飞达控股(01100) - 2025 - 中期业绩

Interim Performance Summary Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company reported significant growth in revenue and profit, with revenue up 23.1% to HK$845.6 million and profit attributable to owners up 69.9% to HK$59.9 million Key Data from Interim Condensed Consolidated Statement of Profit or Loss | Metric | June 30, 2025 (HK$ '000) | June 30, 2024 (HK$ '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 845,629 | 687,114 | +23.1% | | Cost of sales | (590,525) | (467,604) | +26.3% | | Gross profit | 255,104 | 219,510 | +16.2% | | Operating profit | 84,729 | 65,048 | +30.3% | | Profit for the period | 57,579 | 39,979 | +44.0% | | Profit attributable to owners of the Company | 59,918 | 35,269 | +69.9% | | Basic earnings per share (HK cents) | 13.962 | 8.218 | +69.9% | | Diluted earnings per share (HK cents) | 13.856 | 8.141 | +70.2% | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income for the period significantly increased to HK$65.49 million, primarily due to higher profit for the period and a positive shift in foreign exchange differences from translating overseas operations' financial statements Key Data from Interim Condensed Consolidated Statement of Comprehensive Income | Metric | June 30, 2025 (HK$ '000) | June 30, 2024 (HK$ '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 57,579 | 39,979 | +44.0% | | Exchange differences on translation of financial statements of overseas operations | 7,911 | (1,906) | N/A (from negative to positive) | | Total comprehensive income for the period, net of tax | 65,490 | 38,073 | +72.0% | | Total comprehensive income attributable to owners of the Company | 68,401 | 33,363 | +105.0% | | Total comprehensive income attributable to non-controlling interests | (2,911) | 4,710 | N/A (from positive to negative) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets increased to HK$1.962 billion, total equity to HK$1.223 billion, and net current assets significantly improved to HK$395.4 million, indicating a robust financial position Key Data from Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 1,961,637 | 1,944,866 | +0.9% | | Non-current assets | 929,707 | 940,361 | -1.1% | | Current assets | 1,031,930 | 1,004,505 | +2.7% | | Total equity | 1,223,321 | 1,179,289 | +3.7% | | Total liabilities | 738,316 | 765,577 | -3.6% | | Net current assets | 395,421 | 342,780 | +15.3% | | Cash and cash equivalents | 229,069 | 179,638 | +27.5% | Notes to Financial Statements Basis of Preparation and Accounting Policies This interim condensed consolidated financial information is prepared under HKAS 34, presented in HKD, and reflects the adoption of new standards without significant policy changes - This interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting", presented in Hong Kong Dollars, and is unaudited[9][10] - The Group has adopted new and revised standards, which did not result in changes to accounting policies or retrospective adjustments[11][13] - Hong Kong Financial Reporting Standard 18, effective for periods beginning on or after January 1, 2027, is expected to impact the presentation of the statement of profit or loss and disclosure of financial performance, but is not currently expected to have a material impact on operating results and financial position[14][15] Segment Information The Group's operating segments are primarily manufacturing and trading, with manufacturing focused on headwear production in Bangladesh and Mexico, and trading involving distribution in the US and Europe - Executive Directors determine operating segments based on reports used for strategic decisions and assess performance by reportable segment profit/(loss)[16][17] - The manufacturing business primarily produces headwear, with facilities in Bangladesh and Mexico, serving customers mainly in the United States and Europe[20] - The trading business involves the trading and distribution of headwear, small leather goods, handbags, and accessories through subsidiaries like H3 Sportgear LLC and San Diego Hat Company, focusing on the US and European markets[20] Revenue and Profit Manufacturing business achieved significant growth in both revenue and profit, while trading business revenue increased but still recorded an operating loss Revenue and Profit by Business Segment | Metric (HK$ '000) | June 30, 2025 (Manufacturing) | June 30, 2024 (Manufacturing) | June 30, 2025 (Trading) | June 30, 2024 (Trading) | June 30, 2025 (Total) | June 30, 2024 (Total) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from external customers | 537,720 | 445,769 | 307,909 | 241,345 | 845,629 | 687,114 | | Reportable segment profit / (loss) | 120,152 | 93,178 | (43,834) | (37,739) | 76,318 | 55,439 | | Operating profit | - | - | - | - | 84,729 | 65,048 | | Profit for the period | - | - | - | - | 57,579 | 39,979 | Assets and Liabilities Segment assets and liabilities for both manufacturing and trading businesses remained stable, with a slight decrease in overall segment liabilities Assets and Liabilities by Business Segment | Metric (HK$ '000) | June 30, 2025 (Manufacturing) | December 31, 2024 (Manufacturing) | June 30, 2025 (Trading) | December 31, 2024 (Trading) | June 30, 2025 (Total) | December 31, 2024 (Total) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Reportable segment assets | 833,149 | 837,368 | 788,407 | 808,638 | 1,621,556 | 1,646,006 | | Reportable segment liabilities | 229,331 | 271,142 | 210,851 | 207,588 | 440,182 | 478,730 | - Segment assets exclude investment properties, deferred income tax assets, investments accounted for using the equity method, financial assets measured at fair value through profit or loss, recoverable tax, short-term deposits, and cash and cash equivalents[21] - Segment liabilities exclude current and deferred income tax liabilities, borrowings, and other corporate liabilities not directly attributable to any operating segment's business activities[22] Profit Before Income Tax Analysis Operating profit for the period increased to HK$84.729 million, with key cost items including depreciation, amortization, inventory provisions, and impairment of trade receivables, alongside net finance costs Profit Before Income Tax Analysis | Item (HK$ '000) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Operating profit | 84,729 | 65,048 | | Depreciation of property, plant and equipment | 31,654 | 28,078 | | Depreciation of right-of-use assets | 8,991 | 7,101 | | Amortisation of other intangible assets | 11,239 | 11,995 | | Net provision for inventories | 2,999 | 1,162 | | Net impairment loss on trade receivables | 2,620 | 2,163 | | Finance costs – net | (7,457) | (6,590) | - Net provision for inventories increased to HK$2.999 million (2024: HK$1.162 million), primarily due to consideration of inventory conditions, market demand, and historical usage[24][26] - Net impairment loss on trade receivables increased to HK$2.62 million (2024: HK$2.163 million), mainly related to expected credit losses from US and European customers[24][26] Income Tax Expense Income tax expense for the period increased to HK$19.693 million, primarily driven by overseas taxation, with Hong Kong profits tax at 16.5% Income Tax Expense Details | Item (HK$ '000) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Hong Kong profits tax | 507 | 770 | | Overseas taxation | 20,013 | 17,079 | | Deferred income tax | (827) | 615 | | Total income tax expense | 19,693 | 18,464 | - Income tax expense is recognized based on management's estimate of the weighted average annual income tax rate for the entire financial year[27] Earnings Per Share Significant growth in profit attributable to owners led to a substantial increase in both basic and diluted earnings per share, reaching 13.962 HK cents and 13.856 HK cents respectively Earnings Per Share Data | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (HK$ '000) | 59,918 | 35,269 | | Weighted average number of ordinary shares in issue | 429,164,448 | 429,164,448 | | Basic earnings per share (HK cents) | 13.962 | 8.218 | | Diluted earnings per share (HK cents) | 13.856 | 8.141 | - The calculation of diluted earnings per share considers the conversion effect of all outstanding share options[29] Dividends The Board declared an interim dividend of 3 HK cents per share, consistent with the prior year, in addition to the final dividend for the previous fiscal year Dividends Declared and Paid | Dividend Type | June 30, 2025 (HK$ '000) | June 30, 2024 (HK$ '000) | | :--- | :--- | :--- | | Interim dividend declared (3 HK cents per share) | 12,875 | 12,875 | | Final dividend paid for 2024 (5 HK cents per share) | 21,458 | 25,750 | | Final dividend paid for 2023 (6 HK cents per share) | - | 25,750 | - The proposed interim dividend amount is based on 429,164,448 issued shares as of June 30, 2025[32] Asset Details The Group saw reduced investment in property, plant, and equipment but an increase in right-of-use assets, while investment properties recorded a fair value loss and trade receivables grew - During the period, HK$26.16 million was invested in property, plant and equipment (2024: HK$127.6 million for property acquisition), and nil in intangible assets (2024: HK$28.678 million)[35] - One investment property recorded a fair value loss of HK$2.373 million[35] Right-of-Use Assets and Lease Liabilities | Item (HK$ '000) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Right-of-use assets (properties) | 56,482 | 55,628 | | Lease liabilities (non-current) | 47,028 | 45,911 | | Lease liabilities (current) | 13,611 | 14,382 | | Total lease liabilities | 60,639 | 60,293 | Trade Receivables and Other Financial Assets | Item (HK$ '000) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables, net | 401,737 | 375,642 | | Other financial assets measured at amortised cost | 20,172 | 20,149 | | Total current portion | 419,304 | 394,349 | - An aging analysis of trade receivables shows HK$134 million aged 0-30 days, HK$128 million aged 31-60 days, and HK$46.815 million aged over 180 days[37] Trade and Other Payables Total trade and other payables decreased, mainly due to reductions in trade payables and accrued expenses, with the current portion totaling HK$364.3 million Trade and Other Payables Details | Item (HK$ '000) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 168,273 | 188,009 | | Accruals and other payables | 218,871 | 240,581 | | Total | 387,144 | 428,590 | | Current portion | 364,332 | 402,196 | - An aging analysis of trade payables shows HK$111 million aged 0-30 days and HK$20.563 million aged over 90 days[38] Management Discussion and Analysis Financial Review Despite global uncertainties, the Group achieved significant revenue and shareholder profit growth through optimized global production and cost control, maintaining a robust financial position - The Group's revenue increased by 23.1% year-on-year to HK$845.6 million, and gross profit rose by 16.2% to HK$255.1 million, with a gross profit margin of 30.2% (2024 interim: 31.9%)[41] - Profit attributable to shareholders increased by 69.9% to HK$59.918 million[41] - Cash on hand and unutilized bank facilities were approximately HK$239 million and HK$664 million respectively as of June 30, 2025, indicating a robust financial position[41] Business Review Manufacturing business saw substantial growth from order transfers and efficient execution, while trading business revenue increased with the Dutch company's inclusion, despite an operating loss due to high costs Manufacturing Business Manufacturing business saw substantial growth in revenue and operating profit, driven by order transfers to the Bangladesh factory and stable operations at the Mexico factory - The Bangladesh factory secured a large volume of orders transferred from high-tariff regions, significantly boosting its production scale and profitability[42] - The Mexico factory's operations stabilized, commencing production of high-end headwear styles to enrich the product portfolio[42] - Manufacturing business revenue increased by 20.6% to HK$537.7 million during the period, accounting for 63.6% of the Group's total revenue[43] - Segment operating profit surged by 28.9% year-on-year to HK$120.152 million[43] Trading Business Trading business revenue increased by 27.6% to HK$307.9 million, but recorded an operating loss of HK$43.8 million due to high sales costs and integration expenses from the Dutch company - Trading business revenue increased by 27.6% year-on-year to HK$307.9 million, representing approximately 36.4% of the Group's total revenue[44] - The trading segment recorded an operating loss of HK$43.834 million (2024 interim: operating loss of HK$37.739 million), primarily due to high sales costs and increased administrative expenses from the integration of the Dutch company[44] Outlook The Group plans to expand manufacturing in Cambodia and Mexico, enhance trading through a free trade zone and the Dutch company, and continuously optimize risk control and costs - The Group will adhere to a pragmatic approach, steadily advancing its global footprint while prudently managing risks and actively seizing opportunities[45] Manufacturing Business Strategy The Group plans to launch a Cambodia production line with a target annual capacity of 10 million units and expand the Mexico factory to strengthen its North American market position - The Cambodia production line is expected to commence operations in the third quarter of this year, targeting an annual production capacity of 10 million units, which will optimize the Southeast Asian production network[45] - The Mexico factory will expand its production capacity to solidify its leading position in the North American supply chain, benefiting from zero-tariff treatment under the USMCA agreement[45] Trading Business Strategy The Group is developing a free trade zone and warehouse in Mexico and leveraging the Dutch company to expand into new markets like the Middle East and Africa - The Group is advancing the planned free trade zone project and warehouse construction within the Mexico factory park, expecting to fully leverage cross-border logistics advantages and significantly enhance trading business operational efficiency[46] - The integration of the Dutch company will expand the trading business's market coverage from Europe and America to emerging markets such as the Middle East and Africa[46] Risk Control and Cost Optimization The Group will continue to enhance risk control and cost optimization measures to maintain financial resilience and capitalize on growth opportunities in a complex environment - The Group will continue to deepen risk control and cost optimization initiatives to ensure healthy financial resilience in a complex environment[46] - Leveraging its market leadership, global production footprint, diversified product portfolio, and keen business insights, the Group is confident in overcoming challenges and creating long-term value[47] Liquidity and Financial Resources As of June 30, 2025, the Group's cash and liquid investments increased, with ample bank facilities and a reduced gearing ratio, indicating strong financial health Liquidity and Financial Resources | Metric | June 30, 2025 (HK$ Million) | December 31, 2024 (HK$ Million) | | :--- | :--- | :--- | | Total cash and bank balances (including short-term deposits) and liquid investment portfolio | 243.4 | 196.0 | | Bank credit facilities | 852.2 | 905.4 | | Unutilised bank credit facilities | 664.3 | 720.6 | | Gearing ratio (borrowings to total equity) | 15.9% | 16.9% | - Approximately 60.6%, 17.4%, and 8.1% of the liquidity are denominated in USD, RMB, and HKD, respectively[48] Capital Expenditure Capital expenditure focused on property renovation, equipment upgrades, and capacity expansion, with approved commitments for new facilities in Mexico, Bangladesh, and Cambodia - During the period, approximately HK$9.4 million was invested in renovating properties in Missouri, USA (2024 interim: HK$102.4 million for property acquisition)[49] - HK$15.6 million was invested in acquiring equipment and machinery to further upgrade and expand production capacity[49] - Approved capital commitments of HK$151.4 million are designated for the construction of a warehouse at the Mexico factory and business expansion in Bangladesh and Cambodia[49] Foreign Exchange Risk Most assets and liabilities are denominated in HKD, USD, RMB, or BDT, with BDT fluctuations expected to impact manufacturing gross profit margin - The majority of the Group's assets and liabilities are denominated in Hong Kong Dollars, US Dollars, Renminbi, or Bangladeshi Taka[50] - A 1% appreciation/depreciation of the Bangladeshi Taka is expected to result in a decrease/increase of approximately 0.25% in the manufacturing business's gross profit margin[50] Employees and Remuneration Policy The Group employed 8,222 staff globally as of June 30, 2025, with competitive remuneration based on position and performance, including share options for key employees Employee Distribution | Region | June 30, 2025 (Number of Employees) | June 30, 2024 (Number of Employees) | | :--- | :--- | :--- | | China (including Hong Kong) | 220 | 335 | | Bangladesh | 7,235 | 7,222 | | Mexico | 585 | 389 | | United States | 116 | 147 | | Europe | 66 | 11 | | Total | 8,222 | 8,104 | - Employee expenses for the period were approximately HK$223.8 million (2024 interim: HK$192.3 million)[51] - Employee remuneration levels are competitive and determined by position and performance, with key employees (including directors) granted share options[51] Other Information Interim Dividend The Board declared an interim dividend of 3 HK cents per share, payable on or after October 10, 2025, consistent with the previous year - The Board has declared an interim dividend of 3 HK cents per share (2024: 3 HK cents)[52] - The interim dividend will be paid on or after October 10, 2025[52] Closure of Register of Members The company will temporarily close its register of members from September 17 to September 19, 2025, to determine eligibility for the interim dividend - The company's register of members will be closed from September 17, 2025, to September 19, 2025 (both dates inclusive)[53] - To qualify for the interim dividend, all transfer documents must be lodged with the company's Hong Kong share registrar by 4:30 p.m. on September 16, 2025[53] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[54] Corporate Governance The Board confirmed compliance with the Corporate Governance Code and Model Code, and the Audit Committee reviewed the interim condensed consolidated financial information - The company has complied with the code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules[55] - All Directors have confirmed their compliance with the Model Code set out in Appendix 10 to the Listing Rules for the period ended June 30, 2025[56] - The Audit Committee has reviewed the interim condensed consolidated financial information for the period ended June 30, 2025[57]