HONG KONG, Mar 20, 2024 - (ACN Newswire) - Hengdeli Holdings Limited ("Hengdeli" or the "Company" and, together with its subsidiaries, the "Group"; stock code: 3389) announced its annual results for the twelve months ended 31 December 2023 ("the year under review").
During 2023, the international landscape was complicated and ever-changing, the global economy remains sluggish. China's economy has stepped out of a recovery curve to pick up despite of continuous pressure. Confronted with complicated environment, the Group continued to adhere to its principle of maintaining "sound, steady and long-term operations" and engaged in its business in a steady and proactive manner as it adapted to current market conditions, with the aim of safeguarding the interests of shareholders.
During the year under review, the Group recorded revenue of RMB1,421,454,000 (2022: RMB1,259,579,000), representing a year-on-year increase of 12.9%; the revenue from high-end consuming accessories business amounted to RMB710,708,000 (2022:RMB630,330,000), representing a year-on-year increase of 12.8%; the revenue from commodity trading amounted to RMB710,746,000 (2022: RMB408,956,000), representing a year-on-year increase of 73.8%. The Group liquidated its remaining watch stocks and completely ceased its renowned watch operations during 2022, and accordingly, the revenue of watches trading during the year under review was nil. The Group recorded a profit of RMB35,191,000 during the year (2022: loss of RMB88,139,000), representing a year-on-year increase of 139.9%. Profit attributable to equity shareholders amounted to RMB33,885,000 (2022: loss of RMB80,022,000), representing a year-on-year increase of 142.3%. The main reason for the profit for the year is the improvement in gross profit and the discontinuation of the watch business which led to a significant reduction in inventory provision and operating expenses of the watch business.
During the year under review, in terms of high-end consuming accessories business, under the backdrop of the economic resurgence in China, the Group laid a solid foundation by maintaining stability, sought development driven by innovation, and continuously broadened its business modes. While engaging in sectors including accessories, jewellery, cosmetics and mobile phones, the Group continued focusing on its advantages in the field of watch accessories, watch boxes, showcases production and exhibition service. Additionally, the Group continued to improve its informational and automatic management. All measures mentioned above achieved remarkable results. During the year, good performance was recorded for both the revenue and profits of high-end consuming accessories business.
During the year under review, in terms of the international commodity trading business, the Group actively adapted to the market dynamics and accordingly made flexible and precise delivery as much as possible, in order to increase sales and decrease costs. Since international commodity trading business was on a steady upward trend due to efforts from various parties, its sales and profits both improved as compared to the same period last year.
In addition, in line with the Group's established strategic direction and the development of its international trading business, the Group continued the in-depth development of its international shipping business. During the year under review, the Group has successively secured new customers with large importation of Australian coal, including Yankuang Energy Group Company Limited and Jidong Cement Co., Ltd. In addition to engaging in original traditional transportation routes, the Group initiated its first coal transportation route from Colombia to Korea, the revenue of which significantly outperformed the shipping market in the same period. At the same time, the Group continued to maintain good communication and cooperation with major central enterprises and state-owned enterprises in China which have concentrated overseas large-scale mining and import businesses. During the year, the Group's revenue from the shipping business increased and kept positive returns despite the overall profits recorded a decrease.
In the new year, the Group will continue to adhere to the principle of "sound, steady, and long-term operations", and will leverage the stable business environment in Mainland China that "pursues stability while seeking progress" to keep abreast of the market trend and further advance the process of international trade steadily. Additionally, the Group will continuously expand and strengthen the international shipping business which is closely related to international trade, and strive to become a stronger participant in the international shipping supply chain and achieve new breakthroughs in corporate development.
The Group will continue to adapt to market demands and continuously enhance the service standard of its integrated services for commercial space in both Mainland China and international markets. The Group will continuously adjust the manufacturing of high-end accessories for renowned watches while embarking on a limited number of diversified business activities to include the manufacturing of high-end consuming accessories in high-end lifestyle products such as jewellery, cosmetics and mobile phones, and to expand its commercial space beautification services to include living space beautification services, thus becoming an indispensable independent segment in the industry ecological chain of high-end consuming accessories.