Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 3,977,617 thousand, representing a 12.2% increase from HKD 3,544,797 thousand in the same period of 2023[3] - Gross profit for the same period was HKD 938,017 thousand, with a gross margin of 23.6%, compared to HKD 842,710 thousand and a margin of 23.8% in 2023[3] - Profit attributable to the company's owners was HKD 67,619 thousand, an increase of 86.0% from HKD 36,352 thousand in the previous period[3] - Adjusted profit attributable to the company's owners was HKD 203,188 thousand, with an adjusted EBITDA of HKD 642,640 thousand, compared to HKD 196,574 thousand and HKD 645,976 thousand respectively in 2023[3] - The company reported a net profit of HKD 67,619,000 for the six months ended September 30, 2024, down from HKD 106,823,000 in the same period of 2023, indicating a decline of approximately 36.7%[29] - The adjusted net profit for the period was approximately HKD 203.2 million, reflecting a year-on-year increase of 3.4%[68] - Net profit for the first half of FY2025 was approximately HKD 67.6 million, a decrease of 36.7% from FY2024's first half, but an increase of 86.0% compared to HKD 36.4 million in the second half of FY2024[105] Expenses and Costs - Research and development expenses increased to HKD 154,092 thousand from HKD 128,663 thousand, reflecting a focus on innovation[7] - The company’s total distribution and selling expenses for the six months ended September 30, 2024, were HKD 84,273,000, compared to HKD 77,578,000 in the same period of 2023, indicating an increase of approximately 8.9%[29] - General and administrative expenses rose from approximately HKD 269.0 million in the first half of fiscal year 2024 to approximately HKD 324.3 million in the first half of fiscal year 2025, with the percentage of total revenue increasing from 7.6% to 8.2%[95] - Special relocation costs incurred in the first half of fiscal year 2025 amounted to approximately HKD 127.2 million, compared to HKD 90.3 million in the first half of fiscal year 2024, including employee compensation and fixed asset write-offs[98] - Financial cost for the first half of FY2025 increased to approximately HKD 173.6 million, representing 4.4% of total revenue, up from HKD 154.7 million in FY2024[100] Assets and Liabilities - Total assets as of September 30, 2024, were HKD 9,062,099 thousand, up from HKD 8,602,750 thousand as of March 31, 2024[9] - Total liabilities increased to HKD 5,579,106,000 as of September 30, 2024, compared to HKD 5,232,275,000 as of March 31, 2024, representing an increase of approximately 6.63%[11] - Current liabilities rose to HKD 1,877,280,000 from HKD 1,501,871,000, marking an increase of about 25.00%[11] - Non-current liabilities slightly decreased to HKD 3,701,826,000 from HKD 3,730,404,000, a decrease of approximately 0.76%[11] - Trade receivables as of September 30, 2024, amounted to HKD 1,106,951,000, compared to HKD 1,027,483,000 as of March 31, 2024[53] Market and Segment Performance - The company operates in four segments: intimate apparel, sports products, consumer electronics accessories, and cups and other accessories[23] - The intimate apparel segment generated approximately HKD 2,248.2 million in revenue, a year-on-year increase of 1.7%, accounting for 56.5% of total revenue, with a gross profit of HKD 552.0 million and a gross margin of 24.6%[70] - The sports products segment saw revenue rise to approximately HKD 1,327.0 million, a 33.5% increase year-on-year, representing 33.4% of total revenue, with a gross profit of HKD 303.2 million and a gross margin of 22.9%[73] - The consumer electronics accessories segment reported revenue of approximately HKD 243.8 million, up 52.1% year-on-year, contributing 6.1% to total revenue, with a gross profit of HKD 48.6 million and a gross margin of 20.0%[75] - Victoria's Secret China generated revenue of HKD 885.7 million, a slight increase of 0.3% year-on-year, with a net profit of HKD 18.1 million, facing pressure from weak consumer sentiment[78] Future Outlook and Strategy - The company continues to explore market expansion opportunities and new product development strategies to drive future growth[5] - The group anticipates a low-teens level year-on-year revenue growth for the fiscal year 2025, driven by a recovery in order visibility and production capacity[124] - The intimate apparel segment is expected to achieve low single-digit year-on-year revenue growth in fiscal year 2025, focusing on expanding shapewear offerings and collaborating with emerging quality brands[124] - The sports products segment is projected to achieve double-digit year-on-year revenue growth in fiscal year 2025, supported by product innovation and the rapid development of the Bonding apparel business[125] - The consumer electronics accessories segment is expected to show significant improvement in performance for fiscal year 2025, driven by increased demand for VR products and new product launches from major brand partners[125] Corporate Governance and Compliance - The company has not adopted any new or revised standards that would have a significant impact on its performance and financial position[21] - The company has appointed Mr. Hong Youli (also known as Hong Youyi) as both Chairman and CEO, believing this will enhance the efficiency and effectiveness of business strategy formulation and execution[145] - The board consists of five executive directors and three independent non-executive directors, ensuring a high level of independence[145] - The audit committee, composed of three independent non-executive directors, is responsible for overseeing financial and accounting policies, risk management, and internal control systems[147] - The independent auditor has reviewed the interim financial results in accordance with the relevant standards, ensuring the integrity of financial reporting[148] Sustainability and Social Responsibility - The company has achieved recognition for its long-term investments in sustainable development, including the completion of the first stage qualification verification for its carbon reduction targets under the Science Based Targets initiative (SBTi)[135] - The company emphasizes the importance of environmental, social, and governance (ESG) factors in driving sustainable development and has made progress in its four key areas of sustainable development agenda[132] - The company has completed the installation of solar power generation modules at its Vietnam C plant and plans to install solar facilities at its Xing'an and Zhaoqing production bases in the second half of the fiscal year and next year[133]
维珍妮(02199) - 2025 - 中期业绩