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]
维珍妮(02199) - 2024 - 中期业绩