Core Viewpoint - Virginie (02199) announced a new property leasing agreement due to the expiration of the current lease for its smart residential units in 2024, which will end on September 30, 2025 [1] Group 1: Leasing Agreement Details - Virginie Smart Living, a wholly-owned subsidiary, signed a new leasing agreement with Virginie Investment Properties on September 2, 2025 [1] - The new lease will be effective from October 1, 2025, to September 30, 2026, for a duration of one year [1] - The monthly rent for the property is set at RMB 210,900, equivalent to approximately HKD 229,900 [1] Group 2: Property Specifications - The leased property consists of 128 apartment units located at No. 8 Yanyang Avenue, Zhaoqing New District, Zhaoqing City, Guangdong Province, China [1] - The total construction area of the property is approximately 14,061 square meters [1]

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） 關連交易 重續物業租賃協議 茲提述(i)本公司日期為2024年9月11日 的 公 告，內 容 有 關 維 珍 妮 智 創 與 維 珍 妮 投資所訂立2024年 維 珍 妮 智 創 居 住 單 位 租 賃 協 議；(ii)本公司日期為2025年3月 27日 的 公 告，內 容 有 關(a)麗晶維珍妮與維珍妮科技所訂立2025年麗晶維珍妮廠 房（一 期）租 賃 協 議；(b)麗晶維珍妮與維珍妮投資所訂立2025年麗晶維珍妮居住 單 位 租 賃 協 議；(c)麗晶維珍妮與維珍妮科技所訂立2025年麗晶維珍妮廠房（二 期）租賃協議及(d)維珍妮智 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 維珍妮國際(控股)有限公司 呈交日期: 2025年8月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02199 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 50,000,000,000 | USD | | 0.01 | USD | | 500,000,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 50,000,000,000 | USD | | 0.01 | USD | | 500,000,000 | 本月底 ...

Core Viewpoint - The company, Viginie, has shown a recovery in its fiscal year 2025 performance, with an 11.7% increase in revenue to HKD 7.84 billion, despite challenges from macroeconomic fluctuations and uneven consumer recovery [1] Group 1: Business Performance - The intimate apparel segment generated revenue of HKD 4.243 billion, a modest increase of 3.0% year-on-year, accounting for 54.2% of total revenue, with a gross margin improvement of 1.0 percentage points to 24.7% [3] - The sports products segment emerged as a growth highlight, with revenue of HKD 2.934 billion, a significant increase of 26.9% year-on-year, representing 37.4% of total revenue, driven by a global sports trend and strong demand for sports bras [3] - The consumer electronics accessories segment, although smaller, saw robust growth with revenue of HKD 409 million, a substantial increase of 43.2% year-on-year, primarily driven by new product orders from core brand partners [3] Group 2: Operational Optimization - The company is advancing its smart transformation through vertical integration, intelligent management, automation, and localized supply chains to enhance production efficiency and cost control [4] - As of October 2024, the total output value from the Vietnam base accounted for 85% of total revenue, with approximately 31,900 employees in Vietnam compared to about 4,900 in mainland China [4] - The company's China operations generated revenue of HKD 1.966 billion in fiscal year 2025, a 4.4% increase year-on-year, with a net profit of HKD 85.6 million, benefiting from localized innovation and strong e-commerce performance [4] Group 3: Future Outlook - The company faces multiple challenges in fiscal year 2026 due to increased global market uncertainty from trade tariffs, leading to cautious order placements from brand partners [5] - The company is implementing cost-reduction measures across R&D, production, and operations to enhance organizational efficiency and effectiveness [5] - The company aims to leverage its leading Bonding technology to expand its successful cross-category initiatives from intimate apparel to sports and clothing segments, showcasing strong market potential [5]

[Financial Highlights](index=7&type=section&id=Financial%20highlights) The Group reported robust financial recovery in FY2025, marked by double-digit growth in revenue, gross profit, and adjusted profit attributable to owners [Financial Performance Highlights](index=7&type=section&id=Financial%20highlights) In FY2025, the Group achieved robust recovery with revenue up 11.7% and gross profit up 15.7%; profit attributable to owners surged 28.4%, with adjusted profit up 27.1%, and basic EPS increased to HKD 0.15, with a proposed final dividend of HKD 0.043 per share, totaling HKD 0.068 for the full year Key Financial Data Comparison for FY2025 | Metric | FY2025 (HKD thousands) | FY2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 7,840,043 | 7,016,802 | 11.7% | | **Gross Profit** | 1,832,567 | 1,583,567 | 15.7% | | **Gross Margin** | 23.4% | 22.6% | +0.8pp | | **Profit Attributable to Owners** | 183,891 | 143,175 | 28.4% | | **Adjusted Profit Attributable to Owners*** | 402,351 | 316,471 | 27.1% | | **EBITDA** | 1,057,835 | 1,011,975 | 4.5% | | **Adjusted EBITDA*** | 1,276,295 | 1,185,271 | 7.7% | | **Basic Earnings Per Share (HKD)** | 0.15 | 0.117 | +28.2% | | **Dividend Per Share (HKD)** | 0.068 | 0.057 | +19.3% | - Adjusted profit and adjusted EBITDA figures exclude special restructuring costs incurred due to the relocation of production facilities[23](index=23&type=chunk) [Chairman's Statement](index=8&type=section&id=Chairman%27s%20statement) The Chairman's statement highlights the Group's strategic resilience, achieving growth amidst economic uncertainty through core business focus, innovation, and a commitment to sustainability [Strategic Review and Outlook](index=9&type=section&id=Chairman%27s%20statement%20summary) Despite global economic uncertainties, the Group achieved low double-digit revenue growth in FY2025 through its IDM model and 'focus on core business' strategy, while actively pursuing cost efficiency, financial optimization, and leveraging proprietary Bonding technology for differentiated products, alongside market diversification and strong ESG commitments towards net-zero by 2050 - Leveraging its 'focus on core business and strengthening main operations' strategy, the Group's revenue in FY2025 continued the recovery trend from late FY2024, achieving **low double-digit growth**[29](index=29&type=chunk)[31](index=31&type=chunk) - The company has initiated cost reduction and efficiency enhancement measures, with effects expected to gradually materialize in FY2026, and plans to progressively reduce debt to a reasonable level within the next 2-3 years by strictly controlling capital expenditure[33](index=33&type=chunk)[34](index=34&type=chunk) - Proprietary Bonding process technology, developed in-house, became a core growth driver, leading to **significant revenue growth** in the functional apparel business in FY2025[36](index=36&type=chunk)[37](index=37&type=chunk) - To counter tariff measures initiated by major economies, the Group has engaged in discussions and reached consensus with key brand partners, expecting limited impact on revenue, while accelerating expansion into diversified markets such as China, Europe, and Japan[38](index=38&type=chunk)[40](index=40&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20discussion%20and%20analysis) This section provides an in-depth analysis of the Group's market performance, business segment results, operating financials, and strategic outlook for future growth and resilience [Market Review](index=15&type=section&id=Market%20Review) In FY2025, despite global economic volatility, the Group achieved stable revenue growth by leveraging its IDM model, technological innovation, and synergistic production capabilities in China and Vietnam, while its joint venture "Victoria's Secret China" demonstrated robust, industry-outperforming growth - Despite global economic volatility and weakened demand, the Group achieved **stable full-year revenue growth** through proactive strategic adjustments and business structure optimization[49](index=49&type=chunk)[52](index=52&type=chunk) - The Group effectively balanced regional market risks by having its Vietnam production base handle global orders and its China capacity focus on the domestic market[50](index=50&type=chunk) - The joint venture 'Victoria's Secret China' continued to achieve **robust, industry-outperforming growth** by leveraging brand value and differentiated product advantages, validating the success of its localization strategy[51](index=51&type=chunk)[52](index=52&type=chunk) [Business Review](index=16&type=section&id=Business%20Review) In FY2025, the Group's total revenue grew 11.7% to HKD 7.84 billion, with net profit up 28.4% to HKD 184 million, driven by strong performance in sports products and consumer electronics accessories, while production optimization saw Vietnam contribute 85% of total revenue Revenue and Gross Profit Performance by Business Segment (FY2025) | Business Segment | Revenue (HKD millions) | YoY Change | Revenue Share | Gross Profit (HKD millions) | Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | **Intimate Wear** | 4,243.4 | +3.0% | 54.2% | 1,047.2 | 24.7% | | **Sports Products** | 2,934.1 | +26.9% | 37.4% | 652.8 | 22.3% | | **Consumer Electronics Accessories** | 408.9 | +43.2% | 5.2% | 79.1 | 19.4% | | **Bra Cups and Other Accessories** | 253.6 | -15.0% | 3.2% | 53.4 | 21.1% | | **Total** | **7,840.0** | **+11.7%** | **100.0%** | **1,832.6** | **23.4%** | - The strong growth in the Sports Products segment was primarily driven by **double-digit growth** in the sports bra business and differentiated functional apparel products developed using proprietary Bonding technology[69](index=69&type=chunk)[76](index=76&type=chunk) - Production layout continues to optimize, with the Shenzhen production base fully relocated to Zhaoqing in October 2024, and the Vietnam production base contributing **85%** of the Group's total revenue[83](index=83&type=chunk)[84](index=84&type=chunk) [The Group's Operating Results Analysis](index=20&type=section&id=The%20Group%27s%20Operating%20Results) The Group's total revenue grew 11.7% to HKD 7.84 billion, driven by strong demand in sports products and consumer electronics accessories, with gross margin improving to 23.4% and adjusted net profit increasing 27.1% to HKD 402 million, despite restructuring costs - Cost of sales as a percentage of revenue decreased from **77.4% to 76.6%**, primarily due to improved production efficiency, partially offset by initial ramp-up costs at the Zhaoqing factory[95](index=95&type=chunk)[97](index=97&type=chunk) - To optimize its China production layout, the Group relocated its Shenzhen production base to Zhaoqing, incurring special restructuring costs of approximately **HKD 218.5 million** this fiscal year, mainly for employee severance and fixed asset write-offs[108](index=108&type=chunk)[111](index=111&type=chunk) Key Financial Ratios | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | **Net Gearing Ratio** | 105.2% | 104.7% | | **Adjusted Net Gearing Ratio** | 79.9% | 87.6% | | **Trade Receivables Turnover Days** | 48 days | 45 days | | **Trade Payables Turnover Days** | 25 days | 25 days | - Total capital expenditure was **HKD 430.7 million**, a significant decrease from HKD 688 million in the previous fiscal year, primarily used for acquiring production lines and constructing Zhaoqing production facilities and staff dormitories[135](index=135&type=chunk)[140](index=140&type=chunk) [Future Prospects and Strategies](index=28&type=section&id=Future%20Prospects%20and%20Strategies) For FY2026, the Group will prioritize product differentiation, cost control, efficiency, and debt reduction to enhance profitability and financial resilience, while expanding market diversification and advancing ESG commitments towards net-zero by 2050 - The core strategy is to implement 'cost reduction, efficiency-driven transformation, and debt reduction,' with incremental cash flow from business optimization prioritized for lowering the gearing ratio to optimize capital structure[153](index=153&type=chunk)[155](index=155&type=chunk) - The Group will fully leverage its leading advantage in Bonding process technology, replicating its success from intimate wear and sports into the apparel business to drive growth through innovative products[157](index=157&type=chunk)[159](index=159&type=chunk) - To address macroeconomic challenges, the company will accelerate market diversification, focusing on expanding partnerships in China, Europe, and Japan to reduce reliance on a single market[158](index=158&type=chunk)[160](index=160&type=chunk) - Regarding ESG, the Group has initiated Science Based Targets initiative (SBTi) validation and plans to set scientific carbon reduction targets within the next one to two years, strategizing for **net-zero carbon emissions by 2050**[161](index=161&type=chunk)[164](index=164&type=chunk) [Profile of Directors, Senior Management and Company Secretary](index=31&type=section&id=Profile%20of%20directors%2C%20senior%20management%20and%20company%20secretary) This section provides detailed professional biographies of the company's directors, senior management, and company secretary, highlighting their extensive experience and qualifications [Directors and Senior Management Profiles](index=31&type=section&id=Profile%20of%20directors%2C%20senior%20management%20and%20company%20secretary) This chapter details the personal profiles of the company's executive directors, independent non-executive directors, senior management, and company secretary, covering their age, positions, responsibilities, industry experience, educational backgrounds, and other public company or social organization appointments, comprehensively showcasing the professional background and qualifications of the company's governance and management team - Founder Mr. YY Hung serves as Chairman and Chief Executive Officer, possessing **over 25 years of experience** in the intimate wear manufacturing industry and acting as a key driver of the Group's business strategy[166](index=166&type=chunk)[170](index=170&type=chunk) - Executive directors have served the Group for many years, responsible for finance, R&D, production operations, and sales and marketing, each possessing **profound industry experience**[169](index=169&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[176](index=176&type=chunk) - The independent non-executive directors team comprises seasoned professionals from the finance, apparel trade, and retail industries, providing **strategic advice and guidance** for the Group's business development[177](index=177&type=chunk)[186](index=186&type=chunk)[190](index=190&type=chunk) [Report of the Directors](index=38&type=section&id=Report%20of%20the%20directors) The Directors' Report summarizes the company's FY2025 activities, performance, and dividend proposals, including details on share capital, key business relationships, and governance compliance [Summary of the Report of the Directors](index=38&type=section&id=Report%20of%20the%20directors) This report outlines the company's key activities, performance, and dividend distribution for FY2025, confirming its primary engagement in investment holding and its subsidiaries' focus on manufacturing and trading intimate wear and related products, with a proposed final dividend of HKD 0.043 per share, detailed disclosures on share capital changes, major customers and suppliers (top five customers accounting for 47.7% of sales), related party transactions, and compliance with listing rules - The Board recommends a final dividend of **HKD 0.043 per share** for the year ended March 31, 2025[204](index=204&type=chunk)[209](index=209&type=chunk) - The share option scheme adopted by the company on September 11, 2015, is nearing expiry, with no options granted since its adoption; the company will propose adopting a new share option scheme at the Annual General Meeting[227](index=227&type=chunk)[232](index=232&type=chunk) - This fiscal year, the Group's top five customers accounted for **47.7%** of total sales, with the largest customer contributing **16.5%**; the top five suppliers accounted for **39.7%** of total purchases[249](index=249&type=chunk)[253](index=253&type=chunk) - The report details several continuing connected transactions, including sales agreements with Joyful Profit Group and Float Limited, and property and plant lease agreements with Sun Cheong, Regina Miracle Technology, and Regina Miracle Investment, confirming all transactions were conducted on fair and reasonable commercial terms[275](index=275&type=chunk)[285](index=285&type=chunk)[292](index=292&type=chunk)[300](index=300&type=chunk) [Corporate Governance Report](index=62&type=section&id=Corporate%20governance%20report) The Corporate Governance Report details the company's adherence to high governance standards, board structure, committee functions, risk management, and shareholder communication practices [Corporate Governance Practices](index=62&type=section&id=Corporate%20governance%20report) The company is committed to maintaining high corporate governance standards, complying with listing rules' code, with the only deviation being the combined roles of Chairman and CEO, which the Board believes enhances decision-making efficiency; the report details board composition, committee operations (Audit, Remuneration, Nomination, ESG, Executive), risk management, internal controls, and mechanisms for shareholder rights and investor communication - The company complies with most provisions of the Corporate Governance Code, with the exception of the Chairman and Chief Executive Officer roles being held by the same individual, Mr. YY Hung, an arrangement the Board believes facilitates more efficient business planning and decision-making[368](index=368&type=chunk)[371](index=371&type=chunk) - The Board comprises five executive directors and three independent non-executive directors, with independent non-executive directors accounting for **over one-third**, meeting listing rule requirements[380](index=380&type=chunk)[386](index=386&type=chunk) - The company has five Board committees: Audit, Remuneration, Nomination, Environmental, Social and Governance (ESG), and Executive, each fulfilling distinct roles to assist the Board in its duties[427](index=427&type=chunk)[431](index=431&type=chunk) - The Board has conducted an annual review of the Group's risk management and internal control systems, deeming them effective and adequate, and has established a **three-lines-of-defense** risk governance framework[469](index=469&type=chunk)[477](index=477&type=chunk)[478](index=478&type=chunk) [Independent Auditor's Report](index=84&type=section&id=Independent%20auditor%27s%20report) The Independent Auditor's Report provides an unqualified opinion on the FY2025 financial statements, highlighting revenue recognition as a key audit matter and detailing the audit procedures performed [Audit Opinion and Key Audit Matters](index=84&type=section&id=Independent%20auditor%27s%20report) PricewaterhouseCoopers issued an unqualified audit opinion on the company's FY2025 consolidated financial statements, deeming them to fairly present the Group's financial position and operating results; 'revenue recognition' was identified as a key audit matter due to its volume and significance, with auditors performing various procedures including internal control assessment, sampling, analytical review, and cutoff tests, expressing satisfaction with the findings - The auditors believe that the consolidated financial statements fairly and accurately reflect the Group's consolidated financial position as at March 31, 2025, and its financial performance and cash flows for the year, in accordance with Hong Kong Financial Reporting Standards[509](index=509&type=chunk)[510](index=510&type=chunk) - 'Revenue recognition' was identified as a key audit matter primarily due to the **high volume of transactions**, numerous customers, dispersed distribution locations, and the material impact of revenue on the financial statements[515](index=515&type=chunk)[523](index=523&type=chunk) - To address revenue recognition risks, auditors performed multiple procedures, including assessing internal controls, sampling customer orders and supporting documents (e.g., invoices, delivery records), conducting analytical reviews, and performing cutoff tests on transactions around the fiscal year-end[525](index=525&type=chunk)[527](index=527&type=chunk) [Consolidated Financial Statements](index=92&type=section&id=Consolidated%20financial%20statements) This section presents the Group's comprehensive financial statements, including the income statement, balance sheet, cash flow statement, and a five-year financial data summary [Consolidated Income Statement](index=92&type=section&id=Consolidated%20Income%20Statement) In FY2025, the Group's revenue was HKD 7.84 billion, up 11.7%, with gross profit at HKD 1.83 billion and gross margin improving to 23.4%; operating profit was HKD 536 million, and profit for the year increased 28.4% to HKD 184 million Consolidated Income Statement Key Data (HKD thousands) | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | **Revenue** | 7,840,043 | 7,016,802 | | **Gross Profit** | 1,832,567 | 1,583,567 | | **Operating Profit** | 535,642 | 453,669 | | **Profit Before Income Tax** | 220,772 | 152,177 | | **Profit for the Year** | 183,891 | 143,175 | [Consolidated Balance Sheet](index=94&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2025, the Group's total assets were HKD 8.89 billion, total liabilities HKD 5.73 billion, and total equity HKD 3.16 billion, with non-current assets primarily property, plant, and equipment, and current assets dominated by inventories and trade receivables Consolidated Balance Sheet Overview (HKD thousands) | Item | March 31, 2025 (HKD thousands) | March 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | **Total Assets** | 8,894,096 | 8,602,750 | | Non-current Assets | 5,400,861 | 5,611,111 | | Current Assets | 3,493,235 | 2,991,639 | | **Total Liabilities** | 5,730,181 | 5,232,275 | | Non-current Liabilities | 3,803,586 | 3,730,404 | | Current Liabilities | 1,926,595 | 1,501,871 | | **Total Equity** | 3,163,915 | 3,370,475 | [Consolidated Statement of Cash Flows](index=97&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) In FY2025, net cash from operating activities significantly increased to HKD 1.19 billion, while net cash used in investing activities was HKD 396 million and in financing activities was HKD 341 million, resulting in a net increase of HKD 457 million in cash and cash equivalents Consolidated Statement of Cash Flows Overview (HKD thousands) | Item | FY2025 (HKD thousands) | FY2024 (HKD thousands) | | :--- | :--- | :--- | | **Net Cash From Operating Activities** | 1,194,851 | 746,975 | | **Net Cash Used in Investing Activities** | (396,313) | (393,314) | | **Net Cash Used in Financing Activities** | (341,048) | (251,558) | | **Net Increase in Cash and Cash Equivalents** | 457,490 | 102,103 | | **Cash and Cash Equivalents at Year-End** | 907,831 | 623,117 | [Five-Year Financial Information Summary](index=186&type=section&id=Financial%20Information%20Summary) This report provides a summary of key financial data for the past five fiscal years (2021-2025), showing a rebound in revenue, gross profit, and profit attributable to owners in FY2025 after a dip in FY2024, with total assets and equity remaining relatively stable Five-Year Financial Performance Summary (HKD thousands) | Fiscal Year | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 7,840,043 | 7,016,802 | 7,879,287 | 8,346,728 | 5,974,290 | | **Gross Profit** | 1,832,567 | 1,583,567 | 1,902,111 | 2,045,440 | 1,237,953 | | **Profit Attributable to Owners** | 183,891 | 143,175 | 383,258 | 520,694 | 125,515 | | **Total Assets** | 8,894,096 | 8,602,750 | 8,682,290 | 9,419,772 | 8,737,036 | | **Total Equity** | 3,163,915 | 3,370,475 | 3,547,262 | 3,636,257 | 3,070,355 |

Core Viewpoint - The company reported FY25 results that met expectations, with significant growth in revenue and net profit, driven by strong performance in sports products and stable demand in the intimate apparel segment [1][2]. Financial Performance - FY25 revenue increased by 11.7% to HKD 7.84 billion, while net profit rose by 28.4% to HKD 180 million [1]. - In 2HFY25, revenue grew by 11.2% to HKD 3.86 billion, and net profit surged by 219.6% to HKD 120 million [1]. - The company declared a final dividend of HKD 0.043 per share, resulting in a total payout ratio of 45.3% for FY25 [1]. Segment Performance - Revenue from intimate apparel and sports products grew by 3.0% and 26.9% to HKD 4.24 billion and HKD 2.93 billion, respectively [2]. - Sports apparel saw nearly 50% growth in functional clothing categories, with revenue exceeding HKD 1.1 billion [2]. - Revenue from consumer electronics accessories increased by 43.2% to HKD 410 million, while revenue from cups and other accessories declined by 15.0% to HKD 250 million due to the cessation of footwear operations [2]. - Victoria's Secret revenue in China rose by 4.4% to HKD 1.97 billion, with e-commerce sales growing at a double-digit rate [2]. Profitability and Cost Management - Gross margin improved by 0.8 percentage points to 23.4% due to increased capacity utilization [3]. - Operating expenses remained stable, with sales, management, and R&D expense ratios increasing slightly by 0.1 percentage points each [3]. - The company incurred HKD 220 million in additional operating expenses due to the relocation of its domestic production base [3]. - Overall, net profit margin increased by 0.3 percentage points to 2.3% [3]. Future Outlook - The company expects high order visibility for 1HFY26, but the impact of U.S. tariff policies on consumer purchasing power remains uncertain for 2HFY26 [3]. - The intimate apparel segment is expected to remain stable, while sports products are anticipated to continue growing due to Bonding apparel [3]. - The company plans to implement cost-reduction measures, including decreased capital expenditures and debt management [3]. Earnings Forecast and Valuation - FY26 earnings forecast has been revised down by 27.8% to HKD 220 million, with FY27 earnings projected at HKD 360 million [3]. - The current stock price corresponds to a P/E ratio of 12x for FY26 and 7x for FY27, maintaining an outperform rating [3]. - The target price has been reduced by 21% to HKD 2.38, indicating a potential upside of 13.3% from the current stock price [3].

Company Overview - Virginie International (控股)有限公司 was founded in 1998 in Hong Kong and has rapidly developed into a leading global lingerie manufacturer within ten years, establishing a factory in Shenzhen, China [2] - The company has continuously pursued product development and technological advancements, showcasing its innovative capabilities and unique positioning as a design and manufacturing innovator [2] Financial Performance - As of March 31, 2025, Virginie reported total revenue of 7.235 billion HKD, representing a year-on-year growth of 11.73% [1] - The net profit attributable to shareholders was 170 million HKD, reflecting a year-on-year increase of 28.44% [1] - The company achieved a gross profit margin of 23.37% and had a debt-to-asset ratio of 64.43% [1] Stock Performance - As of June 27, the stock price of Virginie was 2.1 HKD per share, with a significant increase of 24.26% on that day, and a trading volume of 1.509 million shares [1] - Over the past month, Virginie has seen a cumulative increase of 1.2%, but has a year-to-date decline of 21.4%, underperforming the Hang Seng Index by 21.26% [1] - The current price-to-earnings (P/E) ratio for Virginie is 11.25, ranking 38th in the industry, while the average P/E ratio for the textile and apparel industry is -13.97 [1] Industry Context - The textile and apparel industry has an average P/E ratio (TTM) of -13.97, with a median of 0.37 [1] - Comparatively, other companies in the industry have varying P/E ratios, such as FAST RETAIL-DRS at 0.37, Zhejiang Yong'an at 1.34, and others ranging from 3.34 to 3.72 [1]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Overall Financial Performance](index=1&type=section&id=Financial%20Highlights%20Summary) For FY2025, the Group reported an 11.7% revenue increase to HKD 7.84 billion, a 15.7% rise in gross profit, and a 28.4% growth in profit attributable to owners of the Company to HKD 184 million, with adjusted net profit reaching HKD 402 million | Metric | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 7.84 billion | HKD 7.02 billion | +11.7% | | Gross Profit | HKD 1.83 billion | HKD 1.58 billion | +15.7% | | Gross Margin | 23.4% | 22.6% | +0.8pp | | Profit attributable to owners of the Company | HKD 184 million | HKD 143 million | +28.4% | | Adjusted Profit attributable to owners of the Company* | HKD 402 million | HKD 316 million | +27.1% | | Basic Earnings Per Share | 15.0 HK cents | 11.7 HK cents | +28.2% | | Total Annual Dividend Per Share | 6.8 HK cents | 5.7 HK cents | +19.3% | - Adjusted profit and adjusted EBITDA figures exclude the impact of special restructuring costs[4](index=4&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) In FY2025, the Group's revenue reached HKD 7.84 billion, an 11.7% year-on-year increase, with gross profit at HKD 1.83 billion, up 15.7%, and operating profit at HKD 536 million, up 18.1% due to increased expenses, resulting in a profit for the year of HKD 184 million, a 28.4% increase | Item | 2025 (HKD Thousand) | 2024 (HKD Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 7,840,043 | 7,016,802 | +11.7% | | Gross Profit | 1,832,567 | 1,583,567 | +15.7% | | Operating Profit | 535,642 | 453,669 | +18.1% | | Profit Before Income Tax | 220,772 | 152,177 | +45.1% | | Profit for the Year | 183,891 | 143,175 | +28.4% | [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2025, the Group's total assets increased 3.4% to HKD 8.89 billion, total liabilities grew 9.5% to HKD 5.73 billion primarily due to increased accrued expenses and other payables, while total equity slightly decreased | Item | March 31, 2025 (HKD Thousand) | March 31, 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 8,894,096 | 8,602,750 | +3.4% | | Total Liabilities | 5,730,181 | 5,232,275 | +9.5% | | Total Equity | 3,163,915 | 3,370,475 | -6.1% | - Current assets increased from **HKD 2.99 billion** to **HKD 3.49 billion**, primarily driven by an increase in cash and cash equivalents[7](index=7&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group's business is divided into four segments: Intimate Wear, Sports Products, Consumer Electronics Accessories, and Bra Cups and Other Accessories Products, with Intimate Wear remaining the largest revenue source at 54.2% of total revenue, while Sports Products and Consumer Electronics Accessories achieved strong growth of 26.9% and 43.2% respectively, and the US remains the largest market, accounting for 43.8% of total revenue 2025 Fiscal Year Revenue and Gross Profit by Business Segment | Business Segment | Revenue (HKD Thousand) | Revenue Contribution | Gross Profit (HKD Thousand) | YoY Revenue Change | | :--- | :--- | :--- | :--- | :--- | | Intimate Wear | 4,243,404 | 54.2% | 1,047,215 | +3.0% | | Sports Products | 2,934,150 | 37.4% | 652,849 | +26.9% | | Consumer Electronics Accessories | 408,923 | 5.2% | 79,127 | +43.2% | | Bra Cups and Other Accessories Products | 253,566 | 3.2% | 53,376 | -15.0% | | **Total** | **7,840,043** | **100.0%** | **1,832,567** | **+11.7%** | Revenue by Customer Destination | Region | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | United States | 3,437,361 | 3,243,601 | +6.0% | | China | 1,533,869 | 1,383,477 | +10.9% | | Europe | 1,162,800 | 836,191 | +39.1% | | Japan | 527,575 | 454,311 | +16.1% | [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Market and Business Review](index=15&type=section&id=Market%20and%20Business%20Review) Facing global economic volatility, trade protectionism, and intensified industry competition, the Group focused on its IDM business model, achieving 11.7% revenue growth through technological innovation and production efficiency improvements, while effectively balancing regional risks by serving global markets from Vietnam and focusing on the domestic market from China, with the Victoria's Secret China joint venture achieving steady growth through localization - Despite the complex external environment, the Group achieved stable year-on-year revenue growth by dynamically adjusting strategies and optimizing its business structure[40](index=40&type=chunk) - The Group, guided by 'focusing on core business and strengthening main operations,' leveraged its IDM business model to enhance production efficiency through technological innovation, automation, and digitalization[41](index=41&type=chunk) - Victoria's Secret China continued to achieve steady growth exceeding the industry average, validating the success of its localization strategy, driven by brand value and differentiated products[41](index=41&type=chunk) [Business Segment Performance](index=16&type=section&id=Business%20Segment%20Performance) In FY2025, Sports Products and Consumer Electronics Accessories were key growth drivers with significant year-on-year revenue increases of 26.9% and 43.2% respectively, while Intimate Wear, the largest revenue source, saw a modest 3.0% growth, and Bra Cups and Other Accessories Products experienced a 15.0% revenue decline due to the cessation of footwear business [Intimate Wear](index=16&type=section&id=Intimate%20Wear) As the primary revenue source, Intimate Wear business revenue grew modestly by 3.0% year-on-year to HKD 4.24 billion, accounting for 54.2% of total revenue, with gross margin increasing by 1.0 percentage point to 24.7%, driven by significantly increased orders for innovative products developed for core brand partners | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | HKD 4.24 billion | HKD 4.12 billion | | Revenue Contribution | 54.2% | 58.7% | | Gross Profit | HKD 1.05 billion | HKD 977 million | | Gross Margin | 24.7% | 23.7% | [Sports Products](index=17&type=section&id=Sports%20Products) Sports Products business revenue significantly increased by 26.9% year-on-year to HKD 2.93 billion, representing 37.4% of total revenue, primarily driven by double-digit growth in sports bras and strong demand for differentiated functional apparel developed using proprietary Bonding technology | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | HKD 2.93 billion | HKD 2.31 billion | | Revenue Contribution | 37.4% | 32.9% | | Gross Profit | HKD 653 million | HKD 494 million | | Gross Margin | 22.3% | 21.4% | [Consumer Electronics Accessories](index=17&type=section&id=Consumer%20Electronics%20Accessories) Consumer Electronics Accessories business revenue significantly grew by 43.2% year-on-year to HKD 409 million, accounting for 5.2% of total revenue, primarily driven by new product orders from core brand partners in the first half of the year, with a slowdown in the second half | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | HKD 409 million | HKD 286 million | | Revenue Contribution | 5.2% | 4.1% | | Gross Profit | HKD 79 million | HKD 53 million | | Gross Margin | 19.4% | 18.5% | [Victoria's Secret China](index=18&type=section&id=Victoria's%20Secret%20China) The Victoria's Secret China joint venture achieved HKD 1.97 billion in revenue in FY2025, a 4.4% year-on-year increase, and recorded a net profit of HKD 85.6 million, with its localized innovation strategy driving double-digit year-on-year growth in related IDM businesses for the Group | Metric | FY2025 | YoY Change | | :--- | :--- | :--- | | Revenue | HKD 1.97 billion | +4.4% | | Net Profit | HKD 85.6 million | +0.2% | [Production Capacity and Operations](index=18&type=section&id=Production%20Capacity%20and%20Operations) The Group continues to optimize its production capacity layout, with the Shenzhen factory fully relocated to Zhaoqing to support the 'China for China' strategy, while the Vietnam base remains central to meeting international brand demands, accounting for 85% of the Group's total revenue, and as of March 31, 2025, Vietnam and mainland China employed approximately 31,900 and 4,900 employees respectively - The Shenzhen factory was fully relocated to the Zhaoqing base in October 2024, strengthening the technological linkage between local innovation and production[52](index=52&type=chunk) - In FY2025, the total production value from the Vietnam base accounted for **85%** of the Group's total revenue, reflecting its core position in the global supply chain[52](index=52&type=chunk) - The Group will rely on its Vietnam factories to meet international market demand and its Zhaoqing factories to support brand partners' 'China for China' initiatives, establishing a dual-track production model[53](index=53&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) As of March 31, 2025, the Group's net debt was HKD 3.33 billion, with a net gearing ratio of 105.2%, remaining largely stable, while trade receivables and payables turnover days were maintained at a healthy 48 and 25 days respectively, and capital expenditure for the year was approximately HKD 430 million, primarily for adding production lines and constructing production facilities | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net Debt | HKD 3.33 billion | HKD 3.53 billion | | Net Gearing Ratio | 105.2% | 104.7% | | Trade Receivables Turnover Days | 48 days | 45 days | | Trade Payables Turnover Days | 25 days | 25 days | - Total capital expenditure for FY2025 was approximately **HKD 431 million**, a decrease from HKD 688 million in the previous year[77](index=77&type=chunk) [Future Outlook and Strategy](index=25&type=section&id=Future%20Outlook%20and%20Strategy) Looking ahead, in response to market uncertainties, the Group will adhere to the principle of 'cost reduction and control, efficiency-driven transformation, and debt reduction,' focusing on leveraging its leading Bonding technology, deepening upstream collaboration, expanding into diversified markets like China, Europe, and Japan to mitigate risks, and actively fulfilling ESG responsibilities by setting science-based carbon reduction targets - The core principle is 'cost reduction and control, efficiency-driven transformation, and debt reduction,' aiming to enhance profitability and optimize capital structure[86](index=86&type=chunk) - The Group will fully leverage its leading advantage in Bonding technology, replicating its success from intimate wear and sports businesses to a broader range of apparel businesses[87](index=87&type=chunk) - To address challenges such as tariff trade wars, the Group will consolidate mature markets while accelerating expansion into diversified markets like China, Europe, and Japan to enhance resilience against risks[88](index=88&type=chunk) - The Group has initiated the Science Based Targets initiative (SBTi) and plans to complete the formulation of carbon reduction targets aligned with the Paris Agreement within the next one to two years[89](index=89&type=chunk) [Corporate Governance and Other Matters](index=27&type=section&id=Corporate%20Governance%20and%20Other%20Matters) [Dividend Policy](index=28&type=section&id=Dividend) The Board recommends a final dividend of HKD 4.3 cents per share for the year ended March 31, 2025, bringing the total annual dividend to HKD 6.8 cents per share, which represents 45.3% of the net profit for the year, consistent with the policy of distributing no less than 30% of the financial year's net profit | Dividend Type | Amount Per Share (HK cents) | | :--- | :--- | | Interim Dividend | 2.5 | | Proposed Final Dividend | 4.3 | | **Total Annual Dividend** | **6.8** | - The proposed final dividend is subject to shareholders' approval at the Annual General Meeting on September 4, 2025[44](index=44&type=chunk)[100](index=100&type=chunk) [Proposed Corporate Actions](index=29&type=section&id=Proposed%20Corporate%20Actions) To comply with new regulatory requirements and company development needs, the Board proposes adopting new Articles of Association to reflect changes such as the paperless listing regime and electronic general meetings, and also recommends terminating the existing share option scheme, which expires in October 2025, and adopting a new '2025 Share Option Scheme' to continue incentivizing and rewarding contributors to the Group, with all related matters subject to approval at the Annual General Meeting - It is proposed to amend the existing Articles of Association to adopt new Third Amended and Restated Articles of Association to reflect systems such as paperless listing, electronic meetings, and new treasury shares[103](index=103&type=chunk)[105](index=105&type=chunk) - As the 2015 Share Option Scheme will expire on October 7, 2025, and no share options have ever been granted under it, the Board recommends terminating the scheme[106](index=106&type=chunk) - It is proposed to adopt a new '2025 Share Option Scheme' to enable the Group to continue incentivizing and rewarding eligible persons, aligning their interests with those of the Company[107](index=107&type=chunk)

Core Viewpoint - The lingerie industry is facing significant challenges as a growing number of women, particularly those born after 1995, are opting to forgo bras, which is reshaping consumer preferences and impacting sales across the sector [2][10]. Industry Overview - The lingerie market is experiencing a downturn, with major companies reporting declining sales and profits. In 2024, five leading publicly listed companies in the industry saw a comprehensive decline in their lingerie business, with two A-share companies experiencing a halving of their performance [5][9]. - Aimer, one of the A-share companies, reported a revenue of 3.163 billion yuan, a decrease of 7.71% year-on-year, and a net profit of 163 million yuan, down 46.56% [6]. - Huijie Co., known as the "first A-share lingerie stock," saw a slight revenue increase of 0.85% to 2.95 billion yuan, but its net profit plummeted by 56.54% to 79.04 million yuan, indicating that its core bra business is struggling [8]. Consumer Behavior Changes - A significant shift in consumer preferences is noted, with comfort becoming the primary concern for lingerie buyers, as 32% of users prioritize comfort over other factors [12]. - Many consumers are increasingly opting for alternatives to traditional bras, such as silicone pasties, to avoid discomfort while still addressing concerns about visibility [14]. - Social media platforms are amplifying this trend, with discussions around the discomfort of wearing bras gaining traction, leading to a cultural shift where not wearing a bra is becoming more accepted [15]. Market Dynamics - The lingerie industry is facing intensified competition from lower-priced brands, which is undermining the pricing strategies of mid-to-high-end brands [9][21]. - The overall economic downturn and sluggish consumer spending are contributing to the industry's challenges, making it difficult for brands to maintain profitability [10][21]. Future Outlook - The lingerie industry must adapt to these changing consumer preferences and address the comfort and fit issues that have been highlighted by consumers. Brands need to innovate and enhance their offerings to meet the evolving demands of the market [20][21].

Financial Performance - For the six months ended September 30, 2024, the net cash generated from operating activities was HK$484,138,000, compared to HK$280,423,000 for the same period in 2023, representing an increase of 72.5%[71]. - Total segment revenue for the six months ended September 30, 2024, was HK$3,977,617, an increase from HK$3,544,797 in the same period of 2023, representing a growth of approximately 12.2%[83]. - Gross profit for the same period was HK$938,017, compared to HK$825,000 in 2023, indicating a year-over-year increase of about 13.7%[83]. - Profit for the period was HK$67,619, a decrease from HK$70,000 in the previous year, reflecting a decline of approximately 3.4%[83]. - Adjusted profit attributable to owners of the Company increased by 3.4% to HK$203,188 compared to HK$196,574 in 2023[148]. - Net profit for the Period was approximately HK$67.6 million, representing a year-on-year decrease of 36.7%, with a net profit margin of 1.7%[200]. - EBITDA decreased by 8.8% to approximately HK$507.1 million, with an EBITDA margin of 12.7%[200]. - Basic earnings per share for the six months ended September 30, 2024, was HK$5.52, down from HK$8.73 in the same period of 2023, reflecting a decline of 36.7%[122]. Cash Flow and Financing Activities - For the six months ended September 30, 2024, net cash used in financing activities was HK$188,571,000, compared to HK$91,168,000 for the same period in 2023, representing a 106% increase[3]. - The net increase in cash and cash equivalents for the period was HK$78,119,000, contrasting with a decrease of HK$20,033,000 in the prior year[3]. - Cash and cash equivalents at the end of the period stood at HK$704,743,000, up from HK$460,847,000 at the end of the same period in 2023, marking a 53% increase[3]. - The company reported proceeds from new borrowings of HK$1,702,218,000, while repayments of borrowings totaled HK$1,704,560,000[3]. - The principal element of lease payments was HK$17,068,000, and interest paid amounted to HK$169,161,000 for the current period[3]. - The total borrowings and bank interest payables as of September 30, 2024, reached HK$4,519,002,000[32]. - Total undrawn banking facilities amounted to approximately HK$3,555.6 million as of 30 September 2024[200]. Taxation and Income - The company reported a profit tax payment of HK$6,474,000 for the period, compared to HK$132,112,000 in 2023, reflecting a significant decrease in tax obligations[71]. - Current income tax expenses for the six months ended September 30, 2024, amounted to HK$31,313,000, compared to HK$18,210,000 for the same period in 2023, indicating an increase of 72.1%[119]. - Deferred income tax for the six months ended September 30, 2024, was HK$13,442,000, compared to a deferred income tax of HK$10,001,000 for the same period in 2023, representing a rise of 34.4%[119]. - Regina Miracle International Hung Yen Co., Ltd. will pay corporate income tax at a reduced rate of 5% starting from the year ended March 31, 2024, reflecting a 50% reduction from the original 10% rate[116]. Operational Insights - The company continues to focus on product development and market expansion across its four main segments, aiming to enhance overall performance and profitability[57]. - The Group's two core business segments, intimate wear and sports products, recorded steady performance, benefiting from the recovery in orders from key brand partners[194]. - The Group's patented bonding craftsmanship has begun to gain market recognition, providing a new source of business growth[194]. - The joint venture with Victoria's Secret maintained flat growth despite a sluggish market environment in China[195]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[192]. Financial Position and Risk Factors - The Group's financial risk factors include cash flow interest rate risk, foreign currency risk, credit risk, and liquidity risk[26]. - The Group's liquidity risk analysis indicates that balances due within 12 months equal their carrying balances, as the impact of discounting is not significant[28]. - The carrying amounts of current financial assets and liabilities approximate their fair values due to their short maturities[5]. - The Group's lease liabilities as of September 30, 2024, amounted to HK$343,729,000[32]. Research and Development - Research and development costs amounted to HK$154,092, up from HK$140,000 in 2023, which is an increase of about 10%[83]. - The Super Deduction for R&D expenses in China has increased to 200% from 2022 onwards, allowing companies to claim a higher deduction for tax purposes[10]. Segment Performance - The segment results for the six months ended September 30, 2024, include intimate wear, sports products, consumer electronics components, and bra pads and other accessory products, with specific performance metrics to be disclosed in further reports[63]. - Revenue from the United States was HK$1,739,774, an increase of 8.5% from HK$1,603,779 in 2023[83]. - Revenue from the People's Republic of China (PRC) reached HK$858,482, up from HK$802,296, marking a growth of approximately 7%[83]. Compliance and Standards - The interim financial information has been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34, indicating compliance with relevant financial reporting standards[8]. - The adoption of new and amended standards did not have any significant impact on the results and financial position of the group[17]. - The Group has not adopted the amendments and interpretations to existing and new standards that are not yet effective, anticipating no material impact on results and financial position[20].