Glonghui, March 12 | Giordano International (00709.HK) announced that for the year ended 31 December 2023, the Group's revenue increased by 3.8% at a fixed exchange rate, but only increased 1.9% to HK$3,873 billion (2022: HK$3,799 million) after exchanging to HKD. The increase in the first half of the year was 5%, due to the fact that the adversity caused by COVID-19 did not begin to subside until the second quarter of 2022. Sales began to gradually resume in the second half of 2022, weakening the relative growth rate in the second half of 2023.
During the reporting period, the Group's gross margin increased by 1.9 percentage points. Retail gross margin was 60.6%. Net profit attributable to the company's shareholders was HK$345 million, an increase of 28.7%. The board of directors of the company recommended a final dividend of HK13.5 cents per share. The total dividend for the year was HK30.5 cents per share, an increase of 29.8%. If approved, the final dividend payable would be approximately HK$218 million.
The Group is an international clothing retailer with many owned, franchised and authorized brands. Through a network of approximately 1,800 points of sale or 1,816,000 square feet of retail space, we provide high-quality, value-for-money clothing and accessories that are easy to wear. The Group's products can also be purchased through a wide network consisting of its own online stores and third-party online platforms.
During the reporting period, the number of days spent transferring inventory to cost decreased by 27 to 108 days. The number of days will likely be further reduced as we continue to focus on pricing power rather than sales volume. The year-end inventory was HK$474 million (2022: HK$612 million). The franchise model adopted for international expansion has also saved the use of group capital.
Cash and bank balance (after deducting bank loans) as at 31 December 2023 was HK$905 million (2022: HK$948 million). The capital expenditure for the year was HK$87 million (2022: HK$66 million).