Investment Rating - The report gives a "Buy" rating for the company with a target price of 5.77 HKD, based on a 9x PE multiple for 2025 [2][5] Core Views - The company is a global apparel manufacturing giant with nearly 50 years of industry experience, focusing on five core categories: casualwear, sportswear & outdoor wear, denim, intimate wear, and sweaters [1] - The global apparel manufacturing industry is expected to see increased market share for leading companies due to factors like rising quality demands, cost pressures, and trade frictions [1] - The company has a wide moat, including strong customer relationships, a global manufacturing platform, and excellent R&D capabilities supporting a co-creation business model [2] - Future growth is expected to be driven by vertical integration, automation, and reduced exposure to US-China trade risks [2] Financial Performance - Revenue is forecasted to grow from 2,476 million USD in 2024E to 3,167 million USD in 2026E, with a CAGR of 13.1% [3] - Net profit is expected to increase from 204 million USD in 2024E to 269 million USD in 2026E, with a CAGR of 14.8% [3] - EPS is projected to grow from 0.07 USD in 2024E to 0.09 USD in 2026E [3] Industry Analysis - The global apparel market has shown steady growth, with the sportswear segment growing at a higher rate (4.3% CAGR from 2010-2023) [66] - The apparel manufacturing industry is highly fragmented, with leading companies expected to gain market share due to vertical integration and cost advantages [66][68] - Companies with vertical integration capabilities tend to have better profitability due to cost control, faster response times, and stronger R&D capabilities [71] Competitive Advantages - The company has deep relationships with global apparel brands, with some partnerships spanning 10-30 years [91] - It has a global manufacturing footprint across Vietnam, China, Cambodia, Bangladesh, and Sri Lanka, with 82% of employees located overseas [103] - The company's co-creation model with customers enhances product innovation and strengthens customer relationships [90] - Cross-category sales have been effective in expanding business opportunities [90] Future Outlook - The company is advancing vertical integration and automation, with plans to establish a modern center in Vietnam for advanced equipment development by 2024 [2] - The proportion of US revenue has been declining, which is expected to further reduce trade friction risks [2] - The company's focus on sportswear and outdoor wear is expected to drive future growth, with this category's revenue share increasing from 10% in 2017 to 22% in 2023 [38]

Key Points Company Overview 1. **Company Name and Background**: Jingyuan International, established in 1970, has over 50 years of experience in garment manufacturing. It was listed in Hong Kong in 2017. The company's revenue in 2022 was $2.18 billion, with a net profit of $160 million. Jingyuan is the second-largest player in the global garment manufacturing industry, with a revenue volume second only to Shenzhen. [1] 2. **Product Categories**: Jingyuan offers a diverse range of products, including sweaters, leisurewear, denim, intimate wear, and sports and outdoor wear. [1] 3. **Customer Base**: Jingyuan serves a wide range of global fashion brands, including Uniqlo, Levi's, Gap, H&M, Adidas, Nike, LULU, UA, and Puma. [1] 4. **Global Manufacturing Presence**: Jingyuan has 23 factories in China, Vietnam, Bangladesh, Cambodia, and Sri Lanka, with a total workforce of 70,000, of which over 80% are overseas employees. [2] Financial Performance 1. **2023 H1 Revenue and Profit Growth**: Jingyuan's revenue and net profit for the first half of 2023 increased by 8.4% and 14.1%, respectively. This growth was driven by the recovery of orders from European and American brand customers and additional orders received on top of the original expectations. [3] 2. **Employee Expansion**: Jingyuan hired 5,000 employees in the first half of 2023 and plans to continue hiring in the second half. The total workforce is expected to reach 65,000 by the end of 2025. [3] 3. **Historical Performance**: Jingyuan's historical data shows a strong correlation between employee numbers and revenue scale. The company's gross margin has remained stable at 19-20% over the years, indicating strong operational control capabilities. [4] Future Outlook 1. **Order Growth**: Jingyuan's order growth is expected to be driven by two main factors: the continued growth of its largest customer, Uniqlo, and the rapid growth of the sports and outdoor wear category. [5] 2. **Uniqlo Collaboration**: Uniqlo, Jingyuan's largest customer, accounts for about one-third of its revenue. The two companies have a long-standing partnership, with a history of creating best-selling products together. [5] 3. **Sports and Outdoor Wear**: Jingyuan entered the sports and outdoor wear category in 2016 through acquisitions and has since entered into partnerships with major brands like Adidas, Nike, LULU, and UA. This category has seen a load growth of 14% from 2017 to 2023, becoming the second-largest category after leisurewear. [6] 4. **Other Categories**: Jingyuan's other categories, such as sweaters and denim, are also experiencing upward trends. [6] 5. **Revenue and Profit Projections**: Jingyuan is expected to achieve revenue of $2.47, $2.81, and $3.18 billion in 2024, 2025, and 2026, respectively, with corresponding net profits of $198 million, $231 million, and $267 million. [8]

Investment Rating - Buy rating (first coverage) [7] Core Views - Crystal International is a leading global apparel manufacturer with a diversified product portfolio and strong partnerships with top global brands [1][6] - The company has a robust global production layout, with 82% of its workforce located overseas, primarily in Vietnam [1][18] - Crystal International's revenue is expected to grow steadily, with projected revenues of $2.47B, $2.81B, and $3.18B for 2024-2026, representing a CAGR of 13.5%, 13.8%, and 13.0% respectively [3] - Net profit is forecasted to grow at a CAGR of 21%, 17%, and 16% for the same period, with a PE ratio of 8x, 7x, and 6x, significantly lower than industry peers [3] Product Portfolio - Crystal International offers a diversified product portfolio across five categories: casualwear (28%), sportswear & outdoor (22%), denim (21%), intimatewear (18%), and sweaters (10%) [1][17] - The company has deep partnerships with 7 out of the top 10 global apparel brands, including Uniqlo, Levi's, GAP, Victoria's Secret, Nike, and Adidas [1][17] - Sportswear & outdoor category has been a key growth driver since 2016, with a CAGR of 14.1% from 2017-2023 [31][32] Global Production Layout - Crystal International has 23 factories across 5 countries, with 82% of its workforce located overseas, primarily in Vietnam (49%) [1][18] - The company has been expanding its upstream fabric production through acquisitions and self-built factories since 2021, enhancing vertical integration and shortening delivery times [1][18] Financial Performance - Crystal International's revenue has fluctuated in recent years due to external factors, but is expected to recover in 2024 with H1 revenue and net profit growing by 8.4% and 14.1% YoY respectively [23][24] - Gross margin has remained stable at 19%-20%, with net margin steadily improving to 7%-8% in recent years [24][25] - The company has a strong dividend policy, with a payout ratio of 60% in H1 2024 and a projected full-year dividend yield of 7%+ [39][40] Industry Overview - The global apparel retail market is expected to grow at a CAGR of 5.3% from 2024-2028, with sportswear being the fastest-growing category at a CAGR of 6.2% [42][43] - The top 10 global apparel brands have increased their market share from 6.6% in 2014 to 9.9% in 2023, with 7 of them being Crystal International's clients [44][45] - The apparel manufacturing industry is highly fragmented, with Crystal International holding a 0.4% market share, second only to Shenzhou International's 0.7% [52][53] Competitive Advantages - Crystal International's "Co-creation" business model allows it to collaborate closely with clients on product design, material selection, and production planning, enabling faster time-to-market and higher success rates [64][68] - The company has a strong R&D focus, with annual R&D expenditures of $20-40M and a portfolio of 48 patents covering various production technologies [69][70] - Crystal International's diversified product portfolio and global production footprint give it a competitive edge over peers, allowing it to offer one-stop solutions to clients [58][59]

Financial Performance - Revenue for the six months ended June 30, 2024, was $1,093,672 thousand, an increase of 8.4% compared to $1,009,191 thousand in 2023[10] - Gross profit for the same period was $213,452 thousand, representing a gross margin of 19.5%, up from 19.1% in the previous year[10] - Net profit for the six months was $84,214 thousand, with a net profit margin of 7.7%, compared to 7.3% in 2023[10] - The company’s revenue for the six months ended June 30, 2024, increased by 8.4% to $1,094 million compared to $1,009 million for the same period in 2023[13] - Gross profit rose by 10.8% to $213 million, with a gross margin increase from 19.1% to 19.5% year-over-year[14] - Net profit increased by 13.6% to $84 million, with a net profit margin rising from 7.3% to 7.7%[22] - The total comprehensive income for the period was $76,382 thousand, compared to $66,531 thousand in the same period last year, reflecting a growth of 14.0%[61] - The profit before tax for the six months ended June 30, 2024, was $84,012,000, representing a 14.4% increase compared to $73,642,000 for the same period in 2023[93] Assets and Liabilities - Total assets increased to $2,058,896 thousand from $1,974,562 thousand year-on-year[10] - The company reported a total equity of $1.467 billion as of June 30, 2024, compared to $1.345 billion as of June 30, 2023[66] - The company’s total assets amounted to $1.438 billion as of June 30, 2024, compared to $1.345 billion as of June 30, 2023[66] - Trade receivables and other receivables rose to $183,621 thousand from $118,803 thousand, marking a significant increase of 54.6%[63] - The total amount of trade receivables classified at fair value through other comprehensive income was $190,220,000 as of June 30, 2024, compared to $164,491,000 as of December 31, 2023, reflecting an increase of 15.6%[99] Cash Flow and Capital Expenditures - The company reported a cash turnover period of 70 days, slightly up from 69 days in the previous year[10] - The operating cash flow for the first half of 2024 was $44 million, a decrease from $141 million in the same period of 2023[23] - The company invested $52 million in capital expenditures for the six months ended June 30, 2024, up from $33 million in the same period last year[14] - The total capital expenditure for property, plant, and equipment was approximately $29,600,000 for the six months ended June 30, 2024, compared to $16,089,000 in the same period of 2023[94] Market and Demand Trends - Demand for sports and outdoor apparel has surged, driving sales growth in functional and comfortable clothing[12] - The demand for denim has rebounded from pandemic lows, supported by fashion trends and innovative lightweight denim products[12] - Brand clients have resumed procurement, leading to improved operating conditions for OEMs, with a shift towards smaller, quicker orders to avoid inventory buildup[12] - The Asia-Pacific region accounted for 38.2% of total revenue, with sales of $418 million, while North America contributed 37.9% with $415 million[18] Sustainability and Corporate Governance - The company aims to achieve a 35% reduction in total greenhouse gas emissions by 2030 as part of its sustainability goals[29] - The company’s CDP climate change rating improved from B in 2022 to A in 2023, reflecting leadership in climate transition and emissions management[31] - The company has implemented a written risk assessment procedure to identify, assess, and manage significant risks, which the audit committee finds effective[54] - The board is committed to maintaining good corporate governance practices and has reviewed compliance with the corporate governance code[51] Employee and Operational Insights - Employee costs accounted for 25.7% of revenue in the first half of 2024, down from 26.6% in the same period of 2023[28] - The company has hired an additional 5,000 employees by the end of Q2, bringing the total workforce to 70,000[33] - The company faced production capacity constraints due to hiring difficulties in the first quarter, but has since improved staffing levels significantly in the second quarter[14] Dividends and Shareholder Information - The company plans to increase its dividend payout ratio to 60%, declaring an interim dividend of 13.8 HK cents per share, up from 5.0 HK cents in the previous year[15] - The company declared an interim dividend of HKD 0.138 per share, payable on September 20, 2024[35] Future Outlook and Strategic Initiatives - The company expects to benefit from economies of scale as production capacity increases in the second half of the year, leading to improved operational efficiency and profit margins[33] - The company is exploring potential acquisitions to bolster its product offerings, with a budget of $200 million allocated for this purpose[121] - A new strategic partnership was announced, expected to drive an additional $100 million in revenue over the next year[121]

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文件的內容概不 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 對 因 本 文 件 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 * （於百慕達註冊成立的有限公司並以存續方式於開曼群島註冊） （股份代號：2232） 截至二零二四年六月三十日止六個月中期業績公告 | --- | --- | |-------|-------------------------------------------------------------------------------------------------------------------| | | | | | 財務摘要 | | • | 截至二零二四年六月三十日止六個月的收益為 1,094 百 萬 美 元（二 零 二 三 年 六 月 三 十 日： 1,009 百 萬 美 元）。 | | • | 截至二零二四年六月三十日止六個月的純利為 84 百 萬 美 元（二 零 二 三 年 六 月 三 十 日： 74 百 萬 美 元）。 | | ...

目錄 公司資料 2 財務摘要 3 主席報告 4 管理層討論及分析 6 董事及高級管理層 13 董事會報告 21 企業管治報告 32 詞彙 57 獨立核數師報告 61 綜合損益及其他全面收入表 66 綜合財務狀況表 68 綜合權益變動表 70 綜合現金流量表 71 綜合財務報表附註 73 財務概要 160 公司資料 董事會 執行董事 羅樂風先生 （主席） 羅蔡玉清女士 （副主席） 羅正亮先生 （行政總裁） 黃星華先生 羅正豪先生 非執行董事 王志輝先生 LEE Kean Phi Mark 先生 獨立非執行董事 張家騏先生 麥永森先生 黃紹基先生 麥鄧碧儀女士，MH ，JP 董事委員會 審核委員會 張家騏先生 （主席） 麥永森先生 黃紹基先生 麥鄧碧儀女士 薪酬委員會 麥永森先生 （主席） 張家騏先生 黃紹基先生 羅樂風先生 提名委員會 羅樂風先生 （主席） 麥永森先生 黃紹基先生 麥鄧碧儀女士 企業發展委員會 羅正亮先生 （主席） 王志輝先生 黃星華先生 羅正豪先生 LEE Kean Phi Mark 先生 張家騏先生 麥永森先生 黃紹基先生 麥鄧碧儀女士 李偉君先生 可持續發展委員會 羅正亮先生 （主席） 王 ...

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文件的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本文件全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 * （於百慕達註冊成立的有限公司並以存續方式於開曼群島註冊） （股份代號：2232） 截至二零二三年十二月三十一日止年度 年度業績公告 | --- | --- | |-------|-------------------------------------------------------------------------------------------------------| | | | | | 財務摘要 | | • | 截至二零二三年十二月三十一日止年度的收益為 2,177 百萬美元（二零 二二年： 2,491 百萬美元）。 | | • | 截至二零二三年十二月三十一日止年度的純利為 164 百萬美元（二零 二二年： 173 百萬美元）。 | | | | | • | 建議宣派末期股息每股普通股 13.0 港仙（約 1.7 美仙）。連同已付中期股 | | | 息，截至二零二三年十二月三十一日 ...

品苑國際集團有限公司* CRYSTAL INTERNATIONAL GROUP LIMITED (Incorporated in Bermuda with Ilmited Ilability and registered by way of continuation in the Cayman Islands) (於百慕建註冊成立的有限公司並以存續方式於開曼群島註冊) Stock code 股份代號: 2232 INTERIM R EPOR * For identification purposes only 優供識別 i 9 11: 117 i 116 illi IIIIIII 20 R MIT I 111 " nia 1111 l 1100 l D 101 11111 an 2011 111111117 17 1 目錄 公司資料 2 財務摘要 3 管理層討論及分析 4 企業管治及其他資料 12 簡明綜合財務報表審閱報告 19 簡明綜合損益及其他全面收入表 21 簡明綜合財務狀況表 23 簡明綜合權益變動表 25 簡明綜合現金流量表 26 簡明綜合財務報表附註 27 公司資料 2 晶苑國際集團有限公司 | ...

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文件的內容概不 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 對 因 本 文 件 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 * （於百慕達註冊成立的有限公司並以存續方式於開曼群島註冊） （股份代號：2232） 截至二零二三年六月三十日止六個月中期業績公告 | --- | --- | |-------|-------------------------------------------------------------------------------------------------------------------| | | | | | 財務摘要 | | • | 截至二零二三年六月三十日止六個月的收益為 1,009 百 萬 美 元（二 零 二 二 年 六 月 三 十 日： 1,242 百 萬 美 元）。 | | • | 截至二零二三年六月三十日止六個月的純利為 74 百 萬 美 元（二 零 二 二 年 六 月 三 十 日： 76 百 萬 美 元）。 | | ...

Financial Performance - Revenue for the year ended December 31, 2022, was $2,490,966 thousand, an increase of 6.4% from $2,341,432 thousand in 2021[4] - Gross profit for 2022 was $463,350 thousand, with a gross margin of 18.6%, down from 19.1% in 2021[4] - Net profit for 2022 was $173,229 thousand, maintaining a net profit margin of 7.0%[4] - The company's revenue for the year ended December 31, 2022, increased to $2,491 million, up from $2,341 million in 2021, representing a growth of approximately 6.4%[12] - The gross profit margin slightly decreased to 18.6% in 2022 from 19.1% in 2021, while the net profit for the year was $173 million, compared to $163 million in the previous year, maintaining a net profit margin of 7.0%[12] - Total revenue for 2022 was $2,490,966 thousand, compared to $2,341,432 thousand in 2021, with the Americas accounting for 38.5% and Europe for 18.0%[17] - Operating cash flow for 2022 was $349 million, an increase from $190 million in 2021, with cash and cash equivalents totaling $455 million[22] - The company reported a significant increase in sales cost, which rose to $2,027,616 thousand from $1,893,822 thousand, indicating a 7.1% increase[184] - The total comprehensive income for the year was $107,089 thousand, down from $179,010 thousand in 2021, reflecting a decrease of 40.2%[185] Assets and Liabilities - The total assets decreased to $1,894,965 thousand in 2022 from $1,959,495 thousand in 2021[5] - Total liabilities reduced significantly to $549,666 thousand in 2022 from $666,176 thousand in 2021[5] - Total equity increased from $1,293,319 thousand in 2021 to $1,345,299 thousand in 2022, an increase of approximately 4.0%[187] - The company’s total liabilities decreased from $666,176 thousand in 2021 to $549,666 thousand in 2022, a decline of approximately 17.5%[187] Sustainability and Environmental Initiatives - The company aims to reduce absolute carbon emissions by 35% by 2030 as part of its sustainability goals[7] - Solar photovoltaic capacity was increased from 3.6 MW in 2021 to 7.8 MW in 2022[7] - The company has installed a total of 4.2 MW of solar photovoltaic capacity in 2022, doubling its total capacity to 7.8 MW, as part of its sustainability efforts[14] - The company plans to reduce greenhouse gas emissions by 35% by 2030 as part of its commitment to achieving net-zero emissions by 2050[14] - The company received several prestigious awards in 2022, including the Hong Kong Sustainable Development Award 2022 - Model Award (Large Organization Category) and the Best ESG Report - Mid-Cap Award[168] - The company achieved significant recognition for its environmental initiatives, including the Carbon Neutral Contribution Pioneer Organization award and the Platinum Label under the Low Carbon Manufacturing Program[168] Acquisitions and Investments - The company completed the acquisition of a fabric factory in Bangladesh in 2022, marking a milestone in its long-term vertical integration strategy[7] - The company completed the acquisition of a fully-owned fabric factory in Bangladesh in September 2022, enhancing its vertical integration strategy and supporting long-term fabric demand for its domestic garment factories[12] - Capital expenditures for the year amounted to $106 million, primarily for expansion in Vietnam and Cambodia, with total capital investments reaching $164 million, up from $132 million in 2021[12] - The company completed the acquisition of How Are You Textile Industry Limited for $37 million on September 30, 2022, to support long-term fabric needs in Bangladesh[27] - The company also acquired Successor Limited for $20.7 million on November 30, 2022, which has a factory in Vietnam, enhancing vertical integration efforts[27] Employee and Talent Management - The company received the HR Asia Best Companies to Work for in Asia 2022 award, highlighting its commitment to talent retention and employer branding[7] - Employee costs accounted for 23.8% of revenue in the fiscal year ending December 31, 2022, down from 24.8% in the previous year[30] - The company employed approximately 73,000 employees as of December 31, 2022, focusing on performance-based compensation and ongoing training[30] - The company has established a new talent strategy team to support the long-term development of its fabric business, enhancing its operational efficiency[12] Corporate Governance - The company emphasizes good corporate governance principles and has established various committees, including the Audit Committee and the Nomination Committee[171] - The board consists of six executive directors, one non-executive director, and four independent non-executive directors as of December 31, 2022[96] - The company has established a policy for handling and disclosing inside information, ensuring strict monitoring to prevent unauthorized access and use[160] - The company has adopted a shareholder nomination process for director candidates, effective from the date of listing[164] - The company has reviewed its shareholder communication policy and believes there are sufficient channels for shareholders to express their views on matters affecting the company[165] Financial Reporting and Audit - The audit committee reviewed the audited consolidated financial statements for the year ended December 31, 2022, and expressed satisfaction with the external auditor's work and compliance with accounting policies[113] - Deloitte Touche Tohmatsu was the independent auditor for the financial statements for the year ending December 31, 2022[90] - The company has sufficient resources, personnel, training programs, and budget for accounting, internal audit, and financial reporting functions, as well as for environmental, social, and governance performance reporting[157] Future Outlook - Consumer demand remains strong post-pandemic, but high inventory levels and economic uncertainty are expected to challenge growth in 2023[31] - The company expects capital investments in 2023 to be similar to those in 2022 as it continues to invest in upstream vertical expansion[31] - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[45]