永嘉集团(03322) - 2025 - 中期业绩

Report Overview and Financial Highlights This section summarizes Win Hanverky Holdings Limited's H1 2025 financial and operational highlights, noting narrowed losses from improved fashion retail despite production challenges Company Information and Report Type This section identifies the company and the nature of the interim financial report - Company name: Win Hanverky Holdings Limited, stock code: 3322[2] - Report type: Interim Results Announcement for the six months ended June 30, 2025[2] Financial Summary This section presents a concise overview of the company's key financial performance indicators Financial Summary for the Six Months Ended June 30, 2025 (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,736,568 | 1,756,510 | –1.1% | | Gross Profit | 324,359 | 325,854 | –0.5% | | Gross Margin | 18.7% | 18.6% | +0.1 percentage points | | Operating Loss | (28,238) | (62,015) | –54.5% | | Loss for the Period | (56,055) | (85,710) | –34.6% | | Basic Loss Per Share (HK cents) | (3.4) | (6.3) | –46.0% | Operational Summary This section highlights key operational performance drivers and their impact on the company's financial results - Revenue decreased by 1.1%, primarily due to a decline in the manufacturing business, partially offset by increased revenue from the premium fashion retail business[4] - The premium fashion retail business recorded an operating profit of HKD 6.9 million (compared to an operating loss of HKD 52.2 million in the same period of 2024), successfully turning profitable due to the introduction of franchised stores and reduced selling and distribution costs (with no impairment losses)[4] - The sportswear manufacturing business recorded an operating loss of HKD 17.6 million (compared to an operating profit of HKD 1.4 million in the same period of 2024), mainly due to raw material issues at Southeast Asian production facilities handling major orders, leading to higher-than-expected production and transportation costs[4] - Operating loss significantly reduced to HKD 28.2 million, and loss for the period decreased to HKD 56.1 million, a substantial reduction from the prior year[3][4] - Financial and liquidity positions remain robust, with cash and bank balances at HKD 437.1 million and the net debt-to-asset ratio decreasing to 7.1%[4] - The Board of Directors decided not to recommend an interim dividend to conserve financial resources[4] Consolidated Financial Statements This section presents the consolidated income statement, comprehensive income, and financial position for H1 2025, showing narrowed losses, improved comprehensive income, increased cash, and higher borrowings Consolidated Income Statement This statement details the company's revenues, costs, and resulting profit or loss for the period Key Data from Consolidated Income Statement (For the six months ended June 30) (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 1,736,568 | 1,756,510 | | Cost of Sales | (1,412,209) | (1,430,656) | | Gross Profit | 324,359 | 325,854 | | Selling and Distribution Costs | (161,055) | (187,428) | | General and Administrative Expenses | (188,033) | (203,944) | | Operating Loss | (28,238) | (62,015) | | Loss for the Period | (56,055) | (85,710) | | Basic Loss Per Share (HK cents) | (3.4) | (6.3) | Consolidated Statement of Comprehensive Income This statement presents the company's total comprehensive income, including items not recognized in profit or loss Key Data from Consolidated Statement of Comprehensive Income (For the six months ended June 30) (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Loss for the Period | (56,055) | (85,710) | | Exchange Differences on Translation | 22,259 | (26,295) | | Total Comprehensive Income for the Period | (34,032) | (110,324) | | Total Comprehensive Income for the Period Attributable to Equity Holders of the Company | (22,999) | (103,380) | Consolidated Statement of Financial Position This statement provides a snapshot of the company's assets, liabilities, and equity at a specific point in time Key Data from Consolidated Statement of Financial Position (HKD thousands) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 1,017,716 | 1,051,728 | | Current Assets | 1,683,839 | 1,645,908 | | Inventories | 765,181 | 716,368 | | Trade and Bills Receivables | 324,016 | 526,465 | | Cash and Bank Balances | 437,136 | 250,321 | | Current Liabilities | 1,274,618 | 1,205,273 | | Borrowings (Current) | 529,981 | 464,985 | | Non-current Liabilities | 115,810 | 147,204 | | Total Equity | 1,311,127 | 1,345,159 | Notes to the Condensed Interim Financial Information This section details the basis of preparation, segment information, other income/expenses, finance costs, income tax, loss per share, dividend policy, and trade receivables/payables and borrowings 1. Basis of Preparation This section outlines the accounting standards and principles used in preparing the interim financial information - The condensed interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9] - Revisions to standards applicable to the current reporting period had no significant impact on the Group's results and financial position, and the Group has not applied new standards, amendments, or interpretations not yet effective[9] - The accounting policies applied are consistent with those adopted in the annual financial statements for the year ended December 31, 2024[9] 2. Segment Information This section provides a breakdown of the company's financial performance and assets by its main business segments and geographical regions - The Group's principal business segments are manufacturing (sportswear manufacturing, high-performance outdoor apparel manufacturing) and premium fashion retail[10][13] - Executive Directors assess business segment performance based on operating results, excluding net finance costs within each segment's results[11] Revenue by Product or Service Line (For the six months ended June 30) (HKD thousands) | Product/Service Line | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Sale of Goods | 1,732,370 | 1,743,005 | | Provision of Services | 4,198 | 13,505 | | Total Revenue | 1,736,568 | 1,756,510 | - The manufacturing segment primarily produces and sells sportswear and high-performance outdoor apparel on an original equipment manufacturing basis, while the premium fashion retail segment retails premium fashion products and holds distribution rights in various regions[13] H1 2025 Segment Results (HKD thousands) | Segment | Revenue | Operating Profit/(Loss) | | :--- | :--- | :--- | | Sportswear Manufacturing | 1,191,589 | (17,629) | | High-Performance Outdoor Apparel Manufacturing | 250,480 | (17,468) | | Premium Fashion Retail | 294,499 | 6,859 | | Total | 1,736,568 | (28,238) | H1 2024 Segment Results (HKD thousands) | Segment | Revenue | Operating Profit/(Loss) | | :--- | :--- | :--- | | Sportswear Manufacturing | 1,215,111 | 1,409 | | High-Performance Outdoor Apparel Manufacturing | 260,465 | (11,270) | | Premium Fashion Retail | 280,934 | (52,154) | | Total | 1,756,510 | (62,015) | Segment Assets and Liabilities (HKD thousands) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total Assets | 2,701,555 | 2,697,636 | | Total Liabilities | (1,390,428) | (1,352,477) | Revenue by Geographical Region (For the six months ended June 30) (HKD thousands) | Region | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Europe | 650,657 | 688,353 | | Mainland China | 455,456 | 484,360 | | Other Asian Countries | 241,054 | 222,083 | | United States | 219,113 | 215,684 | | Hong Kong | 49,693 | 54,858 | | Canada | 13,821 | 9,082 | | Others | 106,774 | 82,090 | | Total | 1,736,568 | 1,756,510 | Non-current Assets by Geographical Region (HKD thousands) | Region | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 332,187 | 339,596 | | Mainland China | 238,330 | 241,876 | | Vietnam | 175,521 | 191,042 | | Cambodia | 127,888 | 130,295 | | Others | 17,278 | 19,848 | | Total | 891,204 | 922,657 | 3. Other (Expenses) / Income — Net This section details the various non-operating income and expenses that impact the company's overall financial results Other (Expenses) / Income — Net (HKD thousands) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Exchange (Losses) / Gains | (5,520) | 2,510 | | Government Subsidies | 636 | 1,095 | | Rental Income | 1,255 | 783 | | Loss on Disposal of Property, Plant and Equipment and Lease Modifications — Net | (357) | (7) | | Others | 477 | (878) | | Total | (3,509) | 3,503 | 4. Finance Costs — Net This section outlines the company's financing income and expenses, including interest on borrowings and lease liabilities Finance Costs — Net (HKD thousands) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Finance Income | 763 | 972 | | Interest on Bank Borrowings | (12,764) | (15,031) | | Interest on Lease Liabilities | (6,534) | (8,168) | | Finance Costs — Net | (18,535) | (22,227) | 5. Income Tax This section details the current and deferred income tax expenses and applicable tax rates Income Tax Expense (HKD thousands) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Current Tax | 3,396 | 614 | | Deferred Tax | 5,451 | 1,412 | | Total | 8,847 | 2,026 | - The corporate income tax rate in Mainland China is 25%, and the Hong Kong profits tax rate is 16.5%[22] 6. Loss Per Share This section presents the basic and diluted loss per share calculations for the period Loss Per Share (HK cents) | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (3.4) | (6.3) | | Diluted Loss Per Share | (3.4) | (6.3) | - Basic loss per share is calculated based on the consolidated loss attributable to equity holders of the Company for the period and the weighted average number of 1,284,400,000 ordinary shares in issue[23] 7. Dividends This section states the Board's decision regarding interim dividend payments - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[24] 8. Trade and Bills Receivables This section provides details on the company's trade and bills receivables, including their aging analysis Trade and Bills Receivables (HKD thousands) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade Receivables | 331,370 | 538,755 | | Bills Receivables | 5,993 | 3,957 | | Less: Loss Allowance for Trade Receivables | (13,347) | (16,247) | | Total | 324,016 | 526,465 | Aging Analysis of Trade and Bills Receivables (HKD thousands) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 317,446 | 516,824 | | 91 to 180 days | 8,225 | 11,172 | | 181 to 365 days | 3,405 | 3,870 | | Over 365 days | 8,287 | 10,846 | | Total | 337,363 | 542,712 | - The Group generally grants credit terms of up to 90 days to customers, with most sales made on an open account basis[25] 9. Trade Payables This section presents the aging analysis of the company's trade payables Aging Analysis of Trade Payables (HKD thousands) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 290,036 | 255,461 | | 91 to 180 days | 3,701 | 19,729 | | 181 to 365 days | 1,373 | 998 | | Over 365 days | 2,572 | 2,749 | | Total | 297,682 | 278,937 | 10. Borrowings This section details the company's borrowings, including their maturity profiles Borrowings Maturity Profile (HKD thousands) | Maturity Time | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within one year | 461,981 | 394,485 | | After one year but within two years | 5,000 | 5,000 | | After two years but within five years | 15,000 | 15,000 | | After five years | 48,000 | 50,500 | | Total | 529,981 | 464,985 | - The Group's borrowings are accounted for at amortized cost, with interest-bearing bank borrowings repayable within one year or on demand[27] Management Discussion and Analysis This section provides management's analysis of H1 performance, noting improved profitability from fashion retail and cost control despite production challenges, with a cautious outlook Overall Financial and Operational Performance This section summarizes the Group's overall financial and operational results for the period, highlighting key drivers and outcomes - The Group's revenue was HKD 1,736.6 million, a 1.1% year-on-year decrease, primarily due to a decline in manufacturing revenue, partially offset by an increase in premium fashion retail revenue[28] - The premium fashion retail business recorded an operating profit of HKD 6.9 million, a significant improvement from an operating loss of HKD 52.2 million in the prior year, mainly attributed to the introduction of franchised stores and reduced selling and distribution costs (with no impairment losses)[28] - The sportswear manufacturing business recorded an operating loss of HKD 17.6 million, primarily due to raw material issues at Southeast Asian production facilities handling certain major orders, leading to higher-than-expected production and transportation costs[29] - Overall operating loss significantly decreased to HKD 28.2 million, and loss for the period reduced to HKD 56.1 million[29] - The Board of Directors does not recommend an interim dividend to conserve financial resources for challenges[29] Business Segment Review This section provides a detailed review of the performance of each of the Group's business segments - The operating environment in H1 2025 was complex and volatile, with the Group facing economic and industry-specific challenges[30] Sportswear Manufacturing Business Performance (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,191,600 | 1,215,100 | -1.9% | | Operating Profit/(Loss) | (17,600) | 1,400 | N/A | - The operating loss in the sportswear manufacturing business was mainly due to raw material issues at Southeast Asian production facilities handling certain major orders, resulting in higher-than-expected production and transportation costs[32] High-Performance Outdoor Apparel Manufacturing Business Performance (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 250,500 | 260,500 | -3.8% | | Operating Profit/(Loss) | (17,500) | (11,300) | N/A | - The decline in revenue for the high-performance outdoor apparel manufacturing business was due to the Group's strategic adjustments to reduce reliance on outsourced garment manufacturers while gradually increasing internal production capacity[33] Premium Fashion Retail Business Performance (HKD thousands) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 294,500 | 280,900 | +4.8% | | Operating Profit/(Loss) | 6,900 | (52,200) | N/A | - The premium fashion retail business successfully turned profitable primarily due to the introduction of franchised stores for rapidly growing brands in addition to directly operated stores, and reduced selling and distribution costs (with no recurrence of the HKD 20.1 million impairment loss from the prior year)[34] - As of June 30, 2025, the total number of directly operated stores decreased to 95 (June 30, 2024: 110)[35] Business Outlook This section discusses the Group's expectations and strategies for its business segments in the upcoming period - The economic and political landscape in H2 2025 is expected to remain complex and unpredictable, and the Group will continue to manage its business operations flexibly and prudently in this ever-changing environment[36][37] - The sportswear manufacturing business has a stable outlook, benefiting from global focus on health and fitness and active sports participation, and will focus on identifying new clients and expanding its customer base[38][39] - The high-performance outdoor apparel manufacturing business is expected to maintain its momentum in the second half through strategic adjustments and a strong strategic partnership with an integrated sportswear enterprise group[40] - The premium fashion retail market faces challenges from evolving consumption patterns, with a difficult recovery path anticipated; the Group will expand its footprint and drive revenue growth through a direct-to-consumer plus franchise model, while strictly controlling costs and closing unprofitable stores[41] Financial Position and Liquidity This section assesses the company's financial health, cash flow, and ability to meet its short-term and long-term obligations - The Group's financial and liquidity positions remain robust, and it will continue to actively monitor the situation, implement strict cost control measures, and focus on cash flow management[42] Key Data on Financial Position and Liquidity (HKD thousands) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Cash and Bank Balances | 437,100 | 250,300 | | Net Borrowings | 92,800 | 214,700 | | Available Undrawn Bank Facilities | 728,200 | 713,900 | | Net Debt-to-Asset Ratio | 7.1% | 16.0% | - The Group anticipates stable cash inflows from operating activities, along with sufficient cash and bank balances and readily available bank financing facilities, providing ample liquidity and financial resources to meet operating costs and financial obligations due in the next twelve months[42] Foreign Currency Risk This section discusses the Group's exposure to foreign currency fluctuations and its management strategies - The Group considers foreign exchange risk for USD transactions and USD cash balances to be minimal due to the Hong Kong Dollar's peg to the US Dollar[43] - Approximately 70.7% of revenue and 79.1% of purchases are denominated in US Dollars[43] - Approximately 54.6% of cash and bank balances are denominated in US Dollars, and approximately 45.7% of bank borrowings are denominated in Hong Kong Dollars[43] - The Group continuously monitors foreign currency risk closely to ensure net exposure is at an acceptable level and may use appropriate financial instruments to mitigate foreign currency risk[43] Other Disclosures This section covers other important disclosures including employees, asset charges, contingent liabilities, directors' securities transactions, corporate governance, and financial review Employees and Remuneration Policy This section details the Group's employee numbers and its remuneration and benefits policies - As of June 30, 2025, the Group had approximately 17,000 employees, consistent with December 31, 2024[44] - Employee remuneration is determined based on individual performance, work experience, and prevailing market conditions, with retirement benefits, insurance, medical allowances, and share option schemes provided[44] Charges on the Group's Assets This section discloses any assets of the Group that have been pledged as security for borrowings - As of June 30, 2025, the Group had no pledged bank deposits (December 31, 2024: HKD 1.2 million pledged)[45] - Land and properties with a total carrying amount of HKD 80.5 million (December 31, 2024: HKD 82.0 million) have been pledged to several banks for certain of the Group's banking facilities[45] Contingent Liabilities This section confirms the absence of any significant contingent liabilities or legal proceedings - As of June 30, 2025, the Group had no significant contingent liabilities or material litigation or arbitration[46] Standard Code for Securities Transactions by Directors This section confirms the company's adoption and directors' compliance with the standard code for securities transactions - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[47] - All Directors confirmed compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[47] Purchase, Sale or Redemption of the Company's Listed Securities This section confirms no transactions involving the company's listed securities by the company or its subsidiaries - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025[48] - As of June 30, 2025, the Company and its subsidiaries did not hold any treasury shares[48] Corporate Governance This section confirms the company's adherence to corporate governance principles and code provisions - The Company has applied the principles and complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[50] Review of Financial Information This section confirms the review of the interim financial information by the audit committee and external auditors - The Audit Committee, in conjunction with the Company's management, discussed and reviewed the unaudited condensed interim financial information for the six months ended June 30, 2025, and recommended it for Board approval[51] - The Company's auditor, PricewaterhouseCoopers, has reviewed the financial information in accordance with Hong Kong Standard on Review Engagements 2410[51] Publication of Interim Results and Interim Report This section provides information on where the interim results announcement and report are published - This results announcement has been published on the website of Hong Kong Exchanges and Clearing Limited (http://www.hkexnews.hk) and the Company's website (http://www.winhanverky.com)[52](index=52&type=chunk) - The interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the aforementioned websites later[52] Board of Directors This section lists the composition of the company's Board of Directors - The Board of Directors comprises Executive Directors Mr. Li Kwok Tung (Chairman), Mr. Lai Ching Ping, Mr. Li Kwok Leung, and Mr. Wong Chi Keung[53][54] - The Board of Directors comprises Independent Non-executive Directors Mr. Kwan Kai Cheong, Mr. Ma Ka Chun, and Ms. Chan Kit Fan[53]