超盈国际控股(02111) - 2024 - 中期业绩

Revenue Growth - Revenue for the six months ended June 30, 2024, increased by 25.1% to approximately HKD 2,385.4 million compared to the same period in 2023[1] - Sales revenue from sportswear and apparel fabric materials increased by 35.8% to approximately HKD 1,301.9 million for the six months ended June 30, 2024[1] - Total revenue for the six months ended June 30, 2024, was HK$2,385,408 thousand, with HK$1,917,247 thousand from the manufacturing and trading of elastic fabric and lace, and HK$468,161 thousand from elastic webbing[12] - Revenue from elastic fabric for sportswear and apparel increased to HK$1,301,906 thousand in 2024 from HK$958,585 thousand in 2023, a growth of 35.8$587,541 thousand in 2024 from HK$528,580 thousand in 2023, an increase of 11.2$468,161 thousand in 2024 from HK$386,969 thousand in 2023, a 21.0$645,162 thousand, with HK$528,105 thousand from elastic fabric and lace, and HK$117,057 thousand from elastic webbing[15] - Operating profit for the six months ended June 30, 2024, was HK$364,752 thousand, with HK$304,419 thousand from elastic fabric and lace, and HK$60,333 thousand from elastic webbing[15] - Profit before tax for the six months ended June 30, 2024, was HK$324,220 thousand[15] - Gross profit for the period was HKD 400,976 thousand, with HKD 326,549 thousand from elastic fabric and lace manufacturing and HKD 74,427 thousand from elastic band manufacturing[16] - Profit before tax for the six months ended June 30, 2023, was HKD 137,982 thousand[16] - Gross profit for the first half of 2024 was HKD 645.2 million, a 60.9% YoY increase, with a gross margin of 27.0%, up 6.0 percentage points from the previous year[31] - Net profit attributable to shareholders for the first half of 2024 was HKD 277.4 million, a 100.1% YoY increase, with basic earnings per share rising to HKD 26.67 cents, also a 100.1% increase[31] - The company's overall gross profit increased from HKD 401.0 million in the first half of 2023 to HKD 645.2 million in the first half of 2024, with a gross margin improvement from 21.0% to 27.0%[39] - Net profit for the six months ended June 30, 2024, was approximately HKD 283.2 million, a 138.6% increase compared to HKD 118.7 million in the same period in 2023[48] - Net profit margin for the six months ended June 30, 2024, was 11.9%, up 5.7 percentage points from 6.2% in the same period in 2023[48] Financial Position - The company's net debt decreased to approximately HKD 394.0 million as of June 30, 2024, compared to HKD 498.8 million as of December 31, 2023[1] - The company's net asset-to-liability ratio decreased to 11.6% as of June 30, 2024, from 15.0% as of December 31, 2023[1] - The company's net asset value as of June 30, 2024, was HK$3,407,156 thousand, compared to HK$3,315,541 thousand as of December 31, 2023[5] - Non-current liabilities decreased to HK$783,097 thousand as of June 30, 2024, from HK$565,354 thousand as of December 31, 2023[5] - Total bank and other borrowings decreased to 1,225,467 thousand HKD in 2024 from 1,514,576 thousand HKD in 2023, showing a reduction in debt levels[28] - Unsecured bank borrowings decreased to 1,081,654 thousand HKD in 2024 from 1,370,763 thousand HKD in 2023, reflecting a reduction in unsecured debt[29] - Net debt-to-equity ratio as of June 30, 2024, was 11.6%, down from 15.0% as of December 31, 2023[51] - Trade receivables and bills receivable totaled 785,988 thousand HKD in 2024, compared to 737,674 thousand HKD in 2023, indicating an increase in sales-related receivables[24] - Trade receivables aged 0-90 days accounted for 731,163 thousand HKD in 2024, up from 681,265 thousand HKD in 2023, showing a rise in short-term receivables[25] - Trade payables aged 0-90 days decreased to 265,059 thousand HKD in 2024 from 300,030 thousand HKD in 2023, reflecting changes in payment terms[26] - Bills payable aged 0-90 days decreased to 163,849 thousand HKD in 2024 from 190,748 thousand HKD in 2023, indicating a reduction in short-term liabilities[27] - Operating working capital as of June 30, 2024, was approximately HKD 1,157.3 million, an increase of HKD 379.0 million compared to December 31, 2023[49] - Bank deposits pledged as collateral as of June 30, 2024, were approximately HKD 74.7 million, down from HKD 88.0 million as of December 31, 2023[54] Dividends - The company declared an interim dividend of HKD 13.33 cents per share for the six months ended June 30, 2024, compared to HKD 5.3 cents per share in the same period in 2023[1] - The company declared a final dividend of HKD 11.38 cents per share for the year ended December 31, 2023, totaling approximately HKD 118,330,000, compared to HKD 4.22 cents per share and HKD 43,880,000 for the previous year[21] - An interim dividend of HKD 13.33 cents per share was declared for the six months ended June 30, 2024, compared to HKD 5.3 cents per share for the same period in 2023[21] - The company declared an interim dividend of HK$0.1333 per ordinary share for the six months ended June 30, 2024, payable on October 4, 2024[67] - The company will suspend share transfer registration from September 12 to September 16, 2024, to determine eligibility for the interim dividend[68] Operational Efficiency - The company's Vietnam operations achieved over 30% sales growth in the first half of 2024, outperforming the market's 4.6% growth in textile and apparel exports[33] - Sri Lanka operations saw over 40% sales growth in the first half of 2024, driven by capacity expansion and increased orders from selected customers[34] - The company has improved operational efficiency at its overseas production bases in Vietnam and Sri Lanka, leading to significant financial improvements for its international subsidiaries[63] - The company expects the positive trend in sales orders and capacity utilization to continue in the second half of 2024, supported by a stabilizing economic recovery[63] - The company is actively evaluating the feasibility of expanding manufacturing capacity in Vietnam and other regions to meet potential growth in export demand[63] - The company's annual design capacity for elastic fabrics, elastic webbing, and lace as of June 30, 2024, is approximately 253.8 million meters, 1,950.2 million meters, and 45.0 million meters, respectively[63] Expenses and Costs - Sales cost increased by 15.6% to HKD 1,740.2 million in the first half of 2024, primarily due to higher overall sales revenue[38] - The company's other income remained stable at HKD 19.4 million in the first half of 2024, with a notable increase in scrap sales revenue due to business expansion[41] - Exchange gains decreased to HKD 20.4 million in the first half of 2024 from HKD 24.3 million in the same period of 2023, influenced by currency fluctuations[42] - Administrative expenses increased to 6.9% of total revenue in the first half of 2024, up from 6.5% in the same period of 2023, due to business expansion and higher employee benefits[44] - R&D expenses remained consistent at 2.1% of total revenue in both the first half of 2023 and 2024, reflecting the company's commitment to innovation[45] - The company's effective tax rate decreased to 12.7% in the first half of 2024 from 14.0% in the same period of 2023, benefiting from preferential tax treatments in Vietnam and Sri Lanka[47] - Depreciation of property, plant, and equipment for the six months ended June 30, 2024, was HKD 203,463 thousand, compared to HKD 163,372 thousand for the same period in 2023[17] - Inventory cost recognized as an expense for the six months ended June 30, 2024, was HKD 1,740,246 thousand, compared to HKD 1,505,736 thousand for the same period in 2023[17] - Hong Kong profits tax for the six months ended June 30, 2024, was HKD 19,048 thousand, compared to HKD 9,669 thousand for the same period in 2023[18] - Mainland China enterprise income tax for the six months ended June 30, 2024, was HKD 10,716 thousand, compared to HKD 8,927 thousand for the same period in 2023[18] - Capital expenditures for the six months ended June 30, 2024, totaled approximately HKD 164.4 million, up from HKD 128.5 million in the same period in 2023[53] Sustainability and Environmental Practices - The company is committed to sustainability, supporting the UN 2030 Agenda for Sustainable Development, and has adopted eco-friendly practices such as using green energy and biomass fuels to reduce greenhouse gas emissions[59][60] - The company has installed low-water-ratio dyeing machines and increased the reuse of discharge and reverse osmosis water to reduce fresh water usage in production[60] - The company has obtained the Bluesign® Standard certification, recognized as one of the most stringent environmental standards for textile products, and uses the Higg Facility Environmental Module (FEM) for standardized environmental assessments[60] Global Economic and Market Trends - Global economic growth in 2024 is projected at 3.2% by the IMF, with the US GDP growing 1.4% in Q1 and 2.8% in Q2, while China's GDP grew 5.0% in the first half of 2024[30] - China's textile product exports increased by 8.2% YoY in the first half of 2024, and Vietnam's textile and apparel exports grew by 4.6% during the same period[30] - Global GDP is expected to grow at 3.2% in 2024 and 3.3% in 2025, with world trade growth projected at 3.25% annually during 2024-2025, supported by declining global inflation[61] Corporate Governance and Leadership - The company's board of directors includes Mr. Lu Yukwong, Mr. Zhang Haitao, Mr. Ng Siu Lun, Ms. Cheng Ting Ting, Mr. Chan Yiu Sing, Mr. Lu Lap Bun, Mr. Zhang Yiming*, Mr. Kwok Tai Chi*, and Mr. Lam Yin Shing*[70] - The announcement was made on August 27, 2024, by Mr. Lu Yukwong, Chairman of Chaoying International Holdings Limited[70] - The board expresses gratitude to employees, shareholders, customers, banks, and business partners for their trust and support[70] - Independent non-executive directors are marked with an asterisk (*) in the board list[70] Foreign Exchange and Risk Management - The company's revenue is primarily denominated in USD and HKD, while a portion of procurement and expenses are in CNY, VND, and LKR. Significant exchange rate fluctuations could impact the company's financial performance[55] - The company manages foreign exchange risk by analyzing sales orders and expected payments in foreign currencies, and by holding cash and bank deposits in the respective currencies through its subsidiaries in Hong Kong, Vietnam, and Sri Lanka[55] Employee and Workforce - The company employs 10,683 full-time employees as of June 30, 2024, an increase from 9,604 on December 31, 2023, mainly due to overall capacity expansion[57]