Investment Rating - The report assigns a "Not Rated" (NR) investment rating to Nameson (01982.HK) [3][16]. Core Insights - Nameson is expanding its cashmere yarn business through a joint venture with its largest supplier, Hebei Yuteng, which is expected to enhance production capacity and meet potential demand from Southeast Asia [6][16]. - The company anticipates a capital expenditure of approximately $8 million for the new factory, with the first phase of production (around 300 tons) expected to commence in 2026 [6]. - Despite an increase in sales volume, the average selling price (ASP) may decline due to lower raw material prices and the expiration of long-term agreements, potentially impacting revenue stability [7][11]. - The company has reported a steady order visibility and order book compared to the previous year, indicating potential for future growth despite cautious financial guidance from clients [7][11]. Financial Summary - Revenue for the fiscal year 2022/23 was reported at HKD 4,602.3 million, reflecting a year-on-year growth of 13.9% [11]. - Gross profit for the same period was HKD 745.5 million, with a gross margin of 16.2% [11][12]. - Net profit for 2022/23 was HKD 158.3 million, showing a significant decline of 42.6% compared to the previous year [11][12]. - The company’s return on equity (ROE) for 2022/23 was 6.2%, down from 11.0% in 2021/22 [12][13]. Market Comparison - Nameson has a market capitalization of HKD 1,572.8 million, with a price-to-earnings (P/E) ratio of 7.6, which is lower than the average P/E of 13.7 for comparable companies [18]. - The average gross margin for comparable companies is 17.4%, while Nameson’s gross margin stands at 16.2% [18].

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% ...

Financial Performance - For the first half of the fiscal year 2023, the company reported revenue of HKD 3,099.4 million, reflecting a growth of 11.0% compared to the previous year[12]. - The gross profit for the same period was HKD 527.6 million, with a gross margin of 17.4%[15]. - The profit attributable to the owners of the company was HKD 270.9 million, representing an increase of 18% year-on-year[16]. - The adjusted net profit for the first half of the fiscal year was HKD 342.9 million, with an adjusted net profit margin of 11.1%[17]. - The company's revenue for the first half of the 2023 fiscal year increased by 26.4% to HKD 3,099.4 million compared to the same period in 2022[23]. - Net profit rose by 25.6% to HKD 255.1 million, while adjusted net profit surged by 78.9% to HKD 342.9 million, with an adjusted net profit margin increasing from 7.8% to 11.1%[27]. - Revenue for the six months ended September 30, 2022, was HKD 3,099,367, an increase of 26.4% compared to HKD 2,452,469 in 2021[180]. - Gross profit for the same period was HKD 516,400, representing a gross margin of 16.7%[180]. - Operating profit increased to HKD 320,470, up 31.5% from HKD 243,659 in the previous year[180]. - The company reported a profit attributable to owners of HKD 232,848,000 for the period, compared to HKD 203,075,000 in the previous year, marking an increase of about 14.6%[197]. Market Conditions - The company experienced a temporary rebound in consumer sentiment due to the easing of social distancing measures in key markets such as Japan, the United States, and Europe[21]. - The ongoing geopolitical tensions and inflationary pressures have impacted global economic conditions, affecting consumer spending[21]. - The company anticipates continued uncertainty in the global market due to rising interest rates and fluctuating raw material prices, prompting a cautious approach[28]. Manufacturing and Operations - The company’s manufacturing facility in Vietnam has fully resumed production, allowing it to meet customer demands during lockdowns in various cities in mainland China[21]. - The company aims to diversify risks by maintaining manufacturing capabilities in both mainland China and Vietnam[21]. - The company plans to enhance productivity at its Vietnam manufacturing base and expand customer service functions in response to increasing demand[28]. - The company is focused on integrating renewable energy into its production facilities to improve energy efficiency and support environmental protection initiatives[31]. - The company aims to increase its overseas production ratio to adapt to changing customer procurement preferences, particularly in light of trade tensions between China and the U.S.[31]. Sales and Pricing - The average selling price of men's and women's knitted products rose by 23.3% to HKD 136.2 per piece, with total sales volume increasing to 18.7 million pieces[23]. - Sales of men's and women's knitted products rose by 4.5% in volume from 17.9 million pieces to 18.7 million pieces, with the average selling price increasing by 23.3% from HKD 110.5 to HKD 136.2 per piece[40]. Income and Expenses - The company has experienced a significant increase in other income, primarily from the sale of upgraded machinery and foreign exchange gains[26]. - Other income rose from HKD 13.1 million to HKD 29.6 million, mainly due to an increase in insurance claims and government subsidies[44]. - Selling and distribution expenses slightly increased from HKD 23.3 million to HKD 23.7 million, mainly due to rising transportation costs[46]. - General and administrative expenses decreased from HKD 169.9 million to HKD 168.4 million, reflecting ongoing cost control measures despite business expansion[47]. Impairment and Valuation - The impairment loss for the Myanmar production base amounted to HKD 109.0 million due to a reassessment of business development prospects amid economic challenges[48]. - The company engaged an independent valuation firm to assess the recoverable amount of the Myanmar cash-generating unit, leading to the recognition of the impairment loss[52]. - The company’s valuation as of September 30, 2022, using the income approach, was HKD 298.4 million, down from HKD 429.6 million as of March 31, 2022[54]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended September 30, 2022, was HKD 168.4 million, compared to a net cash used of HKD 166.9 million for the same period in 2021[73]. - The company’s investment activities generated a net cash inflow of HKD 28.9 million, primarily from the sale of properties, plants, and equipment[74]. - As of September 30, 2022, the net cash used in financing activities was HKD 26.8 million, primarily due to dividend payments of HKD 34.2 million, partially offset by an increase in bank borrowings and lease liabilities of HKD 6.2 million[75]. - The company incurred a net cash outflow from investing activities of HKD 28,876,000, a significant improvement from HKD 56,569,000 in the prior year, indicating better capital management[200]. Shareholder Information - The company declared an interim dividend of HKD 0.051 per share for the six months ended September 30, 2022, compared to HKD 0.042 per share in 2021, representing a 21.4% increase[108]. - Major shareholder South旋 Investment Limited holds 1,500,000,000 shares, accounting for 65.81% of the issued share capital[131]. - The total number of ordinary shares issued as of September 30, 2022, is 2,279,392,000 shares[125]. Governance and Compliance - The board of directors emphasizes high-quality governance and compliance with corporate governance codes, maintaining adherence to all mandatory provisions as of September 30, 2022[109]. - The company’s audit committee consists of three independent non-executive directors, responsible for overseeing financial reporting and internal controls[112].

Financial Performance - For the fiscal year 2022, the total export value of China's knitting industry increased by 23.1% compared to the previous fiscal year, with a significant growth of 36.4% in the export value of knitted products [15]. - Vietnam's textile and apparel export value reached a ten-year high, growing by 14.5% compared to the previous fiscal year, as the country gradually lifted COVID-19 restrictions [16]. - In FY2022, the sales volume of men's and women's knitted products decreased by 6.5% to 29.0 million pieces compared to the previous fiscal year [19]. - The average selling price of men's and women's knitted products increased by 1.8% to HKD 110.4 per piece, despite a slight decline in high-priced cashmere sweater sales [19]. - Total revenue for FY2022 grew by 5.0% to HKD 4,040.5 million, driven by increased sales of cashmere yarn and fabrics [19]. - Operating profit decreased by 7.7% to HKD 339.4 million due to increased costs related to COVID-19 measures and new fabric business [20]. - Net profit for FY2022 slightly declined by 7.6% to HKD 275.6 million, with a net profit margin dropping from 7.8% to 6.8% [20]. - The company's revenue increased by 5.0% from HKD 3,848.6 million in 2021 to HKD 4,040.5 million in 2022, primarily due to higher sales of cashmere yarn [29]. - The gross profit for 2022 was HKD 706.1 million, with a gross margin of 17.5%, down from HKD 701.4 million and 18.2% in 2021 [32]. - The company reported a net profit of HKD 275.6 million for 2022, down from HKD 298.4 million in 2021 [28]. Strategic Management - The company maintained a strategic presence in both China and Vietnam, which facilitated effective management during turbulent macroeconomic conditions [16]. - The company emphasized the importance of flexible production management to adapt to the unstable situations in Vietnam and China, optimizing strategies in collaboration with customers [16]. - The management team responded quickly to challenges posed by the COVID-19 pandemic, minimizing negative impacts on the company's operations [11]. - The company aims to adapt to rapidly changing market conditions by collaborating with ethically and financially sound customers and suppliers [15]. - The production capacity at the Vietnam facility is expected to exceed that of the mainland China facility in the coming year, aligning with the strategy to increase overseas production [22]. - The company is focused on innovation and product development to meet rapidly changing customer preferences, despite facing challenges in the market [23]. - The company is exploring new market opportunities and strategies for expansion, leveraging its existing resources and expertise [79]. Corporate Governance - The board consists of four executive directors and four independent non-executive directors, ensuring compliance with listing rules [104]. - The company has maintained high standards of corporate governance, adhering to all mandatory provisions of the corporate governance code [99]. - The board of directors confirmed compliance with the corporate governance code regarding continuous professional development, with all directors participating in relevant training courses [128]. - The company emphasizes the importance of timely communication and transparency with shareholders and investors as a key part of good corporate governance [129]. - The company provides directors and senior management with liability insurance for legal actions arising from corporate activities [127]. - The company encourages active participation from directors in board matters, providing sufficient information for informed decision-making [109]. Risk Management - The company identifies significant risk areas and takes appropriate measures to manage and mitigate these risks, improving its business operations [135]. - The risk management framework follows a "three lines of defense" model, involving operational management, risk management functions, and internal audit mechanisms [137]. - The company faces significant risks from uncontrollable factors such as US-China trade policies, international political environment, and exchange rate fluctuations, which may increase downward risks [150]. - The company has adopted measures to strengthen its internal control system and ensure compliance with applicable laws and regulations, including regular training for employees on social security and housing fund responsibilities [152]. Market Expansion - The company is expanding its cashmere yarn production in China, weaving and dyeing fabric production in Vietnam, and establishing a new knitting product production base in Myanmar to diversify revenue and customer base [151]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years [90]. - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and increase customer base by 30% [86]. Sustainability Initiatives - The management team emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon footprint by 2025 [88]. - Sustainable materials are being incorporated into product development to enhance environmental protection [96]. Shareholder Engagement - The company aims to distribute at least 35% of distributable profits to shareholders, subject to certain limitations and conditions [171]. - The company encourages shareholders to attend annual general meetings to directly query the board [131].

南旋控股有限公司 Nameson Holdings Limited (於開曼群島註冊成立的有限公司) 股份代號 : 1982 中期報告 20 | --- | --- | --- | --- | |----------------------------------------|---------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 資 料 摘 要 報 告 層 討 論 及 分 析 錄 | 2 4 5 8 | | | | 資 料 | 1 7 | | | | 綜 合 全 面 收 入 表 | 2 7 | | | | 綜 合 資 產 負 債 表 | 2 9 | | | | 綜 合 權 益 變 動 表 | 3 1 | | | | 綜 合 現 金 流 量 表 | 3 2 | | | | 綜 合 中 期 財 務 資 料 附 註 | 3 3 | | | | | | | | 目 公司資料 | --- | --- | |---------------------------------------------- ...

Market Impact and Performance - In the fiscal year 2021, the overall market was significantly impacted by the COVID-19 pandemic, with China's total export value increasing by 41.1%[12] - Despite challenges, the sales volume of men's and women's knitted products decreased by 10.1% to 31.0 million pieces in fiscal year 2021[13] - The export value of China's knitted products recorded a decline of 3.5% in fiscal year 2021, despite significant growth in the second half of the year due to other Southeast Asian countries facing intensified COVID-19 outbreaks[12] - Vietnam's textile and apparel exports experienced an 8.5% decline in fiscal year 2021, marking the first drop in twenty years, yet production continued to grow as expected[12] - Total revenue decreased by 14.1% from HKD 4,480.7 million to HKD 3,848.6 million in the fiscal year 2021[16] - The group's revenue decreased by 14.1% from HKD 4,480.7 million for the year ended March 31, 2020, to HKD 3,848.6 million for the year ended March 31, 2021, primarily due to a decline in sales of men's and women's knitted products[25] Financial Performance - Gross profit increased by 1.6% to HKD 701.4 million, with a gross margin improvement from 15.4% to 18.2%[16] - Operating profit surged by 55.5% to HKD 367.6 million, with an operating margin increase from 5.3% to 9.6%[17] - Profit attributable to shareholders rose by 99.8% to HKD 313.7 million, with adjusted net profit growth of 25.2% to HKD 305.5 million[17] - Adjusted net profit rose from HKD 244.0 million for the year ended March 31, 2020, to HKD 305.5 million for the year ended March 31, 2021, with an adjusted net profit margin increasing from 5.4% to 7.9%[47] - Financial costs decreased due to lower market interest rates and prudent cash management[17] Operational Efficiency and Strategy - The company focused on balancing employee health risks while managing production layouts and adjusting to customer sales plans during the pandemic[13] - The company reported that its efforts to improve operational efficiency contributed to better overall performance despite the pandemic's challenges[13] - The company aims to continue expanding its market presence and exploring new strategies for growth[3] - The company plans to enhance production efficiency in Vietnam to meet customer procurement demands[19] - The company aims to increase its overseas production ratio to adapt to changing customer procurement preferences[19] Risk Management and Challenges - The company faces significant risks from uncontrollable factors such as US-China trade policies, international political environment, and exchange rate fluctuations, which could affect business operations[172] - The ongoing global economic uncertainty post-COVID-19 is expected to severely impact customers' financial and sales situations, directly affecting the company's short to medium-term business and financial conditions[172] - The company acknowledges that rising shipping costs and delays due to global container shortages and changes in shipping methods could adversely affect its business and financial status[173] - The company has identified six categories of risks, including strategic, financial, operational, compliance, external environment, and talent capital, and regularly assesses their potential impact and likelihood[169] Corporate Governance and Management - The company has a strong board of directors with extensive experience in finance, banking, and risk management, including members with over 40 years in the banking sector[91] - The independent non-executive directors bring diverse backgrounds, including government service and legal expertise, enhancing corporate governance[92][93] - The company emphasizes the importance of corporate governance and risk management, as evidenced by the backgrounds of its board members[91][92] - The board's composition reflects a commitment to diversity and inclusion, with members from different professional backgrounds and experiences[92][93] - The company has a structured approach to internal controls and risk management, ensuring accountability to shareholders[110] Community Engagement and Social Responsibility - The group donated over HKD 3 million to non-profit organizations and received various awards for community support, including the InnoESG Award from Society Next Foundation[80] - The group actively engages in community care initiatives, including donations of masks to local schools and support for low-income families in Vietnam[80] - The group’s charitable donations amounted to approximately HKD 3.1 million for the year ending March 31, 2021, compared to HKD 1.4 million in 2020[192] Future Outlook and Growth Plans - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 10% to 12%[100] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[100] - Market expansion plans include entering three new countries by the end of the fiscal year, targeting a potential market of 10 million users[100] - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[100] Employee Management and Development - The group emphasizes employee training to maintain and enhance expertise in knitted product manufacturing, ensuring continuous development and skill enhancement[77] - The group is committed to providing various employee benefits, including performance-linked bonuses, insurance, and medical coverage[77] - The compensation policy for directors and senior management is based on individual performance and experience, aligned with salary trends in Hong Kong, mainland China, and Vietnam[78]

Financial Performance - For the six months ended September 30, 2020, the company reported a revenue of HKD 2,295 million, a decrease of 14.1% compared to the previous year[26]. - Total revenue decreased by 24.2% to HKD 2,295.1 million for the six months ended September 30, 2020, compared to HKD 3,026.7 million in the same period last year[28]. - The group’s net profit attributable to owners decreased by 12.0% to HKD 238.5 million, while total sales revenue declined by 24.2% due to weakened global demand for knitted products caused by COVID-19[59]. - Net profit decreased by 12.0% to HKD 238.5 million, with a net profit margin improvement to 10.4% from 9.0% in the previous year[32]. - The company reported a net profit of HKD 238,486,000 for the period, compared to a loss of HKD 9,401,000 in the previous period, marking a significant turnaround[172]. - The company reported a total comprehensive income of HKD 202,131 for the period, down from HKD 261,483 in 2019[158]. Profitability Metrics - The gross profit for the same period was HKD 484.2 million, resulting in a gross margin of 21.1%[12]. - Gross profit declined by 17.6%, with a gross margin improvement to 19.0% from 17.4% in the previous year[28]. - Operating profit margin slightly increased to 12.4% from 11.5% year-on-year, despite a decrease in overall sales[32]. - Adjusted net profit decreased from HKD 271.7 million to HKD 235.0 million, but the adjusted net profit margin improved from 9.0% to 10.2%[60]. Sales and Market Trends - Sales volume for men's and women's knitted sweaters was 18.3 million pieces, a decline of 14.1% year-on-year[27]. - The company experienced a 4.6% increase in total exports from China, despite an 18.6% drop in knitted garment exports during the same period[26]. - The overall order situation was impacted by lockdowns in the US and Europe, but sales rebounded significantly after stores reopened in Japan and China[27]. - The company is focusing on market expansion and adapting to new consumer behaviors in response to the COVID-19 pandemic[26]. Cost Management and Efficiency - The company is focusing on managing expenses and optimizing resource allocation amid challenging market conditions[32]. - Selling and distribution expenses decreased from HKD 25.9 million to HKD 20.0 million, reflecting a reduction in sales volume of men's and women's knitted products[52]. - General and administrative expenses decreased from HKD 180.1 million to HKD 158.8 million, mainly due to cost control measures implemented in response to the COVID-19 pandemic[53]. Cash Flow and Liquidity - Cash generated from operating activities for the six months ended September 30, 2020, was HKD 269.8 million, down from HKD 320.1 million in the previous year[63]. - Cash and cash equivalents increased by HKD 93.4 million, compared to an increase of HKD 175.4 million in the same period last year[63]. - The net cash generated from operating activities for the six months ended September 30, 2020, was HKD 269.8 million, primarily due to a profit before tax of HKD 265.5 million, adjusted for inventory reduction of HKD 247.3 million and a decrease in other receivables of HKD 128.9 million[64]. Capital Expenditures and Investments - Capital expenditures for the six months ended September 30, 2020, amounted to approximately HKD 156.5 million, primarily related to machinery procurement and the construction of new production bases in Vietnam and Myanmar[75]. - The net cash used in investing activities for the same period was HKD 146.0 million, mainly for the acquisition of property, plant, and equipment amounting to HKD 147.2 million[65]. Shareholder Information - The board has proposed an interim dividend of HKD 0.038 per share to affirm shareholder support[32]. - The interim dividend declared for the six months ended September 30, 2020, is HKD 0.038 per share, down from HKD 0.043 per share in 2019[95]. - The company’s major shareholder, Mr. Wang Ting Tsung, holds a trust beneficiary interest in 1,500,000,000 shares, representing 65.8% of the issued share capital[108]. Employee and Governance - The company employed approximately 14,600 full-time employees across mainland China, Vietnam, and Hong Kong as of September 30, 2020[91]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange and has complied with all mandatory provisions[96]. - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of the company[96]. Financial Risks and Management - The group faces various financial risks, including market risk (foreign exchange and cash flow interest rate risk), credit risk, liquidity risk, and price risk[190]. - The group has not made any changes to its risk management policies since March 31, 2020[191]. - The group is currently assessing the impact of newly issued and revised standards, with preliminary conclusions indicating that their adoption is not expected to have a significant impact on the group's operating performance or financial position[186].