Financial Performance - For the six months ended September 30, 2021, the company reported revenue of HK$4,080,615, a 62.1% increase compared to HK$2,517,590 in the same period of 2020[12]. - Gross profit for the same period was HK$980,607, representing a 101.3% increase from HK$487,035 in the prior year[12]. - The company achieved a basic and diluted earnings per share of HK$20.8, compared to a loss of HK$2.6 in the previous year[12]. - The Group's revenue reached a historical high of approximately HK$4,080.6 million, representing a year-on-year increase of 62.1%[21]. - Gross profit grew by 101.3% to approximately HK$980.6 million, with a gross profit margin up by 4.7 percentage points to 24%[21]. - EBITDA increased by 125.7% to approximately HK$650.7 million, with an EBITDA margin up by 4.4 percentage points to 15.9%[21]. - The Group turned around to a net profit of approximately HK$254.3 million, with a net profit margin of 6.2%[21]. - The net profit for 1HF2022 was approximately HK$254.3 million, a significant increase from a net loss of approximately HK$32.4 million in 1HF2021, resulting in a net profit margin of 6.2%[58]. - Excluding one-off restructuring costs, the net profit was approximately HK$275.6 million in 1HF2022, with a net profit margin of 6.8%[58]. Market Demand and Growth - The market demand for traditional intimate wear products rebounded strongly, returning to pre-Pandemic levels, while sports products, especially sports bras, continued to show robust growth[14][15]. - The overall market demand returned to pre-Pandemic levels, with a strong rebound in orders for intimate wear products[14]. - Intimate wear segment revenue reached approximately HK$2,336.0 million, a year-on-year increase of 111.6%, accounting for 57.3% of total revenue[26]. - Sports products segment revenue amounted to approximately HK$1,036.4 million, representing a 58.6% year-on-year increase and accounting for 25.4% of total revenue[29]. - Consumer electronics components segment revenue increased by 104.0% to approximately HK$232.7 million, accounting for 5.7% of total revenue[30]. - Revenue from bra pads and moulded products reached approximately HK$193.1 million, a 63.1% year-on-year growth, accounting for 4.7% of total revenue[30]. - The Group identified significant growth opportunities in the sports underwear market, which has seen increased demand for both professional and casual products[75]. - The PRC market has shown notable growth, particularly in e-commerce underwear brands, driven by government initiatives promoting fitness and health[77]. Production and Operational Efficiency - The Group is optimizing its production layout in the PRC by relocating its mainland production base to the High-Tech Industrial Park in Zhaoqing New District[18]. - The Group's factories in China operated normally during the Pandemic, with operations in Vietnam unaffected due to effective local pandemic control measures[19]. - The Group added production lines in Vietnam to boost production capacity in response to robust demand from brand partners[34]. - The first phase of the facility in Hung Yen Province, Vietnam, commenced operation in April 2021, utilizing seamless knitting technology[34]. - The Group's production capacity is adequate to meet future order demands, with increased capacity utilization in Vietnamese facilities and plans for mass production in the new Zhaoqing Industrial Park by the end of 2023[95]. Financial Management and Investments - Operating cash flows surged to approximately HK$422.9 million during the Period, compared to HK$78.2 million in the previous year[22]. - Total capital expenditures for 1HF2022 amounted to approximately HK$316.7 million, up from HK$181.1 million in 1HF2021, primarily for production line additions and facility construction[61]. - Net cash used in investing activities was approximately HK$432.3 million in 1HF2022, mainly for the purchase of property, plant, and equipment[59]. - The Group's net debt was approximately HK$3,655.7 million as of 30 September 2021, with a net gearing ratio improving from 115.3% to 110.4% during the same period[58]. - The Group entered into a Sale and Purchase Agreement on November 12, 2021, for the disposal of a subsidiary for a total consideration of HK$120 million, which will improve liquidity and financial position[73]. Research and Development - Research and development costs rose from approximately HK$90.9 million in 1HF2021 to approximately HK$124.3 million in 1HF2022, mainly due to higher employee benefit expenses[52]. - The management team emphasized a strategy focused on innovation-driven development to meet consumer demands and market trends[100]. - The Group has developed a bio-based cotton material, certified by the FDA, which is widely recognized and adopted in the lingerie and sportswear sectors[79]. - Regina Miracle has maintained a strong focus on innovation, upgrading its three core technologies and establishing a Manufacture Innovation Center to enhance production efficiency and stability[81]. Sustainability and Future Strategies - Future strategies include a focus on sustainability through carbon reduction, waste management, and community engagement[100]. - The Group's strategic focus on sustainable development alongside profit maximization has positioned it well in a challenging macro environment[80]. - The management will continue to focus on sustainability initiatives, including carbon reduction and waste management, alongside business development[99]. Employee and Operational Management - The Group emphasizes employee training and performance evaluation to enhance employee stability and loyalty, which is crucial for service quality[71]. - Approximately 90% of employees at the Hài Phòng production base in Vietnam have received COVID-19 vaccinations, ensuring stable production operations[36]. - The Shenzhen factory in the PRC had a 100% vaccination rate among eligible employees, enhancing operational efficiency[38].
维珍妮(02199) - 2022 - 中期财报