Financial Performance - For the six months ended September 30, 2020, the Group reported revenue of HK$2,517,590, a decrease of 19.5% compared to HK$3,128,701 in the same period last year [12]. - The Group's gross profit for the same period was HK$487,035, representing a gross margin of 19.3%, down from 22.5% in the previous year [13]. - The loss attributable to owners of the Company was HK$32,426, compared to a profit of HK$141,423 in the prior year, marking a significant decline of 122.9% [13]. - The basic and diluted loss per share for the period was HK$(2.6), compared to earnings of HK$11.6 per share in the previous year [12]. - The Group recorded a net loss of approximately HK$32.4 million, compared to a net profit of HK$141.4 million in the same period last year [23]. - Net profit decreased from approximately HK$141.4 million in 1HF2020 to a net loss of approximately HK$32.4 million in 1HF2021, resulting in a net profit margin decline from 4.5% to a net loss margin of 1.3% [68]. - The Group's EBITDA for the period was approximately HK$288.3 million, with an EBITDA margin of 11.5% [22]. - Operating profit decreased significantly to HK$14,299, compared to HK$209,054 in the prior year, reflecting a decline of 93.2% [101]. Impact of COVID-19 - The Group's operations were significantly impacted by the COVID-19 pandemic, particularly in the first quarter of Fiscal 2021, with a year-on-year revenue decline of approximately 30% [16]. - The introduction of fabric face masks helped the Group to better utilize its capacity and contributed to revenue generation during the pandemic [17]. - By the second quarter, the revenue decline narrowed to below 10% as operations resumed and order placements increased [17]. - The Group anticipates a meaningful rebound in order demand for the second half of Fiscal 2021, with expectations of returning to growth compared to the same period last year [17]. - The management remains optimistic about future performance as certain regions gain control over the pandemic, allowing partners to resume operations [17]. Revenue Breakdown - The bras and intimate wear segment contributed approximately HK$1,521.0 million in revenue, accounting for 60.5% of the Group's total revenue, with a year-on-year decrease of 41.1% [26]. - Revenue from bras and intimate wear products was approximately HK$1,521.0 million, a year-on-year decrease of 41.1%, accounting for 60.5% of total revenue [28]. - Revenue from functional sports products increased by HK$188.0 million, or 92.7%, to approximately HK$390.8 million in 1HF2021, representing 15.5% of total revenue [45]. - Revenue from pandemic prevention products amounted to approximately HK$373.4 million in 1HF2021, accounting for 14.8% of total revenue [45]. - Revenue from sales of bra pads and other molded products decreased by HK$113.2 million, or 32.8%, to approximately HK$232.4 million in 1HF2021, accounting for 9.2% of total revenue [45]. Cost and Expenses - Gross profit decreased by 30.8% to approximately HK$487.0 million, with a gross profit margin of 19.3% [22]. - Cost of sales decreased from approximately HK$2,425.0 million in 1HF2020 to approximately HK$2,030.6 million in 1HF2021 [49]. - Employee benefit expenses for production personnel were approximately HK$804.3 million in 1HF2021, representing 31.9% of total costs [48]. - Distribution and selling expenses decreased from approximately HK$82.1 million in 1HF2020 to approximately HK$62.7 million in 1HF2021, reflecting a decrease in freight and transportation expenses [59]. - General and administrative expenses decreased from approximately HK$332.2 million in 1HF2020 to approximately HK$298.1 million in 1HF2021, mainly due to a reduction in employee benefit expenses [60]. - Research and development costs decreased from approximately HK$107.9 million in 1HF2020 to approximately HK$90.9 million in 1HF2021, primarily due to a decrease in employee benefit expenses [61]. Cash Flow and Liquidity - Net cash generated from operating activities decreased by HK$380.9 million to approximately HK$78.2 million in 1HF2021 from approximately HK$459.1 million in 1HF2020 [69]. - Net cash used in investing activities amounted to approximately HK$365.9 million in 1HF2021, primarily for the purchase of property, plant, and equipment in Vietnam [69]. - Net cash generated from financing activities was approximately HK$472.8 million in 1HF2021, mainly due to proceeds from borrowings [69]. - The current ratio increased from 1.3 as of 31 March 2020 to 1.6 as of 30 September 2020, due to a greater increase in current assets than current liabilities [69]. - The Group's net debt increased to approximately HK$3,446.1 million as of 30 September 2020, up from HK$3,002.4 million as of 31 March 2020, primarily due to increased working capital and capital expenditure [69]. Operational Adjustments - The Group streamlined its manpower and surrendered parts of the leased factory in Shenzhen, incurring one-off expenses of approximately HK$44.5 million [19]. - The Group's operational recovery is expected in the second half of the fiscal year, with a significant rebound in order demand anticipated [18]. - The Group's core business gradually returned to normal, with recruitment resuming in July 2020 to drive output in the second quarter [37]. - The Group has added new domestic e-commerce clients to mitigate pandemic impacts and expand its customer base, enhancing resilience and preparing for future growth [88]. Future Outlook - The management is confident that the business will return to a positive growth trajectory year-over-year, with a steady recovery in growth momentum [83][85]. - The Group plans to prioritize its core businesses and invest in R&D and production resources to strengthen its long-term capabilities [86]. - There is a rising demand for household and comfortable intimate wear, as well as light sportswear and functional sports products, driven by new trends post-Pandemic [86]. - The Group has expanded its presence in China over the past six months and plans to increase the proportion of domestic orders, capitalizing on China's quick recovery from the Pandemic [87]. - The management expresses gratitude to employees for their commitment during the pandemic, emphasizing unity in striving for the Group's long-term goals [94].
维珍妮(02199) - 2021 - 中期财报