南旋控股(01982) - 2025 - 中期财报

Revenue and Profit Performance - Total revenue increased by 2.2% to HKD 2,786.2 million, driven by growth in cashmere yarn sales and fabric business[15] - Net profit reached a record high of HKD 312.8 million, up 2.4% year-on-year[15] - Operating profit grew by 5.0% to HKD 390.4 million[15] - Gross profit and gross margin improved compared to the same period last year[15] - Revenue increased by 2.2% to HKD 2,786.2 million for the six months ended September 30, 2024, compared to HKD 2,726.4 million in the same period last year, driven by higher sales of cashmere yarn and fabrics[33] - Gross profit rose to HKD 553.5 million with a gross margin of 19.9% for the six months ended September 30, 2024, up from HKD 498.0 million and 18.3% in the same period last year, due to improved performance in the fabric business and strong performance in the knitwear business[35] - Profit attributable to owners of the company increased from HKD 289.1 million in the six months ended September 30, 2023, to HKD 298.2 million in the six months ended September 30, 2024, driven by improved fabric and knitwear business performance[47] - Adjusted profit increased from HKD 289.1 million in the six months ended September 30, 2023, to HKD 298.5 million in the six months ended September 30, 2024, with the adjusted profit margin rising slightly from 10.6% to 10.7%[50] - Net profit attributable to owners of the company was HKD 327 million[121] - Gross profit increased to HKD 764 million, up from HKD 592 million in the previous period[121] Sales and Market Performance - Sales of men's and women's knitted products decreased by 5.0% to HKD 2,142.5 million, with a 5.3% drop in sales volume to 18.0 million pieces[14] - Sales of men's and women's knitwear products decreased by 5.3% to 18.0 million pieces for the six months ended September 30, 2024, compared to 19.0 million pieces in the same period last year, while the average selling price increased slightly by 0.1% to HKD 118.8 per piece[29] - Europe, Japan, and Mainland China remained the company's top three markets, contributing 22.7%, 21.3%, and 18.1% of total revenue, respectively, for the six months ended September 30, 2024[34] - Revenue from China's exports increased by 4.9%, while Vietnam's exports rose by 14.7%[10] Dividend and Shareholder Returns - The company declared an interim dividend of HKD 0.098 per share, with a payout ratio of 75%[15] - The company declared an interim dividend of 9.8 HK cents per share for the six months ended September 30, 2024, an increase from 9.5 HK cents in 2023[94] Operational and Strategic Initiatives - The company strategically expanded production capacity in central Vietnam to meet shifting market demands[11] - The company plans to expand its cashmere yarn business by relocating part of its operations to Vietnam, leveraging the growing demand for raw materials in the region[19] - The company has established partnerships for fabric printing and aims to become a leading raw material solutions provider in Vietnam[19] - The company remains committed to innovation, lean production, and digitalization to enhance product design and meet the diverse and rapidly changing preferences of end-market customers[23] - The company will continue to explore opportunities for business expansion and diversification while strengthening its core business to deliver greater returns to shareholders[23] Financial Position and Cash Flow - The company's cash flow remained strong, supported by prudent cash management[15] - Net cash generated from operating activities was HKD 106.5 million for the six months ended September 30, 2024, compared to HKD 383.6 million for the same period in 2023, impacted by increased trade receivables and prepayments[51][58] - Net cash used in investing activities was HKD 149.1 million for the six months ended September 30, 2024, primarily due to the purchase of property, plant, and equipment[59] - The company's gearing ratio increased from 8.9% as of March 31, 2024, to 14.3% as of September 30, 2024, reflecting higher debt levels relative to capital[57] - Cash and cash equivalents decreased by HKD 148.9 million to HKD 569.0 million as of September 30, 2024, compared to HKD 717.4 million on March 31, 2024[61] - The company's cash and cash equivalents are denominated in USD (60.2%), HKD (5.8%), RMB (30.5%), VND (3.2%), and other currencies (0.3%)[63] - Total bank borrowings and lease liabilities decreased by 77.0% in HKD, 22.2% in USD, and 0.8% in RMB as of September 30, 2024[65] - The weighted average effective interest rate on bank borrowings was 4.86% as of September 30, 2024[65] - Capital expenditures for the six months ended September 30, 2024, amounted to approximately HKD 316.8 million, primarily for machinery procurement and the construction of a new production base in Vietnam[66] - Capital commitments as of September 30, 2024, were approximately HKD 142.1 million, mainly for machinery procurement and the construction of a new production base in Vietnam[67] - The company utilized HKD 13.4 million of the IPO proceeds for the construction of a factory building and machinery procurement for the Dak Lak factory in Vietnam during the six months ended September 30, 2024[73] - The company had outstanding HKD interest rate swap contracts with a total notional principal of HKD 123.5 million as of September 30, 2024[78] - The company did not enter into any forward foreign exchange contracts to mitigate RMB-USD exchange rate risk during the six months ended September 30, 2024[79] - The company's liquidity risk management ensures sufficient cash and cash equivalents, as well as bank financing, to support its business and operational activities[82] - The company secured a three-year term loan facility of up to HK$150,000,000[178] - The company secured another three-year term loan facility of up to HK$130,000,000[179] - The company secured two term loan facilities totaling up to HK$300,000,000 for a period of three years[199] Expenses and Costs - Other income decreased by HKD 0.7 million to HKD 6.4 million for the six months ended September 30, 2024, mainly due to a reduction in government subsidies and other miscellaneous income, partially offset by an increase in rental income from investment properties[38] - Other income decreased from HKD 46.7 million in the six months ended September 30, 2023, to HKD 25.0 million in the six months ended September 30, 2024, primarily due to a smaller appreciation of the US dollar and reduced gains from the sale of property, plant, and equipment[39] - Sales and distribution expenses increased from HKD 17.8 million in the six months ended September 30, 2023, to HKD 21.0 million in the six months ended September 30, 2024, mainly due to higher transportation costs aligned with increased sales volume[40] - General and administrative expenses rose from HKD 162.2 million in the six months ended September 30, 2023, to HKD 173.5 million in the six months ended September 30, 2024, driven by increased employee costs due to business expansion[41] - Net finance costs increased slightly from HKD 23.1 million in the six months ended September 30, 2023, to HKD 25.2 million in the six months ended September 30, 2024, despite higher leverage, reflecting stable cash management[44] - The company's effective tax rate was 14.6$1.450[170] - The total number of share options available for grant under the share option scheme as of September 30, 2024 was 110,600,000, representing approximately 4.85% of the company's issued share capital[190] Related Party Transactions - The group's investment properties under irrevocable operating leases had future minimum lease payments totaling HKD 142,107 thousand as of September 30, 2024[126] - Lease payments to related party Hebei Yuteng Yangcheng Products Co., Ltd. amounted to HKD 4,323,000 for the six months ended September 30, 2024[129] - Lease payments to related party Huizhou Chuangyexing Property Management Co., Ltd. were HKD 21,000 for the six months ended September 30, 2023[130] - Prepayment for raw materials to Hebei Yuteng Cashmere Products Co., Ltd. increased to HK$305,288,000 as of September 30, 2024, from HK$124,564,000 as of March 31, 2024[140] - Trade payables to SML & FT (Vietnam) Limited increased to HK$5,616,000 as of September 30, 2024, from HK$2,975,000 as of March 31, 2024[140] - Other payables to Hebei Yuteng Cashmere Products Co., Ltd. increased to HK$195,652,000 as of September 30, 2024, from HK$83,641,000 as of March 31, 2024[140] - Lease liabilities to Han Yi Investment Co., Ltd. decreased to HK$8,347,000 as of September 30, 2024, from HK$8,568,000 as of March 31, 2024[140] - Lease payments to Tongxiang Yuteng Knitted Garments Co., Ltd. amounted to HK$412,000 for the six months ended September 30, 2024, compared to HK$446,000 for the same period in 2023[142] - Non-controlling shareholder loans of subsidiaries are unsecured, interest-free, denominated in RMB, and will mature in December 2026[143] Company Information - The company's website is http://www.namesonholdings.com[119] - The company's registered office is in the Cayman Islands[116] - The company's stock code is 1982[119] - The company's auditor is PricewaterhouseCoopers[119]