WING ON CO(HK:00289)2024-04-26 02:43Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a 15% year-over-year growth[2]. - The group's revenue for the year ended December 31, 2023, was HKD 1,056.2 million, a slight increase of 1.5% compared to HKD 1,041.0 million in 2022[19]. - For the year ended December 31, 2023, the company reported revenue of HKD 1,056 million, a slight increase from HKD 1,041 million in 2022[118]. - Total revenue for 2023 was HKD 1,056,194, an increase of 1.1% from HKD 1,041,028 in 2022[129]. - The department store business generated net sales of HKD 639,384,000 in 2023, compared to HKD 603,748,000 in 2022, reflecting an increase of about 5.9%[182]. - The profit attributable to shareholders for the year ended December 31, 2023, was HKD 123.4 million, a significant improvement from a loss of HKD 300.9 million in 2022[19]. - The operating profit after finance costs was HKD 564 million, significantly up from HKD 170 million in the previous year[118]. - Basic earnings per share increased to HKD 1.65 from HKD 0.27 in 2022[118]. - The net profit for the year was HKD 121,117, a recovery from a loss of HKD 301,613 in 2022[129]. - Total comprehensive income for the year amounted to HKD 123,406, recovering from a total comprehensive loss of HKD 522,314 in 2022[130]. Market Expansion and Strategy - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10-12% driven by new product launches and market expansion[2]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[2]. - The company plans to continue focusing on market expansion and new product development to drive future growth[1]. - The company plans to continue its strategic focus on market expansion and new product development in the upcoming fiscal year[138]. Investment and Technology - Investment in new technology development increased by 25%, focusing on enhancing online services and customer experience[2]. - A strategic acquisition of a local competitor is in progress, expected to enhance the company's operational capabilities and customer base[2]. - The company introduced two new product lines, which are anticipated to contribute an additional HKD 200 million in revenue over the next year[2]. - The group's investment portfolio generated a profit of HKD 149.0 million in 2023, compared to a loss of HKD 206.4 million in 2022[19]. - The investment portfolio value increased to HKD 1,872.4 million as of December 31, 2023, from HKD 1,673.3 million in 2022[31]. Cost Management and Profitability - The gross profit margin improved to 40%, up from 35% in the previous year, reflecting better cost management and pricing strategies[2]. - The company has set a target to reduce operational costs by 15% through efficiency improvements and technology integration[2]. - Operating costs decreased by 2.2% to HKD 354.4 million in 2023, down from HKD 362.3 million in 2022[41]. - The overall gross margin for the group in 2023 was 55.0%, compared to 54.5% in 2022[41]. Shareholder Returns - Shareholder returns are expected to increase, with a proposed dividend of HKD 0.50 per share, up from HKD 0.40 last year[2]. - The board proposed a final dividend of HKD 0.60 per share for 2023, up from HKD 0.15 per share in 2022[19]. - The total dividend for 2023, including an interim dividend of HKD 0.34 per share, amounts to HKD 0.94 per share, compared to HKD 0.75 per share in 2022[19]. - The company aims to maintain a dividend payout ratio of approximately 50% of the annual basic profit, barring unforeseen circumstances[19]. Operational Performance - The department store business recorded revenue of HKD 639.4 million for the year ended December 31, 2023, an increase of 5.9% from HKD 603.7 million in 2022[27]. - The operating loss for the department store business decreased to HKD 2.8 million in 2023 from HKD 21.3 million in 2022, primarily due to increased revenue and gross profit[27]. - Property investment income decreased by 9.3% to HKD 388.2 million in 2023, down from HKD 428.0 million in 2022[28]. - The overall rental income from commercial properties in Hong Kong decreased by 7.8% to HKD 293.5 million in 2023, compared to HKD 318.3 million in 2022[29]. Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with all applicable provisions as of December 31, 2023[74]. - The board of directors consists of 7 members, including 1 executive chairman and 1 executive CEO, with all members confirming compliance with the securities trading standards[76][75]. - The company has established an ESG committee to assist the board in overseeing environmental, social, and governance matters[84]. - The company emphasizes standardized recruitment processes and equal development opportunities to achieve gender diversity[97]. Risk Management - The board adopted a risk management policy to ensure consistency in identifying, assessing, managing, monitoring, and reporting risks to achieve strategic goals[106]. - A significant risk identified is the group's ability to meet tenant expectations regarding building infrastructure and support services, which may impact market competitiveness and property investment profitability[106]. - The management confirmed the effectiveness of the group's risk management and internal control systems, which the board and audit committee deemed sufficient[106]. Employee and Diversity - As of December 31, 2023, the total number of employees is 533, with 388 females (73%) and 145 males (27%)[97]. - The senior management team consists of 2 males and 0 females, resulting in a 100% male representation[98]. - The company aims to enhance gender diversity on the board, currently having 1 female director out of 3 independent non-executive directors[96]. Taxation and Financial Position - The total income tax expense for 2023 is HKD 54,990,000, a decrease from HKD 89,096,000 in 2022, representing a reduction of approximately 38.4%[200]. - The effective tax rate for 2023 remains consistent at 16.5%, similar to 2022, indicating stable tax policy application[199]. - The company’s total liabilities slightly increased to HKD 1,337 million from HKD 1,317 million in 2022[118]. - The financial position remains strong with no borrowings reported as of December 31, 2023, ensuring sufficient liquidity for operational needs[24].