Financial Performance - The company reported a significant increase in revenue, achieving a total of HK$1.2 billion, representing a year-on-year growth of 15%[12] - Total revenue for the Group in 2023 was HK$728,930,000, an increase from HK$695,938,000 in 2022[36] - The Group's revenue increased by HK$33.0 million, or 4.7%, from HK$695.9 million in 2022 to HK$728.9 million in 2023[65] - Revenue from Beverage Solutions segment was HK$717,431,000, accounting for 98.4% of total revenue in 2023[36] - Revenue generated in Hong Kong increased by HK$33.1 million, or 7.2%, from HK$459.2 million in 2022 to HK$492.3 million in 2023[53] - Revenue from the food products segment decreased by HK$4.4 million, or 27.7%, from HK$15.9 million in 2022 to HK$11.5 million in 2023[48] - Revenue generated in Mainland China decreased by HK$4.9 million, or 2.2%, from HK$224.2 million in 2022 to HK$219.3 million in 2023[54] - Revenue from other markets increased by HK$4.8 million, or 38.4%, from HK$12.5 million in 2022 to HK$17.3 million in 2023[55] Profitability and Margins - The gross profit margin improved to 40%, up from 35% in the previous year, reflecting better cost management[12] - Gross profit for the year ended 31 December 2023 amounted to HK$240.6 million, representing an increase of HK$5.8 million, or 2.5%, compared to HK$234.8 million in 2022[44] - The gross profit margin slightly decreased from 33.7% in 2022 to 33.0% in 2023[44] - The rise in coffee bean prices continued to affect the Group's gross profit despite hedging measures[31] - Profit for the year increased by HK$1.3 million, or 2.7%, from HK$47.4 million in 2022 to HK$48.7 million in 2023, with a slight decrease in net profit margin from 6.8% to 6.7%[85] Market Expansion and Strategy - The company is expanding its market presence in Mainland China, targeting a 25% increase in market share over the next two years[12] - New product launches are expected to contribute an additional HK$200 million in revenue, with a focus on innovative technology solutions[12] - The Group is optimistic about a full recovery from the impact of the COVID-19 pandemic and plans to enhance profitability by adjusting business strategies[62] - The Group implemented cost control and production optimization initiatives to improve operational efficiency in response to challenges in the PRC market[20] Corporate Governance - The Company is committed to high standards of corporate governance, emphasizing transparency, independence, accountability, responsibility, and fairness[167] - The Board has established various committees to manage and oversee specific affairs of the Company[171] - The Company has complied with the code provisions set out in the CG Code for the year ended 31 December 2023, except for code provision C.2.1 regarding the separation of roles of chairman and chief executive[170] - The Board has satisfied itself that the Company's culture aligns with its established purpose, values, and strategy[169] - The Company recognizes the importance of integrity, ethical conduct, and responsible business practices, which are reinforced across the Group[168] Leadership and Management - The Group's strategic planning and business development are overseen by Mr. Kam Chun Pong Bernard, who has over 30 years of experience in marketing and business development[137] - Ms. Fan Yee Man, the Group CFO, has 20 years of experience in finance and accounting management[136] - The Group's chairman and CEO, Mr. Wong Tat Tong, has been with the Group for over 40 years, focusing on strategic planning and development[131] - Timothy John Collins appointed as non-executive director with over 25 years of experience in FMCG and healthcare sectors[142] - Chiu Kar Kid promoted to Chief Operating Officer for China, responsible for B2B and B2C sales strategies[158] Financial Position and Investments - The Group had cash and cash equivalents of HK$253.8 million as of December 31, 2023, compared to HK$189.8 million in 2022, indicating a robust financial position[97] - As of December 31, 2023, the Group's net current assets increased to HK$391.5 million, up HK$16.9 million from HK$374.6 million as of December 31, 2022[96] - Capital expenditure for the year was HK$30.8 million, down from HK$66.4 million in 2022, with significant spending on coffee and tea machines[86] - The Group's total remaining balance as of January 1, 2023, was HK$232,610,000, with no unutilized amounts reported[128] Risk Management - The Group's exposure to foreign currency risk arises mainly from transactions in currencies other than the functional currencies, with significant purchases in US dollars[112] - The Group's credit risk is limited as it trades only with recognized and creditworthy third parties, and all customers are subject to credit verification procedures[114] Diversity and Inclusion - As of December 31, 2023, the gender ratio in the workforce is 58% male and 42% female, indicating a balanced gender diversity[198] - The Company has adopted a Board Diversity Policy, reviewed annually, to enhance diversity in the Board composition[188]
捷荣国际控股(02119) - 2023 - 年度财报