Financial Performance - Revenue for the fiscal year 2023 increased by 18.6% to HKD 1,160,200,000 compared to fiscal year 2022[3] - Gross profit for fiscal year 2023 rose by 7.4% to HKD 222,700,000, with a gross margin decrease of 2.0 percentage points to 19.2%[3] - Profit before tax for fiscal year 2023 was HKD 57,400,000, compared to HKD 55,900,000 in fiscal year 2022[3] - Profit attributable to owners of the company for fiscal year 2023 was HKD 47,100,000, after deducting one-time compensation and bonuses of HKD 4,800,000, compared to HKD 45,400,000 in fiscal year 2022[3] - Basic and diluted earnings per share for fiscal year 2023 were HKD 4.71, compared to HKD 4.54 in fiscal year 2022[4] - The company reported a net profit attributable to shareholders of HKD 47,100,000, up from HKD 45,400,000 in the previous year, indicating resilience and stable growth despite challenging market conditions[51] Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 1,011,275,000, a decrease from HKD 1,090,162,000 in 2022[5] - Current assets decreased to HKD 501,371,000 in 2023 from HKD 545,081,000 in 2022[5] - Current liabilities decreased to HKD 172,866,000 in 2023 from HKD 238,753,000 in 2022[5] - Net asset value increased to HKD 410,735,000 in 2023 from HKD 383,865,000 in 2022[6] - The company reported a decrease in inventory to HKD 205,612,000 in 2023 from HKD 244,213,000 in 2022[5] - The net trade receivables increased to HKD 197,545,000 in 2023 from HKD 196,257,000 in 2022, with trade receivables aging analysis showing a significant increase in amounts over 60 days[32][33] - Trade payables decreased to HKD 102,959,000 in 2023 from HKD 132,932,000 in 2022, indicating improved cash flow management[35] - Contract liabilities decreased to HKD 16,865,000 in 2023 from HKD 38,414,000 in 2022, reflecting the fulfillment of previous year's performance obligations[36] Revenue Sources - Major customers contributing over 10% of total revenue included Customer A with HKD 403,793,000, Customer B with HKD 187,232,000, and Customer C with HKD 131,899,000[18] - Revenue from Europe was HKD 1,034,228,000, up 29.2% from HKD 800,243,000 in 2022, making it the largest revenue source[19] - The company's revenue for the fiscal year 2023 increased by 18.6% to HKD 1,160,200,000, compared to HKD 978,100,000 in fiscal year 2022, driven primarily by increased sales of smart vending systems and switch power supplies in Europe[50] - Smart vending systems generated revenue of HKD 407,826,000, accounting for 35.2% of total revenue, reflecting a significant increase of 184.3% compared to HKD 143,445,000 in the previous year[52] - Revenue from the European market reached HKD 1,034,228,000, accounting for 89.1% of total revenue, with a year-on-year increase of 29.2%[54] Expenses and Costs - The cost of goods sold increased to HKD 806,564,000 in 2023 from HKD 637,792,000 in 2022, reflecting a 26.4% rise[21] - Sales costs rose by 21.6% to HKD 937,500,000, primarily due to increased material costs and depreciation from newly leased production facilities[56] - Other income decreased from HKD 6,200,000 in fiscal year 2022 to HKD 4,600,000 in fiscal year 2023, mainly due to a decline in revenue from the sale of scrap materials[58] - Sales and distribution expenses increased from HKD 15,900,000 to HKD 18,600,000, attributed to higher commissions paid to sales agents and increased advertising expenses[59] - Administrative expenses increased by 12.3% from HKD 133.8 million in FY2022 to HKD 150.2 million in FY2023, primarily due to increased employee benefits including a one-time payment of HKD 4.8 million to departing directors and senior management[60] Financing and Investments - The company's borrowings amounted to HKD 20,657,000 in 2023, slightly down from HKD 20,970,000 in 2022, with a significant increase in the effective interest rate from 5.55% to 7.82%[46] - The company has unutilized borrowing facilities of HKD 220,376,000 due within one year, compared to HKD 191,419,000 in the previous year[46] - The total issued share capital remained unchanged at 1,000,000,000 shares, with a total value of HKD 281,507,000 for both years[46] - The company reported a fair value loss of HKD 826,000 on financial assets, which was reclassified to reflect its nature accurately[48] - The company has not made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures in the fiscal year 2023, consistent with 2022[77] Future Plans and Strategies - The company plans to further expand its production capacity in Thailand with a new facility expected to commence operations in Q2 2024[50] - The company is focusing on enhancing sales and marketing efforts to capitalize on strong market demand driven by health, digital transformation, automation solutions, and energy efficiency[95] - The company is optimistic about the growth in the electric vehicle, solar, and wind energy sectors, driven by strong global demand and favorable government policies[96] - The company is actively seeking expansion opportunities in Central Asia, including Kazakhstan, in line with China's Belt and Road Initiative[96] - The company aims to establish a strong business presence in Hong Kong, Macau, and Southeast Asia by providing comprehensive electric vehicle charging solutions[96] Dividends - The company declared a final dividend of HKD 1.2 cents per share for the year ended December 31, 2022, totaling HKD 12,000,000[29] - The company has paid an interim dividend of HKD 0.8 per ordinary share, totaling HKD 8,000,000, consistent with the previous year[98] - The board does not recommend a final dividend for the fiscal year 2023, compared to HKD 1.2 per share in 2022[99] Audit and Compliance - The audit committee has reviewed the preliminary results for the fiscal year ending December 31, 2023, and found the internal control systems to be effective and adequate[107] - The independent auditor has confirmed that the financial figures in the preliminary announcement align with the group's financial statements for the fiscal year[108] - There are no significant events affecting the group that need to be disclosed after the fiscal year 2023[102]
致丰工业电子(01710) - 2023 - 年度业绩