REGINA MIRACLE-维珍妮(02199) - 2024 - 中期财报

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].