信星集团(01170) - 2025 - 年度业绩

Financial Highlights & Results Announcement Financial Highlights For the year ended March 31, 2025, the Group's revenue decreased by 9.2% to HK$626 million, shifting from profit to a HK$33.89 million loss, with gross margin turning negative and total dividends per share decreasing by 55.6% to 4.0 HK cents FY2025 Financial Highlights | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue (HK$ thousand) | 625,876 | 689,269 | -9.2% | | Gross Profit / (Loss) (HK$ thousand) | (11,384) | 29,106 | N/A | | Gross Profit Margin / (Loss Margin) (%) | (1.8)% | 4.2% | -6.0 percentage points | | Profit / (Loss) Attributable to Owners of the Company for the Year (HK$ thousand) | (33,890) | 20,221 | N/A | | Basic Earnings / (Loss) Per Share (HK cents) | (5.05) | 3.00 | N/A | | Total Dividends Per Share for the Year (HK cents) | 4.0 | 9.0 | -55.6% | Consolidated Financial Statements The consolidated financial statements for the year show the Group shifted from profit to loss, primarily due to decreased revenue and cost of sales pressure leading to negative gross profit, alongside reduced net assets and cash and cash equivalents Consolidated Income Statement This year's revenue was HK$626 million, down 9.2%, resulting in a HK$11.38 million gross loss compared to last year's gross profit, and an annual loss of HK$36.67 million, with HK$33.89 million attributable to owners and a basic loss per share of 5.05 HK cents Consolidated Income Statement Key Figures | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 625,876 | 689,269 | | Gross Profit / (Loss) | (11,384) | 29,106 | | Profit / (Loss) Before Tax | (44,424) | 12,622 | | Profit / (Loss) for the Year | (36,666) | 20,057 | | Loss Attributable to Owners of the Company | (33,890) | 20,221 | | Basic Loss Per Share (HK cents) | (5.05) | 3.00 | Consolidated Statement of Comprehensive Income Total comprehensive expense for the year was HK$43.86 million, a significant increase from HK$3.47 million last year, primarily due to the annual loss and exchange differences from translating foreign operations - Total comprehensive expense for the year was HK$43.86 million, significantly higher than HK$3.47 million last year, primarily impacted by the annual loss and exchange differences[7] Consolidated Balance Sheet As of March 31, 2025, the Group's net assets decreased to HK$1.072 billion from HK$1.186 billion last year, with net current assets reducing and cash and cash equivalents decreasing from HK$416 million to HK$353 million Consolidated Balance Sheet Summary | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 778,213 | 788,325 | | Total Current Assets | 616,004 | 721,120 | | Total Current Liabilities | 225,904 | 226,197 | | Net Assets | 1,071,585 | 1,185,600 | | Cash and Cash Equivalents | 352,694 | 415,580 | Notes to the Financial Statements The financial statements are prepared under Hong Kong Financial Reporting Standards, with the Group's business divided into 'Manufacturing and Sale of Footwear Products' and 'Property Investment' segments, where the footwear business recorded a loss, dividend policy became conservative, and accounts receivable days outstanding slightly increased Basis of Preparation & Accounting Policies The financial statements are prepared on a historical cost basis, with several revised Hong Kong Financial Reporting Standards adopted for the first time, which the Group assessed had no significant impact on its financial position or performance - The Group has adopted HKFRS 16 and amendments to HKAS 1 and HKAS 7 for the first time, but assessed that these revisions had no impact on its financial statements[15][17][18] Operating Segment Information The Group's core 'Manufacturing and Sale of Footwear Products' segment loss expanded to HK$55.43 million, while 'Property Investment' segment profit decreased to HK$5.91 million; European market revenue grew, while US, Asia, and other regions declined, with sales to largest customer A decreasing and customer B no longer a major client Segment Results (HK$ thousand) | Segment | 2025 Results | 2024 Results | | :--- | :--- | :--- | | Manufacturing and Sale of Footwear Products | (55,425) | (19,346) | | Property Investment | 5,912 | 21,655 | Revenue by Geographical Region (HK$ thousand) | Region | 2025 | 2024 | | :--- | :--- | :--- | | United States of America | 152,412 | 182,333 | | Europe | 220,527 | 182,133 | | Asia | 124,975 | 133,634 | | Others | 127,962 | 191,169 | - Sales to the largest customer A decreased from HK$534 million to HK$448 million - Customer B, which accounted for over 10% last year, had sales below the 10% disclosure threshold this year, indicating a shift in customer concentration[26] Dividends The Board recommended a special final dividend of 2.0 HK cents per share, with no final dividend, bringing the total dividend for the year to 4.0 HK cents per share, a significant decrease from 9.0 HK cents last year Proposed Dividend Details | Dividend Type | 2025 (Per Share) | 2024 (Per Share) | | :--- | :--- | :--- | | Final Dividend | Nil | 0.2 HK cents | | Special Final Dividend | 2.0 HK cents | 6.8 HK cents | Accounts Receivable & Payable At year-end, total accounts receivable decreased from HK$167 million to HK$112 million, with most balances within 90 days, while total accounts payable increased from HK$102 million to HK$111 million, maintaining a healthy aging structure - Accounts receivable are primarily related to a few well-known customers, with credit terms typically ranging from 30 to 90 days, and the Group implements strict credit risk control[36] Accounts Receivable and Payable Aging Analysis (Within 90 Days) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Accounts Receivable (Within 90 Days) | 109,257 | 121,214 | | Accounts Payable (Within 90 Days) | 92,227 | 66,030 | Chairman's Statement & Management Discussion and Analysis Chairman's Statement The Chairman's Statement highlights severe manufacturing challenges this year, but the Group demonstrated competitive advantages and resilience through robust financials, cross-regional production, and advanced footwear technology; looking ahead, the Group will focus on six strategic action plans to navigate the complex market Macroeconomic Discussion The global economic outlook remains uncertain with extremely low market visibility; US tariff measures, geopolitical uncertainties, and Middle East tensions introduce significant variables for retail and manufacturing, disrupting retailers' inventory strategies, leading to continued conservative ordering by brand clients with short lead times and small batches - US government's reciprocal tariff measures and escalating geopolitical uncertainties have led to chaotic retailer inventory strategies and conservative purchasing behavior[43] - In the short term, the ninety-day tariff reprieve stimulated inventory replenishment, leading to a temporary surge in orders, but the Group remains conservative, preparing for market volatility after the buffer period ends[43] Strategy and Outlook The Group will focus on advancing six strategic action plans to respond to market changes, with no short-term expansion plans, instead optimizing existing facilities in Vietnam and Cambodia; the core strategy involves continued investment in labor skills and equipment upgrades, focusing on high-value footwear R&D and production, actively developing new clients, implementing strict cost control, and promoting ESG initiatives - The Group will focus on advancing six strategic action plans: enhancing business momentum, capacity planning, pursuing operational excellence, mitigating cost inflation, talent development, and resilience and sustainability[45][47][48][50][51][53] - There are no short-term plans for factory expansion; instead, the focus will be on optimizing existing facilities in Vietnam and Cambodia, while considering long-term expansion to other production bases to address tariff issues[47] - To address cost pressures, the Group will maintain competitive advantages through lean manufacturing, automation, and strict cost control, but acknowledges that direct labor costs remain high in the short term due to the need to maintain quick turnaround capabilities[50] Management Discussion and Analysis Management provided an in-depth analysis of this year's performance, noting a financial shift from profit to loss due to decreased revenue and increased costs; operationally, the Group actively addressed weak market demand and rising production costs through geographical diversification and new client acquisition, maintaining a robust financial position with no bank borrowings and continuing share repurchases to enhance shareholder value Financial Performance Review This year's turnover decreased by 9.2% to HK$626 million, primarily due to a 6.5% decline in business volume and a 5.9% drop in average selling price, resulting in a HK$11 million gross loss due to reduced economies of scale, rising labor wages, and lower average selling prices, and a net loss attributable to owners of approximately HK$34 million compared to last year's net profit of HK$20 million - Turnover decreased by 9.2% to approximately HK$626 million, with business volume (pairs) decreasing by 6.5% and average selling price recording a 5.9% drop[60] - Shifted from profit to a net loss of approximately HK$34 million, primarily due to gross profit turning into gross loss, and the fair value loss on investment properties expanding to approximately HK$16 million[62][64] Key Financial Ratios Changes | Ratio | 2025 | 2024 | | :--- | :--- | :--- | | Accounts Receivable Days Turnover (days) | 82 | 80 | | Accounts Payable Days Turnover (days) | 100 | 123 | | Inventory Days Turnover (days) | 95 | 109 | | Gearing Ratio (%) | 0% | 0% | Operational Review The Group's production bases in Vietnam and Cambodia addressed challenges of weak demand and rising costs; to diversify risk, three new European brand clients were added this year, reducing major clients' share of total turnover from 95% to 74.5%, with production centered in Vietnam (51.1% output) and Cambodia (48.9%), and investment in an associate contributing HK$23 million in profit - To diversify the market, three new European fashion and sports brands were added this year, reducing the proportion of major clients (Cat, Dr. Martens, etc.) in total turnover from 95.0% to 74.5%[67][72] - The revenue contribution from the European market increased from 26.4% to 35.2%, while the US market share decreased from 26.5% to 24.4%[70] - The 40%-owned Vietnamese associate showed strong business performance, with turnover increasing to approximately HK$1.339 billion, contributing approximately HK$23 million in share of profit to the Group[75] Financial Review The Group maintained a robust financial position, holding approximately HK$353 million in cash at year-end, with no interest-bearing bank borrowings and a zero gearing ratio, and a current ratio of 2.7; the Group adopted a conservative foreign exchange risk management policy and repurchased 8.924 million shares during the year for approximately HK$7.17 million - As of March 31, 2025, the Group's cash and cash equivalents were approximately HK$353 million, with no interest-bearing bank borrowings and a zero gearing ratio[77] - During the year, the company repurchased 8,924,000 ordinary shares on the Stock Exchange for a total consideration of approximately HK$7.17 million, aiming to enhance net assets per share and earnings per share[80][81] Corporate Governance & Other Matters Dividends and Share Repurchase The Group announced a special final dividend of 2.0 HK cents per share, with no final dividend; additionally, the company actively conducted share repurchases during the year, buying back and canceling 8,924,000 ordinary shares to enhance shareholder returns - The Directors recommended a special final dividend of 2.0 HK cents per ordinary share for the year, with no final dividend[39] - During the fiscal year, 8,924,000 ordinary shares were repurchased at prices ranging from HK$0.63 to HK$0.88 per share, considered a constructive action to enhance shareholder returns[39][80] Employee and Remuneration Policy As of March 31, 2025, the Group employed approximately 6,400 staff; remuneration policy is based on market levels and individual performance, with share option and share award schemes to incentivize and retain talent, and during the year, the trustee purchased shares for the share award scheme, granting some award shares and share options - As of March 31, 2025, the Group employed approximately 6,400 staff[82] - During the year, the trustee of the share award scheme purchased 8,884,000 shares, and 3,744,000 award shares were granted; additionally, the Group granted 2,800,000 share options[82] Corporate Governance The company complied with the Corporate Governance Code in the Stock Exchange Listing Rules during the year; the Audit Committee, comprising three independent non-executive directors and one non-executive director, reviewed the annual consolidated results, deeming them prepared in accordance with accounting standards and adequately disclosed, and all directors confirmed compliance with the standard code for securities transactions - The Directors confirmed that the company complied with the Corporate Governance Code set out in Appendix C1 to the Listing Rules during the year[83] - The Audit Committee reviewed the annual results with management and external auditor Ernst & Young, expressing satisfaction with their compliance and adequacy[84] Publication of Announcement and Report The financial figures in this preliminary results announcement have been agreed with the draft financial statements by the company's auditor, Ernst & Young; the full annual report will be dispatched to shareholders in due course and published on the Stock Exchange and company website - The full-year results announcement and annual report will be available for review on the Stock Exchange website (www.hkex.com.hk) and the company's website[87]