Financial Performance - The Group's revenue for 2023 was approximately HK$15.59 billion, a decrease of 19.2% compared to 2022, primarily due to reduced revenue from the smartphone business[4] - Profit attributable to owners of the Company decreased by approximately 17.4% to HK$263 million in 2023[4] - Earnings per share for 2023 were HK$8.31, down from HK$9.77 in 2022[27] - Revenue for 2023 decreased by 19.2% to approximately HK$15.59 billion, down from HK$19.29 billion in 2022, primarily due to a significant decrease in smartphone-related sales in the PRC[30] - Profit attributable to owners of the Company decreased by approximately 17.4% to approximately HK$263 million, compared to approximately HK$318 million in 2022[30] - Basic earnings per share decreased to 8.31 HK cents from 9.77 HK cents in 2022[30] - Gross profit for 2023 was HK$1,322,293, down 11.0% from HK$1,484,972 in the previous year[78] - EBITDA for the year was HK$2,057,669, representing a decrease of 12.6% from HK$2,354,462 in 2022[78] - The overall financial performance indicates a need for strategic adjustments to address declining revenues and profits[70] Revenue Breakdown - External sales of LCD products amounted to HK$13.38 billion, while electronic consumer products generated HK$2.21 billion, totaling HK$15.59 billion in revenue[18] - The Group's LCD business, including touch products, accounted for approximately 86% of total revenue in 2023, compared to 81% in 2022[30] - Other businesses, including compact camera modules and fingerprint identification products, contributed 14% to total revenue in 2023, down from 19% in 2022[30] - Revenue from external customers in China for 2023 was HK$10,133,308, down from HK$13,528,016 in 2022, indicating a decrease of about 25%[112] - Revenue from South Korea was HK$1,147,860 in 2023, down from HK$1,421,249 in 2022, a decline of approximately 19%[112] Profitability Metrics - The gross profit margin increased to approximately 8.5%, which is 0.8% higher than in 2022[4] - Gross profit margin increased to approximately 8.5% in 2023, up from 7.7% in 2022, while net profit margin attributable to owners increased to 1.7% from 1.6%[30] - The operating profit margin for 2023 was 6.5%, down from 7.3% in 2022[81] Cost Management - The management plans to tighten control over costs and expenses to improve product competitiveness[7] - Distribution and selling expenses decreased by approximately 29.9% or approximately HK$137 million to approximately HK$321 million compared to 2022[153] - Administrative expenses decreased by approximately 23.1% or approximately HK$135 million to approximately HK$449 million compared to 2022[153] Future Outlook - The management anticipates steady growth in 2024, supported by a significant increase in sales in the first two months compared to the same period in 2023[7] - The management maintains a cautiously optimistic outlook for 2024, focusing on R&D and cost control to drive growth[137][151] - The company plans to focus on market expansion and new product development in the upcoming year[70] Research and Development - The Group invested approximately HK$658 million in research and development in 2023, compared to HK$796 million in 2022[30] - The Group will continue to focus on display module products and invest in human resources and technology R&D to enhance product design and manufacturing capabilities[7] Corporate Governance - The Board is responsible for formulating and approving the Company's business strategies, objectives, policies, and plans, as well as monitoring their execution[193] - The Board oversees the Company's operating and financial performance and establishes risk control policies to ensure strategic objectives are met[198] - The total number of meetings held by the Board was 4, with all directors attending all meetings[190] - The management team, led by Managing Director Mr. Lam Wai Wah, is responsible for executing strategies and day-to-day operations[194] - The Company aims to improve its corporate governance structure and enhance communication with shareholders[192] - The remuneration committee advises on the compensation policies for directors and senior management, with details provided in the financial statements[200] Asset and Liability Management - Total assets decreased to approximately HK$24.51 billion in 2023 from HK$26.49 billion in 2022[33] - Total liabilities decreased to approximately HK$14.68 billion in 2023 from HK$16.15 billion in 2022[33] - Equity attributable to owners of the Company decreased to approximately HK$9.60 billion in 2023 from HK$9.99 billion in 2022[33] Other Financial Information - Other income for the Year was approximately HK$110 million, a decrease of approximately 53.2% or approximately HK$125 million compared to 2022[153] - The Group recorded net other losses of approximately HK$18 million, an increase from net other gains of approximately HK$78,000 in 2022, primarily due to a net loss on disposal of obsolete machineries increasing to approximately HK$75 million[153] - The reversal of impairment losses under the expected credit loss model was approximately HK$2 million, down from approximately HK$36 million in 2022[153] - For the year ended 31 December 2023, audit fees amounted to HK$4,800,000 and non-audit fees were HK$205,000[191]
信利国际(00732) - 2023 - 年度财报