Financial Performance - For the fiscal year ending December 31, 2022, the total revenue was HKD 2,950,112, a decrease of 16.3% from HKD 3,528,869 in 2021[3] - The gross profit for 2022 was HKD 419,848, down from HKD 478,186 in 2021, reflecting a decline of 12.2%[3] - Operating profit increased to HKD 82,342, up 14.8% from HKD 71,671 in the previous year[3] - The net profit for the year was HKD 54,508, representing an increase of 10.4% compared to HKD 49,321 in 2021[3] - Basic earnings per share rose to HKD 7.3, up from HKD 5.8 in the prior year, marking a growth of 25.9%[3] - The net profit attributable to equity holders for 2022 was HKD 66,038,000, compared to HKD 51,953,000 in 2021, marking an increase of around 27%[29][30] - The company's profit attributable to equity holders increased by 27.1% to HKD 66,038,000 in 2022, compared to HKD 51,953,000 in 2021[31] - The diluted earnings per share rose to HKD 7.3 in 2022 from HKD 5.7 in 2021[32] Assets and Liabilities - Total assets as of December 31, 2022, were HKD 3,190,050, a decrease from HKD 3,347,136 in 2021[7] - Current assets decreased to HKD 2,415,138 from HKD 2,757,012, reflecting a decline of 12.4%[7] - Non-current assets increased to HKD 1,570,010 from HKD 1,547,938, showing a slight growth of 1.4%[7] - The company reported a significant decrease in inventory, which fell to HKD 540,226 from HKD 733,362, a decline of 26.4%[7] - Prepayments amounted to HKD 126,863,000 as of December 31, 2022, down from HKD 145,727,000 in 2021[41] - The net trade receivables decreased to HKD 532,801,000 in 2022 from HKD 847,471,000 in 2021, reflecting a reduction in outstanding invoices[34] - The company holds a strong financial position with a net cash balance of HKD 1.055 billion, allowing for continued investment in long-term sustainable development[51][57] - The company maintains a debt ratio of 6.0%, up from 5.7% in 2021, and holds 49% of its cash in RMB to manage currency risk[58] Dividends - The company declared a dividend of HKD 118,023, unchanged from the previous year[3] - The company proposed a special dividend of HKD 0.05 per share and a final dividend of HKD 0.04 per share, subject to shareholder approval[32] - The board has proposed a special dividend of HKD 0.05 per share and a final dividend of HKD 0.04 per share, maintaining a total dividend of HKD 0.13 per share for the fiscal year[63] Business Segments and Operations - The largest business segment, book and packaging printing, reported total revenue of HKD 2.075 billion, down 10.1% from 2021, but operating profit improved significantly to HKD 124.5 million[44] - The total sales from external customers in the packaging and printing business segments for 2022 were HKD 2,950,112,000, down from HKD 3,528,869,000 in 2021, a decline of approximately 16.3%[20][22] - The paper trading business segment experienced a decline in external sales revenue by approximately 40% to HKD 238.7 million due to weak market conditions and falling paper prices[47] - The consumer products packaging business segment's revenue decreased by 25% to HKD 402.5 million, resulting in a loss of HKD 65.9 million, compared to a loss of HKD 9.1 million in 2021[53] - The carton business reported a profit increase of 7% to HKD 9.5 million, despite an overall revenue decline of 17.7% to HKD 233.9 million due to weak domestic market conditions[54] Strategic Initiatives - The company plans to enhance its core advantages in children's book printing and expand direct communication with consumers through various channels[42] - The company is focusing on diversifying its business to reduce reliance on individual markets or sectors due to the slowdown in the domestic market[41] - The company has implemented strategic investments to improve automation and process efficiency in response to inflation and economic challenges[41] - The company plans to acquire a physical bookstore chain with 10 locations in Hong Kong, integrating it into the "STEM Plus" education product and service portfolio[56] - The company invested HKD 170 million in 2022 to enhance core business capabilities through advanced equipment and facility construction, including expansions in Wuxi, Heshan, and Vietnam[57] Costs and Expenses - Financing costs for 2022 were HKD 4,653,000, compared to HKD 2,930,000 in 2021, representing an increase of about 58.8%[22][24] - The company’s employee benefits expenses, including directors' remuneration, were HKD 725,780,000 in 2022, down from HKD 809,210,000 in 2021, a decrease of about 10.3%[24] - The company’s tax provision for the year 2022 was HKD 20,445,000, compared to HKD 19,061,000 in 2021, reflecting a slight increase of approximately 7.2%[26] Market Outlook - Total revenue decreased by 16.4% to HKD 2.95 billion in 2022, primarily due to cyclical fluctuations in demand for printing and paper products[41] - The company anticipates a gradual recovery in internal demand as COVID-19 restrictions are lifted, leading to cautious optimism regarding consumer confidence[50] Governance and Compliance - The board believes that the roles of Chairman and CEO should be separated, but the current CEO also serves as the Executive Chairman, which the board deems appropriate[67] - The company has adopted a set of standards for securities trading by directors, and all directors complied with these standards during the reporting period[68] - The audit committee reviewed the preliminary results for the year ended December 31, 2022, and confirmed consistency with the consolidated financial statements[69] - The company's auditor, KPMG, verified that the preliminary results are consistent with the financial statements for the year ended December 31, 2022[70] Shareholder Actions - The company will suspend share transfer registration from May 22 to May 25, 2023, to ensure eligibility for the upcoming annual general meeting[64] - The company purchased a total of 1,648,000 shares for a total consideration of HKD 2,095,000 during the year[65]
鸿兴印刷集团(00450) - 2022 - 年度业绩