Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 1,114,213,000, a decrease of 8.7% from HKD 1,220,760,000 in 2022[8] - Gross profit for 2023 was HKD 355,187,000, down from HKD 373,267,000 in 2022, reflecting a gross margin of 31.9% compared to 30.6% in the previous year[8] - Net profit for the year was HKD 177,131,000, slightly up from HKD 175,897,000 in 2022, resulting in basic and diluted earnings per share of HKD 14.03, compared to HKD 13.80 in the prior year[9] - Total comprehensive income for the year was HKD 171,781,000, an increase from HKD 163,902,000 in 2022[9] - Revenue from sleepwear products was HKD 659,620, down from HKD 914,262 in the previous year, representing a decline of 28%[24] - In 2023, revenue from the United States was HKD 926.6 million, a decrease from HKD 1,008.7 million in 2022, while total revenue was HKD 1,114.2 million compared to HKD 1,220.8 million in 2022[63] - The sales volume of sleepwear and loungewear products was approximately 25,900,000 units, down from approximately 26,600,000 units in 2022, reflecting a decrease of about 2.6%[72] - The average selling price of sleepwear and loungewear products decreased by approximately 6.6% compared to 2022 due to changes in the product mix[74] Assets and Liabilities - Non-current assets as of December 31, 2023, totaled HKD 204,846,000, compared to HKD 188,258,000 in 2022, indicating a growth of 8.8%[2] - Current liabilities increased to HKD 735,567,000 in 2023 from HKD 634,590,000 in 2022, representing a rise of 15.9%[2] - Total assets less current liabilities amounted to HKD 745,330,000, up from HKD 648,208,000 in 2022, reflecting a growth of 15%[2] - The company's equity attributable to owners increased to HKD 725,684,000 in 2023 from HKD 642,786,000 in 2022, marking a rise of 12.9%[2] - Trade receivables aged 0 to 30 days amounted to HKD 21,401, while total trade and other payables were HKD 173,920 as of 2023[48] - As of December 31, 2023, the group's current assets were approximately HKD 735.6 million, an increase from HKD 634.6 million as of December 31, 2022, while current liabilities were approximately HKD 195.1 million, up from HKD 174.6 million[82] Investments and Acquisitions - The company acquired the remaining 25% stake in Henan Kaiyu Textile and Garment Co., Ltd. for RMB 31,500,000 to streamline operations and enhance vertical integration[50] - The company invested in 12 sets of marketable bond instruments with principal amounts ranging from USD 200,000 to USD 2,000,000, totaling approximately USD 6.25 million as of December 31, 2023[82] - The group also invested in 9 sets of funds with a total principal of approximately HKD 92 million, with a market value of approximately HKD 88.9 million as of December 31, 2023[82] - There were no significant acquisitions or disposals during the year ended December 31, 2023, apart from the aforementioned acquisition[98] Dividends and Shareholder Returns - The proposed final dividend per share for 2023 is HKD 0.0485, an increase from HKD 0.044 in 2022[46] - The company proposed a final dividend of HKD 0.0485 per share, representing a dividend payout ratio of approximately 34.6% of the profit attributable to shareholders[73] Operational Strategies - The company plans to continue expanding its product offerings and market presence in the coming year, focusing on pajamas and homewear products[15] - The company plans to explore domestic sales opportunities through OEM and/or its own brand in the local market[50] - The group aims to establish a subsidiary in the United States in 2024 to enhance design and pre/post-sales services, thereby strengthening customer relationships[59] - The company is establishing production bases in Central America and Vietnam to capitalize on the anticipated demand recovery[73] - The establishment of a production base in Honduras marks a significant milestone, allowing for reduced delivery times to American customers and diversification of political risks[81] - The company is focusing on cost control strategies and expanding vertical integration benefits to maintain operational efficiency[72] - The company launched its first in-house brand, COZ, to enhance its sales and distribution capabilities[76] - The company launched its first proprietary brand, COZ, targeting the local youth market, and is conducting detailed market research and promotional activities[123] Financial Management - Financial expenses for 2023 amounted to approximately HKD 18.1 million, up from HKD 11.8 million in 2022, primarily impacted by rising global interest rates[55] - The group recorded a net other loss of approximately HKD 8.7 million in 2023, a significant decrease from HKD 51.9 million in 2022, mainly due to reduced foreign exchange options contracts[53] - The group recorded a net loss of approximately HKD 8.7 million from other income and losses in 2023, a significant improvement from a loss of HKD 51.9 million in 2022[64] - The group maintains a conservative treasury policy, primarily holding bank deposits in HKD or USD to mitigate foreign exchange risks[82] - The group has not entered into any foreign exchange forward contracts to hedge against currency risks as of December 31, 2023, but will consider various financial instruments to manage foreign exchange risks[82] Employee and Operational Metrics - The company employed 1,977 staff as of December 31, 2023, compared to 1,969 staff as of December 31, 2022[101] - Administrative expenses for the year ended December 31, 2023, were approximately HKD 68.1 million, a 21.0% increase from approximately HKD 56.3 million in 2022, primarily due to expanded operations including the commencement of mass production in Honduras and investment in Vietnam[92] Future Outlook - The group plans to establish a research and production center in Henan, China, with a capacity of 5,000 axes of fabric, aimed at improving quality and reducing production cycles[58] - The garment production base in Vietnam has obtained a construction permit and is expected to complete the first phase of construction by the second half of 2024, with an estimated production capacity of approximately 2,000,000 pieces per single shift[96] - The company continues to focus on diversifying production bases, vertical integration, and customer satisfaction to control costs and ensure product quality amid global uncertainties[121] Miscellaneous - The tax rate for the Chinese subsidiaries is 25% as per the Corporate Income Tax Law[30] - The company confirmed revenue recognition for products upon transfer of control, typically within 0 to 120 days post-delivery[37] - The annual general meeting of shareholders is scheduled for June 7, 2024[108] - The group has no significant contingent liabilities as of December 31, 2023[83] - The group had no outstanding bank loans as of December 31, 2023, and maintained a debt ratio of zero, calculated as bank borrowings to shareholders' equity[82] - The company has not experienced any post-balance sheet events that would significantly impact its assets, liabilities, or future operations[100] - The company provides a credit period of 0 to 120 days for its trade receivables[112]
捷隆控股(01425) - 2023 - 年度业绩