华新手袋国际控股(02683) - 2025 - 年度财报

Chairman's Statement and Management Discussion & Analysis Business and Financial Performance Review The Group achieved strong growth driven by the North American market recovery and cost optimization measures Key Financial Highlights | Metric | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | HK$724.1 million | HK$594.4 million | +21.8% | | Gross Profit | HK$159.6 million | HK$105.0 million | +52.0% | | Gross Profit Margin | 22.0% | 17.7% | +4.3 p.p. | | Profit Attributable to Owners | HK$64.3 million | HK$28.5 million | +125.6% | | Basic Earnings Per Share | 15.7 HK cents | 7.0 HK cents | +124.3% | - Performance growth was primarily driven by the ongoing recovery in the North American market, with revenue from US customers increasing from HK$486 million to HK$543 million[24][38] - The Group's production is centered in Cambodia, with its manufacturing base contributing approximately 90.6% of sales revenue, leveraging local advantages in labor costs and supply chain[18][39] - To ensure operational stability and capitalize on long-term capital appreciation, the Group acquired its previously leased Hong Kong office property for HK$4.7 million in April 2024[26][200] Industry Overview and Outlook The Group faces geopolitical risks, particularly US tariff policies on Cambodia, amid a growing sustainable handbag market - Industry trends show a consumer preference for handbags made from sustainable materials like vegan leather and plant-based fabrics, driving growth in the mid-range market[28][30] - The Group's primary external risk is the US tariff policy on Cambodia, with a proposed "reciprocal tariff" of up to 49% creating significant uncertainty despite a temporary reduction[32][34] - Despite tariff risks, the Group's sales performance remains strong and has not been materially impacted to date, with mitigation strategies in place[35] Liquidity and Financial Resources The Group maintains a robust financial position with a net cash status, no bank borrowings, and strong liquidity Financial Position | Metric | As of Mar 31, 2025 | As of Mar 31, 2024 | | :--- | :--- | :--- | | Bank Borrowings | Nil | Nil | | Cash and Cash Equivalents | HK$188.8 million | HK$141.1 million | | Current Ratio | 3.2 | 3.1 | | Gearing Ratio | N/A | N/A | | Net Debt-to-Equity Ratio | Net Cash | Net Cash | - The Group's primary foreign exchange exposure is to the RMB, with minimal risk from the USD due to the HKD peg; no hedging activities were conducted during the year[56][57][59] Cambodia Country Overview Political, Social, and Investment Environment Cambodia offers a stable political climate and young workforce but faces challenges from corruption and trade uncertainties - Politically, Cambodia is a one-party state with long-term rule by the People's Party, ensuring policy continuity under the new Prime Minister Hun Manet, though corruption remains a significant issue[78][79][80] - Cambodia is a key beneficiary of the Belt and Road Initiative, with China as its largest foreign investor, funding major infrastructure, energy, and special economic zone projects[87][104] - Trade relations are complex, with a partial withdrawal of EU's EBA preferences and uncertainty from US tariff policies, though the UK's DCTS scheme offers duty-free access[82][84][85] - Cambodia has a young demographic with 66% of the population aged 15-64, but rising labor costs are evident as the minimum wage in the garment sector increased from $153 to $204 between 2017 and 2024[94][125] Corporate Governance Board of Directors and Senior Management The Board comprises eight members, including five experienced executive directors from the Ma family and three independent directors - The core of the Board consists of Ma family members, including Chairman Mr. Ma Ching Man and CEO Mr. Ma Ching Ming, who jointly control the company through a concert party deed[139][140][205] - Independent Non-executive Directors Mr. Lam Kwok Cheong, Mr. Wong Wai Keung, and Mr. Ho Lai Chuen chair the Remuneration, Audit & Risk Management, and Nomination Committees, respectively, ensuring independent oversight[145][148][152] Directors' Report The report details business performance, a doubled dividend payout, shareholding structure, and a connected transaction Dividend Distribution | Dividend Type | FY2025 (Proposed) | FY2024 (Paid) | | :--- | :--- | :--- | | Final Dividend | 4.0 HK cents/share | 2.0 HK cents/share | | Special Dividend | 2.0 HK cents/share | 1.0 HK cents/share | | Total | 6.0 HK cents/share | 3.0 HK cents/share | - The five controlling shareholders, all executive directors, jointly hold 301,138,000 shares (73.70% of issued capital) through Wah Sun Holdings[202][205] - Sales to the Group's five largest customers accounted for 88.6% of total revenue, with the largest customer representing 25.6%, indicating high customer concentration[216] - A connected transaction was completed this year, involving the acquisition of the Group's office property for HK$4.7 million from an executive director and the spouse of another director[200] Corporate Governance Report The company adheres to high governance standards, with independent oversight of its board committees and internal controls - The roles of Chairman (Mr. Ma Ching Man) and Chief Executive Officer (Mr. Ma Ching Ming) are held by separate individuals, ensuring a clear division of responsibilities[275] - The Board has adopted a diversity policy, with current membership comprising 25% female (2/8) and 75% male (6/8) directors[250][267] - An independent consultant reviewed the Group's risk management and internal control systems, which the Board and its committees deemed adequate and effective with no major deficiencies found[315] - The company has a dividend policy targeting a payout of no less than 35% of distributable profit for any fiscal year, subject to various factors[272] Financial Statements Independent Auditor's Report The auditor issued an unqualified opinion, identifying the impairment of trade receivables as the key audit matter - The auditor, PricewaterhouseCoopers, issued an unqualified opinion on the financial statements[338] - The sole key audit matter was the impairment of trade receivables, which involved significant management judgment; as of March 31, 2025, gross trade receivables were HK$68.224 million with an impairment provision of HK$4.146 million[345][346][349] Consolidated Financial Statements The Group reported significant growth in revenue and profit, maintaining a solid financial position and strong operating cash flow Consolidated Statement of Profit or Loss (in HK$'000) | | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | 724,098 | 594,407 | | Gross Profit | 159,577 | 104,995 | | Operating Profit | 81,594 | 33,967 | | Profit for the Year | 66,807 | 27,211 | | Profit Attributable to Owners of the Company | 64,274 | 28,504 | Consolidated Statement of Financial Position (in HK$'000) | | As of Mar 31, 2025 | As of Mar 31, 2024 | | :--- | :--- | :--- | | Total Assets | 420,867 | 371,308 | | Non-current Assets | 64,188 | 69,378 | | Current Assets | 356,679 | 301,930 | | Total Liabilities | 127,341 | 115,921 | | Non-current Liabilities | 15,369 | 17,662 | | Current Liabilities | 111,972 | 98,259 | | Total Equity | 293,526 | 255,387 | Consolidated Statement of Cash Flows (in HK$'000) | | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 88,056 | 63,758 | | Net Cash used in Investing Activities | (3,754) | (621) | | Net Cash used in Financing Activities | (35,827) | (24,136) | | Net Increase in Cash and Cash Equivalents | 48,475 | 39,001 | Five-Year Financial Summary The Group's performance reached a five-year high in FY2025, demonstrating a strong recovery and steady balance sheet growth Results (in HK$'000) | | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 724,098 | 594,407 | 446,518 | 617,586 | 403,843 | | Profit Attributable to Owners of the Company | 64,274 | 28,504 | 8,495 | 39,544 | 5,562 | Assets and Liabilities (in HK$'000) | | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 420,867 | 371,308 | 382,377 | 416,991 | 374,147 | | Total Equity | 293,526 | 255,387 | 244,557 | 259,107 | 235,991 | | Total Liabilities | 127,341 | 115,921 | 137,820 | 157,884 | 138,156 |