Financial Performance - Revenue for Fiscal 2020 was HK$6,341,010, an increase of 1.2% from HK$6,263,280 in Fiscal 2019[10] - Gross profit for Fiscal 2020 was HK$1,440,731, representing a 7.4% increase from HK$1,341,945 in Fiscal 2019[10] - EBITDA for Fiscal 2020 was HK$969,745, a significant increase of 30.0% from HK$745,856 in Fiscal 2019[10] - Basic and diluted earnings per share increased to HK$23.7 from HK$23.1 in the previous year[9] - Net profit margin for Fiscal 2020 was 4.6%, an increase of 0.1 percentage point from 4.5% in Fiscal 2019[10] - The Group recorded a revenue of HK$6,340.0 million for Fiscal 2020, representing a year-on-year increase of 1.2%; net profit grew by 2.7% to HK$290.0 million[15] - Gross profit grew by 7.4% to HK$1,440.7 million, with a gross profit margin of 22.7%, up from 21.4% in Fiscal 2019[33] - EBITDA increased by 30.0% to HK$969.7 million, resulting in an EBITDA margin of 15.3%, compared to 11.9% in the previous fiscal year[33] - Net profit rose by 2.7% to HK$290.0 million, with a net profit margin of 4.6%, slightly up from 4.5% in Fiscal 2019[33] Dividend and Shareholder Returns - Proposed final dividend remained stable at HK$4.0 per share, consistent with the previous year[9] - The total dividend for the fiscal year amounted to HK7.8 cents per share, consistent with the policy of distributing no less than 30% of net profit as dividends[15] - The Board proposed a final dividend of HK4.0 cents per share, bringing the total dividend for the fiscal year to HK7.8 cents per share, up from HK7.6 cents in Fiscal 2019[35] Production and Capacity - The company has two strategic production bases in Shenzhen, China, and Vietnam, which is crucial for its manufacturing capacity[3] - The Group's production capacity was enhanced with the commencement of operations at Vietnam Factory D and E in the first half of the fiscal year[14] - The Group's main production base in Vietnam operated normally post-Lunar New Year despite raw material supply disruptions from China[16] - The Group has adjusted its production capacity deployment, transferring most orders designated for export to the US to Vietnam, while Shenzhen has been repositioned as the R&D base[30] - The Group's production capacity in Vietnam increased, with local production rising from approximately 60% to 73% of total revenue[46] Market Outlook and Strategy - Future outlook includes ongoing investment in research and development to drive product innovation and market expansion[3] - The Group aims to expand its market presence in the large Chinese intimate apparel and functional sports products market in the medium to long term[23] - The Group plans to invest more resources for medium- to long-term expansion in the Chinese market, focusing on intimate wear and functional sports products[73] - The management believes that innovative and cost-effective products will stand out in a weak consumer market, leveraging the Group's strong IDM capabilities developed over the past 20 years[23] Impact of COVID-19 - Due to the COVID-19 pandemic, the Group expects a low double-digit decline in sales performance for the first quarter of Fiscal 2021[17] - The Group implemented cost reduction measures, including a rota system in the Shenzhen factory and plans to surrender parts of the leased factory to reduce operating expenses[19] - The Vietnam government imposed a nationwide lockdown from April 1 to April 23, 2020, affecting overall production efficiency[71] - The Group has initiated the development of pandemic prevention products, including fabric face masks and protective clothing, to meet global demand[20] Research and Development - The Group remains committed to research and development projects with brand partners to create innovative intimate wear products[21] - The company has invested $5 million in research and development to innovate new technologies in intimate wear manufacturing[89] - The company applied for Super Deduction for research and development expenses, allowing for tax deductions ranging from 150% to 175% of incurred expenses[55] Cost Management - Cost of sales as a percentage of total revenue decreased from 78.6% in Fiscal 2019 to 77.3% in Fiscal 2020, attributed to improved efficiency in Vietnam factories[51] - Cost control measures have been implemented, including adjustments to working hours and upstream supply chain management, to reduce labor and operational costs[79] - The company plans to temporarily suspend unnecessary investments in fixed assets to ensure sufficient cash flow for operations[80] Corporate Governance - The Company has adopted a share option scheme as an incentive for Directors and eligible employees[134] - The Board has established various committees, including the audit committee, remuneration committee, and nomination committee, each with defined written terms of reference[198] - The Company emphasizes good corporate governance as essential for effective management, healthy corporate culture, and enhancing shareholder value[178] Management and Leadership - The management team includes individuals with diverse backgrounds in marketing, operations, and technology, contributing to the company's strategic direction[96][100][101][103][105] - The Company aims to leverage its management's extensive industry experience to drive growth and innovation in the intimate wear market[100][103] - The Board currently consists of eight Directors, including five executive Directors and three independent non-executive Directors, ensuring a strong independence element in its composition[185]
维珍妮(02199) - 2020 - 年度财报