in China remained at 25% for 2023, consistent with 2022, with a reduced rate of 5% applicable for small profit enterprises[35] - The income tax expense for the year included a current tax charge of HKD 804,000 for China, down from HKD 894,000 in 2022[37] - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, which do not have a significant impact on the financial statements[17] - The company expects that the revised Hong Kong Financial Reporting Standards will not have a significant impact on its consolidated financial statements[19] Shareholder Information - The annual general meeting of shareholders is scheduled for June 21, 2024[93] - The board of directors did not recommend the payment of a final dividend for the reporting period, consistent with the previous year[75] - The group reported no issuance of potential dilutive ordinary shares for both 2023 and 2022, resulting in basic earnings per share being the same as diluted earnings per share[40] External Transactions - The company engaged in a continuous connected transaction with GPL Hong Kong, selling products worth HKD 52.686 million during the reporting period[81] - The pricing for the products sold to GPL Hong Kong was determined based on normal commercial terms and was not less favorable than those offered to independent third parties[81] - The company confirmed that the continuous connected transactions were conducted under fair and reasonable terms, benefiting the overall interests of shareholders[82] - The company sold a property to Vking Marine Limited for HKD 19.5 million, with the transaction completed on September 25, 2023[87] - The company has entered into a lease agreement for a property with a quarterly rent of HKD 243,000 starting from September 25, 2023, for a duration of three years[88] Future Outlook - The group anticipates a continued global economic recovery in 2024, with improvements in GDP growth rate and employment rate, although recovery may be uneven across regions[92] - The group continues to monitor foreign exchange risks, particularly related to the US dollar and RMB, without currently having a hedging policy in place[74] Governance and Audit - The audit committee has reviewed and approved the consolidated financial statements for the reporting period, ensuring compliance with applicable accounting standards and regulations[101] - The company has engaged an external auditor, which confirmed that the financial data in the performance announcement aligns with the audited consolidated financial statements[102] - The annual performance announcement and annual report will be published on the company's website and the Hong Kong Stock Exchange website[104]
植华集团(01842) - 2023 - 年度业绩