Financial Performance - Profit attributable to owners of the Company for 2023 was HK$3,268,346,000, a decrease of 8.1% compared to HK$3,560,238,000 in 2021[11]. - Revenue for the year ended December 31, 2023, was HK$4,440.2 million, a decrease of 26.7% from HK$6,053.6 million in 2022[91]. - Profit attributable to owners of the Company for 2023 was HK$50.9 million, compared to a loss of HK$115.5 million in 2022, marking a significant turnaround[91]. - Profit before income tax expense for 2023 was HK$111,128,000, a significant improvement from a loss of HK$20,210,000 in 2022[174]. - The profit margin for 2023 improved to 1.1%, compared to a negative margin of (1.9%) in 2022[91]. - Basic and diluted earnings per share for 2023 were 4.2 HK cents, recovering from a loss of (9.4) HK cents in 2022[91]. Assets and Liabilities - Total assets less current liabilities decreased to HK$3,735,548,000 in 2023 from HK$3,864,591,000 in 2022, reflecting a decline of 3.3%[11]. - Current assets slightly decreased to HK$3,368,807,000 in 2023, down from HK$3,375,223,000 in 2022, indicating a reduction of 0.2%[11]. - Non-current liabilities decreased significantly to HK$266,882,000 in 2023 from HK$440,824,000 in 2022, a reduction of 39.2%[11]. - Total equity for the Company was HK$3,468,666,000 in 2023, a slight increase from HK$3,423,767,000 in 2022, representing a growth of 1.3%[11]. - Total assets decreased to HK$4,900.8 million in 2023 from HK$5,046.8 million in 2022[75]. - Non-current bank borrowings significantly reduced to HK$91.1 million from HK$235.5 million year-over-year[75]. - The total bank borrowings decreased to HK$199.6 million in 2023 compared to HK$436.2 million in 2022[75]. Cash Flow and Financing Activities - Cash and cash equivalents as of 31 December 2023 were HK$1,379 million, a slight decrease from HK$1,394 million as of 31 December 2022[49]. - Net cash from operating activities decreased to HK$293,758,000 in 2023 from HK$905,634,000 in 2022, representing a decline of 67.6%[147]. - New bank borrowings raised totaled HK$252,796,000 in 2023, down from HK$1,193,538,000 in 2022, a decrease of 78.8%[147]. - Repayment of bank borrowings was HK$489,962,000 in 2023, compared to HK$1,084,881,000 in 2022, a reduction of 54.9%[147]. - Net cash used in financing activities increased to HK$309,903,000 in 2023 from HK$171,398,000 in 2022, an increase of 80.9%[147]. Operational Efficiency and Strategy - The Group faced significant challenges including a global economic slowdown and a decrease in average unit prices of exported textile products[34]. - The Group maintained a consistently low debt ratio and ample working capital, ensuring operational stability[49]. - The Group proactively adjusted production capacity, including voluntary redundancy payments to certain employees[34]. - The Group implemented a comprehensive quality control system in fabric production, enhancing tracking mechanisms and standardizing operational processes, which led to improved production standards and customer praise[160]. - The Group strengthened centralized procurement, optimizing supplier management and evaluation, which helped reduce procurement costs by expelling unqualified suppliers and directly procuring from resource owners[162]. Market Presence and Innovation - The Company has received multiple certifications, including the Global Recycled Standard 4.0 and Organic Content Standard 3.0, enhancing its sustainability credentials[13][24]. - The Company continues to focus on expanding its market presence and enhancing product quality through various certifications and partnerships[24]. - The Company is recognized for its commitment to innovation, receiving multiple awards for excellence in supply and sustainability[44][62]. - The Group's strategy includes collaboration with brands and suppliers to develop innovative fabrics and garments for consumers worldwide[35]. - The Company emphasizes research and development, collaborating with brands to innovate fabric and garment products[84]. Inventory and Receivables Management - The average turnover period for trade and bills receivables in 2023 was 76 days, compared to 69 days in 2022[37]. - The inventory turnover period increased to 69 days in 2023 from 62 days in 2022[75]. - The decrease in inventories was HK$143,956,000 in 2023, down from HK$775,744,000 in 2022, indicating a reduction of about 81.5%[174]. - The decrease in trade and bills receivables was HK$127,726,000 in 2023, compared to HK$279,543,000 in 2022, reflecting a decline of approximately 54.3%[174]. Audit and Compliance - The impairment assessment of property, plant, and equipment remains a key focus area due to its significance in financial reporting[125]. - The impairment assessment of property, plant, and equipment, investment properties, and right-of-use assets was identified as a key audit matter due to the significance of their carrying values and the critical assumptions used in the impairment evaluation[127]. - The independent auditor found that the key assumptions and inputs used in the impairment assessment were supportable by available evidence[130]. - The company is required to allocate 10% of its annual profit to statutory reserves before distributing any profits, as per Chinese regulations[145].
福田实业(00420) - 2023 - 年度财报