Financial Performance - Revenue for the year ended March 31, 2024, was HK$7,016,802, a decrease of 10.9% from HK$7,879,287 in 2023[21]. - Gross profit decreased by 16.7% to HK$1,583,567, representing 22.6% of revenue, compared to 24.1% in the previous year[21]. - Profit attributable to owners of the Company fell by 62.6% to HK$143,175, down from HK$383,258 in 2023[21]. - Adjusted profit attributable to owners of the Company decreased by 24.2% to HK$316,471, compared to HK$417,387 in the prior year[21]. - Earnings per share decreased to 11.7 HK cents from 31.3 HK cents in 2023[21]. - The Group recorded revenue of approximately HK$7,016.8 million for Fiscal 2024, representing a year-on-year decrease of 10.9% from HK$7,879.3 million in Fiscal 2023[61]. - Net profit for Fiscal 2024 was approximately HK$143.2 million, a decrease of 62.6% year-on-year, with a net profit margin of 2.0%, down 2.9 percentage points from 4.9% in Fiscal 2023[61]. - Adjusted EBITDA decreased by 11.8% to approximately HK$1,185.3 million, with an adjusted EBITDA margin of 16.9%, down 0.2 percentage points from 17.1% in Fiscal 2023[62]. - The total revenue decreased by 10.9% from approximately HK$7,879.3 million in Fiscal 2023 to approximately HK$7,016.8 million in Fiscal 2024[100]. - The Group's net current assets amounted to approximately HK$1,489.8 million as of March 31, 2024, down from HK$1,585.6 million in Fiscal 2023[63]. - The Group's net debt increased to approximately HK$3,530.5 million as of 31 March 2024, up from HK$3,283.5 million as of 31 March 2023, resulting in a net gearing ratio of 104.7%[143][145]. Production and Operations - The Group has established production bases in China and Vietnam to support domestic market growth and export business expansion[3]. - The major production base in Vietnam has been operational since 2016, supporting the growth of the export business[3]. - The company emphasized the importance of cost management and control, achieving record-high production efficiency at its Vietnam facilities[39]. - The Group's production efficiency reached record highs in its core business segments during Fiscal 2024, with plans to resume recruitment in Vietnam as orders recover[91]. - The relocation of production lines for consumer electronics and other products was completed during Fiscal 2024, with further adjustments expected to accommodate order deliveries[96]. - The new Zhaoqing production base is designed to meet world-leading standards, incorporating automated production lines and advanced information management systems to enhance production efficiency[187]. - The Zhaoqing production base will support the Group's growing business in the PRC and assist international brands in developing the local market[189]. - The Group aims to reduce manpower by 20% while maintaining the same production value to improve personnel productivity and reflect innovation advantages in gross profit margin growth[193]. Sustainability and Social Responsibility - Regina Miracle has set four sustainability goals for 2030, focusing on carbon reduction, waste management, sustainable innovation, and community development[4]. - The Group's commitment to social responsibility aligns with the United Nations' 2030 Sustainable Development Goals[4]. - The Group has made significant progress in carbon reduction, waste management, innovative development, talent nurturing, and community engagement over the past year[200]. - The establishment of a comprehensive governance framework for ESG has improved decision-making and implementation efficiency within the Group[200]. - The Group actively promotes sustainable development strategies and integrates environmental and social responsibility into its management practices[200]. - The recognition received by the Group serves as validation of its commitment to meeting the expectations of international brands for green production[200]. - The Group's efforts in sustainability have positioned it favorably in the competitive landscape of the manufacturing sector[200]. - The Group's initiatives in diversity, equality, and inclusion have been acknowledged, marking a significant milestone in its corporate social responsibility efforts[200]. Market and Business Strategy - The company focused on prioritizing core businesses and bolstering principal operations, particularly in intimate wear and sports products[31]. - The company is prioritizing core segments and strengthening core operations to navigate uncertainties in the macro environment, focusing on restructuring and development opportunities[56]. - The joint venture with Victoria's Secret has positively impacted the company's business in the Chinese market, providing valuable experience for collaboration with more brands[58]. - The Group will continue to prioritize core businesses, particularly intimate wear and sports products, to solidify its market position and stability[176]. - The Group anticipates a recovery in order demand in Fiscal 2025, leading to a rebound in total revenue[172]. - Revenue from the intimate wear segment is expected to grow at a low-to-mid single-digit rate due to recovering orders from major brand partners[173]. - The sports products segment is projected to achieve double-digit revenue growth, driven by steady recovery in sports bras and mid-double-digit growth in bonding apparel[173]. - The Group's bonding apparel business is recognized by target brand partners, with accelerating order growth and potential for significant market expansion[181]. - Orders for Santoni seamless related products recorded double-digit growth, indicating effective breakthroughs in product R&D and sales expansion[182]. - The Group has successfully introduced several products developed for the PRC market to overseas markets, creating new growth opportunities for its IDM business[200]. Research and Development - Regina Miracle's innovative design manufacturer (IDM) business model leverages three core technologies: computer-aided mold design, 3D compression molding, and seamless bonding[2]. - New patented bonding craftsmanship is expected to drive business breakthroughs and expand product categories[38]. - The company is focusing on technology upgrades centered around the patented bonding process, which has a market lead of 5 to 10 years, enhancing product quality and production efficiency[41]. - The Group has made significant progress in the development of Bonding technology, achieving a market lead of 5 to 10 years and identifying increasing demand for Bonding apparel products[183]. - The Santoni seamless product line recorded double-digit order growth, with expectations for continued growth in the coming year[184]. Financial Management - The company plans to reduce finance costs by actively reducing debt and optimizing the existing debt structure from Fiscal 2026 to 2028, aiming to lower the net gearing ratio to a healthy level[44]. - General and administrative expenses as a percentage of total revenue decreased from 8.9% in Fiscal 2023 to 8.0% in Fiscal 2024, attributed to operational streamlining and exchange gains[124]. - Research and development costs increased from approximately HK$235.8 million in Fiscal 2023 to approximately HK$267.5 million in Fiscal 2024, representing 3.8% of total revenue[126]. - Finance costs rose from approximately HK$293.5 million in Fiscal 2023 to approximately HK$337.0 million in Fiscal 2024, with the percentage of total revenue increasing from 3.7% to 4.8%[133].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Insights - The report highlights a significant recovery in revenue from sports products, driven by the company's streamlined operations and improved production efficiency [3]. - The company is well-positioned to capitalize on industry consolidation and supply chain optimization opportunities, particularly with its main production base in Vietnam [3]. - The report anticipates a rebound in orders for sports products starting from the fourth quarter of FY2024, with a notable recovery trend observed in the second half of the fiscal year [3]. Summary by Sections Business Overview - The company has initiated a new round of recruitment for its international high-tech industrial park project in Zhaoqing, which integrates product R&D, manufacturing, and sales [2]. - The relocation of the Shenzhen production base to Zhaoqing is progressing well, with production lines for consumer electronics accessories, cups, and molded products completed by FY2024 [2]. Financial Performance - For FY2024, the company reported revenues of HKD 7.017 billion, a decrease of 11% year-on-year, with net profit dropping by 63% to HKD 143 million [6]. - The revenue breakdown shows a decline in various product categories, with intimate apparel and sports products experiencing a decrease of 6.9% and 5.1% respectively [3]. - The company’s gross margin decreased by 1.5 percentage points to 22.6%, while the net profit margin fell by 2.9 percentage points to 2% [5]. Future Projections - The report forecasts revenues of HKD 8.062 billion, HKD 9.038 billion, and HKD 9.956 billion for FY2025, FY2026, and FY2027 respectively, with corresponding net profits of HKD 200 million, HKD 304 million, and HKD 399 million [6][7]. - The expected P/E ratios for the upcoming years are projected to decrease from 20.4 in FY2024 to 7.3 by FY2027, indicating a potential increase in valuation attractiveness [6][7].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][27]. Core Views - The company is expected to see improved orders in FY2024H2, with growth anticipated in the seamless clothing category [10][27]. - Despite a decline in revenue and net profit in FY2024, the company is projected to recover with a focus on core technology and product expansion [27][23]. Summary by Sections FY2024 Performance Overview - The company reported FY2024 revenue of HKD 70.17 billion, a decrease of 10.9%, and a net profit of HKD 1.43 billion, down 62.6% [10][11]. - FY2024H1 revenue was HKD 35.45 billion (-23.16%), while FY2024H2 revenue improved to HKD 34.72 billion (+6.31%) [10][11]. Profitability Analysis - The overall gross margin for FY2024 was 22.6%, down 1.5 percentage points, primarily due to reduced revenue leading to operational deleveraging [13][16]. - The net profit margin for FY2024 was 2.04%, a decline of 2.82 percentage points, attributed to sales decline and increased restructuring and financial costs [16][13]. Product Innovation and Market Strategy - The company is focusing on differentiated product innovation, with expectations for mid-single-digit growth in intimate apparel and double-digit growth in bonding clothing [23][24]. - The company aims to deepen its market presence in China, with sales in the Chinese market increasing from HKD 13.54 billion to HKD 13.83 billion from FY2022 to FY2024 [24][25]. Financial Forecast and Investment Recommendations - The company has adjusted its profit forecasts for FY2025-2027, predicting net profits of HKD 1.9 billion, HKD 3.0 billion, and HKD 5.5 billion respectively [27]. - The current stock price corresponds to a P/E ratio of 15.2 for FY2025, indicating potential for growth as the company recovers from recent challenges [27][7].

Summary of Conference Call Company Overview - The company reported its performance for the fiscal year 2024, achieving a total revenue of 7.02 billion HKD, which represents a year-over-year decline of 10% [1] Key Points - The revenue decline indicates potential challenges faced by the company in the market [1] Additional Important Content - The conference call was organized to provide insights to investors regarding the company's financial performance [1]

Financial Performance - Revenue for the fiscal year ended March 31, 2024, was HKD 7,016,802, a decrease of 10.9% from HKD 7,879,287 in the previous year[2] - Gross profit for the same period was HKD 1,583,567, representing a gross margin of 22.6%, down from 24.1% in the prior year[2] - Adjusted profit attributable to the company's owners was HKD 316,471, a decrease of 24.2% compared to HKD 417,387 in the previous year[2] - Basic and diluted earnings per share were HKD 11.7, down from HKD 31.3 in the previous year[5] - The net profit for the period was HKD 143,175,000, reflecting a decrease compared to the previous fiscal year, where the net profit was HKD 383,258,000[24] - Overall gross profit decreased from approximately HKD 1,902.1 million in fiscal year 2023 to approximately HKD 1,583.6 million in fiscal year 2024, with the gross profit margin declining by 1.5 percentage points to 22.6%[63] - The company reported a total of HKD 24,257,000 in other income for the fiscal year ending March 31, 2024[22] - Other income fell from approximately HKD 38.0 million in fiscal year 2023 to approximately HKD 24.3 million in fiscal year 2024, primarily due to a reduction in government subsidies[63] - The company reported a total tax expense of HKD 9,002,000 for 2024, a decrease of 87.7% from HKD 72,963,000 in 2023[34] - The income tax expense for FY2024 is approximately HKD 9.0 million, a significant decrease from HKD 73.0 million in FY2023[66] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 2.2 per share, compared to HKD 1.8 in the previous year[2] - The board proposed a final dividend of HKD 2.2 cents per share for the fiscal year 2024, compared to HKD 1.8 cents per share in fiscal year 2023[39] - The company has proposed a final dividend of HKD 0.022 per share, totaling approximately 48.7% of the group's net profit for the year ended March 31, 2024[92] Assets and Liabilities - Total assets as of March 31, 2024, were HKD 8,602,750, a slight decrease from HKD 8,682,290 in the previous year[11] - Total liabilities increased to HKD 5,232,275 from HKD 5,135,028 in the previous year[11] - Cash and cash equivalents decreased to HKD 623,117 from HKD 675,028 in the previous year[10] - The company’s current assets net value was approximately HKD 1,489.8 million for fiscal year 2024, down from HKD 1,585.6 million in 2023[47] - As of March 31, 2024, the net debt is approximately HKD 3,530.5 million, an increase from HKD 3,283.5 million as of March 31, 2023[67] Operational Segments - For the fiscal year ending March 31, 2024, total revenue from the five business segments amounted to HKD 7,016,802,000, with the highest contribution from the intimate apparel segment at HKD 4,121,437,000[22] - The intimate apparel segment generated approximately HKD 4,121.4 million in revenue for FY2024, a decrease of 6.9% from HKD 4,424.8 million in FY2023, accounting for 58.7% of total revenue[48] - The sports products segment contributed revenue of about HKD 2,311.5 million in FY2024, down 5.1% from HKD 2,436.3 million in FY2023, representing 32.9% of total revenue[49] - The consumer electronics accessories segment saw revenue decline by 23.1% to approximately HKD 285.6 million in FY2024, down from HKD 371.5 million in FY2023, making up 4.1% of total revenue[51] - Revenue from the cups and other accessories segment fell by 25.0% to approximately HKD 241.9 million in FY2024, compared to HKD 322.6 million in FY2023, accounting for 3.5% of total revenue[52] - The footwear segment reported revenue of approximately HKD 56.3 million in FY2024, a significant drop from HKD 324.0 million in FY2023, contributing only 0.8% to total revenue[53] Research and Development - Research and development expenses rose to HKD 267,463, compared to HKD 235,765 in the previous year[5] - Research and development costs for the fiscal year were HKD 267,463,000, indicating a focus on innovation and product development[22] - Research and development costs increased from approximately HKD 235.8 million in fiscal year 2023 to approximately HKD 267.5 million in fiscal year 2024, representing 3.8% of total revenue, up from 3.0% in the previous year[64] Financial Costs and Expenses - Total financial costs for 2024 amounted to HKD 334,615,000, compared to HKD 290,335,000 in 2023, indicating an increase of 15.3%[31] - Financial costs rose from approximately HKD 293.5 million in fiscal year 2023 to approximately HKD 337.0 million in fiscal year 2024, with the percentage of financial costs to total revenue increasing from 3.7% to 4.8% due to global interest rate hikes[65] - Total distribution and selling expenses were HKD 152,270,000, while general and administrative expenses were HKD 561,126,000, indicating significant operational costs[22] Corporate Governance - The company has established five board committees to ensure effective corporate governance and transparency for all shareholders[85] - The board consists of five executive directors and three independent non-executive directors, ensuring a high level of independence[86] - The audit committee, chaired by Dr. Ko Ching Fai, is responsible for overseeing the financial and accounting policies of the group[88] - The company has adopted the standard code for securities trading by directors, confirming compliance as of March 31, 2024[90] Strategic Initiatives - The company aims to enhance its market presence through strategic decisions made by the primary operating decision-maker, focusing on performance evaluation and resource allocation[21] - The company’s strategy focuses on strengthening core operations amidst macroeconomic uncertainties and exploring growth opportunities in the Chinese market[45] - The company aims to enhance asset turnover and precisely plan capital expenditures to support product innovation and maintain competitive advantages[80] - The company plans to actively reduce debt from fiscal years 2026 to 2028, targeting a healthy net debt ratio to optimize financial conditions and enhance shareholder returns[81] Sustainability Efforts - The company’s new production base in Zhaoqing has received LEED Gold certification, demonstrating its commitment to sustainable development and meeting international green production expectations[83] - The company plans to submit science-based emission reduction targets to the Science Based Targets initiative in fiscal year 2025, further promoting the application of clean energy[83] - The company has been recognized as one of the "Top 100 Sustainable Enterprises in Vietnam" for three consecutive years, highlighting its ongoing efforts in sustainability[83] Future Outlook - The company expects a recovery in order demand entering FY2025, driving overall revenue growth[74] - The intimate apparel segment is projected to achieve low single-digit revenue growth in FY2025[74] - The sports products segment is expected to see double-digit growth, becoming a major growth driver for the company[74] - The consumer electronics accessories segment is expected to recover revenue growth in FY2025 as market demand stabilizes and brand partners' products undergo initial market validation[75]

Financial Performance - Revenue for the six months ended September 30, 2023, was HK$3,544,797, a decrease of 23.2% compared to HK$4,613,295 for the same period in 2022[8]. - Profit attributable to owners of the Company for the period was HK$106,823, representing a decline of 65.9% from HK$312,965 in the previous year[8]. - Adjusted profit attributable to owners of the Company was HK$196,574, down 45.8% from HK$362,686 in the prior year[8]. - Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the period was HK$556,225, a decrease of 31.4% from HK$811,016 in the same period last year[8]. - Basic and diluted earnings per share for the six months ended September 30, 2023, were 8.7 HK cents, down from 25.6 HK cents in the previous year[10]. - The gross profit margin for the period was 23.8%, compared to 25.3% in the same period of 2022[8]. - Gross profit decreased by 27.9% to approximately HK$842.7 million, with a gross profit margin of 23.8% compared to 25.3% in 1HF2023[15]. - Net profit for the Period was approximately HK$106.8 million, a decrease of 65.9% year-on-year, resulting in a net profit margin of 3.0%[15]. - The Group's EBITDA decreased by 31.4% to approximately HK$556.2 million, with an EBITDA margin of 15.7%[15]. - Adjusted EBITDA decreased by 25.0% to approximately HK$646.0 million, with an adjusted EBITDA margin of 18.2%[15]. - The Group's operating profit for 1HF2024 was approximately HK$287.9 million, with an operating profit margin of 8.1%[62]. - Net profit in 1HF2024 was approximately HK$106.8 million, resulting in a net profit margin of 3.0%, an increase of 52.0% compared to HK$70.3 million in 2HF2023[62]. Revenue Breakdown - The intimate wear segment contributed revenue of approximately HK$2,210.7 million, accounting for 62.4% of total revenue, with a year-on-year decrease of 10.3%[19]. - Sports products revenue decreased by 33.0% year-on-year to approximately HK$994.2 million, accounting for 28.0% of total revenue, with a gross profit margin of 22.9%[20]. - Consumer electronics components revenue was approximately HK$160.3 million, down 38.0% year-on-year, representing 4.5% of total revenue, with a gross profit margin of 20.0%[24]. - Revenue from bra pads and other accessory products was approximately HK$134.8 million, a decrease of 36.6% year-on-year, accounting for 3.8% of total revenue, with a gross profit margin of 22.6%[25]. - Footwear segment revenue fell to approximately HK$44.6 million, down 77.0% year-on-year, representing 1.3% of total revenue, with a gross profit margin of 18.0%[27]. - VS China revenue increased by 51.1% year-on-year to HK$882.9 million, contributing significantly to the Group's IDM business with a net profit of HK$21.8 million[28]. - Revenue from intimate wear decreased by 10.3% to HK$2,210.7 million, while sports products and consumer electronics components saw declines of 33.0% and 37.9% respectively[36]. Cost and Expenses - Cost of sales as a percentage of total revenue increased from 74.7% in 1HF2023 to 76.2% in 1HF2024, primarily due to decreased revenue and lower capacity utilization[43]. - Overall gross profit decreased from approximately HK$1,168.4 million in 1HF2023 to approximately HK$842.7 million in 1HF2024, with a gross profit margin decrease of 1.5 percentage points to 23.8%[46][47]. - Distribution and selling expenses decreased from approximately HK$103.4 million in 1HF2023 to approximately HK$77.6 million in 1HF2024, remaining stable at 2.2% of total revenue[52]. - General and administrative expenses decreased from approximately HK$393.3 million in 1HF2023 to approximately HK$269.0 million in 1HF2024, with a percentage of total revenue decrease from 8.5% to 7.6%[53]. - Research and development costs remained relatively stable at approximately HK$128.7 million in 1HF2024 and approximately HK$126.0 million in 1HF2023, with the percentage of total revenue increasing from 2.7% to 3.6%[53]. Strategic Initiatives - The Company is focusing on new product development and market expansion strategies to enhance future performance[7]. - The Company plans to explore potential mergers and acquisitions to strengthen its market position[7]. - The management remains optimistic about future growth despite the current financial challenges[7]. - The Group aims to optimize production processes through vertical integration, smart management, automation, and localized supply chains[33]. - The Group aims to deepen collaborations with existing brand partners while actively seeking new partnerships to expand market share[79]. - The Group is reallocating resources from the footwear segment to outerwear, leveraging seamless bonding craftsmanship to fill the revenue gap[83]. - The Group is focusing on enhancing competitive strengths in intimate wear and sports segments to absorb potential fluctuations in other business areas[87]. Market Conditions - Consumer sentiment remains cautious, impacting the textile and retail industries, leading to a tepid overall market recovery[12]. - The ongoing destocking cycle is nearing its mid-to-late stage, contributing to a gradual recovery in overall market sentiment[80]. - The trend of increasing market concentration is expected to benefit leading brands, allowing them to gain market share even during downturns[79]. - The Group's revenue from the domestic market accounted for over 15% of total revenue during the Period, indicating significant growth in the Chinese market[98]. - E-commerce business revenue for VS China grew by over 100%, contributing to the overall growth of the Group's IDM business in the PRC market[98]. Financial Position - As of September 30, 2023, the Group's current ratio was 2.1, and net debt was approximately HK$3,589.1 million[63]. - The net gearing ratio increased to 111.3% as of September 30, 2023, compared to 92.6% on March 31, 2023[63]. - Total capital expenditures for 1HF2024 amounted to approximately HK$491.3 million, significantly higher than HK$207.2 million in 1HF2023[65]. - The Group employed a total of 35,140 full-time staff as of September 30, 2023, with total staff costs amounting to approximately HK$1,171.7 million, representing 33.1% of total revenue[74]. - Trade receivables increased to HK$1,078,957 from HK$710,534, indicating a rise of 51.7%[120]. - Current liabilities increased to HK$1,379,477 from HK$1,318,808, reflecting a rise of 4.6%[120]. Research and Development - Research and development costs for the period amounted to HK$128,663,000, reflecting the company's commitment to innovation[166]. - The Group's latest bra pad technologies have enhanced the wearing experience of core product categories, including intimate apparel and sports bras[89]. - The company is entitled to claim a super deduction of 200% on research and development expenses for tax purposes, effective from 2022[197]. Sustainability and ESG - The Group has made significant progress in energy conservation, waste reduction, and the use of environmentally friendly raw materials[102]. - The Group's commitment to ESG practices is integral to its corporate sustainability strategy, aligning with the 2030 Sustainable Development Goals[101]. - The Zhaoqing factory's first phase received LEED Gold Certification in June 2023, enhancing sustainability compliance for international brand partners[102].

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 3,544,797, a decrease of 23.2% compared to HKD 4,613,295 for the same period in 2022[2] - Gross profit for the same period was HKD 842,710, representing a gross margin of 23.8%, down from HKD 1,168,415 and a gross margin of 25.3% in 2022[2] - Profit attributable to the company's owners was HKD 106,823, a decline of 65.9% from HKD 312,965 in the previous year[2] - Adjusted profit attributable to the company's owners was HKD 196,574, down 45.8% from HKD 362,686 in the same period last year[2] - Basic earnings per share for the period were HKD 8.7, compared to HKD 25.6 in the previous year[4] - The company reported a net loss of HKD 322,324 in total comprehensive income attributable to the owners for the period[5] - Total revenue for the six months ended September 30, 2023, was HKD 3,544,797,000, a decrease of 23.2% compared to HKD 4,613,295,000 for the same period in 2022[17] - Gross profit for the same period was HKD 842,710,000, down 28% from HKD 1,168,415,000 in the previous year[17] - The company reported a net profit of HKD 106,823,000 for the six months ended September 30, 2023, compared to HKD 312,965,000 for the same period in 2022, representing a decline of 65.9%[17][19] - Adjusted EBITDA decreased by 25.0% to approximately HKD 646.0 million, with an adjusted EBITDA margin of 18.2%[43] Assets and Liabilities - Total assets as of September 30, 2023, were HKD 8,472,737, a decrease from HKD 8,682,290 as of March 31, 2023[6] - Cash and cash equivalents decreased to HKD 460,847 from HKD 675,028 as of March 31, 2023[6] - Trade receivables increased to HKD 1,078,957 from HKD 710,534 as of March 31, 2023[6] - As of September 30, 2023, total liabilities amounted to HKD 5,247,799, an increase from HKD 5,135,028 as of March 31, 2023, representing a growth of approximately 2.2%[7] - Non-current liabilities reached HKD 3,868,322, up from HKD 3,816,220, indicating an increase of about 1.4%[7] - Current liabilities totaled HKD 1,379,477, compared to HKD 1,318,808, reflecting a rise of approximately 4.6%[7] - Trade payables increased to HKD 432,788 from HKD 340,327, marking a significant growth of around 27.2%[7] - The group's total borrowings as of September 30, 2023, reached HKD 4,049,912,000, compared to HKD 3,958,536,000 as of March 31, 2023, reflecting an increase of 2.6%[37] - The actual annual interest rate on bank borrowings increased to 7.2% as of September 30, 2023, up from 5.4% as of March 31, 2023[38] Segment Performance - The company operates in five segments: intimate apparel, sports products, consumer electronics accessories, cups and other accessories, and footwear[15] - The intimate apparel segment generated revenue of approximately HKD 2,210.7 million, a year-on-year decrease of 10.3%, contributing 62.4% to total revenue[45] - The sports products segment reported revenue of approximately HKD 994.2 million, down 33.0% year-on-year, accounting for 28.0% of total revenue[46] - The consumer electronics accessories segment contributed revenue of approximately HKD 160.3 million, representing 4.5% of total revenue, with a gross margin of 20.0%[48] - The cup and other accessories segment generated revenue of approximately HKD 134.8 million, down from HKD 213.0 million, with a gross margin of 22.6%[49] - The footwear segment reported revenue of approximately HKD 44.6 million, a significant decline from HKD 193.9 million, with a gross margin of 18.0%[50] - Victoria's Secret China achieved revenue of HKD 882.9 million, a 51.1% increase year-on-year, contributing significantly to the group's IDM business revenue[51] Expenses and Costs - Total distribution and selling expenses for the period were HKD 77,578,000, a decrease from HKD 103,372,000 in the previous year[17][19] - The total expenses for property, plant, and equipment depreciation were HKD 231,010,000, down from HKD 240,981,000, a reduction of 4.1%[26] - Net finance costs increased to HKD (153,426,000) for the six months ended September 30, 2023, compared to HKD (144,772,000) in the same period of 2022, representing a rise of 5.4%[27] - Income tax expense for the six months ended September 30, 2023, was HKD (28,211,000), a decrease of 56.5% from HKD (64,927,000) in the same period of 2022[30] - General and administrative expenses decreased from approximately HKD 393.3 million in the first half of fiscal year 2023 to about HKD 269.0 million in the first half of fiscal year 2024, with the percentage of total revenue dropping from 8.5% to 7.6%[65] - R&D costs remained relatively stable at approximately HKD 128.7 million in the first half of fiscal year 2024 compared to HKD 126.0 million in the first half of fiscal year 2023, with the percentage of total revenue increasing from 2.7% to 3.6%[66] Future Outlook - The group anticipates a stable revenue increase in the second half of FY2024, with a recovery in year-on-year growth expected in FY2025[81] - The intimate apparel segment is expected to see stable order income growth due to the stability of international brand partners and the steady development of the Chinese market[81] - The sports products segment is projected to continue its recovery trend, with moderate improvements in sports bras and leggings expected in the second half of the year[82] - The footwear business will be streamlined, resulting in an estimated revenue reduction of approximately HKD 300 million in FY2024 compared to FY2023[84] - The group is focusing on enhancing its core businesses in intimate apparel and sportswear to counter potential fluctuations in other segments[86] - The group aims to optimize its overall gross margin by clearly anchoring the best product positioning among brand partners and implementing efficiency enhancement measures in vertical integration, automation, and intelligent management[89] Corporate Governance and Compliance - The company has not adopted any new accounting standards that would have a significant impact on its performance and financial position as of the reporting date[11] - The company has maintained compliance with the corporate governance code throughout the six months ended September 30, 2023[97] - The board consists of five executive directors and three independent non-executive directors, ensuring a high level of independence[98] - The audit committee, composed of three independent non-executive directors, has reviewed the financial and accounting policies of the group[100] Shareholder Information - The company declared an interim dividend of HKD 3.5 per share for the six months ended September 30, 2023, down from HKD 8.5 in 2022[95] - The company will suspend shareholder registration procedures from December 13 to December 14, 2023, to determine eligibility for the interim dividend[96] - The company expresses gratitude to shareholders, business partners, customers, suppliers, banks, management, and employees for their support during the period[102]

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].