Revenue and Profitability - The group's revenue increased by approximately 21.0% from RMB 2,021,055,000 in 2022 to RMB 2,445,428,000 in 2023, driven by rising prices of pure linen yarn[6]. - Profit for the year declined by 5.2% to approximately RMB 162,790,000 in 2023, down from RMB 171,808,000 in 2022[6]. - Basic earnings per share fell by 6.9% to approximately RMB 0.27 in 2023, compared to RMB 0.29 in 2022[6]. - Total comprehensive income for the year was RMB 163,040,000 in 2023, compared to RMB 168,727,000 in 2022[8]. - The gross profit margin decreased by 2.3 percentage points to approximately 16.8% in 2023, compared to 19.1% in 2022, due to raw material cost increases outpacing the rise in pure linen yarn prices[6]. - Gross profit rose by about 6.4% to RMB 411,488,000, while the overall gross margin decreased by 2.3 percentage points to 16.8%[104]. Assets and Liabilities - Non-current assets decreased from RMB 1,167,881,000 in 2022 to RMB 1,093,960,000 in 2023[9]. - Current assets increased significantly from RMB 1,737,041,000 in 2022 to RMB 2,189,216,000 in 2023[9]. - Total liabilities increased from RMB 1,319,707,000 in 2022 to RMB 1,626,352,000 in 2023[9]. - The net asset value increased from RMB 1,487,990,000 in 2022 to RMB 1,587,212,000 in 2023[11]. - The carrying amount of non-current assets was RMB 1,043,000,000 as of December 31, 2023, down from RMB 1,150,000,000 in 2022[38]. - The company's total non-current assets were RMB 1,078,857,000 as of December 31, 2023, compared to RMB 1,159,408,000 in 2022[45]. - The total liabilities, including current and non-current borrowings, reached RMB 869,526,000 in 2023, compared to RMB 752,903,000 in 2022, reflecting an increase of 15.5%[95]. Sales and Market Performance - Revenue from mainland China reached RMB 1,194,237,000, up 54% from RMB 774,455,000 in 2022[44]. - The company's pure linen yarn export volume was 7,955 tons, representing a decrease of about 30.5% from 11,477 tons in the previous year[102]. - Overseas sales contributed RMB 1,251,191,000, accounting for approximately 51.2% of total revenue, with the EU contributing RMB 468,957,000 (19.2%) and non-EU countries RMB 782,234,000 (32.0%)[105]. - The company maintained its position as the largest pure linen yarn exporter in China for 21 consecutive years, holding over 40% of the total export volume[102]. - The group's revenue increased by approximately 21.0% to RMB 2,445,428,000, driven by a rise in the selling price of pure linen yarn, with sales to China and non-EU markets growing by 54.2% and 12.7% respectively[119]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.09 per ordinary share for the year ended December 31, 2023, unchanged from 2022[6]. - The board proposed a final dividend of HKD 0.09 per share, totaling approximately RMB 51,356,000, subject to shareholder approval[124]. Operational Efficiency and Costs - The group's sales and distribution expenses were approximately RMB 42,229,000, accounting for about 1.7% of total revenue, a decrease from 2.1% in the previous year due to reduced promotional costs[121]. - Administrative expenses for the year were approximately RMB 116,078,000, a slight decrease of about 2.5% compared to RMB 119,013,000 in 2022, mainly due to savings in general office expenses[140]. - Total financial costs for the year were approximately RMB 36,800,000, an increase from RMB 33,852,000 in 2022, with bank loan interest expenses totaling RMB 37,708,000[170]. Inventory and Receivables - The group's inventory increased by approximately 48.8% to RMB 1,019,545,000, up from RMB 685,180,000 in the previous year, with average turnover days rising from 147 to 153 days[177]. - Trade receivables and notes receivable increased by approximately 31.0% to RMB 558,356,000, compared to RMB 426,267,000 in the previous year, while average turnover days decreased from 85 to 73 days[178]. - The aging analysis of accounts receivable showed that the total amount overdue for more than three months was RMB 10,150, a decrease of 73.0% from RMB 37,670 in 2022[82]. Investments and Subsidiaries - The company has 100% ownership in Overseas Kingdom Limited and Jiangsu Jinyuan Linen Co., Ltd., both engaged in investment holding and linen production respectively[15]. - The company holds 78.67% of Heilongjiang Jinda Hemp Industry Co., Ltd., which focuses on the production and sales of industrial hemp[17]. - The group is investing in a new production facility in Ethiopia, which will increase annual capacity by 5,000 tons, and is expected to be a demonstration project for the Belt and Road Initiative[115]. Future Outlook and Strategic Initiatives - The geopolitical situation, including the ongoing Russia-Ukraine conflict and military actions in Israel, continues to pose challenges for 2024 and beyond[199]. - Supply chain diversification is urgent due to China's aging population and rising operational costs in Asia[199]. - A feasibility study is underway for establishing new factories in Egypt and North Africa, which could benefit from reduced or zero import tariffs from EU member states, with cautious progress planned for 2024[199]. - The company has partnered with UK non-profit organizations to transform the flax industry and implement the REEL (Responsible Flax) code of conduct, focusing on sustainability[199]. - The REEL initiative aims to improve environmental conditions, product quality, and traceability in global supply chains for sustainable flax sourcing[199]. Financial Reporting and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards and are presented in RMB, rounded to the nearest thousand[19]. - The consolidated financial statements include the company and its subsidiaries as of December 31, 2023, with all intercompany transactions fully eliminated[20]. - The company reassesses control over subsidiaries if there are changes in the elements of control, ensuring accurate financial reporting[22]. - The company has adopted new and revised International Financial Reporting Standards in the current financial statements, with no significant impact on measurement or presentation[25].
金达控股(00528) - 2023 - 年度业绩