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 全部或任何部份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。 Regina Miracle International (Holdings) Limited 維珍妮國際（控股）有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：2199） 截 至2023年9月30日止六個月的 中期業績公告 | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------|--------------------------|---------------------|-------------------------|--------------------------------------|----------------------------- ...

Financial Performance - For the fiscal year 2023, Regina Miracle reported a total revenue of HKD 2.1 billion, representing a 10% increase compared to HKD 1.9 billion in fiscal year 2022[20]. - Revenue for Fiscal 2023 was approximately HK$7,879.3 million, a decrease of 5.6% compared to HK$8,346.7 million in Fiscal 2022[26]. - Net profit for the year was HK$383.3 million, with an operating profit of HK$787.8 million, reflecting a year-on-year increase of 3.8%[26]. - Basic earnings per share decreased to HK31.3 cents from HK42.5 cents in the previous year[22]. - The Group recorded revenue of approximately HK$7,879.3 million for the fiscal year, a year-on-year decrease of 5.6% from HK$8,346.7 million in Fiscal 2022[57]. - Gross profit decreased by 7.0% to approximately HK$1,902.1 million, with a gross profit margin of 24.1%, down 0.4 percentage points from 24.5% in Fiscal 2022[57]. - Net profit decreased from approximately HK$520.7 million in Fiscal 2022 to approximately HK$383.3 million in Fiscal 2023, resulting in a net profit margin decline from 6.2% to 4.9%[86]. - The Group's adjusted EBITDA decreased by 0.2% to approximately HK$1,385.4 million, with an adjusted EBITDA margin of 17.6%, up 1.0 percentage point from 16.6% in Fiscal 2022[57]. Market Expansion and Strategy - The company plans to enter new markets in Southeast Asia, targeting a 25% growth in market share over the next three years[4]. - Regina Miracle's strategic partnerships with international brands contributed to 70% of its total revenue, highlighting the importance of brand collaborations[20]. - The company is exploring potential acquisitions to enhance its product portfolio and market presence, with a focus on complementary brands in the intimate wear sector[4]. - The company anticipates business growth momentum in the first and second quarters of the new fiscal year, expecting a half-on-half improvement for the first six months[51]. - The Group plans to redeploy production space from the footwear business to the seamless bonding apparel business, expecting rapid growth in this category to offset income shortfalls[90]. - The Group aims to leverage industry reshuffling to increase cooperation with domestic brands and expand revenue from the Chinese market[98]. Production and Efficiency - The company expanded its production capacity in Vietnam, which has been a key driver for its export business growth since 2016[4]. - Focus has shifted from capacity expansion to improving overall efficiency, with initiatives in production automation and supply chain localization[32]. - The establishment of a new production base in Zhaoqing, Guangdong, will commence operations in phases in the upcoming fiscal year, replicating past successes in production efficiency[33][34]. - The Group is enhancing production capacity through automation, digitalization, and supply chain localization to improve efficiency and reduce costs[66]. - The Group aims to maintain production scale with approximately 20% less manpower if sales volumes return to peak levels, reflecting improved production efficiency[92]. Sustainability and Corporate Responsibility - Regina Miracle aims to achieve a 20% reduction in carbon emissions by 2030 as part of its commitment to sustainable development[4]. - The company has received multiple awards for its commitment to sustainability, including recognition as one of the "Top 100 Sustainable Businesses in Vietnam" and a "Green Factory" honor for its Shenzhen facility[46]. - The company is committed to corporate social responsibility, focusing on carbon reduction, waste management, and sustainable innovation[42][45]. - Regina Miracle has set clear sustainable development goals in carbon reduction, waste management, sustainable innovation, and community engagement under the "2030 Sustainable Development Agenda"[102]. Challenges and Market Conditions - Challenges faced include tightened monetary policies, high inflation, and reduced demand in developed economies, impacting consumer sentiment[24]. - The textile and retail industries are undergoing a destocking cycle, leading to adjustments in performance across all segments[24]. - The company achieved record high revenue in the first half of the fiscal year, but faced a significant decrease in order volume in the second half due to inflationary pressures and high inventories among brand partners[54]. Leadership and Governance - The company has a strong leadership team with extensive experience in their respective fields, enhancing operational efficiency and innovation[106]. - The Group's Chairman, YY Hung, was recognized as one of the "2023 Greater Bay Area Best 30 ESG Entrepreneurs" by Forbes China, highlighting the Group's leadership and innovation[102]. - The Board comprises five executive Directors and three independent non-executive Directors, ensuring a strong independence element in its composition[192]. - The company emphasizes good corporate governance practices, which are essential for effective management and enhancing shareholder value[190]. Research and Development - The company has invested HKD 50 million in R&D for new product development, focusing on innovative intimate wear technologies[4]. - The Group's focus on R&D and product design is expected to drive future growth and market expansion[104]. - The latest seamless bonding technology will be promoted to expand its application from intimate wear to outerwear, enriching the product portfolio[93]. Financial Management - The Group's total undrawn banking facilities amounted to approximately HK$3,783.6 million as of March 31, 2023, compared to HK$2,371.0 million on March 31, 2022[57]. - The Group's income tax expense was approximately HK$73.0 million in Fiscal 2023, down from HK$96.8 million in Fiscal 2022[86]. - The Group's financial reporting is overseen by Mr. Law, who has approximately 22 years of experience in auditing and corporate finance[120].

Financial Performance - Total revenue for the fiscal year ended March 31, 2023, was HKD 7,879,287, a decrease of 5.6% from HKD 8,346,728 in 2022[2] - Gross profit for the same period was HKD 1,902,111, representing a gross margin of 24.1%, down from 24.5% in the previous year[2] - Operating profit increased by 3.8% to HKD 787,819, compared to HKD 758,747 in 2022[2] - Profit attributable to owners of the company was HKD 383,258, a decline of 26.4% from HKD 520,694 in the prior year[2] - Basic and diluted earnings per share decreased to 31.3 HK cents from 42.5 HK cents[2] - The company proposed a final dividend of 1.8 HK cents per share, down from 7.2 HK cents in the previous year[2] - The company reported a net profit of HKD 383,258,000 for the fiscal year, compared to HKD 520,694,000 in the previous year, reflecting a decline of approximately 26.4%[18] - The group recorded a decrease in net profit from approximately HKD 520.7 million in FY2022 to approximately HKD 383.3 million in FY2023, resulting in a net profit margin decline from 6.2% to 4.9%[68] - The adjusted EBITDA for the year was approximately HKD 1,385.4 million, with an adjusted EBITDA margin of 17.6%, up from 16.6% in 2022[43] Assets and Liabilities - Total assets as of March 31, 2023, were HKD 8,682,290, a decrease from HKD 9,419,772 in 2022[7] - Total liabilities decreased to HKD 5,135,028 from HKD 5,783,515 in the previous year[8] - Non-current assets decreased to HKD 4,246,304 from HKD 4,537,707 in 2022[7] - Cash and cash equivalents were HKD 675,028, down from HKD 995,030 in the previous year[7] - Trade receivables for 2023 amount to HKD 710,534,000, a decrease of 38% from HKD 1,146,208,000 in 2022[36] - The group’s net debt as of March 31, 2023, was approximately HKD 3,283.5 million, slightly up from HKD 3,269.0 million as of March 31, 2022[68] Market Segments - The group operates five segments: intimate apparel, sports products, consumer electronics accessories, molded products, and footwear, with a focus on manufacturing and trading[15] - Revenue from the United States market was HKD 3,810,347,000, down from HKD 4,324,706,000, a decrease of about 11.9%[21] - The intimate apparel segment generated revenue of approximately HKD 4,424.8 million, a decrease of 6.2% from HKD 4,716.0 million in the previous fiscal year, accounting for 56.2% of total revenue[44] - The sports products segment reported revenue of approximately HKD 2,436.3 million, an increase of 11.2% from HKD 2,190.7 million in the previous fiscal year, representing 30.9% of total revenue[45] - The consumer electronics accessories segment saw revenue decline by 25.1% to approximately HKD 371.5 million from HKD 496.2 million, contributing 4.7% to total revenue[46] - The molded products segment, including cups and masks, experienced a revenue drop of 44.5% to approximately HKD 322.6 million from HKD 580.9 million, accounting for 4.1% of total revenue[47] - The footwear segment generated revenue of approximately HKD 324.0 million, a decrease of 10.7% from HKD 363.0 million, also representing 4.1% of total revenue[48] Cost and Expenses - Total sales cost decreased from HKD 6,301.3 million in 2022 to HKD 5,977.2 million in 2023, with the sales cost percentage of total revenue rising from 75.5% to 75.9%[54][56] - Overall gross profit decreased from HKD 2,045.4 million in 2022 to HKD 1,902.1 million in 2023, with the gross profit margin declining by 0.4 percentage points to 24.1%[57][58] - General and administrative expenses decreased from HKD 817.7 million in 2022 to HKD 701.7 million in 2023, with the percentage of total revenue dropping from 9.8% to 8.9%[61] - Research and development costs decreased from HKD 253.0 million in 2022 to HKD 235.8 million in 2023, maintaining a stable percentage of total revenue at 3.0%[62] Corporate Governance and Compliance - The company has complied with the corporate governance code throughout the year ended March 31, 2023[86] - The board of directors consists of five executive directors and three independent non-executive directors, ensuring a high level of independence[86] - The audit committee, composed of three independent non-executive directors, is responsible for overseeing the financial and accounting policies of the group[87] - The audit committee has reviewed the consolidated financial statements for the fiscal year 2023, ensuring compliance with accounting principles and internal controls[89] Future Outlook and Strategy - The group anticipates a gradual easing of high inflation and inventory pressures, which is expected to improve revenue on a quarter-on-quarter basis in the first half of FY2024[76] - The intimate apparel segment is expected to see a low double-digit recovery in the first half of FY2024, driven by a gradual recovery in orders from core international brand partners[77] - The group plans to strategically reduce production in the footwear segment, which is projected to decrease revenue by over 50% in the first half of FY2024[77] - The group aims to enhance production efficiency through increased automation and digital management, potentially maintaining production levels with approximately 20% fewer employees if sales return to previous peaks[78] - The group is focusing on expanding its core technology applications from intimate apparel to outerwear, leveraging its leading position in the market[79] Sustainability and ESG Efforts - The group has established clear sustainability goals under the "2030 Sustainable Development Agenda," focusing on carbon reduction, waste management, and sustainable innovation[83] - The group received multiple awards for its ESG efforts, including recognition from the Hong Kong Investor Relations Association for best investor relations and excellence in ESG[83] Employee and Workforce Management - As of March 31, 2023, the group employed approximately 37,015 full-time employees, a decrease from 45,385 employees on March 31, 2022[75] - Employee costs totaled approximately HKD 2,741.4 million, accounting for 38.5% of total revenue[75] - The group has optimized its workforce in Vietnam, reducing employee numbers from over 39,000 to approximately 31,600, while local employees now account for 98% of the workforce[50]

Financial Performance - Revenue for the first half of 2023 reached HKD 4,613,295, representing a 13.1% increase from HKD 4,080,615 in the same period last year[11]. - Gross profit increased by 19.2% to HKD 1,168,415, with a gross margin of 25.3%, compared to 24.0% in the previous year[11]. - Profit attributable to owners of the Company rose by 23.1% to HKD 312,965, with a profit margin of 6.8%[11]. - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 24.6% to HKD 811,016, reflecting a margin of 17.6%[11]. - The Group recorded revenue of approximately HK$4,613.3 million for the period, representing a year-on-year increase of 13.1%[18]. - Gross profit grew by 19.2% to approximately HK$1,168.4 million, with a gross profit margin up by 1.3 percentage points to 25.3%[18]. - EBITDA increased by 24.6% to approximately HK$811.0 million, with an EBITDA margin up by 1.7 percentage points to 17.6%[18]. - Net profit for the period was approximately HK$313.0 million, a year-on-year increase of 23.1%, with a net profit margin up by 0.6 percentage points to 6.8%[18]. - The Group's operating cash flows amounted to approximately HK$985.5 million during the period, significantly up from HK$422.9 million in the previous year[18]. - Net profit in 1HF2023 was approximately HK$313.0 million, an increase from approximately HK$254.3 million in 1HF2022, representing a growth of about 23%[50]. - The net profit margin improved to 6.8% in 1HF2023 from 6.2% in 1HF2022[50]. Segment Performance - The intimate wear segment contributed approximately HK$2,464.3 million in revenue, a year-on-year increase of 5.5%, accounting for 53.4% of the Group's total revenue[21]. - The sports products segment generated approximately HK$1,483.7 million in revenue, a 43.2% year-on-year increase, accounting for 32.2% of total revenue[23]. - Revenue from consumer electronics components increased by 11.0% year-on-year to approximately HK$258.3 million, accounting for 5.6% of the Group's total revenue[24]. - Revenue from bra pads and other moulded products decreased by 30.1% year-on-year to HK$213.0 million, representing 4.6% of total revenue[25]. - Footwear revenue rose by 13.5% year-on-year to approximately HK$193.9 million, accounting for 4.2% of total revenue[26]. - Revenue from intimate wear increased by 5.5% year-on-year, driven by higher sales volume of bras[32]. - Revenue from sports products surged by 43.2% year-on-year, primarily due to strong demand for sports-related products[32]. Cost and Expenses - Cost of sales increased from approximately HK$3,100.0 million in 1HF2022 to approximately HK$3,444.9 million in 1HF2023, primarily due to increased costs of raw materials and employee benefits[36]. - Cost of sales as a percentage of total revenue decreased from 76.0% in 1HF2022 to 74.7% in 1HF2023, attributed to improved production efficiency and increased revenue[36]. - Overall gross profit increased from approximately HK$980.6 million in 1HF2022 to approximately HK$1,168.4 million in 1HF2023, with a gross profit margin increase of 1.3 percentage points to 25.3%[39]. - Distribution and selling expenses increased from approximately HK$90.2 million in 1HF2022 to approximately HK$103.4 million in 1HF2023, remaining stable at 2.2% of total revenue[42]. - General and administrative expenses decreased from approximately HK$399.1 million in 1HF2022 to approximately HK$393.3 million in 1HF2023, representing a reduction of about 1.8%[43]. - General and administrative expenses as a percentage of total revenue decreased from 9.8% in 1HF2022 to 8.5% in 1HF2023, indicating improved operational efficiency[43]. - Finance costs increased from approximately HK$64.3 million in 1HF2022 to approximately HK$146.2 million in 1HF2023, an increase of about 127.5%[45]. - Finance costs as a percentage of total revenue rose from 1.6% in 1HF2022 to 3.2% in 1HF2023, reflecting the global trend of rising interest rates[45]. Market Outlook - The Group anticipates facing short-term challenges in the second half of the financial year due to increasing market pressures[15]. - Consumer sentiment is becoming increasingly cautious in some regions due to geopolitical conflicts and rising global inflation[15]. - The Group expects overall sales to decline by 10-20% year-on-year in the second half of the financial year, with full-year sales anticipated to remain flat or slightly decline[61]. - Revenue from the intimate wear sector is expected to record a teens level decline in the second half of the financial year, with a slight decline for the full year[60]. - Orders for sports products are projected to see a teens level decline year-on-year in the second half, while maintaining a slight double-digit growth for the full year[60]. - Significant year-on-year drops in revenue are expected for consumer electronics components and bra pads due to reduced orders from major overseas customers and weakening trends in brand partners[60][63]. Strategic Initiatives - The establishment of a joint venture with Victoria's Secret was completed on April 6, 2022, focusing on enhancing online operations and localization strategies[16]. - The Vietnam production base has optimized its organizational structure to improve cost efficiency and supply chain localization[16]. - The Group's Five-Year Plan (2022-2026) aims to drive steady sales growth through innovation and R&D, expand marginal profit, and maintain healthy cash flows while gradually lowering the debt ratio[65]. - The Group has achieved breakthroughs in craftsmanship innovation, enhancing product functionality and reducing labor costs, particularly through its proprietary technologies like RePersbond and ReMatrixPad[67]. - A series of flagship products featuring seamless bonding craftsmanship and innovative moulded cups have been successfully launched, receiving positive market feedback[70]. - The Group plans to implement measures to expand revenue and reduce expenses, including promoting innovative products and adjusting recruitment plans[62]. - The Group's innovative craftsmanship strategy aims to enhance competitiveness and achieve cost reduction and efficiency improvements, particularly through seamless bonding technology and injection moulded cups[71]. - The Group's strategic partnerships in materials and equipment development have created unique entry barriers, enhancing product differentiation[74]. - The Group plans to continue strengthening collaborations with traditional and e-commerce brand partners in the domestic lingerie market[77]. Sustainability and Development - The Group has set four sustainability goals for 2030, including carbon reduction and waste management, and has achieved outstanding results in relevant performance indicators during the period[78]. - The Group is committed to sustainable development goals while striving to create long-term value for shareholders and stakeholders[81]. Cash Flow and Investments - Net cash generated from operating activities increased by HK$562.6 million to approximately HK$985.5 million in 1HF2023 from approximately HK$422.9 million in 1HF2022[51]. - Net cash used in investing activities amounted to approximately HK$689.4 million in 1HF2023, primarily for investment in an associate and purchase of property, plant, and equipment[53]. - Net cash used in financing activities was approximately HK$394.8 million in 1HF2023, mainly due to repayment of borrowings and interest payments[53]. - Total capital expenditures for 1HF2023 were approximately HK$207.2 million, compared to HK$190.5 million in 1HF2022, mainly for production line additions and facility construction[56]. Employee and Operational Metrics - As of September 30, 2022, the Group employed 45,847 full-time staff, with total staff costs amounting to approximately HK$1,566.8 million, representing 34.0% of total revenue[58]. - Receivables turnover days improved from 49 days to 41 days as of September 30, 2022, indicating better working capital management[54]. - The average efficiency of the six plants in Vietnam improved during the period, contributing to the growth in the Group's gross profit[28]. - The production base in Vietnam has established significant regional and scale advantages, leading to improved production efficiency and reduced delivery lead times[72].

Financial Performance - Regina Miracle reported annual results for the fiscal year ended March 31, 2022, with comparative figures for the fiscal year 2021[23]. - Annual revenue increased by 39.7% year-on-year to approximately HK$8,346.7 million[29]. - Net profit reached approximately HK$520.7 million, reflecting significant growth[29]. - Proposed final dividend of HK$7.2 cents per share, alongside an interim dividend of HK$6.8 cents per share, totaling HK$14.0 cents for Fiscal 2022[29]. - EBITDA (excluding restructuring costs) increased by 232.0% to HK$581.8 million[24]. - Gross profit attributable to owners rose by 65.2% to HK$2,045.4 million[24]. - The Group's revenue reached a historical high, aligning with the five-year plan for fiscal years 2022-2026, indicating steady growth across key performance indicators[36]. - The Group's annual revenue reached a historic high, growing in line with its five-year plan[61]. - Gross profit grew by 65.2% to approximately HK$2,045.4 million, with a gross profit margin of 24.5%, up by 3.8 percentage points[65]. - EBITDA increased by 62.5% to approximately HK$1,333.8 million, with an EBITDA margin of 16.0%, up by 2.3 percentage points[65]. - Net profit surged by 314.8% to approximately HK$520.7 million, with a net profit margin of 6.2%, up by 4.1 percentage points[65]. - The Group's cash and cash equivalents amounted to approximately HK$995.0 million, up from HK$828.0 million in the previous fiscal year[65]. - The Group's reserves available for distribution to shareholders amounted to approximately HK$1,830.5 million as of 31 March 2022, an increase from HK$1,772.0 million in 2021[172]. Production and Operations - The company has two strategic production bases in Shenzhen, China, and Vietnam, enhancing its domestic and export market capabilities[4]. - The Group's major production base in Vietnam has been operational since 2016, supporting its export business growth[4]. - Approximately 80% of the Group's total production capacity is now based in Vietnam, which has become a sought-after production base due to its advantages in labor costs and trade agreements[41]. - The production base in Shenzhen will be relocated to Zhaoqing New District, with the move expected to be completed by the end of 2024, enhancing production efficiency[63]. - The Group's production capacity layout in Vietnam has been completed, transitioning from investment to efficiency enhancement, focusing on automation and digitalization[63]. - The Group's production capacity in Vietnam has multiple advantages, including scale and agility, enhancing its competitive edge in the global supply chain[119]. - The overall production capacity was minimally affected by temporary lockdowns and quarantine measures due to effective local government responses[83]. Sustainability and Innovation - Regina Miracle aims to achieve four key sustainability goals by 2030, focusing on carbon reduction, waste management, sustainable innovation, and community development[4]. - The Group aims to reduce carbon dioxide emissions by 30% from 2020 to 2030 as part of its sustainability goals, alongside maintaining zero landfill and developing sustainable materials[46]. - The Group incorporated ESG into the Board's responsibilities and established an ESG committee to oversee sustainability goals, focusing on six key issues aligned with the UN's 2030 Sustainable Development Goals[128]. - The company is committed to continuous upgrading of core technologies and maintaining technological barriers to lead industry trends and define new standards[112]. - The company has developed a diversified technological matrix based on three core technologies: computer-aided mold design and production, 3D compression molding, and seamless bonding, applicable across intimate wear, sports, and consumer electronics[112]. Market Strategy and Growth - The company utilizes an innovative design manufacturer (IDM) business model, leveraging core technologies such as computer-aided mold design and 3D compression molding[3]. - The Group is focusing on developing specialty products in the intimate wear segment, such as sanitary panties and nursing bras, to drive demand through innovative merchandise[35]. - The Group plans to replicate its successful experience in other business segments and strengthen cooperation with domestic brands to expand its domestic business[53][55]. - The Group's strategic focus on both domestic demand and exports has positioned it well to navigate the complexities of global competition[41]. - The Group's competitive advantages include world-leading innovative design manufacturing capabilities and strong relationships with top brand partners[58]. - The Group's strategic direction is supported by experienced professionals in finance, operations, and product development, positioning it for future growth[153]. Product Segmentation - Regina Miracle's product offerings include intimate wear, sports products, consumer electronics components, and footwear, catering to various market segments[3]. - The intimate wear segment revenue increased by 63.4% to approximately HK$4,716.0 million, accounting for 56.5% of total revenue[67]. - Sports products segment revenue rose by 37.2% to approximately HK$2,190.7 million, representing 26.3% of total revenue[69]. - Consumer electronics components revenue amounted to approximately HK$496.2 million, a significant year-on-year increase of 70.3%[72]. - Revenue from the bra pads and moulded products segment was approximately HK$416.9 million, a year-on-year increase of 57.7%, accounting for 5.0% of the Group's total revenue[74]. - Revenue from the consumer electronics accessories segment reached approximately HK$496.2 million, representing a 70.3% year-on-year increase and accounting for 5.9% of total revenue[75]. - Revenue from the footwear segment amounted to approximately HK$363.0 million, reflecting a 26.7% year-on-year increase and accounting for 4.3% of total revenue[76]. Leadership and Governance - The Group's executive team includes members with extensive experience in their respective fields, enhancing operational efficiency and strategic direction[40]. - The company has a strong governance structure with independent non-executive directors providing strategic guidance and oversight[140]. - The leadership team is well-connected within the industry, with members holding significant positions in various associations and committees[40]. - The management team expressed confidence in sustaining growth momentum and achieving the goals set in the five-year plan, aiming for a golden era of development[132]. - The company emphasizes the importance of experienced leadership in navigating the consumer products market[146]. Employee and Community Engagement - The Group employed approximately 45,385 full-time staff as of March 31, 2022, an increase from 43,710 staff in the previous year, with total staff costs amounting to approximately HK$2,895.1 million, representing 34.7% of total revenue[103]. - Vaccination rates for employees at production bases reached approximately 95% in Shenzhen and 90% in Hài Phòng, contributing to stable production operations[82]. - Charitable donations made by the Group during the year ended 31 March 2022 totaled HK$1.9 million, compared to HK$0.7 million in 2021[173]. Strategic Partnerships - The Group entered a strategic partnership with Tmall Intimate Wear and Tmall Innovation Center on May 20, 2022, to leverage digital intelligence and innovative R&D capabilities for market expansion in China[47][49]. - A joint venture was established with Victoria's Secret to operate its brand-related stores and online businesses in China, focusing on product, supply chain, and business operations[50][52]. - The Group aims to address challenges such as tight supply chains and rising raw material costs while emphasizing its technological and innovative strengths[110].

Financial Performance - For the six months ended September 30, 2021, the company reported revenue of HK$4,080,615, a 62.1% increase compared to HK$2,517,590 in the same period of 2020[12]. - Gross profit for the same period was HK$980,607, representing a 101.3% increase from HK$487,035 in the prior year[12]. - The company achieved a basic and diluted earnings per share of HK$20.8, compared to a loss of HK$2.6 in the previous year[12]. - The Group's revenue reached a historical high of approximately HK$4,080.6 million, representing a year-on-year increase of 62.1%[21]. - Gross profit grew by 101.3% to approximately HK$980.6 million, with a gross profit margin up by 4.7 percentage points to 24%[21]. - EBITDA increased by 125.7% to approximately HK$650.7 million, with an EBITDA margin up by 4.4 percentage points to 15.9%[21]. - The Group turned around to a net profit of approximately HK$254.3 million, with a net profit margin of 6.2%[21]. - The net profit for 1HF2022 was approximately HK$254.3 million, a significant increase from a net loss of approximately HK$32.4 million in 1HF2021, resulting in a net profit margin of 6.2%[58]. - Excluding one-off restructuring costs, the net profit was approximately HK$275.6 million in 1HF2022, with a net profit margin of 6.8%[58]. Market Demand and Growth - The market demand for traditional intimate wear products rebounded strongly, returning to pre-Pandemic levels, while sports products, especially sports bras, continued to show robust growth[14][15]. - The overall market demand returned to pre-Pandemic levels, with a strong rebound in orders for intimate wear products[14]. - Intimate wear segment revenue reached approximately HK$2,336.0 million, a year-on-year increase of 111.6%, accounting for 57.3% of total revenue[26]. - Sports products segment revenue amounted to approximately HK$1,036.4 million, representing a 58.6% year-on-year increase and accounting for 25.4% of total revenue[29]. - Consumer electronics components segment revenue increased by 104.0% to approximately HK$232.7 million, accounting for 5.7% of total revenue[30]. - Revenue from bra pads and moulded products reached approximately HK$193.1 million, a 63.1% year-on-year growth, accounting for 4.7% of total revenue[30]. - The Group identified significant growth opportunities in the sports underwear market, which has seen increased demand for both professional and casual products[75]. - The PRC market has shown notable growth, particularly in e-commerce underwear brands, driven by government initiatives promoting fitness and health[77]. Production and Operational Efficiency - The Group is optimizing its production layout in the PRC by relocating its mainland production base to the High-Tech Industrial Park in Zhaoqing New District[18]. - The Group's factories in China operated normally during the Pandemic, with operations in Vietnam unaffected due to effective local pandemic control measures[19]. - The Group added production lines in Vietnam to boost production capacity in response to robust demand from brand partners[34]. - The first phase of the facility in Hung Yen Province, Vietnam, commenced operation in April 2021, utilizing seamless knitting technology[34]. - The Group's production capacity is adequate to meet future order demands, with increased capacity utilization in Vietnamese facilities and plans for mass production in the new Zhaoqing Industrial Park by the end of 2023[95]. Financial Management and Investments - Operating cash flows surged to approximately HK$422.9 million during the Period, compared to HK$78.2 million in the previous year[22]. - Total capital expenditures for 1HF2022 amounted to approximately HK$316.7 million, up from HK$181.1 million in 1HF2021, primarily for production line additions and facility construction[61]. - Net cash used in investing activities was approximately HK$432.3 million in 1HF2022, mainly for the purchase of property, plant, and equipment[59]. - The Group's net debt was approximately HK$3,655.7 million as of 30 September 2021, with a net gearing ratio improving from 115.3% to 110.4% during the same period[58]. - The Group entered into a Sale and Purchase Agreement on November 12, 2021, for the disposal of a subsidiary for a total consideration of HK$120 million, which will improve liquidity and financial position[73]. Research and Development - Research and development costs rose from approximately HK$90.9 million in 1HF2021 to approximately HK$124.3 million in 1HF2022, mainly due to higher employee benefit expenses[52]. - The management team emphasized a strategy focused on innovation-driven development to meet consumer demands and market trends[100]. - The Group has developed a bio-based cotton material, certified by the FDA, which is widely recognized and adopted in the lingerie and sportswear sectors[79]. - Regina Miracle has maintained a strong focus on innovation, upgrading its three core technologies and establishing a Manufacture Innovation Center to enhance production efficiency and stability[81]. Sustainability and Future Strategies - Future strategies include a focus on sustainability through carbon reduction, waste management, and community engagement[100]. - The Group's strategic focus on sustainable development alongside profit maximization has positioned it well in a challenging macro environment[80]. - The management will continue to focus on sustainability initiatives, including carbon reduction and waste management, alongside business development[99]. Employee and Operational Management - The Group emphasizes employee training and performance evaluation to enhance employee stability and loyalty, which is crucial for service quality[71]. - Approximately 90% of employees at the Hài Phòng production base in Vietnam have received COVID-19 vaccinations, ensuring stable production operations[36]. - The Shenzhen factory in the PRC had a 100% vaccination rate among eligible employees, enhancing operational efficiency[38].

Financial Performance - For the fiscal year ended March 31, 2021, Regina Miracle reported revenue of HK$5,974,290, a decrease of 5.8% from HK$6,341,010 in fiscal 2020[9]. - Gross profit for the year was HK$1,237,953, representing 20.7% of revenue, down from 22.7% in the previous year, which was HK$1,440,731[10]. - EBITDA for fiscal 2021 was HK$820,593, accounting for 13.7% of revenue, compared to HK$969,745 or 15.3% in fiscal 2020, reflecting a decline of 15.4%[10]. - Profit attributable to owners of the Company was HK$125,515, a significant decrease of 56.7% from HK$289,953 in the prior year[10]. - Annual revenue decreased by 5.8% to approximately HK$5,974.3 million, with net profit amounting to approximately HK$125.5 million[13]. - The Group's net profit for the year was approximately HK$125.5 million, resulting in a net profit margin of 2.1%, compared to HK$290.0 million and 4.6% in Fiscal 2020[33]. - The Group's EBITDA was approximately HK$820.6 million, with an EBITDA margin of 13.7%, down from 15.3% in Fiscal 2020[33]. - The Group's net profit decreased from approximately HK$290.0 million in Fiscal 2020 to approximately HK$125.5 million in Fiscal 2021, resulting in a net profit margin decline from 4.6% to 2.1%[65]. Market and Product Development - Regina Miracle continues to focus on innovative design manufacturing (IDM) to enhance its product offerings in intimate wear and functional sports products[3]. - The Company is exploring market expansion opportunities to strengthen its position in the global intimate wear market[3]. - Future outlook includes a commitment to research and development to drive new product innovations and improve operational efficiency[3]. - The Group is focusing on the PRC market, recognizing it as a significant growth driver due to its economic recovery and dual circulation strategy[15]. - The Group is enhancing production efficiency through process improvements and digital upgrades to maximize profit and manage risks[16]. - The Group's innovative design manufacturing capabilities allowed it to capitalize on the growing demand for sports-related products during the Pandemic, leading to sales in the second half of the year surpassing pre-Pandemic levels[30]. - The Group is committed to sustainable development and environmental protection, advocating for green raw materials in the supply chain[18]. - The Group is actively involved in market expansion and product development to strengthen its competitive position[110]. Operational Efficiency and Cost Management - Regina Miracle aims to recover from the revenue decline and improve profitability through cost management and operational improvements[9]. - The Group has streamlined manpower and optimized production processes to enhance efficiency and control costs, creating a flexible production model[31]. - The Group's proactive measures included streamlining production capacity and human resources, resulting in one-off expenses totaling approximately HK$49.7 million[33]. - The Group aims to optimize internal risk control and improve resource deployment in response to rising raw material costs, implementing automation and enhancing production processes[82]. - The Group is optimizing production capacity in Vietnam, including enhancing factory efficiency and adding production lines to meet strong order demand from international brand partners[78]. Dividends and Shareholder Returns - Proposed final dividend of HK3.3 cents per share and a special dividend of HK1.5 cents per share, reflecting a policy of distributing no less than 30% of net profit as dividends[13]. - The Group's reserves available for distribution to shareholders as of March 31, 2021, amounted to approximately HK$1,772.0 million, compared to HK$1,760.6 million in 2020[130]. - The Board has recommended a final dividend of HK3.3 cents per share and a special dividend of HK1.5 cents per share for the year ended March 31, 2021[116]. Strategic Partnerships and Acquisitions - The Company is actively considering strategic partnerships and potential acquisitions to enhance its market presence and product portfolio[3]. - The company has completed a strategic acquisition of a local competitor, enhancing its production capacity by 30%[96]. - The Group has begun developing new brand partners and marketing channels, particularly in e-commerce, to adapt to the rise of domestic brands in China[21]. Sustainability Initiatives - The Group is committed to sustainable development, installing solar panels in its factories and promoting eco-friendly raw materials in collaboration with strategic suppliers[85]. - The management team emphasizes a focus on sustainability, aiming to reduce production waste by 25% over the next three years[92]. - The company aims to develop and manufacture more eco-friendly products in collaboration with strategic suppliers, enriching its product portfolio and creating demand[87]. Management and Governance - The management team expressed gratitude for the support from brand partners and suppliers, emphasizing the Group's strong growth momentum and commitment to long-term sustainable value for shareholders[26]. - The Board comprises five executive directors and three independent non-executive directors, ensuring a strong independence element in its composition[186]. - The roles of Chairman and Chief Executive Officer are held by Mr. Hung Yau Lit, which the Board believes enhances responsiveness and efficiency in business strategy formulation[186]. - The Company has ensured that at least one independent non-executive Director possesses appropriate professional qualifications in accounting or financial management[195]. Future Outlook - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[93]. - Management is confident that the growth momentum will continue into Fiscal 2022, driven by strong partnerships with international brands and recovery from the Pandemic[72]. - The Group anticipates a significant decrease in demand for pandemic prevention products as vaccine rollouts progress, while orders for bras and sports bras have resumed growth, indicating a positive outlook for core businesses[76].

Financial Performance - For the six months ended September 30, 2020, the Group reported revenue of HK$2,517,590, a decrease of 19.5% compared to HK$3,128,701 in the same period last year [12]. - The Group's gross profit for the same period was HK$487,035, representing a gross margin of 19.3%, down from 22.5% in the previous year [13]. - The loss attributable to owners of the Company was HK$32,426, compared to a profit of HK$141,423 in the prior year, marking a significant decline of 122.9% [13]. - The basic and diluted loss per share for the period was HK$(2.6), compared to earnings of HK$11.6 per share in the previous year [12]. - The Group recorded a net loss of approximately HK$32.4 million, compared to a net profit of HK$141.4 million in the same period last year [23]. - Net profit decreased from approximately HK$141.4 million in 1HF2020 to a net loss of approximately HK$32.4 million in 1HF2021, resulting in a net profit margin decline from 4.5% to a net loss margin of 1.3% [68]. - The Group's EBITDA for the period was approximately HK$288.3 million, with an EBITDA margin of 11.5% [22]. - Operating profit decreased significantly to HK$14,299, compared to HK$209,054 in the prior year, reflecting a decline of 93.2% [101]. Impact of COVID-19 - The Group's operations were significantly impacted by the COVID-19 pandemic, particularly in the first quarter of Fiscal 2021, with a year-on-year revenue decline of approximately 30% [16]. - The introduction of fabric face masks helped the Group to better utilize its capacity and contributed to revenue generation during the pandemic [17]. - By the second quarter, the revenue decline narrowed to below 10% as operations resumed and order placements increased [17]. - The Group anticipates a meaningful rebound in order demand for the second half of Fiscal 2021, with expectations of returning to growth compared to the same period last year [17]. - The management remains optimistic about future performance as certain regions gain control over the pandemic, allowing partners to resume operations [17]. Revenue Breakdown - The bras and intimate wear segment contributed approximately HK$1,521.0 million in revenue, accounting for 60.5% of the Group's total revenue, with a year-on-year decrease of 41.1% [26]. - Revenue from bras and intimate wear products was approximately HK$1,521.0 million, a year-on-year decrease of 41.1%, accounting for 60.5% of total revenue [28]. - Revenue from functional sports products increased by HK$188.0 million, or 92.7%, to approximately HK$390.8 million in 1HF2021, representing 15.5% of total revenue [45]. - Revenue from pandemic prevention products amounted to approximately HK$373.4 million in 1HF2021, accounting for 14.8% of total revenue [45]. - Revenue from sales of bra pads and other molded products decreased by HK$113.2 million, or 32.8%, to approximately HK$232.4 million in 1HF2021, accounting for 9.2% of total revenue [45]. Cost and Expenses - Gross profit decreased by 30.8% to approximately HK$487.0 million, with a gross profit margin of 19.3% [22]. - Cost of sales decreased from approximately HK$2,425.0 million in 1HF2020 to approximately HK$2,030.6 million in 1HF2021 [49]. - Employee benefit expenses for production personnel were approximately HK$804.3 million in 1HF2021, representing 31.9% of total costs [48]. - Distribution and selling expenses decreased from approximately HK$82.1 million in 1HF2020 to approximately HK$62.7 million in 1HF2021, reflecting a decrease in freight and transportation expenses [59]. - General and administrative expenses decreased from approximately HK$332.2 million in 1HF2020 to approximately HK$298.1 million in 1HF2021, mainly due to a reduction in employee benefit expenses [60]. - Research and development costs decreased from approximately HK$107.9 million in 1HF2020 to approximately HK$90.9 million in 1HF2021, primarily due to a decrease in employee benefit expenses [61]. Cash Flow and Liquidity - Net cash generated from operating activities decreased by HK$380.9 million to approximately HK$78.2 million in 1HF2021 from approximately HK$459.1 million in 1HF2020 [69]. - Net cash used in investing activities amounted to approximately HK$365.9 million in 1HF2021, primarily for the purchase of property, plant, and equipment in Vietnam [69]. - Net cash generated from financing activities was approximately HK$472.8 million in 1HF2021, mainly due to proceeds from borrowings [69]. - The current ratio increased from 1.3 as of 31 March 2020 to 1.6 as of 30 September 2020, due to a greater increase in current assets than current liabilities [69]. - The Group's net debt increased to approximately HK$3,446.1 million as of 30 September 2020, up from HK$3,002.4 million as of 31 March 2020, primarily due to increased working capital and capital expenditure [69]. Operational Adjustments - The Group streamlined its manpower and surrendered parts of the leased factory in Shenzhen, incurring one-off expenses of approximately HK$44.5 million [19]. - The Group's operational recovery is expected in the second half of the fiscal year, with a significant rebound in order demand anticipated [18]. - The Group's core business gradually returned to normal, with recruitment resuming in July 2020 to drive output in the second quarter [37]. - The Group has added new domestic e-commerce clients to mitigate pandemic impacts and expand its customer base, enhancing resilience and preparing for future growth [88]. Future Outlook - The management is confident that the business will return to a positive growth trajectory year-over-year, with a steady recovery in growth momentum [83][85]. - The Group plans to prioritize its core businesses and invest in R&D and production resources to strengthen its long-term capabilities [86]. - There is a rising demand for household and comfortable intimate wear, as well as light sportswear and functional sports products, driven by new trends post-Pandemic [86]. - The Group has expanded its presence in China over the past six months and plans to increase the proportion of domestic orders, capitalizing on China's quick recovery from the Pandemic [87]. - The management expresses gratitude to employees for their commitment during the pandemic, emphasizing unity in striving for the Group's long-term goals [94].

Financial Performance - Revenue for Fiscal 2020 was HK$6,341,010, an increase of 1.2% from HK$6,263,280 in Fiscal 2019[10] - Gross profit for Fiscal 2020 was HK$1,440,731, representing a 7.4% increase from HK$1,341,945 in Fiscal 2019[10] - EBITDA for Fiscal 2020 was HK$969,745, a significant increase of 30.0% from HK$745,856 in Fiscal 2019[10] - Basic and diluted earnings per share increased to HK$23.7 from HK$23.1 in the previous year[9] - Net profit margin for Fiscal 2020 was 4.6%, an increase of 0.1 percentage point from 4.5% in Fiscal 2019[10] - The Group recorded a revenue of HK$6,340.0 million for Fiscal 2020, representing a year-on-year increase of 1.2%; net profit grew by 2.7% to HK$290.0 million[15] - Gross profit grew by 7.4% to HK$1,440.7 million, with a gross profit margin of 22.7%, up from 21.4% in Fiscal 2019[33] - EBITDA increased by 30.0% to HK$969.7 million, resulting in an EBITDA margin of 15.3%, compared to 11.9% in the previous fiscal year[33] - Net profit rose by 2.7% to HK$290.0 million, with a net profit margin of 4.6%, slightly up from 4.5% in Fiscal 2019[33] Dividend and Shareholder Returns - Proposed final dividend remained stable at HK$4.0 per share, consistent with the previous year[9] - The total dividend for the fiscal year amounted to HK7.8 cents per share, consistent with the policy of distributing no less than 30% of net profit as dividends[15] - The Board proposed a final dividend of HK4.0 cents per share, bringing the total dividend for the fiscal year to HK7.8 cents per share, up from HK7.6 cents in Fiscal 2019[35] Production and Capacity - The company has two strategic production bases in Shenzhen, China, and Vietnam, which is crucial for its manufacturing capacity[3] - The Group's production capacity was enhanced with the commencement of operations at Vietnam Factory D and E in the first half of the fiscal year[14] - The Group's main production base in Vietnam operated normally post-Lunar New Year despite raw material supply disruptions from China[16] - The Group has adjusted its production capacity deployment, transferring most orders designated for export to the US to Vietnam, while Shenzhen has been repositioned as the R&D base[30] - The Group's production capacity in Vietnam increased, with local production rising from approximately 60% to 73% of total revenue[46] Market Outlook and Strategy - Future outlook includes ongoing investment in research and development to drive product innovation and market expansion[3] - The Group aims to expand its market presence in the large Chinese intimate apparel and functional sports products market in the medium to long term[23] - The Group plans to invest more resources for medium- to long-term expansion in the Chinese market, focusing on intimate wear and functional sports products[73] - The management believes that innovative and cost-effective products will stand out in a weak consumer market, leveraging the Group's strong IDM capabilities developed over the past 20 years[23] Impact of COVID-19 - Due to the COVID-19 pandemic, the Group expects a low double-digit decline in sales performance for the first quarter of Fiscal 2021[17] - The Group implemented cost reduction measures, including a rota system in the Shenzhen factory and plans to surrender parts of the leased factory to reduce operating expenses[19] - The Vietnam government imposed a nationwide lockdown from April 1 to April 23, 2020, affecting overall production efficiency[71] - The Group has initiated the development of pandemic prevention products, including fabric face masks and protective clothing, to meet global demand[20] Research and Development - The Group remains committed to research and development projects with brand partners to create innovative intimate wear products[21] - The company has invested $5 million in research and development to innovate new technologies in intimate wear manufacturing[89] - The company applied for Super Deduction for research and development expenses, allowing for tax deductions ranging from 150% to 175% of incurred expenses[55] Cost Management - Cost of sales as a percentage of total revenue decreased from 78.6% in Fiscal 2019 to 77.3% in Fiscal 2020, attributed to improved efficiency in Vietnam factories[51] - Cost control measures have been implemented, including adjustments to working hours and upstream supply chain management, to reduce labor and operational costs[79] - The company plans to temporarily suspend unnecessary investments in fixed assets to ensure sufficient cash flow for operations[80] Corporate Governance - The Company has adopted a share option scheme as an incentive for Directors and eligible employees[134] - The Board has established various committees, including the audit committee, remuneration committee, and nomination committee, each with defined written terms of reference[198] - The Company emphasizes good corporate governance as essential for effective management, healthy corporate culture, and enhancing shareholder value[178] Management and Leadership - The management team includes individuals with diverse backgrounds in marketing, operations, and technology, contributing to the company's strategic direction[96][100][101][103][105] - The Company aims to leverage its management's extensive industry experience to drive growth and innovation in the intimate wear market[100][103] - The Board currently consists of eight Directors, including five executive Directors and three independent non-executive Directors, ensuring a strong independence element in its composition[185]

Financial Performance - Revenue for the six months ended September 30, 2019, was HK$3,128,701,000, representing a 2.1% increase from HK$3,062,917,000 in the same period of 2018[14]. - Gross profit for the same period was HK$703,700,000, reflecting a 6.9% increase from HK$658,084,000 year-on-year[14]. - Profit attributable to owners of the Company was HK$141,423,000, up 5.8% from HK$133,722,000 in the previous year[14]. - Earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached HK$441,793,000, a significant increase of 22.4% compared to HK$361,055,000 in 2018[14]. - Earnings per share increased to 11.6 HK cents from 10.9 HK cents year-on-year[14]. - Net profit increased by 5.8% from HK$133.7 million in 1HF2019 to HK$141.4 million in 1HF2020[61]. - Net profit margin improved from 4.4% in 1HF2019 to 4.5% in 1HF2020[61]. Revenue Breakdown - Revenue from bras and intimate wear products amounted to HK$2,580.3 million, representing an 8.7% year-on-year increase and accounting for approximately 82.5% of the Group's overall revenue[25]. - Revenue from bra pads and other moulded products reached HK$345.6 million, accounting for 11.0% of the Group's total revenue, with a gross profit margin of 21.6%[29]. - The functional sports products business contributed HK$202.8 million in revenue, accounting for 6.5% of the Group's total revenue, with a gross profit margin of 19.1%[31]. - Revenue from bras and intimate wear increased by HK$207.4 million, or approximately 8.7%, from HK$2,372.9 million in 1HF2019 to HK$2,580.3 million in 1HF2020, representing 82.5% of total revenue[43]. - Revenue from bra pads and other molded products amounted to HK$345.6 million in 1HF2020, an increase of approximately HK$87.7 million, or 34.0%, compared to HK$258.0 million in 1HF2019, accounting for 11.0% of total revenue[43]. - Revenue from sales of functional sports products decreased to HK$202.8 million in 1HF2020 from HK$432.0 million in 1HF2019, a decline of 53.1%[40]. Cost and Expenses - Cost of sales increased from HK$2,404.8 million in 1HF2019 to HK$2,425.0 million in 1HF2020, with the cost of sales as a percentage of total revenue decreasing from 78.5% to 77.5%[47]. - Distribution and selling expenses increased from HK$72.9 million in 1HF2019 to HK$82.1 million in 1HF2020, representing 2.6% of total revenue in 1HF2020 compared to 2.4% in 1HF2019[55]. - General and administrative expenses increased from HK$303.9 million in 1HF2019 to HK$332.2 million in 1HF2020, representing an increase of 9.5%[57]. - General and administrative expenses as a percentage of total revenue rose from 9.9% in 1HF2019 to 10.6% in 1HF2020[57]. - Finance costs increased from HK$33.5 million in 1HF2019 to HK$65.5 million in 1HF2020, a rise of 95.5%[58]. - Finance costs as a percentage of total revenue increased from 1.1% in 1HF2019 to 2.1% in 1HF2020[58]. Production and Capacity - The Company plans to enhance production scale and efficiency in its Vietnamese factories in the second half of the fiscal year to meet demand from brand partners[17]. - The Group has commenced operations in its Vietnamese Factories D and E, strengthening its production capacity layout in Vietnam[16]. - The Group's production capacity and efficiency in its Vietnamese factories have improved, contributing to continuous enhancements in profit margins[24]. - Production capacity in Vietnam accounted for approximately 65% of total revenue, significantly up from 53% in the same period last year[36]. - The Group's factories in Vietnam and Shenzhen employed approximately 34,000 and 9,500 workers respectively, with skilled workers making up 68% of the workforce in the Vietnam factories[39]. - The Group's production efficiency and profitability have improved due to the maturation of its factories in Vietnam, particularly with the commencement of operations in more automated facilities[38]. Dividends and Shareholder Returns - The interim dividend proposed is HK3.8 cents per share, up from HK3.6 cents in the previous period, aligning with the policy of distributing not less than 30% of net profit as dividends[24]. Taxation and Financial Position - Income tax expense decreased significantly from HK$25.2 million in 1HF2019 to HK$3.5 million in 1HF2020[60]. - The effective tax rate decreased from 23.3% in 1HF2019 to 14.7% in 1HF2020, primarily due to tax holidays for Vietnam subsidiaries[60]. - As of 30 September 2019, the Group's net debt increased to HK$2,762.6 million from HK$2,557.7 million as of 31 March 2019, resulting in a gearing ratio of 94.8% compared to 87.5% previously[63]. - The adjusted net gearing ratio as of 30 September 2019 was 88.6%, compared to 84.6% as of 31 March 2019, after excluding currency depreciation impacts[63]. Future Outlook and Strategy - The Group remains optimistic about future business growth and expansion plans despite global economic concerns[75]. - The management is optimistic about future business growth despite global economic concerns, focusing on production line expansion and efficiency improvements without new facility investments for the next two years[78]. - The Group aims for a balanced customer mix while continuing to develop core intimate wear and functional sports products, leveraging cross-industry competitive advantages[82]. - Increased investment in standardizing craftsmanship and automating production processes is expected to enhance production efficiency and agility[83]. - The management believes that past investments in expanding production capacity in Vietnam will lead to significant profit optimization and long-term value creation for brand partners and shareholders[84]. Accounting and Financial Reporting - The Group adopted HKFRS 16, resulting in lease liabilities recognized at HK$201,122,000 as of April 1, 2019, with a weighted average incremental borrowing rate of 5.2% per annum[123][124]. - The Group's financial information reflects the impact of the adoption of HKFRS 16 without significant changes to its accounting policies[122]. - The Group's leasehold land and land use rights are now grouped as part of right-of-use assets effective from April 1, 2019[127]. - The total segment assets increased due to the accounting policy changes, with specific increases noted in bra pads and functional sports products[133].