Financial Performance - Revenue decreased by 4.5% to RMB 22.73 billion[2] - Gross margin fell by 5.2 percentage points to 6.4%[2] - Net loss amounted to RMB 299.38 million, compared to a profit of RMB 201.19 million in the previous year[4] - Loss attributable to shareholders was RMB 375.70 million, with a basic loss per share of RMB 0.41[3] - The company reported a comprehensive loss of RMB 272.26 million for the year[4] - Total revenue for the year ended December 31, 2023, was 38,364,419, with a significant contribution from the China segment at 21,879,282[11] - The company reported a loss of RMB (375,700) thousand attributable to owners in 2023, compared to a profit of RMB 156,808 thousand in 2022, indicating a significant decline in financial performance[24] - Basic loss per share for 2023 was RMB (0.41), compared to earnings of RMB 0.17 per share in 2022, reflecting a significant decline in profitability[24] Assets and Liabilities - Total assets decreased from RMB 26.15 billion to RMB 22.81 billion[5] - Total liabilities reduced from RMB 16.05 billion to RMB 13.06 billion[6] - The total assets of the group as of December 31, 2023, amounted to 22,811,172, with significant holdings in China[15] - The total liabilities of the group were reported at 16,049,823, indicating a high leverage situation[16] - The company had trade payables of RMB 868,848 thousand in 2023, down from RMB 4,597,463 thousand in 2022[33] Cash Flow and Financing - Cash and cash equivalents decreased from RMB 2.47 billion to RMB 2.16 billion[5] - The company recorded a net cash inflow from operating activities of approximately RMB 1.9856 billion in 2023, an increase from RMB 1.6201 billion in 2022, attributed to improved inventory control[58] - The company’s net cash outflow from financing activities was approximately RMB 2.3376 billion in 2023, primarily due to enhanced working capital management and reduced bank borrowings[58] - The total bank borrowings decreased by approximately RMB 820.2 million to about RMB 7.7232 billion as of December 31, 2023, with current bank borrowings reducing to RMB 4.1457 billion from RMB 5.1552 billion in 2022[62] Revenue Sources and Market Performance - The group reported that revenue from external customers in Asia accounted for 92.9% of total revenue, while revenue from the Americas accounted for 6.8%[10] - The company’s yarn sales revenue remained stable at approximately RMB 17.5 billion, accounting for about 77.2% of total revenue, primarily due to the recovery in domestic market demand[43] - Fabric revenue declined by 18.8% year-on-year to approximately RMB 2.9 billion, impacted by weaker-than-expected overseas market demand[43] - The total sales volume of yarn exceeded 740,000 tons, representing an increase of approximately 12.7% compared to the previous year[43] Cost Management and Expenses - The company recorded a loss of 299,382 in financial expenses, reflecting challenges in managing costs[12] - Employee benefit expenses decreased to RMB 2,366,827 thousand in 2023 from RMB 2,594,979 thousand in 2022, a decrease of approximately 8.8%[19] - The company incurred a net finance cost of RMB 517,592 thousand in 2023, up from RMB 466,861 thousand in 2022, an increase of about 10.9%[19] - Sales and distribution expenses decreased by 17.6% to approximately RMB 730.4 million in 2023, primarily due to high shipping and port-related costs in 2022 caused by the pandemic[56] Strategic Initiatives and Future Plans - The company plans to focus on market expansion and new product development in the upcoming fiscal year[2] - The company plans to expand its market presence in Southeast Asia, aiming for a revenue increase of 10% in the next fiscal year[11] - New product development initiatives are underway, focusing on sustainable materials, with an investment of 100 million planned for R&D[11] - The company aims to focus on innovation, sustainable development, and efficient operations in the new fiscal year to enhance its competitive position and seize emerging opportunities[40] Governance and Compliance - The group has established an audit committee composed of three independent non-executive directors to oversee financial reporting and internal controls[74] - The ESG committee is chaired by Mr. Zhu Yongxiang, overseeing compliance with environmental, social, and governance regulations[77] - The board consists of two executive directors and three independent non-executive directors, adhering to corporate governance codes as per the Hong Kong Stock Exchange[71] Inventory and Supply Chain - Inventory decreased from RMB 7.59 billion to RMB 5.24 billion[5] - Total inventory decreased from RMB 8,194,991 thousand in 2022 to RMB 5,586,878 thousand in 2023, with a provision for inventory write-down of RMB (342,295) thousand[28] - Supply chain financing increased significantly to RMB 2,495,882 thousand in 2023 from RMB 426,093 thousand in 2022[35] Market Challenges - The overall textile market is facing challenges from inflation and geopolitical tensions, leading to cautious purchasing strategies from downstream retailers[39] - The overall gross margin of the company decreased from 11.6% in 2022 to 6.4% in 2023, primarily due to weak product prices and increased financing costs[45]
天虹国际集团(02678) - 2023 - 年度业绩