Financial Performance - In 2023, the Group's total sales volume grew by 18.1% year-on-year, despite a decrease in average selling price due to lower raw material costs and export sales[6]. - The gross profit margin improved by 1.6 percentage points to 15.0%, resulting in a net profit increase of 30.6% year-on-year, from HK$47,858,000 to HK$62,506,000[6]. - For the year ended December 31, 2023, the Group recorded a revenue of HK$2,494,534,000, an increase of 1.2% compared to HK$2,464,242,000 in 2022[111]. - Gross profit increased by 13.2% to HK$374,166,000 from HK$330,540,000 in the previous year[111]. - Net profit rose by 30.6% to HK$62,506,000 from HK$47,858,000 year-on-year[111]. - Basic earnings per share rose by 29.9% to HK3.17 cents for the year, up from HK2.44 cents in the previous year[29]. - The final dividend for 2023 is set at HKD 1 cent per share, with the payment date scheduled for July 31, 2024[1]. - The Group's net asset value increased by 2.4% to HK$0.86 per Share as of December 31, 2023, compared to HK$0.84 per Share at the end of 2022[29]. - The Group's total revenue for the year ended December 31, 2023, was HK$2,494,534,000, representing an increase of 1.2% compared to HK$2,464,242,000 in 2022[144]. - The basic earnings per share for 2023 were HKD 1.58 cents for the interim and HKD 3.17 cents for the final[1]. Production and Capacity Expansion - The Group aims to add an additional 100,000 tonnes of steel cord production capacity at its Tengzhou plant, with new facilities already in operation during the year[7]. - The company aims to gradually develop into an enterprise with an annual manufacturing capacity exceeding 300,000 tonnes of high-quality steel cord[64]. - The Group's annual production capacity of steel cords increased to 240,000 tonnes, with plans to manufacture over 300,000 tonnes annually[193]. Market Outlook and Demand - The outlook for 2024 is positive, driven by increased demand for tires due to the recovery from the COVID-19 pandemic and government policies supporting domestic circulation[11]. - The Group anticipates increased global demand for logistics and large vehicle tyres in 2024 due to the mitigation of the COVID-19 pandemic[31]. - The sales of steel cords are expected to grow significantly, driven by solid tyre demand and government policies on energy conservation and emission reduction[31]. - The rise in electric vehicle production is expected to boost demand for accessorial tyres, enhancing market opportunities for the steel cord industry[31]. Cost Management and Financial Strategy - The decline in finance costs contributed to the increase in net profit, showcasing the Group's effective cost management strategies[6]. - Selling and distribution expenses decreased by 3.2% to HK$56,433,000 from HK$58,307,000 in the previous year, as the Group continues to implement cost control measures[148]. - Selling and distribution expenses increased by 8.3% to HK$124,033,000, driven by higher sales volume in the steel cord segment[195]. Corporate Governance and Management - The company has established a robust corporate governance structure with various committees, including nomination and remuneration committees[76]. - The company is committed to maintaining transparency and compliance with listing rules and regulations[85]. - The company has a strong management team with over 30 years of experience in the steel industry, particularly in sales and management[76]. - Mr. Li Jinping was appointed as the managing director effective from July 1, 2023, after serving as an executive director since January 1, 2020[77]. - Mr. Su Fanrong resigned as managing director on July 1, 2023, but remains as the chairman of the company[76]. Sustainability and Social Responsibility - The Group is committed to sustainable development and fulfilling social responsibilities by implementing green practices across all production levels[12]. - The company is committed to implementing green practices in production to achieve sustainable development and fulfill social responsibilities[32]. Economic Context - The gross domestic product of China in 2023 exceeded RMB126 trillion, representing a year-on-year increase of 5.2%, indicating a recovering economic environment[2]. - China's GDP reached RMB126,058.2 billion, up by 5.2% year-on-year in 2023[136].
首佳科技(00103) - 2023 - 年度财报