Financial Performance - For the year ended December 31, 2023, the company achieved total sales revenue of approximately HK$4,200.7 million, a decrease of about 6.5% compared to approximately HK$4,492.8 million for the year ended December 31, 2022[7][15]. - The overall gross profit margin improved to approximately 23.9% for the year 2023, compared to approximately 18.9% for 2022, with gross profit increasing by about 18.1% to approximately HK$1,003.6 million[9][19]. - The net profit for the year ended December 31, 2023, was approximately HK$349.4 million, representing an increase of about 23.2% from approximately HK$283.5 million for the year ended December 31, 2022[28]. - For the year ended 31 December 2023, the Group achieved an EBITDA of approximately HK$883.6 million, an increase of about 15.4% compared to approximately HK$766.0 million for the year ended 31 December 2022[32]. - The Group's total gross profit for the year ended 31 December 2023 was approximately HK$1,003.6 million, up from approximately HK$849.9 million for the year ended 31 December 2022, reflecting improved capacity utilization and economies of scale[50]. - Other income for the year ended 31 December 2023 was approximately HK$51.4 million, an increase of about 4.0% from approximately HK$49.4 million for the year ended 31 December 2022[52]. Working Capital and Debt - The company’s net working capital increased to approximately HK$778.3 million as of December 31, 2023, compared to approximately HK$178.1 million as of December 31, 2022[29]. - As of 31 December 2023, the Group's net debt was approximately HK$498.8 million, a decrease from approximately HK$941.7 million as of 31 December 2022, resulting in a net debt to equity ratio of about 15.0%[32]. Expenses and Costs - The finance costs rose by approximately 53.3% from approximately HK$75.8 million in 2022 to approximately HK$116.2 million in 2023, primarily due to an increase in overall market lending interest rates[25]. - The company’s administrative expenses represented approximately 7.2% of total revenue in 2023, up from approximately 6.4% in 2022, attributed to increased employee benefit expenses[22]. Research and Development - The company’s R&D expenses accounted for approximately 2.0% of total revenue in 2023, down from approximately 2.3% in 2022, reflecting a strategic focus on innovation in lingerie and sportswear[24]. - The Group's research and development costs represented approximately 2.0% of total revenue for the year ended 31 December 2023, down from approximately 2.3% in the previous year[54]. - The Group is committed to enhancing its innovation and R&D capabilities to meet the growing demand for cutting-edge sports apparel and fabric products, positioning itself for future growth opportunities[75]. - The Group's commitment to innovation and technological advancements is aimed at enhancing research and development capabilities to meet increasing customer demand for innovative products[104]. Production and Operations - The company focused on optimizing production efficiencies and cost controls, which contributed to improved financial performance in its production sites in Sri Lanka[12][14]. - The company recorded a mid-single digit decrease in overall sales revenue from its Sri Lanka production sites for the year 2023, despite the textile and apparel export value in Sri Lanka declining by approximately 18.8%[12][14]. - The overall annual designed production capacities of elastic fabric, elastic webbing, and lace were approximately 250.7 million meters, 1,933.0 million meters, and 45.0 million meters, respectively, with a balanced production capacity distribution of 50:50 between China and overseas[76][78]. - The Group has implemented further enhancements in operational efficiencies at its overseas manufacturing sites in Vietnam and Sri Lanka to better serve customer interests[76][78]. Dividends - The Group declared a final dividend of HK$11.38 cents per ordinary share for the year ended 31 December 2023, compared to HK$4.22 cents per ordinary share for the year ended 31 December 2022[42]. - The proposed final dividend is set at HK$11.38 per ordinary share for the year ended December 31, 2023, compared to HK$4.22 per ordinary share for the previous year[114]. - The Group intends to maintain a long-term, stable dividend payout ratio of not less than 20% of the Group's distributable profit for the year, ensuring equitable returns for shareholders[81]. - An interim dividend of HK$5.3 cents per ordinary share was paid on November 30, 2023, down from HK$7.28 cents per ordinary share in 2022[100]. - An interim dividend of HK$5.3 cents per ordinary share was paid to shareholders on November 30, 2023, down from HK$7.28 cents per ordinary share in 2022[112]. Employee and Shareholder Information - The Group employed a total of 9,604 full-time employees as of 31 December 2023, an increase from 9,050 employees as of 31 December 2022[40]. - The Group's remuneration policy remains unchanged, providing competitive compensation packages based on employee performance, skills, and knowledge, along with additional benefits[70]. - The Group has introduced new share-based incentive schemes for employees, including executive and independent non-executive Directors, with revised service agreements[159]. - The remuneration of directors is determined based on their responsibilities, performance, and the group's overall performance[166]. Market Outlook - Looking ahead to 2024, the Group anticipates a stable global inflation environment and potential reductions in federal interest rates by the U.S. Federal Reserve, which may impact economic growth and investor confidence[72]. - The Group anticipates a global GDP growth of 3.1% by the end of 2024, indicating a gradual economic recovery despite current challenges[103]. - The anticipated political transitions and geopolitical tensions may impact global market stability and investor confidence, posing risks to economic growth[102]. Compliance and Governance - The Company is compliant with relevant laws and regulations in the jurisdictions it operates, including the Cayman Islands, China, Hong Kong, Vietnam, Sri Lanka, and the United States[137]. - The Group's operations are primarily conducted through subsidiaries in the PRC, Hong Kong, Vietnam, Sri Lanka, and the U.S., ensuring compliance with relevant laws and regulations[135]. - The Group's financial risk management objectives and policies are detailed in Note 36 of the consolidated financial statements, highlighting the importance of financial stability[131]. - The company confirmed compliance with non-competition agreements by its major shareholders for the year ended December 31, 2023[190]. - No directors had interests in any competing business with the company or its subsidiaries during the year[165]. Customer and Supplier Relationships - Sales to the Group's five largest customers accounted for approximately 39.8% of total sales for the year, with the largest customer contributing approximately 12.0%[145]. - Purchases from the Group's five largest suppliers accounted for approximately 33.9% of total purchases for the year, with the largest supplier contributing approximately 16.3%[145]. - The Group maintains stable relationships with customers and suppliers to ensure product competitiveness and material quality[138]. - The Group closely monitors market trends and customer demands to produce competitive products[138]. Shareholding Structure - As of December 31, 2023, Mr. Lu Yuguang holds a long position of 637,500,000 shares, representing approximately 61.30% of the company's total shares[174][182]. - The company’s major shareholders include FMR LLC with 103,876,900 shares (9.99%) and Mega Brilliant Enterprises Limited with 75,000,000 shares (7.21%)[182]. - The total shareholding of Mr. Lu Yuguang, including his controlled corporation, amounts to 640,500,000 shares, or 61.59%[195]. - 78,292,000 ordinary shares were held by Ms. Zheng, the Chief Operating Officer, and her controlled corporation, with Mr. Zhang, the CEO, deemed interested in these shares[196]. - 37,500,000 ordinary shares were held by Lakefront Capital Investment Limited, wholly owned by Mr. Wu Shaolun, who is also deemed interested in these shares[197].
超盈国际控股(02111) - 2023 - 年度财报