Investment Rating - The report assigns a "Strong Buy" rating, indicating an absolute upside of over 50% over the next 12 months [13]. Core Insights - Nameson (01982.HK) experienced a year-on-year decline of 4.9% in topline revenue for FY 2023/24, totaling HKD 4,378.9 million. Despite this, there was a 1.5 percentage point increase in gross margin [2][10]. - The company is facing challenges due to a shrinking market size for knitwear products and strong capital requirements for expansion plans, which are expected to lead to a higher gearing ratio and lower dividend payout ratio [3][10]. - The fabric market remains weak, contributing to losses in this business segment, although the company plans to invest approximately HKD 400 million to expand its fabric production capacity [10][15]. Financial Performance Summary - Revenue for the past four fiscal years is as follows: - FY 2020/21: HKD 3,848.6 million - FY 2021/22: HKD 4,040.5 million - FY 2022/23: HKD 4,602.3 million - FY 2023/24: HKD 4,378.9 million [26]. - Gross profit figures for the same period are: - FY 2020/21: HKD 701.4 million - FY 2021/22: HKD 706.1 million - FY 2022/23: HKD 745.5 million - FY 2023/24: HKD 774.2 million [26]. - Net profit showed significant growth, with FY 2023/24 reaching HKD 380.7 million, a year-on-year increase of 140.5% [26]. Market and Operational Insights - The company anticipates stable sales volume in FY 2024/25 based on the current order book, although there are concerns regarding potential adjustments in order placements by major customers [15]. - The average selling price (ASP) of knitwear products has decreased from HKD 125.6 per unit to HKD 109.2 per unit, primarily due to a drop in cashmere product prices and decreasing raw material costs [15]. - Nameson plans to incur additional investments of HKD 150 million and HKD 100 million for expanding production capacity in Vietnam in FY 2024/25 and FY 2025/26, respectively [15].

Investment Rating - The report does not provide a specific investment rating for Nam Hing Holdings (01982 HK) [2][15] Core Views - Nam Hing Holdings achieved a total revenue of HK$4 38 billion in FY2023 24, a year on year decrease of 4 9% However, net profit increased by 1 4x to HK$380 7 million due to a 1 5 percentage point increase in gross margin and reduced impairment losses from the Myanmar factory [2] - The company declared a final dividend of HK$0 035 per share, representing a dividend payout ratio of 81 9% for the full fiscal year [2] - Sales volume of knitted products rebounded in H2 FY2023 24, offsetting the impact of a decline in average selling price (ASP) The ASP of knitted products dropped significantly from HK$125 6 to HK$109 2 per piece, mainly due to a sharp decline in cashmere product prices and lower raw material costs [2] - The company expects stable sales in FY2024 25 but is cautious about future rush orders from major customers, which could lead to lower than expected sales volume and further pressure on ASPs [2] - Nam Hing Holdings has an aggressive expansion plan, with a current fabric production capacity of 30 million pounds per year The company plans to invest approximately HK$400 million to build a new fabric production facility, expected to be completed by 2026, adding an additional 30 million pounds of capacity However, the fabric business is not yet stable, with low capacity utilization and no breakeven achieved, which could pressure the company in the short term [2] - The company also plans to invest HK$150 million in FY2024 25 and HK$100 million in FY2025 26 to expand its Vietnam capacity to meet customer demand for production outside China [2] Financial Performance - Revenue for FY2023 24 was HK$4 38 billion, down 4 9% year on year [2] - Gross profit increased to HK$774 2 million, with a gross margin of 17 7%, up from 16 2% in FY2022 23 [2] - Net profit surged to HK$380 7 million, a 140 5% year on year increase [2] - Return on equity (ROE) improved to 15 0% in FY2023 24, up from 6 2% in the previous fiscal year [2] - The company's market capitalization is HK$1 7 billion, with a current share price of HK$0 730 [2] Industry Comparison - Nam Hing Holdings has a market capitalization of HK$1 66 billion, with a price to earnings (P E) ratio of 4 6x and a price to book (P B) ratio of 0 7x [5] - The company's revenue of HK$4 38 billion and gross margin of 17 7% are lower compared to peers such as Shenzhou International (02313 HK), which has a revenue of HK$27 6 billion and a gross margin of 24 3% [5] Expansion and Capital Requirements - The company's expansion plans, including the new fabric production facility and Vietnam capacity expansion, could lead to increased capital requirements and potentially higher debt levels or reduced dividend payout ratios [5]

Financial Performance - The company reported a significant increase in profit attributable to shareholders, reaching HKD 361,672 million in 2024, up from HKD 134,844 million in 2023, resulting in basic earnings per share of HKD 15.87, compared to HKD 5.92 in the previous year[39]. - The net profit surged by 140.5% to HKD 380.7 million in 2024, marking a historical high for the company[57]. - The adjusted net profit attributable to the company's owners for the fiscal year ending March 31, 2024, was HKD 361.7 million, compared to HKD 134.8 million for the previous year[119]. - The adjusted net profit increased from HKD 379.3 million for the year ending March 31, 2023, to HKD 396.5 million for the year ending March 31, 2024, representing a growth of 4.5%[171]. - The gross profit increased by 3.8% to HKD 774.2 million, with the gross profit margin improving by 1.5 percentage points to 17.7% in 2024[56]. - Total revenue slightly decreased by 4.9% to HKD 4,378.9 million in 2024, primarily due to a decline in overall selling prices of knitwear products[56]. - The sales revenue of men's and women's knitted products decreased by HKD 152.7 million to HKD 3,513.7 million for the year ended March 31, 2024[90]. - The average selling price of men's and women's knitted products decreased by 13.1%, from HKD 125.6 to HKD 109.1 per piece, despite the increase in sales volume due to stronger-than-expected demand in the second half of the fiscal year[63]. Revenue and Sales - Revenue for the year ended March 31, 2024, was HKD 4,378.9 million, a decrease of 4.9% compared to HKD 4,602.3 million in 2023[186]. - For the fiscal year ending March 31, 2024, the group recorded revenue primarily from sales of knitted products, including women's, men's, and children's apparel, totaling 32.2 million pieces, an increase of 10.3% from 29.2 million pieces in the previous year[62][63]. - The sales volume of men's and women's knitwear increased by 25.7% to 13.2 million pieces in the second half of 2024, contributing to a total of 32.2 million pieces for the fiscal year[55]. - Revenue contributions from major markets as of March 31, 2024, were 31.1% from Japan, 20.6% from mainland China, and 15.7% from Europe[64]. Expenses and Liabilities - The total income tax expense for 2024 was HKD 53,201,000, a slight increase from HKD 51,095,000 in 2023, reflecting a growth of about 4%[6]. - The group reported a sales cost of HKD 3,604.6 million for the year ended March 31, 2024, which includes inventory costs, direct labor costs, subcontracting fees, depreciation, utilities, and production overheads[158]. - Trade payables and notes payable decreased from HKD 363,392,000 in 2023 to HKD 335,457,000 in 2024, representing a decline of approximately 7.7%[46]. - The company's bank borrowings totaled HKD 807,940,000 in 2024, down from HKD 936,755,000 in 2023, indicating a reduction of about 13.0%[48]. - Total lease liabilities as of March 31, 2024, amounted to HKD 163,060 million, an increase from HKD 157,749 million in 2023, with a weighted average effective interest rate of 4.31% compared to 2.77% in 2023[25]. Dividends - The company declared an interim dividend of HKD 0.095 per share, totaling HKD 216,542,000, which was paid on December 20, 2023[9]. - The company declared a second interim dividend of HKD 0.035 per share, totaling HKD 79,779,000, contributing to an annual dividend payout ratio of 82%[34]. - The board has declared a second interim dividend of HKD 0.035 per share for the year ended March 31, 2024, expected to be paid on July 23, 2024[134]. Operational Challenges - The company is facing challenges in Myanmar due to social unrest and military conflict, impacting the development of production bases[3]. - The group confirmed an impairment loss of HKD 34.0 million for its Myanmar production base in the fiscal year 2024[85]. - The group recorded an impairment loss of HKD 34.0 million related to its Myanmar production base, a significant decrease from HKD 243.4 million in the previous year, reflecting ongoing concerns over labor rights and political instability[72][74]. Cash Flow and Financial Management - The company generated net cash from operating activities of HKD 582.9 million for the fiscal year ending March 31, 2024, primarily due to a profit before tax of HKD 433.9 million, adjusted for depreciation of HKD 226.0 million and a decrease in inventory of HKD 120.5 million[121]. - The net cash used in financing activities for the fiscal year was HKD 435.9 million, primarily due to dividend payments of HKD 230.2 million and a net reduction in bank borrowings and lease liabilities of HKD 203.4 million[82]. - The net cash used in investing activities for the fiscal year ending March 31, 2024, was HKD 145.1 million, resulting from the purchase of properties, plants, and equipment totaling HKD 216.3 million, offset by proceeds from the sale of properties, plants, and equipment amounting to HKD 41.6 million and interest received of HKD 29.6 million[107]. Future Outlook and Strategy - The company aims to balance order pricing and expansion while improving profitability and profit margins despite a slight decline in revenue at the end of fiscal year 2024[31]. - The company is committed to enhancing product quality and expanding its customer base, indicating a positive outlook for future growth[35]. - The group aims to continue exploring opportunities for business expansion and diversification while creating greater returns for shareholders[89]. - The company anticipates a slowdown in the shift of production from mainland China to Southeast Asia as global customers continue to expand sales in the Chinese market[58]. Compliance and Governance - The audit committee consists of three independent non-executive directors and is responsible for reviewing and supervising the group's financial reporting process and internal control systems[141]. - The group has adhered to all mandatory provisions of the corporate governance code as of March 31, 2024[153]. - The group has not entered into any long-term foreign currency contracts to mitigate the risk of RMB against USD as of March 31, 2024[129].

Investment Rating - Trading Sell [2][14][30] Core Insights - The company experienced a sales drop of 12% YoY in 1HFY24, primarily due to a decrease in average selling price (ASP) by 12.9% in HKD terms, although sales volume remained resilient at approximately 19 million pieces, reflecting a 1.7% YoY increase [1][10] - Management anticipates a better performance in 2HFY24, driven by fast orders from Japanese clients, with an expected sales volume growth in FY24E at mid-single digits YoY, a revision from previous guidance of a mid-single digit drop [1][12] - The net gearing ratio improved significantly, declining to approximately 3.0% in 1HFY24 from 13.0% in FY23, allowing the company to raise its payout ratio to 75% in 1HFY24 [11][12] Financial Performance - The company's core net profit for FY24E is projected to reach HK$350 million, supported by volume growth and gross profit margin (GPM) expansion due to lower production costs [4] - The company is currently trading at a FY24E PE valuation of 4.7x, which is about a 54% discount compared to its HK-listed textile peers [4] - The target price for the company is set at HK$0.87, indicating a potential upside of 21.1% from the current price of HK$0.72 [14] Operational Developments - The company is expanding its production capacity in Vietnam to reduce lead times and meet client demand, with expectations that Vietnam will account for approximately two-thirds of its total knitwear capacity [12][13] - The largest customer, Uniqlo, accounted for about 48% of the company's revenue in 1HFY24, and as apparel retailers begin to restock, sales are expected to increase significantly in 2HFY24 [12][13] Market Position - Nameson is recognized as one of the leading knitwear manufacturers in China, providing a comprehensive range of services from raw material development to timely delivery [2][10] - The company has diversified its clientele, supplying to internationally renowned brands such as UNIQLO, Tommy Hilfiger, Under Armour, and Lululemon [2][10]

| RESEARCH 6 May, 2024 Nameson (01982.HK) Current Price HK$ 0.69 HKD, mn 2019/ Absolute 27.8% 38.0% 91.3% 63.3% TARGET PRICE HK$ - Expansion of cashmere yarn business: Nameson (01982.HK) entered into a JV agreement with its largest cashmere supplier, Hebei Yuteng, to engage in the manufacturing of cashmere yarn in Vietnam, the total production capacity per annum is designed to be 500 - 550 tonnes. Given the >80% utilization rate of cashmere yarn in Hebei, an increase in production capacity in Vietnam suppor ...

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Share Capital and Securities - As of September 30, 2023, the total number of issued ordinary shares was 2,279,392,000[11]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended September 30, 2023[6]. - The shareholding structure indicates that Mr. Wang Tingzhen holds 1,500,000,000 shares, representing approximately 65.81% of the issued share capital[186]. - Major shareholders include South Spin Investment Limited and Ting Huai Asset Limited, each holding 1,500,000,000 shares, representing 65.81% of the issued share capital[195]. - As of September 30, 2023, the number of share options available for grant under the share option scheme is 110,600,000, representing approximately 4.85% of the issued share capital[36]. - No share options were granted under the share option scheme for the six months ended September 30, 2023[36]. Financial Performance - Adjusted net profit for the six months ended September 30, 2023, decreased by 15.7% to HKD 289.1 million[66]. - Total revenue for the six months ended September 30, 2023, was HKD 3,099.4 million, reflecting a slight increase of 1.6% in sales volume compared to the same period in 2022[64][58]. - The company reported a 19.8% increase in net profit to HKD 305.6 million for the six months ended September 30, 2023[66]. - The group's revenue for the six months ended September 30, 2023, decreased by 12.0% to HKD 2,726.4 million from HKD 3,099.4 million for the same period in 2022[93]. - The net profit attributable to the company's owners for the six months ended September 30, 2023, was HKD 289.1 million, an increase from HKD 232.8 million for the same period in 2022[119]. - The effective tax rate for the group was 12.5% for the six months ended September 30, 2023, compared to 16.6% for the same period in 2022[118]. Revenue Breakdown - Total sales revenue from men's and women's knitted products decreased by HKD 292.2 million to HKD 2,255.0 million, while cashmere yarn sales revenue increased by HKD 49.1 million to HKD 330.0 million[93]. - Revenue from Japan was HKD 764,182,000, down 17.7% from HKD 928,368,000 year-over-year[199]. - North America revenue decreased by 18.5% to HKD 423,311,000 from HKD 519,238,000[199]. - Europe revenue fell by 19.2% to HKD 511,823,000 compared to HKD 633,759,000 in the previous year[199]. - Revenue from Mainland China was HKD 524,447,000, a slight decrease of 4% from HKD 546,430,000[199]. - Other countries generated revenue of HKD 502,619,000, an increase of 6.6% from HKD 471,572,000[199]. Loans and Financial Obligations - The company has a loan agreement dated June 27, 2023, for a maximum of HKD 200 million with a three-year term[21]. - The company has a loan agreement dated March 8, 2023, for a maximum of HKD 150 million with a three-year term[21]. - The company has a loan agreement dated December 15, 2022, for a maximum of HKD 130 million with a three-year term[21]. - The company has a loan agreement dated September 21, 2021, for a maximum of HKD 250 million with a three-year term[21]. - The company has a loan agreement dated August 11, 2021, for a maximum of HKD 300 million with a three-year term[21]. - The group's total bank borrowings and lease liabilities as of September 30, 2023, amounted to HKD 1,208.5 million, with repayment due within one year being HKD 721.1 million[133]. Operational Insights - The company has increased production capacity in Vietnam to meet customer demand amid weak consumer sentiment[64]. - The company is expanding its operations in Vietnam, enhancing marketing, customer service, and production capabilities[68]. - The company is focusing on high-margin orders despite a decrease in cashmere sweater sales[64]. - The company plans to balance production capacity in mainland China with the demand for quick-turn orders[87]. - The company faced challenges in its Myanmar manufacturing operations due to political considerations affecting brand clients[81]. - The textile market is experiencing weak demand due to global inflation and high inventory levels among fashion retailers[83]. Expenses and Cost Management - Sales cost for the first half amounted to HKD 2,228.4 million, primarily driven by inventory and direct labor costs[82]. - Gross profit declined by 3.6% to HKD 497.994 million, with a gross margin increase from 16.7% to 18.3%[78]. - General and administrative expenses decreased by HKD 6.2 million to HKD 162.2 million, attributed to ongoing cost control measures[100]. - Selling and distribution expenses decreased by HKD 5.9 million to HKD 17.8 million, mainly due to reduced transportation costs[99]. Cash Flow and Investments - The group's net cash generated from operating activities for the six months ended September 30, 2023, was HKD 383.6 million, compared to HKD 168.4 million for the same period in 2022[122]. - The group's total cash and cash equivalents increased by HKD 402.5 million, reaching HKD 1,120.7 million as of September 30, 2023, up from HKD 717.0 million as of March 31, 2023[130]. - The net cash used in investing activities for the six months ended September 30, 2023, was HKD 34.1 million, mainly due to the acquisition of property, plant, and equipment[129]. - Capital expenditures for the six months ended September 30, 2023, amounted to approximately HKD 118.9 million, mainly related to machinery procurement and the construction of a new production facility in Vietnam[135]. Corporate Governance and Compliance - The company has adopted corporate governance practices that comply with the mandatory provisions of the corporate governance code, maintaining high standards of governance[182]. - The company is required to maintain that the Wang family remains the major shareholder and retains management control[21]. - The company has established policies to ensure credit sales are only made to customers with appropriate credit records, and no significant impairments from trade receivables are expected[162]. - The group maintains bank balances and deposits primarily with major financial institutions in Hong Kong, mainland China, and Vietnam, which are considered to have high credit quality, with no anticipated losses from these institutions[162]. Employee and Compensation - As of September 30, 2023, the group employed approximately 15,100 full-time employees across China, Vietnam, Hong Kong, and Myanmar, with total employee costs amounting to HKD 534.2 million for the six months ended September 30, 2023[164]. - The group’s compensation policy is based on individual performance and aligns with salary trends in mainland China, Vietnam, Hong Kong, and Myanmar[180].

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 2,726,382 thousand, an increase from HKD 2,228,388 thousand in the same period of 2022, representing a growth of approximately 22.4%[3] - Gross profit for the period was HKD 497,994 thousand, down from HKD 516,400 thousand year-over-year, indicating a decrease of about 3.9%[3] - Operating profit increased to HKD 371,685 thousand, compared to HKD 320,470 thousand in the previous year, reflecting a growth of approximately 15.9%[3] - Net profit for the period was HKD 305,583 thousand, up from HKD 255,130 thousand, marking an increase of around 19.8%[4] - Basic and diluted earnings per share rose to HKD 12.7, compared to HKD 10.2 in the same period last year, representing a growth of approximately 24.5%[3] - Total comprehensive income for the period was HKD 276,340 thousand, compared to HKD 223,940 thousand, indicating an increase of about 23.4%[6] Assets and Liabilities - Total equity as of September 30, 2023, was HKD 2,740,338 thousand, up from HKD 2,477,674 thousand as of March 31, 2023, reflecting a growth of approximately 10.6%[12] - Total liabilities increased to HKD 2,056,060 thousand from HKD 1,951,427 thousand, representing an increase of about 5.4%[12] - Cash and cash equivalents decreased to HKD 872,230 thousand from HKD 714,432 thousand, indicating a decrease of approximately 22.1%[12] - The group's non-current assets as of September 30, 2023, amounted to HKD 2,363,134 thousand, slightly down from HKD 2,382,275 thousand as of March 31, 2023, indicating a decrease of about 0.80%[27] - The group's total assets reached HKD 4,796,398 thousand as of September 30, 2023, up from HKD 4,429,101 thousand as of March 31, 2023, representing an increase of approximately 8.29%[27] Revenue Breakdown - For the six months ended September 30, 2023, total revenue was HKD 2,168,642 thousand, a decrease from HKD 2,191,186 thousand for the same period in 2022, representing a decline of approximately 1.03%[20] - Revenue from Customer A was HKD 1,307,649, a decrease of 7.1% compared to HKD 1,407,195 for the same period in 2022[38] - Revenue from Japan for the six months ended September 30, 2023, was HKD 764,182, a decrease of 17.7% from HKD 928,368 in the previous year[46] - Revenue from North America decreased by 18.5% to HKD 423,311 compared to HKD 519,238 for the same period in 2022[46] - Revenue from Europe decreased by 19.2% to HKD 511,823 from HKD 633,759 in the previous year[46] - Revenue from mainland China was HKD 524,447, a slight decrease of 4% from HKD 546,430 in the same period of 2022[46] Expenses and Income - Total expenses for the six months ended September 30, 2023, amounted to HKD 2,408,435, a decrease of 16.5% from HKD 2,884,127 in the same period of 2022[40] - Other income for the six months ended September 30, 2023, totaled HKD 46,676, down 38.3% from HKD 75,629 in the previous year[39] - The company reported a financial income of HKD 10,628 thousand, compared to a financial expense of HKD 33,684 thousand in the previous period, showing a significant improvement in financial performance[3] Cash Flow and Financing - The net cash generated from operating activities for the six months ending September 30, 2023, was HKD 383.6 million, primarily due to a profit before tax of HKD 349.4 million adjusted for depreciation and inventory reduction[142] - The net cash used in investment activities for the six months ended September 30, 2023, was HKD 34.1 million, primarily due to the acquisition of properties, plants, and equipment amounting to HKD 72.8 million, offset by proceeds from the sale of properties, plants, and equipment of HKD 28.1 million[143] - The group’s cash flow from financing activities generated a net cash inflow of HKD 52.9 million for the six months ended September 30, 2023[180] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.095 per share, increasing the payout ratio to approximately 75%[79] - The board has declared an interim dividend of HKD 0.095 per share for the six months ended September 30, 2023, compared to HKD 0.051 per share in 2022[171] Operational Insights - The company has increased its production capacity in Vietnam to meet customer demand and enhance operational agility[75] - The company is facing challenges in its Myanmar manufacturing facility due to political considerations affecting customer purchasing decisions[100] - The company plans to continue innovating and enhancing product design capabilities to meet changing customer preferences in rapidly evolving end markets[101] Market Conditions and Future Outlook - The company expects a long-term growth rate of 3.00% per annum based on economic factors such as GDP growth and inflation[42] - The group anticipates further delays in production and sales orders from its Myanmar production base due to ongoing economic and political uncertainties[110] - The company is committed to enhancing renewable energy levels at production bases in response to energy-saving initiatives in mainland China[101]

Financial Performance - For the fiscal year ending March 31, 2023, the company reported revenue of HKD 4,602.3 million, a 13.9% increase from HKD 4,040.5 million in the previous fiscal year[15]. - The net profit for the fiscal year was HKD 158.3 million, down from HKD 275.6 million in the previous year, while adjusted net profit increased by 45.3% to HKD 379.3 million[10]. - The gross profit margin decreased to 16.2% in the fiscal year 2023 from 17.5% in fiscal year 2022, with gross profit recorded at HKD 745.5 million[27]. - The company’s sales cost for the fiscal year was HKD 3,856.8 million, which includes inventory costs and direct labor costs[16]. - The group’s gross profit increased slightly by 5.6% to HKD 745.5 million, while the gross profit margin decreased from 17.5% in FY2022 to 16.2% in FY2023[51]. - The company’s financial expenses increased to HKD 43.2 million from HKD 23.9 million in the previous year, impacting overall profitability[14]. - Other income increased significantly from a loss of HKD 1.0 million to a gain of HKD 76.5 million, primarily due to currency exchange gains and the sale of fixed assets[18]. - Other income rose from HKD 20.5 million to HKD 48.9 million, an increase of 28.4 million, primarily due to a HKD 17.6 million increase in government subsidies and a HKD 13.2 million increase in insurance income[73]. Market Conditions - The company experienced a 12.9% decline in textile and apparel export value in Vietnam during the second half of the fiscal year, compared to a 14.5% growth in the previous fiscal year[8]. - The demand for textiles slowed down in the second half of FY2023 due to high inventory levels among global brand clients and concerns over global economic recession[52]. - The overall economic environment remains uncertain, impacting consumer demand and purchasing patterns in the textile industry[52]. - In the first half of the fiscal year 2023, the total export value of textile products from mainland China increased by 10.2%, but fell by 12.2% in the second half compared to a 36.4% growth in the fiscal year 2022[64]. - The company anticipates that consumer demand for clothing products in mainland China will rise to more normal levels following the easing of COVID-19 restrictions[77]. Operational Strategies - The company plans to expand its production capacity in central Vietnam to capitalize on growing opportunities in the region[11]. - The management team successfully restored production capacity at the Vietnam factory to normal levels and improved operational efficiency during FY2023[50]. - The company continues to enhance its capabilities and efficiency in Vietnam to provide better services to customers[63]. - The company plans to continue innovation and digital breakthroughs in production processes to meet changing market preferences[34]. - The company is focusing on enhancing product quality and strengthening customer relationships in its new weaving and dyeing fabric business[67]. Cost Management - Sales and distribution expenses, along with general and administrative expenses, recorded a slight decrease as a percentage of revenue, reflecting effective cost management[39]. - The group experienced cost pressures from rising raw material prices, but labor costs and subcontracting expenses as a percentage of revenue slightly decreased due to normalization of labor conditions[51]. Shareholder Returns and Dividends - The board declared a second interim dividend of HKD 0.6 per share, maintaining a stable total dividend for the year, reflecting confidence in future development[66]. - The company declared an interim dividend of HKD 0.6 per share for the year ending March 31, 2023, expected to be paid on July 25, 2023[95]. - The board plans to distribute at least 35% of distributable profits to shareholders, subject to certain conditions[118]. - The group aims to maintain stable shareholder returns through effective financial management despite market factors beyond its control[63]. Environmental and Social Responsibility - The company aims to reduce carbon emissions by 10.5% and energy consumption by 4.3% by 2031[139]. - The company has adopted an environmental protection policy to minimize its impact on the environment by reducing water and electricity consumption[131]. - The company is committed to ensuring the health and safety of its employees and complies with all occupational health and safety laws[135]. - The company provides competitive compensation and additional bonuses based on employee performance and contributions to growth[134]. - The company emphasizes equal opportunities for all employees, assessing them based on ability and performance rather than personal characteristics[134]. Corporate Governance - The company has complied with the mandatory provisions of the corporate governance code as of March 31, 2023[153]. - The company has engaged auditors to review ongoing related party transactions under raw material procurement agreements[130]. - The company has established a dividend policy but does not guarantee specific dividend payments for any given period[118]. - The company has sufficient public float as of March 31, 2023, ensuring compliance with listing requirements[127]. Stock Options and Share Capital - The company has implemented a stock option plan to incentivize eligible participants[147]. - The total number of shares that may be issued under the stock option plan is capped at 10% of the shares issued post-listing, which amounts to a maximum of 200,000,000 shares[164]. - The total number of shares available for issuance under the stock option plan is 49,504,000, accounting for 2.17% of the company's issued share capital as of March 31, 2023[183]. - The maximum number of stock options that can be granted to any eligible participant within a 12-month period cannot exceed 1% of the company's issued share capital[183]. - The exercise price of any stock option must be determined by the board and cannot be less than the higher of the closing price on the grant date or the average closing price over the preceding five trading days[168]. - The company must seek shareholder approval at a general meeting for any further grants of stock options that exceed the current cap[165]. - No stock options were granted under the stock option plan during the fiscal year ending March 31, 2023[186]. - As of March 31, 2023, the number of stock options available for grant under the plan is 110,600,000, representing approximately 4.85% of the company's existing issued share capital[186]. Shareholder Structure - Major customers accounted for 70.0% of sales, with the largest supplier contributing 29.8% to procurement[100]. - The major shareholder, Mr. Wang Ting-Chung, and his family hold over 60% of the company's shares, ensuring management control[150]. - South Xuan Investment Limited holds 1,500,000,000 shares, fully owned by Ting Huai Asset Limited, which is a trust established by Mr. Wang Ting Cong[194]. - Mr. Wang Ting Cong is recognized as having interests in the shares held by Ting Huai Trust, as he is the grantor and protector of the trust[195].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就 因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損 失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：1982） 截 至2023年3月31日 止 年 度 的 全 年 業 績 公 告 財務摘要 截至3月31日止年度 2023年 2022年 變動 百萬港元 百萬港元 收益 4,602.3 4,040.5 +13.9% 毛利 745.5 706.1 +5.6% 毛利率 16.2% 17.5% -1.3個 百分點 純利 158.3 275.6 -42.6% 本公司擁有人應佔溢利 134.8 263.3 -48.8% 經調整純利（附註） 379.3 261.1 +45.3% ...