Financial Performance - Kingdom Holdings recorded a sales growth of 21.0% for the year, reaching RMB 2.4 billion, with a profit of RMB 162.8 million[16]. - The Group's revenue for the year increased by approximately 21.0% to RMB2,445,428,000 compared to RMB2,021,055,000 in 2022[43]. - Gross profit rose by approximately 6.4% year-on-year to RMB411,488,000, while the overall gross profit margin decreased by 2.3 percentage points to 16.8%[43]. - Profit for the year was RMB162,790,000, a decrease from RMB171,808,000 in 2022[43]. - Revenue from overseas sales amounted to RMB1,251,191,000, representing approximately 51.2% of the Group's total revenue[45]. - Domestic sales in China increased by approximately 54.2% to RMB 1,194,237,000, accounting for approximately 48.8% of the Group's total revenue[52][53]. - Other income and gains for the year recorded a net gain of RMB18,927,000, down from RMB54,431,000 in the previous year[79]. - The Group recorded a net profit of approximately RMB162,790,000 for the Year, compared to RMB171,808,000 for the year ended 31 December 2022, representing a decrease of about 5.9%[92][98]. Operational Efficiency - The Group's total consumption of electricity, water, steam, and natural gas decreased by 7.0%, 6.1%, 12.5%, and 6.8% respectively[17]. - The Group's production capacity for linen and industrial hemp yarn is currently 23,000 tonnes, with high utilization rates across its four production bases in China[65][67]. - The Group's production bases are continuously improved with the latest technologies, enhancing operational efficiency and reducing production costs[64][67]. - The Group aims to improve production processes to enhance operational efficiencies in pursuit of sustainable development[181]. Sustainability Initiatives - Kingdom achieved carbon neutrality in November 2023, verified by SGS, through various carbon emission reduction initiatives[18]. - The company has integrated Environmental, Social, and Governance (ESG) principles into its business strategy to ensure sustainable operations[17]. - The Group is collaborating with CottonConnect to develop the REEL Linen Code of Conduct, focusing on sustainability and traceability in the linen supply chain[59][61]. - The Group aims to promote the REEL Linen Code of Conduct, a sustainability initiative to improve environmental and product quality standards in the linen industry[145]. - The company has launched the REEL initiative aimed at promoting sustainable practices in the linen industry, focusing on improving environmental conditions and product traceability in its global supply chain[148]. Challenges and Risks - The geopolitical tensions and disruptions in shipment routes have posed challenges to the Group's operations during the year[15]. - The Group's principal risks include unstable demand for linen yarn, protectionism, and potential punitive tariffs on products made in China[188]. - The year 2024 and beyond are expected to be challenging due to geopolitical tensions and rising operational costs in Asia[143]. Dividends and Shareholder Relations - The Board has recommended a final dividend of HK$0.09 per ordinary share for the year, consistent with the previous year[24]. - The Board recommended a final dividend of HK$0.09 per share for the year, unchanged from 2022[44]. - The Chairman expressed gratitude to shareholders and business partners for their continuous support during the challenging year[25]. Future Outlook - Looking ahead to 2024, the company will focus on globalization, process orientation, standardization, and digitalization to enhance operational efficiency and customer service quality[23]. - The Group plans to establish a new factory in Egypt in 2024 to diversify its supply chain, following a feasibility study conducted in 2023[133]. - The company is conducting feasibility studies for new factories in Egypt and North Africa to diversify its supply chain, benefiting from potential EU tariff exemptions[148]. - The company plans to cautiously advance the new factory project in 2024, responding to the increasing operational costs in Asia and the aging population in China[148]. Employee and Management Information - As of December 31, 2023, the Group had a total of 3,700 employees, a decrease from 4,087 employees in 2022[135]. - Total staff costs for the year increased by approximately 0.3% to RMB 262,496,000, compared to RMB 261,764,000 in 2022[135]. - Ms. Shen Hong, aged 57, has over 20 years of financial experience and is the Group's managing director[161]. - Mr. Yan Jianmiao, aged 58, is an independent non-executive director with a strong academic background in economics and international trade[170]. - Mr. Chan Yan Kwan Andy, aged 55, serves as the chief financial officer and has over 20 years of experience in accounting and finance[174].
金达控股(00528) - 2023 - 年度财报