Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 1,347,416, a decrease of 22.3% compared to HKD 1,732,089 in 2022[2] - Gross profit for the year was HKD 282,141, down from HKD 328,581 in the previous year, reflecting a gross margin of approximately 20.9%[2] - The company reported a profit before tax of HKD 153,027, an increase of 4.3% from HKD 146,669 in 2022[2] - Net profit for the year was HKD 114,127, compared to HKD 121,483 in 2022, resulting in a basic and diluted earnings per share of HKD 22.92[2] - The company recognized a gain of HKD 15,000 from the sale of an associate during the year[2] - The overall gross profit decreased by HKD 46.4 million, but the gross profit margin improved from 19.0% in 2022 to 20.9% in 2023 due to lower unit costs of raw materials and a higher proportion of sales from electronic products[88] - The company reported a net profit attributable to shareholders of HKD 108.4 million for the year, a decrease of HKD 3.7 million compared to HKD 112.1 million in 2022[92] - Total comprehensive income for the year was HKD 98.632 million, compared to HKD 100.154 million in the previous year[145] Revenue Breakdown - Revenue from the sale of electronic products dropped from approximately HKD 1,731,784,000 in 2022 to HKD 1,347,261,000 in 2023[73] - Sales of electronic components decreased from approximately HKD 278,700,000 in 2022 to HKD 166,800,000 in 2023 due to reduced customer demand[73] - Sales of sprinkler controller products to a major customer fell by approximately HKD 70,900,000 to HKD 690,500,000 from HKD 761,400,000 in 2022[73] - Sales of plastic molds for the year were approximately HKD 67,500,000, down from HKD 85,700,000 in 2022[73] - Other segment revenues remained low, accounting for less than 1% of total revenue for the year[74] Cost Management - The cost of goods sold for the year was HKD 789,109, down from HKD 1,045,497 in 2022, representing a significant reduction of approximately 24.6%[42] - The company reported a net impairment loss on trade receivables of HKD 3,458, significantly reduced from HKD 18,270 in the previous year[2] - The inventory provision decreased to HKD 1,626 from HKD 28,111 in the previous year, showing improved inventory management[42] - The provision for expected credit losses on trade receivables was HKD 30,334, compared to HKD 26,876 in the previous year, indicating an increase in credit risk management[51] Market and Expansion Plans - The company has plans for market expansion and new product development, although specific details were not disclosed in the earnings call[2] - The company has entered into a share transfer agreement to acquire a 30% stake in Yunlian New Energy (Guangdong) Co., Ltd. for RMB 1,500,000, aiming to diversify into the high-growth renewable energy sector in China[54] - The company has acquired a 4% stake in a Chinese R&D company for RMB 11.2 million, focusing on home and outdoor energy storage products[139] - The company expects the U.S. to remain its primary market for products in the coming year[132] Financial Position - The total assets of the company amounted to HKD 1,179,922, while total liabilities were HKD 491,181, resulting in a net asset position[34] - Total current assets as of December 31, 2023, were HKD 899.3 million, down from HKD 934.8 million in 2022, while total current liabilities decreased from HKD 575.6 million to HKD 472.6 million[95] - The cash and cash equivalents balance increased by HKD 137.7 million to HKD 430.9 million as of December 31, 2023[96] - The net current liabilities decreased to HKD 472,615,000 in 2023 from HKD 575,636,000 in 2022, representing a reduction of 17.9%[159] - The net assets increased to HKD 688,741,000 in 2023, up from HKD 609,031,000 in 2022, reflecting a growth of 13.1%[159] - The total equity attributable to owners of the company increased to HKD 642,165,000 in 2023 from HKD 589,086,000 in 2022, an increase of 9.0%[159] Governance and Corporate Actions - The board proposed a final dividend of HKD 0.02 per share, bringing the total dividends for the fiscal year 2023 to HKD 0.04 per share[56] - The annual general meeting will be held on June 3, 2024, to approve the proposed dividend[69] - The company has established a nomination committee in compliance with listing rules, consisting of at least five members, mostly independent non-executive directors[64] - The board emphasizes corporate governance as a key to success and is committed to adhering to best practices[133] Risks and Challenges - Future outlook remains cautious due to market conditions, with no specific guidance provided for the upcoming year[2] - The geopolitical tensions and trade disputes between the US and China may negatively impact the global economy and the group's business operations[111] - The group will continue to monitor foreign exchange risks and take appropriate actions to minimize these risks[109]
华讯(00833) - 2023 - 年度业绩