S.A.S. DRAGON(01184) - 2022 - 年度业绩

Financial Summary Performance Overview The company experienced a 29.3% revenue decline to HKD 24.969 billion and a 43.9% drop in profit attributable to owners to HKD 400 million in 2022, with basic EPS and total dividends also significantly reduced 2022 Annual Financial Summary (Compared to 2021) | Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue (HKD Million) | 24,969 | 35,298 | -29.3% | | Profit attributable to owners of the Company (HKD Million) | 400 | 713 | -43.9% | | Basic Earnings Per Share (HK Cents) | 63.97 | 113.96 | -43.9% | | Total Dividends Per Share (HK Cents) | 35.00 | 45.00 | -22.2% | Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For 2022, the Group's revenue fell 29.3% to HKD 24.969 billion, with gross profit down 19.0% to HKD 1.285 billion due to disproportionate cost reductions, leading to a 38.8% drop in profit before tax to HKD 679 million and a 39.0% decline in profit for the year to HKD 564 million Key Items from Consolidated Statement of Profit or Loss (HKD Thousand) | Item | 2022 | 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 24,968,652 | 35,297,778 | -29.3% | | Gross Profit | 1,285,327 | 1,587,248 | -19.0% | | Profit Before Tax | 678,865 | 1,109,018 | -38.8% | | Profit for the Year | 563,907 | 925,134 | -39.0% | | Profit Attributable to Owners of the Company | 400,337 | 713,191 | -43.9% | Consolidated Statement of Financial Position As of December 31, 2022, total assets decreased by 12.6% to HKD 8.139 billion, while total liabilities fell 21.2% to HKD 5.128 billion, resulting in a 5.9% increase in net assets (total equity) to HKD 3.010 billion Consolidated Statement of Financial Position Summary (As of December 31, HKD Thousand) | Item | 2022 | 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 1,328,346 | 1,497,307 | -11.3% | | Current Assets | 6,810,522 | 7,836,642 | -13.1% | | Total Assets | 8,138,868 | 9,333,949 | -12.8% | | Current Liabilities | 4,886,120 | 6,216,080 | -21.4% | | Non-current Liabilities | 242,302 | 274,582 | -11.8% | | Total Liabilities | 5,128,422 | 6,490,662 | -21.0% | | Net Assets (Total Equity) | 3,010,446 | 2,843,287 | +5.9% | Notes to the Consolidated Financial Statements Basis of Preparation and Accounting Policies The consolidated financial statements are prepared under HKFRS, with newly applied revised standards having no material impact, and the Group has not early adopted other new standards - The Group primarily engages in the distribution of electronic components and semiconductor products, sale of commercial equipment and related services, and property investment[7] - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) and comply with disclosure requirements of the Listing Rules and Hong Kong Companies Ordinance[8] - Revised HKFRS applied for the first time this year had no significant impact on the Group's consolidated financial statements[9] Revenue and Segment Information Total revenue is primarily from electronic components and semiconductor products, which saw a 29.4% decline, with Hong Kong as the largest market (67.6% of revenue, down 35.9%) and a single customer contributing 41.6% of total revenue Revenue by Type of Goods or Services (HKD Thousand) | Type of Goods or Services | 2022 | 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sale of Electronic Components and Semiconductor Products | 24,818,008 | 35,140,829 | -29.4% | | Sale of Commercial Equipment and Provision of Related Ancillary Services | 69,144 | 72,594 | -4.8% | | Others | 59,026 | 57,852 | +2.0% | | Total Revenue from Contracts with Customers | 24,946,178 | 35,271,275 | -29.3% | Sales Revenue by Geographical Market (HKD Thousand) | Region | 2022 | 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Hong Kong | 16,872,681 | 26,347,932 | -35.9% | | Mainland China | 6,381,942 | 6,988,900 | -8.7% | | Taiwan | 1,007,710 | 1,020,662 | -1.3% | | Other Regions | 706,219 | 739,984 | -4.6% | | Total | 24,968,652 | 35,297,778 | -29.3% | - Revenue from a single largest customer A was HKD 10.386 billion, accounting for 41.6% of the Group's total revenue (2021: HKD 14.519 billion, 41.1%)[34][56] Income Tax Expense Income tax expense for 2022 decreased by 37.5% to HKD 115 million, mainly due to lower profit before tax, with the majority from Hong Kong and varying tax rates across regions Composition of Income Tax Expense (HKD Thousand) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Current Tax | 127,843 | 194,505 | | Deferred Tax Credit | (12,885) | (10,621) | | Total Income Tax Expense | 114,958 | 183,884 | - The Group's tax rates in different regions are: Hong Kong at 16.5%, Mainland China at 25%, and Taiwan at 20%[57][58][60] Dividends The Board recommended a final dividend of HKD 25.00 cents per share, bringing the 2022 total annual dividend to HKD 35.00 cents per share, a 22.2% reduction from 2021 Dividends Per Share (HK Cents) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Interim Dividend | 10.00 | 15.00 | | Proposed Final Dividend | 25.00 | 30.00 | | Total Annual Dividend | 35.00 | 45.00 | - The proposed final dividend is subject to shareholders' approval at the upcoming Annual General Meeting[67] Basic Earnings Per Share Basic earnings per share for 2022 decreased by 43.9% to HKD 63.97 cents from HKD 113.96 cents in 2021, primarily due to lower profit with an unchanged number of ordinary shares Basic Earnings Per Share Calculation | Item | 2022 | 2021 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company for the Year (HKD Thousand) | 400,337 | 713,191 | | Number of Ordinary Shares (Thousand Shares) | 625,837 | 625,837 | | Basic Earnings Per Share (HK Cents) | 63.97 | 113.96 | Management Discussion and Analysis Business Review In 2022, macroeconomic headwinds led to weak consumer demand and a significant revenue decline in electronic component distribution, particularly in mobile phones and consumer electronics, though LED lighting and display businesses achieved growth - Macroeconomic challenges including geopolitical conflicts, trade protectionism, high inflation, and rising interest rates weakened consumer confidence, creating downward pressure on the semiconductor industry[82] Distribution of Electronic Components and Semiconductor Products The core electronic component distribution business saw a 29% revenue decrease to HKD 24.82 billion in 2022, primarily due to weak demand in mobile phone and consumer electronics segments - Electronic components segment sales revenue was HKD 24.82 billion, a 29% year-on-year decrease[114] - Mobile phone segment revenue decreased as major Chinese brand phone customers adopted conservative production plans and focused on inventory reduction[115] - Consumer electronics segment revenue declined due to sluggish demand in the Chinese market for televisions, personal computers, 5G network equipment, and data centers[84] LED Technology Solutions and Commercial Equipment LED lighting and display businesses achieved revenue growth through major project completions in Hong Kong and Singapore, while Sharp's B2B commercial equipment sales also performed satisfactorily due to recovering commercial spending - The LED lighting team completed large-scale projects with clients including HSBC, MTR, Hong Kong Disneyland, and Marina Bay Sands Singapore, recording revenue growth[85] - Sharp's B2B team achieved satisfactory performance driven by a rebound in commercial spending[97] Property Investment As of 2022, the Group held 18 investment properties in Hong Kong and China with a total book value of HKD 706 million (down from last year), generating HKD 20.1 million in rental income at a 2.8% annual return Property Investment Portfolio Overview | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Number of Investment Properties | 18 | 18 | | Total Book Value (HKD Million) | 706 | 810 | | Rental Income (HKD Million) | 20.1 | 24.2 | | Annual Return Rate | 2.8% | 3.0% | Financial Review In 2022, Group revenue and shareholder profit declined by 29.3% and 43.9% respectively, yet gross margin improved to 5.1%; financial health strengthened with current ratio rising to 139% and net gearing ratio dropping to 1%, though operating turnover periods lengthened 2022 Key Financial Performance | Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue (HKD Million) | 24,968.7 | 35,297.8 | -29.3% | | Gross Profit (HKD Million) | 1,285.3 | 1,587.2 | -19.0% | | Gross Profit Margin | 5.1% | 4.5% | +0.6pp | | Profit Attributable to Shareholders (HKD Million) | 400.3 | 713.2 | -43.9% | Liquidity and Gearing Ratios (As of December 31) | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Current Ratio | 139% | 126% | | Net Gearing Ratio | 1% | 21% | Operating Efficiency (Turnover Days) | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Debtors Turnover Days | 40 | 31 | | Inventory Turnover Days | 37 | 29 | | Creditors Turnover Days | 42 | 35 | - Net cash inflow from operating activities significantly increased to HKD 994 million in 2022 from HKD 348 million in 2021[123] Outlook For 2023, the Group anticipates ongoing challenges from slow global recovery, low demand visibility, and high inflation, but remains confident in its competitiveness and sustainable development through scale, strong customer relations, and experienced teams - Expected challenges for 2023 include slow global economic recovery, low demand visibility, high inflation, and elevated interest costs[99] - Core competencies include economies of scale, robust customer relationships, strong financial strength, localized sales and engineering teams, and effective inventory management capabilities[88] Other Information Corporate Governance The Group largely complied with the Corporate Governance Code in 2022, noting three deviations: combined Chairman and CEO roles, non-executive directors without specific terms, and no director liability insurance, though the company deems current measures adequate - Deviation from Code Provision C.2.1: The roles of Chairman and Chief Executive Officer are not separated, both held by Dr. Yim Yuk Lun[127] - Deviation from Code Provision B.2.2: Non-executive directors are not appointed for specific terms but are subject to retirement by rotation under the Company's articles[110] - Deviation from Code Provision C.1.8: The Company has not made appropriate insurance arrangements for potential legal actions against directors[109] Employees and Remuneration Policy As of 2022, the Group employed approximately 450 staff in Greater China, offering competitive remuneration, provident fund, medical insurance, and performance-based discretionary bonuses - As of December 31, 2022, the Group employed approximately 450 staff in the Greater China region, providing competitive remuneration and benefits[104] Environmental, Social and Governance (ESG) The Group actively integrates ESG principles into its operations, demonstrating commitment to sustainability, and in 2022, donated HKD 3.513 million to charitable organizations in Hong Kong and China - In 2022, the Group donated HKD 3,513,000 to charitable and other non-profit organizations in Hong Kong and China[112]