晶苑国际(02232) - 2025 - 中期业绩

Financial Summary The group reported a 12.4% increase in revenue to $1,229 million and a 16.7% rise in net profit to $98 million for the first half of 2025 2025 H1 Financial Summary | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue (Million USD) | 1,229 | 1,094 | | Net Profit (Million USD) | 98 | 84 | | Interim Dividend (HK Cents per Share) | 16.3 | 13.8 | Condensed Consolidated Financial Statements This section presents the group's financial performance and position, including detailed statements of profit or loss and financial position Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, group revenue increased by 12.4% to $1.229 billion, with net profit rising 16.8% to $98.32 million Key Profit or Loss Data | Metric (Thousand USD) | 2025 H1 (Unaudited) | 2024 H1 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,229,475 | 1,093,672 | +12.4% | | Gross Profit | 242,602 | 213,452 | +13.7% | | Profit Before Tax | 119,707 | 102,912 | +16.3% | | Profit for the Period | 98,323 | 84,214 | +16.8% | | Profit Attributable to Owners of the Company | 98,265 | 84,012 | +16.9% | | Basic Earnings Per Share (US Cents) | 3.44 | 2.94 | +17.0% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets grew to $2.338 billion, driven by increases in inventory and cash, maintaining a robust capital structure Key Balance Sheet Data | Metric (Thousand USD) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 906,731 | 894,116 | | Current Assets | 1,430,841 | 1,360,337 | | Total Assets | 2,337,572 | 2,254,453 | | Equity and Liabilities | | | | Total Equity | 1,540,295 | 1,535,446 | | Non-current Liabilities | 52,834 | 54,075 | | Current Liabilities | 744,443 | 664,932 | | Total Equity and Liabilities | 2,337,572 | 2,254,453 | Notes to the Condensed Consolidated Financial Statements This section provides detailed disclosures on revenue, segment information, dividends, and earnings per share, supporting the condensed financial statements 3. Revenue and Segment Information Group revenue increased across all five product categories and major geographical markets, with leisurewear and sportswear being the largest segments Revenue by Product Segment (Thousand USD) | Product Segment | 2025 H1 | 2024 H1 | YoY Change | | :--- | :--- | :--- | :--- | | Leisurewear | 339,672 | 304,981 | +11.4% | | Sportswear and Outdoorwear | 312,906 | 278,285 | +12.4% | | Denim | 262,202 | 237,697 | +10.3% | | Intimate Wear | 209,784 | 191,517 | +9.5% | | Sweaters | 104,911 | 81,192 | +29.2% | | Total | 1,229,475 | 1,093,672 | +12.4% | Revenue by Geographical Location (Thousand USD) | Region | 2025 H1 | 2024 H1 | YoY Change | | :--- | :--- | :--- | :--- | | Asia Pacific | 478,286 | 417,729 | +14.5% | | North America | 462,934 | 414,566 | +11.7% | | Europe | 252,705 | 230,447 | +9.7% | | Other Countries/Regions | 35,550 | 30,930 | +15.0% | | Total | 1,229,475 | 1,093,672 | +12.4% | 6. Dividends The Board declared an interim dividend of 16.3 HK cents per ordinary share for the six months ended June 30, 2025, an increase from the prior year - The Board declared an interim dividend of 16.3 HK cents per ordinary share, totaling approximately $59.24 million, an increase from 13.8 HK cents per share (totaling approximately $50.43 million) in the prior year[31] 7. Earnings Per Share Basic earnings per share attributable to owners of the company increased to 3.44 US cents for the six months ended June 30, 2025 Basic Earnings Per Share Calculation | Metric | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (Thousand USD) | 98,265 | 84,012 | | Weighted Average Number of Ordinary Shares (Thousand Shares) | 2,852,822 | 2,852,822 | | Basic Earnings Per Share (US Cents) | 3.44 | 2.94 | Management Discussion and Analysis This section reviews market conditions, business performance, financial results, sustainability efforts, and future outlook, highlighting strategic responses to challenges Market Overview The apparel industry showed strong momentum in H1 2025, particularly in Asia and Europe, despite new US tariffs posing challenges to key export countries - The US announced significant reciprocal tariffs on global trade partners on April 2, 2025, imposing high differential rates on major apparel exporting countries like China and Vietnam, creating headwinds for the group's business[43] - The group identifies three key factors to mitigate tariff impacts: its FOB revenue structure (tariffs borne by customers), strong pricing power of brand customers, and the core competitiveness of industry suppliers[44] Business Review In H1 2025, the group achieved balanced growth across all segments, with revenue up 12.4% to $1.229 billion and net profit up 16.8% to $98 million 2025 H1 Performance Highlights | Metric | 2025 H1 | 2024 H1 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue (Million USD) | 1,229 | 1,094 | +12.4% | | Gross Profit (Million USD) | 243 | 213 | +13.7% | | Gross Margin | 19.7% | 19.5% | +0.2pp | | Net Profit (Million USD) | 98 | 84 | +16.8% | | Net Margin | 8.0% | 7.7% | +0.3pp | - The Board resolved to declare an interim dividend of 16.3 HK cents per share, representing a payout ratio of 60%[46] - Capital expenditure for the period was $60 million, an increase from $52 million in the prior year[46] Financial Review The group maintained a robust financial position with revenue growth across all categories and regions, improved margins, and a strong net cash position of $517 million Revenue Analysis Total revenue increased by 12.4%, driven by deeper collaboration with key brand customers, with sweaters showing the fastest growth and Asia Pacific being the largest market Revenue and Proportion by Product Category | Product Category | 2025 H1 Revenue (Thousand USD) | Proportion | 2024 H1 Revenue (Thousand USD) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Leisurewear | 339,672 | 27.6% | 304,981 | 27.9% | | Sportswear and Outdoorwear | 312,906 | 25.5% | 278,285 | 25.4% | | Denim | 262,202 | 21.3% | 237,697 | 21.7% | | Intimate Wear | 209,784 | 17.1% | 191,517 | 17.5% | | Sweaters | 104,911 | 8.5% | 81,192 | 7.5% | | Total | 1,229,475 | 100.0% | 1,093,672 | 100.0% | Gross Profit Analysis Overall gross margin slightly increased to 19.7%, with leisurewear and intimate wear improving due to efficiency gains, while sweaters saw a decline Gross Profit and Gross Margin by Product Category | Product Category | 2025 H1 Gross Profit (Thousand USD) | Gross Margin | 2024 H1 Gross Profit (Thousand USD) | Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Leisurewear | 69,801 | 20.5% | 60,344 | 19.8% | | Sportswear and Outdoorwear | 64,869 | 20.7% | 58,158 | 20.9% | | Denim | 42,892 | 16.4% | 39,322 | 16.5% | | Intimate Wear | 43,637 | 20.8% | 37,311 | 19.5% | | Sweaters | 21,403 | 20.4% | 18,317 | 22.6% | | Total | 242,602 | 19.7% | 213,452 | 19.5% | Liquidity and Financial Resources The group maintained a strong financial position with $155 million in operating cash flow, a cash balance of $512 million, and zero gearing ratio Key Financial Position Metrics | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Operating Cash Flow (Six Months) | $155 million | $44 million (2024 H1) | | Cash Balance | $512 million | $427 million | | Bank Borrowings | $122 million | $147 million | | Net Cash Position | $517 million | Not Applicable | | Gearing Ratio | Zero | Zero | - Cash conversion cycle increased from 71 days to 84 days, with trade receivables turnover days rising from 52 days to 62 days, and inventory turnover days from 48 days to 59 days[56] Sustainability The group prioritizes sustainability with its "Crystal Sustainability Vision 2030" and a net-zero commitment by 2050, achieving CDP climate A-list status - The group established its "Crystal Sustainability Vision 2030 (CSV2030)" and committed to achieving net-zero emissions by 2050, with an interim target of reducing total greenhouse gas emissions by 35% by 2030[65] - The group demonstrated excellent climate action, ranking on the CDP Climate A List (Leadership) for two consecutive years and making its debut on the CDP 2024 Supplier Engagement Rating A List[69] - The company actively empowers talent and gives back to the community, for example, providing empowerment programs for over 70,300 female employees and planning to plant 2 million trees globally by 2030[70][73] Outlook and Prospects The group plans to expand capacity and deepen vertical integration in Vietnam, prioritize European and Asian markets, and explore new production bases to mitigate tariff impacts - To counter the impact of US tariffs, the group will prioritize developing European and Asian markets and will establish a new partnership with a leading European brand customer in the second half of the year[75] - The group will continue to invest in its production network and vertical supply chain in Vietnam, while actively evaluating the feasibility of establishing new production bases in peripheral European regions to enhance responsiveness to the European market[74][75] - Leveraging its robust operating cash flow, the group is committed to continuing to deliver substantial returns to shareholders through stable and attractive dividend distributions[75] Corporate Governance and Other Information This section details the interim dividend declaration and the company's adherence to high standards of corporate governance practices Interim Dividend The Board declared an interim dividend of 16.3 HK cents (approximately 2.1 US cents) per ordinary share, payable on September 18, 2025 - The Board resolved to declare an interim dividend of 16.3 HK cents per ordinary share[76] - To determine dividend entitlements, the share transfer register will be suspended from September 5 to September 9, 2025. The record date is September 9, 2025, with an expected payment date of September 18, 2025[76][77][78] Corporate Governance Practices The company maintained high corporate governance standards, complying with listing rules, and the Audit Committee reviewed financial statements and internal controls - The company consistently complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[81] - The Audit Committee reviewed the group's financial reporting, internal control systems, and risk management, recommending the Board adopt the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[83][84] - The Board is responsible for and satisfied with the effectiveness of the group's risk management and internal control systems[85]