Financial Performance - Revenue decreased by 12.2% to HKD 3,604,400,000 (2022: HKD 4,106,200,000) [3] - Gross profit decreased by 16.7% to HKD 295,200,000 (2022: HKD 354,300,000) [3] - Net loss attributable to ordinary shareholders was HKD 132,900,000 (2022: HKD 58,000,000) [3] - Basic and diluted loss per share was HKD 0.153 (2022: HKD 0.067) [4] - The total loss before tax for the year was HKD 124,990,000, compared to a loss of HKD 53,840,000 in the previous year, reflecting a significant increase in losses [17] - The company reported a loss of HKD 134,771,000 for the year, compared to a loss of HKD 54,714,000 in the previous year, indicating a worsening financial performance [17] - The group reported a pre-tax loss of HKD 132,908,000 for the year ended December 31, 2023, compared to a loss of HKD 57,958,000 in 2022 [35] - The group’s overall revenue decreased by approximately 12.2% to about HKD 3,604,400,000, while gross profit fell by about 16.7% to approximately HKD 295,200,000 [42] - Net loss attributable to ordinary shareholders was approximately HKD 132,900,000, an increase from HKD 58,000,000 in 2022, mainly due to declining sales and gross margin [54] Assets and Liabilities - Total assets decreased from HKD 4,371,000,000 in 2022 to HKD 3,046,000,000 in 2023 [7] - Current liabilities increased from HKD 1,152,108,000 in 2022 to HKD 1,733,466,000 in 2023 [8] - Non-current liabilities decreased from HKD 1,004,242,000 in 2022 to HKD 396,169,000 in 2023 [8] - Cash and cash equivalents decreased from HKD 1,074,555,000 in 2022 to HKD 916,088,000 in 2023 [7] - The company reported a total asset value of HKD 3,780,086,000 as of December 31, 2023, compared to HKD 4,073,999,000 in 2022, indicating a decrease of approximately 7.2% [18] - Non-current assets decreased to HKD 1,204,399,000 in 2023 from HKD 1,380,550,000 in 2022, reflecting a decline of approximately 12.7% [20] - Current assets decreased to approximately HKD 764,400,000 from HKD 1,472,300,000 in 2022, largely due to early repayment of HKD 1,300,000,000 in syndicated loans [55] - The company’s net debt to equity ratio increased to approximately 42.3% from 35.9% in 2022 [55] Revenue Breakdown - The Fabric segment generated revenue of HKD 2,944,793,000 from external customers, while the Garment segment generated HKD 659,564,000, indicating a decline of 10.6% and 18.8% respectively compared to the previous year [17] - Revenue from knitted fabric and colored yarn sales was HKD 2,944,793,000, down 10.6% from HKD 3,293,006,000 in the previous year [22] - Revenue from garment products and related processing services was HKD 659,564,000, a decline of 18.8% compared to HKD 813,162,000 in 2022 [22] - Revenue from the South Korean market was HKD 1,430,276,000, representing an increase of 5.4% from HKD 1,357,034,000 in 2022 [19] - Sales in the five major regions (Korea, Mainland China, Hong Kong, Singapore, and Taiwan) accounted for about 77.1% of total sales, with Korea being the largest market at approximately 39.7% [65] Dividends and Shareholder Returns - The company did not propose a final dividend for the year (2022: none) [3] - The company did not recommend a final dividend for the year ended December 31, 2023, consistent with the previous year [33] - The company did not recommend a final dividend for the year, consistent with 2022 [59] Operational Changes and Future Plans - The group plans to expand its production network in Southeast Asia, actively seeking potential acquisition targets or business partners [46] - The group closed its dyeing capacity in Nansha in September 2023 due to low utilization, which is expected to enhance efficiency and profitability in the long term [42] - The new garment factory in Cambodia is expected to enhance the group's production capacity and R&D capabilities [43] - The number of orders surged at the beginning of 2024, indicating a positive shift in consumer sentiment and demand [45] Financial Management and Governance - The group recorded a net interest expense of approximately HKD 24,600,000 due to significant interest rate hikes [43] - The group repaid bank loans amounting to HKD 1,300,000,000 during the year to ensure financial flexibility [43] - Financing costs increased by approximately 78.6% to about HKD 104,700,000, primarily due to higher average borrowing rates [50] - The company maintains a prudent treasury policy to mitigate financial risks related to interest and exchange rate fluctuations [69] - The audit committee has reviewed the accounting principles and practices adopted by the group for the year [78] - The company emphasizes good corporate governance practices to enhance shareholder value [76] - All directors have confirmed compliance with the standard code of conduct for securities trading during the year [77] Other Financial Metrics - Other comprehensive expenses for the year totaled HKD 259,573,000 (2022: HKD 280,911,000) [5] - Other income totaled HKD 85,666,000, an increase of 48.4% from HKD 57,740,000 in the prior year [26] - The cost of sales and services provided was HKD 3,309,180,000, down from HKD 3,751,875,000 in the previous year [28] - The average collection period for receivables improved to 53.4 days from 63.3 days in 2022, indicating a reduction in operational cycle [57] - The company has not conducted any capital raising activities during the year [70] - The company has not purchased, redeemed, or sold any of its listed securities during the year [75] - As of December 31, 2023, the company has no significant investments or contingent liabilities [66][71] - The company has no mortgaged assets as of December 31, 2023 [72]
锦兴国际控股(02307) - 2023 - 年度业绩