维珍妮(02199) - 2025 - 年度财报

Financial Highlights The Group reported robust financial recovery in FY2025, marked by double-digit growth in revenue, gross profit, and adjusted profit attributable to owners Financial Performance Highlights In FY2025, the Group achieved robust recovery with revenue up 11.7% and gross profit up 15.7%; profit attributable to owners surged 28.4%, with adjusted profit up 27.1%, and basic EPS increased to HKD 0.15, with a proposed final dividend of HKD 0.043 per share, totaling HKD 0.068 for the full year Key Financial Data Comparison for FY2025 | Metric | FY2025 (HKD thousands) | FY2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 7,840,043 | 7,016,802 | 11.7% | | Gross Profit | 1,832,567 | 1,583,567 | 15.7% | | Gross Margin | 23.4% | 22.6% | +0.8pp | | Profit Attributable to Owners | 183,891 | 143,175 | 28.4% | | Adjusted Profit Attributable to Owners* | 402,351 | 316,471 | 27.1% | | EBITDA | 1,057,835 | 1,011,975 | 4.5% | | Adjusted EBITDA* | 1,276,295 | 1,185,271 | 7.7% | | Basic Earnings Per Share (HKD) | 0.15 | 0.117 | +28.2% | | Dividend Per Share (HKD) | 0.068 | 0.057 | +19.3% | - Adjusted profit and adjusted EBITDA figures exclude special restructuring costs incurred due to the relocation of production facilities[23] Chairman's Statement The Chairman's statement highlights the Group's strategic resilience, achieving growth amidst economic uncertainty through core business focus, innovation, and a commitment to sustainability Strategic Review and Outlook Despite global economic uncertainties, the Group achieved low double-digit revenue growth in FY2025 through its IDM model and 'focus on core business' strategy, while actively pursuing cost efficiency, financial optimization, and leveraging proprietary Bonding technology for differentiated products, alongside market diversification and strong ESG commitments towards net-zero by 2050 - Leveraging its 'focus on core business and strengthening main operations' strategy, the Group's revenue in FY2025 continued the recovery trend from late FY2024, achieving low double-digit growth[29][31] - The company has initiated cost reduction and efficiency enhancement measures, with effects expected to gradually materialize in FY2026, and plans to progressively reduce debt to a reasonable level within the next 2-3 years by strictly controlling capital expenditure[33][34] - Proprietary Bonding process technology, developed in-house, became a core growth driver, leading to significant revenue growth in the functional apparel business in FY2025[36][37] - To counter tariff measures initiated by major economies, the Group has engaged in discussions and reached consensus with key brand partners, expecting limited impact on revenue, while accelerating expansion into diversified markets such as China, Europe, and Japan[38][40] Management Discussion and Analysis This section provides an in-depth analysis of the Group's market performance, business segment results, operating financials, and strategic outlook for future growth and resilience Market Review In FY2025, despite global economic volatility, the Group achieved stable revenue growth by leveraging its IDM model, technological innovation, and synergistic production capabilities in China and Vietnam, while its joint venture "Victoria's Secret China" demonstrated robust, industry-outperforming growth - Despite global economic volatility and weakened demand, the Group achieved stable full-year revenue growth through proactive strategic adjustments and business structure optimization[49][52] - The Group effectively balanced regional market risks by having its Vietnam production base handle global orders and its China capacity focus on the domestic market[50] - The joint venture 'Victoria's Secret China' continued to achieve robust, industry-outperforming growth by leveraging brand value and differentiated product advantages, validating the success of its localization strategy[51][52] Business Review In FY2025, the Group's total revenue grew 11.7% to HKD 7.84 billion, with net profit up 28.4% to HKD 184 million, driven by strong performance in sports products and consumer electronics accessories, while production optimization saw Vietnam contribute 85% of total revenue Revenue and Gross Profit Performance by Business Segment (FY2025) | Business Segment | Revenue (HKD millions) | YoY Change | Revenue Share | Gross Profit (HKD millions) | Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | Intimate Wear | 4,243.4 | +3.0% | 54.2% | 1,047.2 | 24.7% | | Sports Products | 2,934.1 | +26.9% | 37.4% | 652.8 | 22.3% | | Consumer Electronics Accessories | 408.9 | +43.2% | 5.2% | 79.1 | 19.4% | | Bra Cups and Other Accessories | 253.6 | -15.0% | 3.2% | 53.4 | 21.1% | | Total | 7,840.0 | +11.7% | 100.0% | 1,832.6 | 23.4% | - The strong growth in the Sports Products segment was primarily driven by double-digit growth in the sports bra business and differentiated functional apparel products developed using proprietary Bonding technology[69][76] - Production layout continues to optimize, with the Shenzhen production base fully relocated to Zhaoqing in October 2024, and the Vietnam production base contributing 85% of the Group's total revenue[83][84] The Group's Operating Results Analysis The Group's total revenue grew 11.7% to HKD 7.84 billion, driven by strong demand in sports products and consumer electronics accessories, with gross margin improving to 23.4% and adjusted net profit increasing 27.1% to HKD 402 million, despite restructuring costs - Cost of sales as a percentage of revenue decreased from 77.4% to 76.6%, primarily due to improved production efficiency, partially offset by initial ramp-up costs at the Zhaoqing factory[95][97] - To optimize its China production layout, the Group relocated its Shenzhen production base to Zhaoqing, incurring special restructuring costs of approximately HKD 218.5 million this fiscal year, mainly for employee severance and fixed asset write-offs[108][111] Key Financial Ratios | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Gearing Ratio | 105.2% | 104.7% | | Adjusted Net Gearing Ratio | 79.9% | 87.6% | | Trade Receivables Turnover Days | 48 days | 45 days | | Trade Payables Turnover Days | 25 days | 25 days | - Total capital expenditure was HKD 430.7 million, a significant decrease from HKD 688 million in the previous fiscal year, primarily used for acquiring production lines and constructing Zhaoqing production facilities and staff dormitories[135][140] Future Prospects and Strategies For FY2026, the Group will prioritize product differentiation, cost control, efficiency, and debt reduction to enhance profitability and financial resilience, while expanding market diversification and advancing ESG commitments towards net-zero by 2050 - The core strategy is to implement 'cost reduction, efficiency-driven transformation, and debt reduction,' with incremental cash flow from business optimization prioritized for lowering the gearing ratio to optimize capital structure[153][155] - The Group will fully leverage its leading advantage in Bonding process technology, replicating its success from intimate wear and sports into the apparel business to drive growth through innovative products[157][159] - To address macroeconomic challenges, the company will accelerate market diversification, focusing on expanding partnerships in China, Europe, and Japan to reduce reliance on a single market[158][160] - Regarding ESG, the Group has initiated Science Based Targets initiative (SBTi) validation and plans to set scientific carbon reduction targets within the next one to two years, strategizing for net-zero carbon emissions by 2050[161][164] Profile of Directors, Senior Management and Company Secretary This section provides detailed professional biographies of the company's directors, senior management, and company secretary, highlighting their extensive experience and qualifications Directors and Senior Management Profiles This chapter details the personal profiles of the company's executive directors, independent non-executive directors, senior management, and company secretary, covering their age, positions, responsibilities, industry experience, educational backgrounds, and other public company or social organization appointments, comprehensively showcasing the professional background and qualifications of the company's governance and management team - Founder Mr. YY Hung serves as Chairman and Chief Executive Officer, possessing over 25 years of experience in the intimate wear manufacturing industry and acting as a key driver of the Group's business strategy[166][170] - Executive directors have served the Group for many years, responsible for finance, R&D, production operations, and sales and marketing, each possessing profound industry experience[169][172][173][176] - The independent non-executive directors team comprises seasoned professionals from the finance, apparel trade, and retail industries, providing strategic advice and guidance for the Group's business development[177][186][190] Report of the Directors The Directors' Report summarizes the company's FY2025 activities, performance, and dividend proposals, including details on share capital, key business relationships, and governance compliance Summary of the Report of the Directors This report outlines the company's key activities, performance, and dividend distribution for FY2025, confirming its primary engagement in investment holding and its subsidiaries' focus on manufacturing and trading intimate wear and related products, with a proposed final dividend of HKD 0.043 per share, detailed disclosures on share capital changes, major customers and suppliers (top five customers accounting for 47.7% of sales), related party transactions, and compliance with listing rules - The Board recommends a final dividend of HKD 0.043 per share for the year ended March 31, 2025[204][209] - The share option scheme adopted by the company on September 11, 2015, is nearing expiry, with no options granted since its adoption; the company will propose adopting a new share option scheme at the Annual General Meeting[227][232] - This fiscal year, the Group's top five customers accounted for 47.7% of total sales, with the largest customer contributing 16.5%; the top five suppliers accounted for 39.7% of total purchases[249][253] - The report details several continuing connected transactions, including sales agreements with Joyful Profit Group and Float Limited, and property and plant lease agreements with Sun Cheong, Regina Miracle Technology, and Regina Miracle Investment, confirming all transactions were conducted on fair and reasonable commercial terms[275][285][292][300] Corporate Governance Report The Corporate Governance Report details the company's adherence to high governance standards, board structure, committee functions, risk management, and shareholder communication practices Corporate Governance Practices The company is committed to maintaining high corporate governance standards, complying with listing rules' code, with the only deviation being the combined roles of Chairman and CEO, which the Board believes enhances decision-making efficiency; the report details board composition, committee operations (Audit, Remuneration, Nomination, ESG, Executive), risk management, internal controls, and mechanisms for shareholder rights and investor communication - The company complies with most provisions of the Corporate Governance Code, with the exception of the Chairman and Chief Executive Officer roles being held by the same individual, Mr. YY Hung, an arrangement the Board believes facilitates more efficient business planning and decision-making[368][371] - The Board comprises five executive directors and three independent non-executive directors, with independent non-executive directors accounting for over one-third, meeting listing rule requirements[380][386] - The company has five Board committees: Audit, Remuneration, Nomination, Environmental, Social and Governance (ESG), and Executive, each fulfilling distinct roles to assist the Board in its duties[427][431] - The Board has conducted an annual review of the Group's risk management and internal control systems, deeming them effective and adequate, and has established a three-lines-of-defense risk governance framework[469][477][478] Independent Auditor's Report The Independent Auditor's Report provides an unqualified opinion on the FY2025 financial statements, highlighting revenue recognition as a key audit matter and detailing the audit procedures performed Audit Opinion and Key Audit Matters PricewaterhouseCoopers issued an unqualified audit opinion on the company's FY2025 consolidated financial statements, deeming them to fairly present the Group's financial position and operating results; 'revenue recognition' was identified as a key audit matter due to its volume and significance, with auditors performing various procedures including internal control assessment, sampling, analytical review, and cutoff tests, expressing satisfaction with the findings - The auditors believe that the consolidated financial statements fairly and accurately reflect the Group's consolidated financial position as at March 31, 2025, and its financial performance and cash flows for the year, in accordance with Hong Kong Financial Reporting Standards[509][510] - 'Revenue recognition' was identified as a key audit matter primarily due to the high volume of transactions, numerous customers, dispersed distribution locations, and the material impact of revenue on the financial statements[515][523] - To address revenue recognition risks, auditors performed multiple procedures, including assessing internal controls, sampling customer orders and supporting documents (e.g., invoices, delivery records), conducting analytical reviews, and performing cutoff tests on transactions around the fiscal year-end[525][527] Consolidated Financial Statements This section presents the Group's comprehensive financial statements, including the income statement, balance sheet, cash flow statement, and a five-year financial data summary Consolidated Income Statement In FY2025, the Group's revenue was HKD 7.84 billion, up 11.7%, with gross profit at HKD 1.83 billion and gross margin improving to 23.4%; operating profit was HKD 536 million, and profit for the year increased 28.4% to HKD 184 million Consolidated Income Statement Key Data (HKD thousands) | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | 7,840,043 | 7,016,802 | | Gross Profit | 1,832,567 | 1,583,567 | | Operating Profit | 535,642 | 453,669 | | Profit Before Income Tax | 220,772 | 152,177 | | Profit for the Year | 183,891 | 143,175 | Consolidated Balance Sheet As of March 31, 2025, the Group's total assets were HKD 8.89 billion, total liabilities HKD 5.73 billion, and total equity HKD 3.16 billion, with non-current assets primarily property, plant, and equipment, and current assets dominated by inventories and trade receivables Consolidated Balance Sheet Overview (HKD thousands) | Item | March 31, 2025 (HKD thousands) | March 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total Assets | 8,894,096 | 8,602,750 | | Non-current Assets | 5,400,861 | 5,611,111 | | Current Assets | 3,493,235 | 2,991,639 | | Total Liabilities | 5,730,181 | 5,232,275 | | Non-current Liabilities | 3,803,586 | 3,730,404 | | Current Liabilities | 1,926,595 | 1,501,871 | | Total Equity | 3,163,915 | 3,370,475 | Consolidated Statement of Cash Flows In FY2025, net cash from operating activities significantly increased to HKD 1.19 billion, while net cash used in investing activities was HKD 396 million and in financing activities was HKD 341 million, resulting in a net increase of HKD 457 million in cash and cash equivalents Consolidated Statement of Cash Flows Overview (HKD thousands) | Item | FY2025 (HKD thousands) | FY2024 (HKD thousands) | | :--- | :--- | :--- | | Net Cash From Operating Activities | 1,194,851 | 746,975 | | Net Cash Used in Investing Activities | (396,313) | (393,314) | | Net Cash Used in Financing Activities | (341,048) | (251,558) | | Net Increase in Cash and Cash Equivalents | 457,490 | 102,103 | | Cash and Cash Equivalents at Year-End | 907,831 | 623,117 | Five-Year Financial Information Summary This report provides a summary of key financial data for the past five fiscal years (2021-2025), showing a rebound in revenue, gross profit, and profit attributable to owners in FY2025 after a dip in FY2024, with total assets and equity remaining relatively stable Five-Year Financial Performance Summary (HKD thousands) | Fiscal Year | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 7,840,043 | 7,016,802 | 7,879,287 | 8,346,728 | 5,974,290 | | Gross Profit | 1,832,567 | 1,583,567 | 1,902,111 | 2,045,440 | 1,237,953 | | Profit Attributable to Owners | 183,891 | 143,175 | 383,258 | 520,694 | 125,515 | | Total Assets | 8,894,096 | 8,602,750 | 8,682,290 | 9,419,772 | 8,737,036 | | Total Equity | 3,163,915 | 3,370,475 | 3,547,262 | 3,636,257 | 3,070,355 |