Financial Performance - Revenue for FY2023 reached HK$1,160,211, an increase of 18.6% compared to HK$978,103 in FY2022[22]. - Gross profit for FY2023 was HK$222,721, reflecting a growth of 7.4% from HK$207,295 in FY2022[22]. - Profit before income tax increased by 2.8% to HK$57,445 in FY2023, up from HK$55,879 in FY2022[22]. - Profit for the year rose by 3.8% to HK$47,149, compared to HK$45,418 in FY2022[22]. - Basic and diluted earnings per share increased by 3.7% to 4.71 HK cents in FY2023, up from 4.54 HK cents in FY2022[22]. - The company did not recommend any final dividend for FY2023, maintaining an interim dividend of 0.8 HK cents[23]. - The Group's cost of sales rose by 21.6% to HK$937.5 million in FY2023, influenced by increased material costs and depreciation from new leased factory buildings[140]. - Administrative expenses grew by 12.3% from HK$133.8 million in FY2022 to HK$150.2 million in FY2023, mainly due to increased employee benefits[150][155]. - Other income decreased from HK$6.2 million in FY2022 to HK$4.6 million in FY2023, primarily due to a HK$1.3 million drop in scrap material sales[142][147]. - The profit attributable to owners of the Company increased by HK$1.7 million, reaching HK$47.1 million for FY2023, compared to HK$45.4 million in FY2022, reflecting steady growth despite challenges[122][124]. Market Presence and Strategy - The company aims to capture global demand for innovative products in the new smart economy[5]. - The European market showed significant growth, with sales in this region increasing to 81.8% in FY2023 from 89.1% in FY2022[27]. - The company is actively pursuing expansion opportunities in Central Asia, particularly Kazakhstan, in alignment with China's "Belt and Road" initiative[50]. - Trio Group aims to establish a strong presence in Hong Kong, Macau, and Southeast Asia by offering comprehensive electric vehicle charging solutions[50]. - The company is focused on fostering a "Greater Asia Renewable Energy Business Circle" to promote collaboration and growth in the region[50]. - Increased demand for the company's products is driven by trends in health awareness, digital transformation, automation solutions, and energy-saving technologies[51]. - The company has established a strong presence in various sectors, including gaming, healthcare, renewable energy, telecommunications, and security systems, with significant demand for its products[113][115]. Operational Developments - The company has strategically leased two new buildings in the PRC to enhance operational capacity, including a warehouse and a production factory equipped with advanced automation[48]. - An additional factory building in Thailand is scheduled to be operational in Q2 2024 to further increase production capacity[48]. - The production capacity is being expanded with the leasing of a new factory in Thailand, set to commence operations in Q2 2024, to meet evolving customer needs[121]. - The new factory in the PRC, operational since May 2023, enhances large-scale production capabilities and optimizes logistics and administrative costs[120]. - Smart manufacturing practices have been prioritized, leading to improved supply chain management and production efficiency, with the company achieving Industry 4.0 level 1i certification[122][124]. Leadership and Management - The company has appointed several directors with extensive backgrounds in electronics manufacturing and management, enhancing its leadership team[70]. - The leadership team is well-educated, with advanced degrees in engineering, business management, and marketing from reputable institutions[72][78]. - The company has established a strong management team with significant experience in corporate finance and manufacturing, enhancing operational efficiency[89][91]. - The company appointed Mr. Kwan Chan Kwong as CEO effective September 1, 2022, who has over 40 years of experience in the electronics industry[89]. - Mr. Leung Tak Ho joined as Chief Financial Officer in January 2023, bringing over 25 years of experience in auditing and financial management[97]. - Ms. Jingjing Zhang was appointed as General Manager of Business Development in August 2023, focusing on global market exploration[99]. Financial Position and Risk Management - As of December 31, 2023, the Group had net current assets of HK$328.5 million, with a current ratio increasing from 2.3 times in 2022 to 2.9 times in 2023[161]. - The Group maintained a positive net cash position, with bank borrowings of HK$20.7 million and undrawn banking facilities of HK$220.4 million as of December 31, 2023[160][161]. - The Group's credit risk concentration increased significantly, with 49.0% of total trade receivables due from the largest customer and 81.0% from the five largest customers as of December 31, 2023[178]. - The Group's liquidity management includes maintaining sufficient bank balances and available committed credit lines to sustain operations[183]. - The Group's financial risk management focuses on mitigating market risks, including foreign exchange and price risks[165]. - The Group's interest rate risk primarily arises from borrowings, which are arranged at floating rates[179]. Future Outlook - Trio Group anticipates ongoing economic challenges due to high interest rates and geopolitical instability, but maintains an optimistic outlook in emerging sectors like electric vehicles and renewable energy[50]. - The global economic environment remains challenging due to high interest rates and inflationary pressures, yet the company successfully identified and capitalized on positive business opportunities[114].
致丰工业电子(01710) - 2023 - 年度财报