Sales and Revenue Growth - The company plans to enhance offline sales by focusing on promotional activities in third, fourth, and fifth-tier cities, aiming to increase sales through diverse marketing strategies [2]. - E-commerce sales will be expanded significantly, particularly through platforms like Tmall and JD.com, with efforts to optimize product presentation and improve conversion rates [2]. - For the fiscal year ending December 31, 2023, the company's revenue increased from approximately HKD 137.4 million to approximately HKD 165.0 million, representing a growth of about 20.8% [74]. - Revenue from external customers for 2023 reached HKD 164,994,000, an increase from HKD 137,368,000 in 2022, representing a growth of approximately 20.2% [89]. - The revenue breakdown includes HKD 131,849,000 from China, HKD 18,351,000 from Vietnam, and HKD 5,592,000 from Hong Kong and Macau, with notable growth in Vietnam and Southeast Asia [89]. - The company has 37 sales points in Hong Kong and Macau, with sales increasing by approximately 67.5% to about HKD 5.6 million, accounting for about 3.4% of total revenue [168]. - The company has 116 sales points in other markets, primarily in Europe, with sales rising by approximately 57.3% to about HKD 2.1 million, representing about 1.3% of total revenue [169]. Profitability and Financial Performance - The company's net profit for the fiscal year 2023 increased by approximately HKD 44.2 million, a significant improvement from a net loss of about HKD 1.3 million in the previous fiscal year [17]. - The profit attributable to the company's owners for the fiscal year 2023 was approximately HKD 18.9 million, compared to a loss of approximately HKD 12.1 million in the fiscal year 2022 [74]. - The pre-tax profit for 2023 was HKD 18,871,000, a turnaround from a loss of HKD 12,068,000 in 2022, reflecting improved financial performance [96]. - The total comprehensive income attributable to the company's owners for the fiscal year 2023 was approximately HKD 29.2 million, compared to a loss of approximately HKD 4.9 million in the fiscal year 2022 [75]. - The estimated after-tax profit for the group for the year ending December 31, 2023, is expected to be less than HKD 30,000,000, indicating cautious financial projections [103]. Expenses and Cost Management - Administrative expenses decreased by approximately HKD 2.0 million or 17.7%, from about HKD 11.3 million in fiscal year 2022 to about HKD 9.3 million in fiscal year 2023 [18]. - The company's administrative expenses rose by approximately 60.5% to about HKD 50.4 million in 2023, up from HKD 31.4 million in 2022 [175]. - Employee costs totaled HKD 57,040,000 in 2023, compared to HKD 39,426,000 in 2022, marking an increase of approximately 44.5% [91]. - The cost of goods sold for the year included employee costs and depreciation amounting to HKD 23,632,000, up from HKD 8,647,000 in 2022, indicating a significant increase in operational costs [90]. Assets and Liabilities - The company reported non-current assets of HKD 154.694 million for the year ending December 31, 2023, compared to HKD 23.974 million in 2022, indicating a significant increase [60]. - Current assets increased to HKD 501.310 million in 2023 from HKD 423.971 million in 2022, reflecting a growth of approximately 18.3% [60]. - The company has a total asset value of HKD 656,004,000, with total liabilities amounting to HKD 488,212,000 [115]. - Trade and other payables rose from approximately HKD 33.7 million on December 31, 2022, to about HKD 67.2 million on December 31, 2023, an increase of approximately HKD 33.5 million [20]. - The company's trade and other receivables increased from approximately HKD 89.8 million as of December 31, 2022, to about HKD 134.7 million as of December 31, 2023, an increase of approximately 44.9 million [190]. Strategic Initiatives and Market Expansion - The company is committed to developing smart watch accessories to leverage the growing smart watch market and enhance profitability [10]. - The company plans to strengthen sales and brand image in the Southeast Asian and North American markets, with a focus on Singapore and Thailand duty-free stores [46]. - The company plans to enhance resource sharing and marketing interaction with sister brands to increase global market influence [46]. - The company has expanded its business into the smart watch manufacturing sector as of the fiscal year ending December 31, 2023 [67]. - The company plans to launch a new store counter design in 2023 to enhance brand visibility and stimulate terminal sales through promotional gifts [200]. Acquisitions and Investments - The company successfully acquired a smartwatch accessory manufacturing factory, enhancing its product diversification and synergy with traditional watch business [47]. - The company completed the acquisition of 100% equity in Kam Hee Industrial Limited and its subsidiaries on April 19, 2023 [79]. - The company completed the acquisition of Jinxi Industrial Co., Ltd. for a total consideration of HKD 108.456 million on April 19, 2023 [134]. - The acquisition of Jinxi Group contributed approximately HKD 53.0 million in revenue and a net profit of about HKD 7.9 million from the acquisition date to December 31, 2023 [164]. - The goodwill generated from the acquisition amounted to HKD 42.2 million, attributed to the growth and profit potential in the smartwatch business [163]. Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance throughout the year [53]. - The company is exploring an equity incentive mechanism to complete an annual equity incentive plan [49]. - The company maintains a prudent financial management approach, ensuring sufficient financial resources to meet funding needs and manage liquidity risks [191]. - The company aims to implement strict performance evaluations across sales departments, focusing on invoicing, collections, and profit metrics [48].
依波路(01856) - 2023 - 年度业绩