长江制衣2023/2024年度年报

CONTENTS目 錄Corporate Information2Chairman’s Statement4Management Discussion and Analysis5Report of the Directors11Corporate Governance Report18Directors and Management30Independent Auditor’s Report34Consolidated Statement of Profit or Loss43Consolidated Statement of Profit or Loss and Other Comprehensive Income44Consolidated Statement of Financial Position45Consolidated Statement of Changes in Equity47Consolidated Cash Flow Statement48Notes to the Financial Statements49Group Properties123Five-Year Summary124 CORPORATE INFORMATION公 司 資 料 BOARD OF DIRECTORS Executive DirectorsChan Wing Fui, Peter,MA(Chairman)Chan Suk Man, MSc(Managing Director)Chan Wing To, PhD(Deputy Managing Director)Chan Wing Kee, GBM, GBS, OBE, JPChan Wing Sun, SamuelChan Suk Ling, Shirley, BBS, JP Independent Non-executive DirectorsChoi Ting KiSo Stephen Hon CheungLi Guangming AUDIT COMMITTEE So Stephen Hon Cheung(Chairman)Choi Ting KiLi Guangming REMUNERATION COMMITTEE Li Guangming(Chairman)Chan Wing Fui, PeterChan Wing KeeChoi Ting KiSo Stephen Hon Cheung NOMINATION COMMITTEE Choi Ting Ki(Chairman)Chan Wing Fui, PeterChan Wing KeeSo Stephen Hon CheungLi Guangming RISK MANAGEMENT COMMITTEE Chan Wing Fui, Peter(Chairman)Chan Wing KeeChan Suk Man PRINCIPAL BANKERS The Hongkong and Shanghai Banking Corporation LimitedBank of China (Hong Kong) Limited Loeb & Loeb LLP CORPORATE INFORMATION公 司 資 料 AUDITORS KPMGCertified Public AccountantsPublic Interest Entity Auditor registered in accordance with the Accountingand Financial Reporting Council Ordinance Hui Sau Ling, FCCA, CPA REGISTERED OFFICE 22 Tai Yau StreetSan Po KongKowloon SHARE REGISTRAR AND TRANSFER OFFICE 1712 – 1716 Computershare Hong Kong Investor Services LimitedShops 1712 – 171617th Floor, Hopewell CentreHong Kong WEBSITE CHAIRMAN’S STATEMENT主 席 報 告 GROUP RESULTS 2 3 4 , 3 0 2 , 0 0 0365,761,00048,172,00023,249,000 Revenueof the Group for the year 2023/24 under review wasHK$234,302,000 (2022/23: HK$365,761,000) and the overall result wasa loss of HK$48,172,000 (2022/23: a loss of HK$23,249,000). BUSINESS REVIEW AND PROSPECTS Although we recorded a substantial overall loss, the Company stillmaintained a small operation profit. However, this operating profit wasmainly due to a sizable interest income derived from our healthy cashposition. The main reasons for our overall loss were caused by therecognition of the losses of our joint ventures in Wuxi No. 1 CottonInvestment Co., Ltd. in China as well as fair value losses arising from therevaluation of the Group’s investment properties on Tai Yau Street. Theselosses nevertheless do not impact our Company’s cash position. OUTLOOK Garment manufacturing business remains challenging. We expectbusiness to be further weakened by the unstable global political andeconomical situations. Results of our Wuxi joint venture will also beuncertain. APPRECIATION I would like, on behalf of the Board and shareholders, to express ourappreciation to the Company’s employees for their hard work and loyalservice to the Company during the past year. By Order of the BoardChan Wing Fui, PeterChairman Hong Kong, 18 June 2024 MANAGEMENT DISCUSSION AND ANALYSIS管 理 層 討 論 與 分 析 MANAGEMENT DISCUSSION AND ANALYSIS管 理 層 討 論 與 分 析 RESULTS OF OPERATIONS 36%234,302,000365,761,000653,00018,738,000 Global business since the pandemic, though slowly picking up, remainedweak and stagnant. The unstable political and economic environment,the high inflation, the escalated interest rates, the soaring energy costsas well as manufacturing costs affected all walks of life. The drop of salesorders and the business loss derived from the sale of our Bangladeshfactory further reduced our total sales revenue. As a result, the revenue ofour core garment business in the year under review was down by 36% toHK$234,302,000 (2022/23: HK$365,761,000). Though positive result ofHK$653,000 (2022/23: a profit of HK$18,738,000) was recorded, it waslargely due to a considerable amount of interest income derived from ourcash reserve. Our overall results recorded a loss of HK$48,172,000 (2022/23: a lossof HK$23,249,000). These unsatisfactory results as mentioned in thecompany’s Profit Warning issued in June were attributed by a decrease inour revenue, the recognition of the share of our Wuxi joint ventures lossesas well as the fair value losses arising from the revaluation of the Group’sinvestment properties. Losses from Wuxi joint ventures and fair valuelosses, however, have no effect on the Group’s cash flow. 48,172,00023,249,000 GARMENT BUSINESS YangtzekiangGarment Limited and Hong Kong Knitters Limitedare the two names that we use to operate our garment business.We manufacture a wide variety of products that include men’s andladies’ shirts, trousers, shorts, polo shirts, T-shirts, jackets and knittedouterwear, etc. Hong Kong is our Group’s headquarters that handlesour core garment businesses including manufacturing, trading andsourcing. In addition to ou