互太纺织(01382) - 2025 - 年度业绩

Financial Summary Consolidated Income Statement In FY2025, group revenue grew 6.7% to HK$5.06 billion, but gross profit declined 22.8% to HK$384 million, lowering gross margin to 7.6%; profit attributable to equity holders remained stable at HK$168 million, with basic EPS at HK$0.12 Key Income Statement Data for FY2025 (HK$ Thousand) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 5,057,570 | 4,739,010 | +6.7% | | Gross Profit | 383,985 | 497,437 | -22.8% | | Operating Profit | 200,314 | 275,526 | -27.3% | | Profit Attributable to Equity Holders of the Company | 167,597 | 167,118 | +0.3% | | Basic Earnings Per Share (HK$) | 0.12 | 0.12 | 0.0% | - Total comprehensive income for the year significantly increased by 95.8% to HK$95.12 million from HK$48.58 million in the prior year, primarily due to a reduced negative impact from foreign currency translation differences[5] Consolidated Balance Sheet As of March 31, 2025, total assets decreased 4.6% to HK$5.31 billion, total liabilities decreased 6.6% to HK$2.43 billion, and total equity slightly decreased 2.8% to HK$2.88 billion, maintaining a stable financial structure despite reduced cash and cash equivalents Key Balance Sheet Data for FY2025 (HK$ Thousand) | Metric | March 31, 2025 | March 31, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Assets | 5,310,366 | 5,565,971 | -4.6% | | Total Liabilities | 2,427,472 | 2,599,517 | -6.6% | | Total Equity | 2,882,894 | 2,966,454 | -2.8% | | Cash and Cash Equivalents | 666,507 | 893,889 | -25.6% | | Total Borrowings | 1,346,332 | 1,480,647 | -9.1% | Segment and Geographical Information The group operates a single business segment focused on textile manufacturing and trading, with Vietnam and China as the largest markets contributing 50.8% and 27.1% of revenue respectively, both showing year-on-year growth, alongside high customer concentration Revenue by Geographical Region (HK$ Thousand) | Region | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Vietnam | 2,568,849 | 2,329,801 | +10.3% | | China | 1,372,531 | 1,224,907 | +12.0% | | Bangladesh | 211,605 | 278,172 | -23.9% | | Hong Kong | 75,833 | 139,698 | -45.7% | | Americas | 29,119 | 70,845 | -58.9% | - Customer A and Customer B accounted for 45% and 19% of the group's total revenue respectively, indicating high customer concentration[16] - The group's non-current assets are primarily located in Vietnam (HK$1.55 billion) and China (HK$986 million)[17] Dividend Policy The Board recommended a final dividend of HK$0.05 per share, consistent with the prior year, bringing the total FY2025 dividend to HK$0.12 per share, including the interim dividend, matching the previous fiscal year FY2025 Dividend Details | Dividend Type | Amount Per Share (HK Cents) | Total Amount (HK$ Thousand) | | :--- | :--- | :--- | | Interim Dividend | 7 | 97,703 | | Proposed Final Dividend | 5 | 69,581 | | Total for Full Year | 12 | 167,284 | Management Discussion and Analysis Business and Financial Review During the review year, group revenue grew 6.7% driven by an 11.3% increase in sales volume, partially offset by a 4.5% decrease in average selling price; sales cost rose 10.2%, reducing gross margin to 7.6%, while administrative expenses decreased, resulting in a slight 0.3% increase in profit attributable to equity holders - Revenue growth was primarily driven by an 11.3% increase in sales volume, partially offset by a 4.5% decrease in average selling price[29] - Cost of sales increased by 10.2%, consistent with the revenue growth trend[30] - The decrease in administrative expenses was mainly due to the reversal of deferred income from the previous year and the reversal of personal income tax provisions in the current year[33] Key Financial Ratio Changes | Ratio | 2025 | 2024 | | :--- | :--- | :--- | | Gross Margin | 7.6% | 10.5% | | Return on Equity | 5.5% | 5.8% | | Interest Coverage Ratio | 4.4 | 4.0 | Liquidity, Financial Resources, and Capital Structure The group's net debt increased from HK$586 million to HK$680 million, with working capital primarily from sales cash flow and bank borrowings; capital expenditure significantly decreased by 69.4% to HK$310 million due to reduced investment in the Vietnam Nam Dinh plant, while liquidity and gearing ratios remained stable or improved - Net debt increased from HK$586 million to HK$680 million, primarily due to an increase in trade receivables and repayment of bank loans[39] - Total capital expenditure significantly decreased by 69.4% to HK$310 million, mainly due to reduced capital expenditure investment in the Vietnam Nam Dinh plant[42] Key Liquidity and Leverage Ratios | Ratio | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.2 | 1.2 | | Quick Ratio | 0.7 | 0.8 | | Capital Gearing Ratio | 47.1% | 50.2% | | Debt-to-Equity Ratio | 84.2% | 87.6% | Employees and Remuneration Policy As of March 31, 2025, the group's full-time employee count increased to 5,115, with no significant changes in remuneration policy, which is determined by performance, skills, and knowledge, supplemented by allowances and insurance - The number of full-time employees increased from 4,874 to 5,115[51] Outlook and Prospects Impact of One-Off Events FY2025 profit was significantly impacted by two one-off events: a typhoon causing a HK$25.8 million loss at the Vietnam Hai Duong plant, and a HK$104 million loss from the newly commissioned Vietnam Nam Dinh plant, with the Hai Duong plant expected to return to profitability in FY2026 - The Vietnam Hai Duong plant shifted from a HK$21.1 million profit in FY2024 to a HK$25.8 million loss in FY2025 due to typhoon damage[53] - The newly commissioned Vietnam Nam Dinh plant recorded a HK$103.7 million loss in FY2025[54] - Excluding these special events, the group's profit was estimated to increase to approximately HK$304.2 million[55] Market Challenges and Company Strategy The textile industry faces complex challenges including trade tariffs, weak consumer sentiment, and high inflation; the company's strategy focuses on developing high-value functional synthetic fabrics and expanding its customer base through new markets and applications - The industry faces a complex landscape of trade tariffs, soft consumer sentiment, and high inflation, leading to intense market competition[55] - The company will focus on developing high-value functional synthetic fabrics and fostering closer collaboration with brand owners[56] - Management is optimistic about the business outlook, anticipating the business to enter a medium-term growth trajectory in FY2026[57] Supplementary Information Share Repurchases In FY2025, the company repurchased 7,167,000 shares from the Stock Exchange for approximately HK$11.14 million, all of which were subsequently cancelled to enhance net asset value and earnings per share Share Repurchase Details | Month of Repurchase | Number of Shares Repurchased | Total Consideration (HK$) | | :--- | :--- | :--- | | July 2024 | 3,027,000 | 5,101,260 | | December 2024 | 4,140,000 | 6,036,710 | | Total | 7,167,000 | 11,137,970 | Corporate Governance The company generally complied with the Corporate Governance Code in FY2025, with one deviation where the Chairman and CEO roles were combined, though the Board believes collective decision-making and committee oversight prevent excessive power concentration - The company did not comply with Corporate Governance Code Provision C.2.1, which stipulates that the roles of Chairman and Chief Executive Officer should be separate[62] - The Board believes that power and authority are not overly concentrated under the current structure and will review it periodically[62] Audit Committee The Audit Committee, comprising four independent non-executive directors and chaired by Mr. Sze Kwok Wing, a qualified accountant, reviewed the financial statements for the fiscal year and discussed accounting principles, internal controls, and financial reporting with management and auditors - The Audit Committee has reviewed the financial statements for FY2025 and held discussions with management and the auditors[68] - PricewaterhouseCoopers, the auditors, have confirmed that the financial data in the preliminary results announcement is consistent with the audited consolidated financial statements[70]