Financial Performance - The company's revenue for 2023 was $1,545,114 thousand, reflecting a 3.5% increase compared to 2022[15]. - Shareholders' profit attributable for 2023 was $171,049 thousand, representing a 21.2% increase from 2022[18]. - The compound annual growth rate (CAGR) from 2021 to 2024 is projected to be 21.5%[24]. - The operating profit margin for 2023 was 10.7%, with a forecasted increase to 11.9% in 2024[25]. - The company achieved an operating profit margin of 11.9% in 2024, up from 10.7% in 2023, exceeding the target of 10% set in the three-year plan (2023-2025) for the second consecutive year[34]. - Return on invested capital (ROIC) increased significantly to 21.6% in 2024, more than double the 10% recorded in 2019, reflecting the effectiveness of the long-term strategy implemented in 2023[35]. - Consolidated revenue increased by 3.5% to $1,545,100,000, with shipment volume rising by 8.2% to 53,000,000 pairs[49]. - Gross profit grew by 4.7% to $384,000,000, resulting in a gross profit margin of 24.9%[51]. - Operating profit rose by 15.7% to $184,500,000, benefiting from increased orders for athletic footwear and improved operational efficiency[52]. - Net profit for the year was $170,100,000, reflecting an increase from $140,300,000 in the previous year[53]. - The return on invested capital (ROIC) reached 21.6%, significantly up from approximately 10% in 2019[55]. - Net cash position improved by 45.3% to $417,600,000, compared to $287,400,000 at the end of 2023[56]. - The company aims to achieve a low double-digit percentage compound annual growth rate for after-tax profit in the upcoming years[37]. - The company has a history of strong financial performance, which supports its dividend distribution strategy[171]. Strategic Initiatives - The company has launched its first three-year strategic plan for 2023-2025[12]. - The company plans to further invest in design and development capabilities for leather products, including handbags and accessories[10]. - The company aims to become a preferred partner in the leather goods sector, enhancing its supply chain efficiency[5]. - The three-year plan includes expanding and diversifying production bases to stabilize cost structures and enhance operational efficiency[46]. - The company is expanding its production capabilities in Southeast Asia, including new factories in Indonesia and Vietnam[12]. - The company is focusing on strengthening partnerships with major sports brands and luxury fashion brands to support growth in the athletic and luxury footwear categories[46]. - The company anticipates moderate growth in overall shipments by 2025, despite macroeconomic challenges and geopolitical uncertainties, by increasing shipments to high-end fashion clients and new customers in the sports category[59]. - The company aims to enhance its handbag and accessories manufacturing business as a key growth pillar, considering the acquisition of a small handbag and accessories factory in Vietnam to leverage its expertise[60]. Corporate Governance - The board of directors is responsible for leading and overseeing the company’s affairs to promote success and ensure decisions align with the group’s best interests[80]. - The corporate governance committee focuses on compliance, risk management, investor relations, and corporate social responsibility, ensuring adherence to governance codes[81]. - The company has adopted stock option and share reward plans to recognize and reward employee contributions, aiming to retain talent and support ongoing operations[75]. - The board consists mainly of independent non-executive directors, ensuring strong independent elements for effective judgment and decision-making[86]. - The corporate governance practices reflect compliance with all governance code provisions throughout the year 2024[84]. - The corporate governance committee has conducted reviews of the annual governance report and related disclosures, ensuring transparency and accountability[85]. - The board has adopted a continuous evaluation process to assess its performance regularly[91]. - The company has established a board diversity policy, considering various factors such as gender, age, and professional experience in the nomination process[88]. - The gender ratio among employees is currently 4:1 in favor of males, with ongoing efforts to enhance gender diversity in recruitment[90]. - The nomination committee consists of four independent non-executive directors, with a focus on maintaining board diversity and independence[97]. - Independent non-executive directors are subject to a nine-year term limit, after which their reappointment requires an independence assessment[96]. - The company has implemented a formal and transparent procedure for appointing new directors, ensuring a structured succession plan[95]. - Directors receive ongoing training to stay updated on the company's operations and regulatory environment, with various training types categorized as legal, business, and financial[101]. - The board evaluation process includes feedback through questionnaires and interviews to improve efficiency and effectiveness[92]. - The company has established a system for regular review of business and financial performance, allowing for timely follow-up on unresolved issues[106]. Risk Management - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve strategic objectives, including significant risks related to environmental, social, and governance (ESG) factors[118]. - The internal control system is designed to manage risks within an acceptable risk profile rather than completely eliminate risks associated with achieving business objectives[118]. - The company conducts an annual review of its risk management and internal control systems to ensure they meet the requirements for financial reporting and listing rules[119]. - No significant internal control failures or weaknesses were identified during the year, indicating the effectiveness of the company's risk management and internal control systems[119]. - The internal audit team reports directly to the audit committee, chairman, and CEO, ensuring oversight of internal control matters[120]. - The company’s risk management and internal control systems have been comprehensively reviewed and positively assessed by third-party professional institutions[119]. Shareholder Returns - A final dividend of HKD 0.50 per share and a special dividend of HKD 0.56 per share were proposed, reflecting a commitment to return approximately 70% of adjusted net profit to shareholders[36]. - The board proposed a final dividend of HKD 0.50 per ordinary share and an interim dividend of HKD 0.65 per ordinary share, maintaining a payout ratio of approximately 70% based on adjusted net profit of USD 4,171,200,000[63]. - For the fiscal year ending December 31, 2024, the total dividend per ordinary share is projected to be HKD 1.71, subject to shareholder approval[64]. - The company plans to return up to $60,000,000 in additional cash to shareholders annually over the next three years as part of its excess cash return plan[49]. - The board aims to provide a cash return of 70% to shareholders through dividends and share buybacks, ensuring sufficient financial resources for business growth[170]. - The company has adopted a dividend policy to provide stable and sustainable dividends during profitable periods while maintaining financial resources for growth[170]. Employee Relations - The company emphasizes the importance of human resources as a key asset for development and expansion, actively seeking to attract, train, and retain motivated talent[75]. - The company is committed to a caring culture for employees, recognizing human resources as a vital asset for development and expansion, and aims to build management teams through effective training and development programs[191]. - As of December 31, 2024, the group has approximately 42,600 direct employees, an increase from about 39,900 on December 31, 2023, with a total workforce of around 63,200[75]. Market Position - The company has established a strong customer base, including leading global brands such as Nike and Coach[9]. - The company has been included in the Hang Seng Composite Index (HSCI), enhancing its market position and attractiveness to investors[35]. - The company was included in the Hang Seng Composite Index, enhancing global investor participation and liquidity[48]. - The company is focused on expanding its high-end fashion customer base and establishing a fashion sports footwear business, which is a key growth driver[157].
九兴控股(01836) - 2024 - 年度财报