Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately HKD 4,200.7 million, a decrease of about 6.5% compared to the year ended December 31, 2022[2]. - The gross profit margin for the year ended December 31, 2023, was approximately 23.9%, an increase of about 5.0 percentage points from the previous year[2]. - The net profit margin for the year ended December 31, 2023, was approximately 8.3%, an increase of about 2.0 percentage points from the previous year[2]. - The group's profit for the year ended December 31, 2023, was approximately HKD 349.4 million, an increase of about 23.3% compared to the previous year[2]. - The EBITDA for the year ended December 31, 2023, was approximately HKD 883.6 million, an increase of about 15.4% from approximately HKD 766.0 million in the previous year[2]. - Basic earnings per share for the year ended December 31, 2023, were approximately HKD 33.36, an increase of about 15.9% from approximately HKD 28.77 in the previous year[2]. - The overall gross profit margin increased to 23.9% for the year ended December 31, 2023, compared to 18.9% for the previous year[47]. - The company reported a segment profit of HKD 507,053,000 for the year, compared to HKD 439,947,000 in the previous year, marking an increase of about 15.3%[139]. - The net profit for the fiscal year ending December 31, 2023, was approximately HKD 349.4 million, an increase of about 23.2% from approximately HKD 283.5 million in 2022, with a net profit margin of about 8.3%[188]. Revenue Breakdown - Revenue from the sale of elastic fabrics and laces for customer A was HKD 397.2 million, down from HKD 533.7 million in the previous year[16]. - Revenue from the sale of elastic bands for customer B was HKD 438.2 million, down from HKD 492.6 million in the previous year[16]. - Revenue from the mainland China market was HKD 1,466,545 thousand, down 10.5% from HKD 1,639,411 thousand in 2022[119]. - Revenue from Vietnam increased to HKD 890,740 thousand, up 6.3% from HKD 838,010 thousand in 2022[119]. - The company’s operations in mainland China generated revenue of HKD 861,642,000 in 2023, down from HKD 912,809,000 in 2022, a decrease of approximately 5.6%[142]. - The company’s operations in Hong Kong saw revenue decline to HKD 851,596,000 in 2023 from HKD 1,015,613,000 in 2022, a decrease of about 16.1%[142]. - The company’s revenue from Sri Lanka decreased to HKD 709,178,000 in 2023 from HKD 850,102,000 in 2022, representing a decline of approximately 16.6%[142]. Dividends and Shareholder Returns - The proposed final dividend per ordinary share for the year ended December 31, 2023, is HKD 11.38, compared to HKD 4.22 in the previous year[2]. - The company proposed a final dividend of 11.38 HKD cents per share, totaling approximately 118.3 million HKD, subject to shareholder approval[40]. - The interim dividend paid on November 30, 2023, was HKD 0.053 per ordinary share, down from HKD 0.0728 per ordinary share in 2022[77]. - The company plans to maintain a long-term stable dividend policy, distributing no less than 20% of the available profit for the year to shareholders[76]. - The board has proposed a final dividend of HKD 0.1138 per ordinary share for the year ended December 31, 2023, compared to HKD 0.0422 per share for the year ended December 31, 2022[89]. Costs and Expenses - Financing costs rose by approximately 53.3% to about 116.2 million HKD for the year ended December 31, 2023, primarily due to an increase in market borrowing rates[51]. - The cost of materials accounted for approximately 41.4% of total revenue for the year ended December 31, 2022, decreasing to about 35.6% in 2023[48]. - The company’s administrative expenses as a percentage of total revenue increased to approximately 7.2% for the year ended December 31, 2023, from 6.4% in the previous year[50]. - The total sales cost for the fiscal year ending December 31, 2023, was approximately HKD 3,197.1 million, a reduction of about HKD 445.8 million or 12.2% from the previous year[183]. Cash Flow and Working Capital - The company experienced a net cash outflow of approximately 872.0 million HKD from financing activities for the year ended December 31, 2023, compared to 377.5 million HKD in the previous year[55]. - For the fiscal year ending December 31, 2023, the net cash generated from operating activities was approximately HKD 999.7 million, an increase from HKD 773.6 million for the fiscal year ending December 31, 2022[63]. - The net cash used in investing activities for the fiscal year ending December 31, 2023, was approximately HKD 238.7 million, compared to HKD 174.2 million for the fiscal year ending December 31, 2022[64]. - The company's net working capital as of December 31, 2023, was approximately HKD 778.3 million, an increase of about HKD 600.2 million from approximately HKD 178.1 million in 2022[189]. Market Outlook and Strategy - The global economic outlook for 2024 is cautiously optimistic, with an expected GDP growth of 3.1% by the end of the year, despite challenges in China's economic recovery[84]. - The company anticipates an increase in sales orders from various customer segments, reflecting enhanced confidence in economic recovery[84]. - The company is actively evaluating the feasibility of expanding manufacturing capacity in Vietnam, capitalizing on the country's strong economic growth and competitive labor costs[72]. - The company plans to prepare for market recovery and seize new growth opportunities in the future[85]. - The company’s international business strategy has shown resilience and strength, with a focus on innovation, sustainability, and cost-risk management[171]. Employee and Compensation - As of December 31, 2023, the group employed a total of 9,604 full-time employees, an increase from 9,050 employees as of December 31, 2022, representing a growth of approximately 6.1%[198]. - The group continues to provide competitive compensation packages, including salaries, bonuses, allowances, and retirement benefits, based on employee performance, skills, and knowledge[199]. - The group has no significant changes in its compensation policy and will continue to offer regular training and additional benefits such as housing, meals, and medical insurance[199]. Research and Development - Research and development expenses decreased to HKD 85,320 thousand, down 15.7% from HKD 101,178 thousand in the previous year[105]. - Research and development expenses accounted for approximately 2.0% of total revenue for the fiscal year ending December 31, 2023, down from about 2.3% in 2022[187]. - The company emphasizes that innovation and technological advancement are key to ensuring future growth and success, with a strategic focus on enhancing R&D capabilities to meet the increasing demand for cutting-edge sports apparel and fabric products[85].
超盈国际控股(02111) - 2023 - 年度业绩