联泰控股(00311) - 2025 - 中期业绩

Interim Results Announcement Group Financial Highlights The company reported unaudited interim results for H1 2025, showing a slight revenue decrease but a turnaround to profit for operating profit and EPS Group Financial Highlights (For the six months ended June 30) | Metric | 2025 (USD thousands) | 2024 (USD thousands) | | :--- | :--- | :--- | | Revenue | 295,824 | 304,522 | | Operating Profit / (Loss) | 4,583 | (2,602) | | Profit / (Loss) Attributable to Owners of the Company | 373 | (9,728) | | Earnings / (Loss) Per Share (US cents) | 0.04 | (0.94) | Condensed Consolidated Financial Statements Condensed Consolidated Income Statement For H1 2025, revenue slightly declined, but effective cost control and reduced expenses led to a significant improvement in operating profit and a turnaround to profit for the period Condensed Consolidated Income Statement (For the six months ended June 30) | Metric | 2025 (USD thousands) | 2024 (USD thousands) | | :--- | :--- | :--- | | Revenue | 295,824 | 304,522 | | Cost of Sales | (254,645) | (265,901) | | Gross Profit | 41,179 | 38,621 | | Operating Profit / (Loss) | 4,583 | (2,602) | | Finance Costs — Net | (4,795) | (6,412) | | Profit / (Loss) Before Income Tax | 99 | (8,654) | | Income Tax Credit / (Expense) | 155 | (1,154) | | Profit / (Loss) for the Period | 254 | (9,808) | | Profit / (Loss) Attributable to Owners of the Company | 373 | (9,728) | Condensed Consolidated Statement of Comprehensive Income For H1 2025, profit for the period turned to profit, and despite currency translation differences, total comprehensive income shifted from a significant loss to a modest profit Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (USD thousands) | 2024 (USD thousands) | | :--- | :--- | :--- | | Profit / (Loss) for the Period | 254 | (9,808) | | Currency Translation Differences | (251) | 465 | | Total Comprehensive Income / (Loss) for the Period | 3 | (9,343) | | Total Comprehensive Income / (Loss) Attributable to Owners of the Company | 122 | (8,946) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets grew due to increased current assets (inventory, trade receivables, cash), while total liabilities rose from increased borrowings, with total equity remaining stable Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Metric | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | | :--- | :--- | :--- | | ASSETS | | | | Total Non-current Assets | 162,498 | 165,811 | | Total Current Assets | 318,426 | 280,172 | | TOTAL ASSETS | 480,924 | 445,983 | | EQUITY | | | | Equity Attributable to Owners of the Company | 156,076 | 155,954 | | Total Equity | 156,705 | 156,702 | | LIABILITIES | | | | Total Non-current Liabilities | 29,266 | 26,079 | | Total Current Liabilities | 294,953 | 263,202 | | TOTAL LIABILITIES | 324,219 | 289,281 | | TOTAL EQUITY AND LIABILITIES | 480,924 | 445,983 | Notes to the Condensed Consolidated Interim Financial Information 1. Basis of Preparation This interim financial information is prepared under HKAS 34 'Interim Financial Reporting' and should be read with the company's annual report and public announcements - Interim financial information is prepared in accordance with HKAS 34 and should be read in conjunction with the annual report[8] 2. Accounting Policies Accounting policies align with 2024 annual statements, with new HKFRS 18 expected to significantly impact consolidated income and cash flow statement presentation, currently under assessment - First-time adoption of HKAS 21 and HKFRS 1 (amended) — Lack of Exchangeability, with no significant impact expected[11] - HKFRS 18 (Presentation and Disclosure of Financial Statements) is expected to have a significant impact on the presentation of the consolidated income statement and cash flow statement, with the company still assessing its effects[14] 3. Segment Information The Group's core business is apparel and accessories manufacturing and trading; H1 2025 saw apparel loss narrow, accessories revenue grow, and overall segment profit turn positive due to reduced corporate expenses - The Group's principal activities are the manufacturing and trading of apparel and accessories[15] Segment Revenue and Profit (For the six months ended June 30) | Segment | 2025 Revenue (USD thousands) | 2024 Revenue (USD thousands) | Revenue YoY Change (%) | 2025 Segment Profit/(Loss) (USD thousands) | 2024 Segment Profit/(Loss) (USD thousands) | Profit YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Apparel | 171,553 | 183,362 | -6.4% | (2,741) | (9,635) | 71.6% (Improvement) | | Accessories | 124,271 | 121,160 | +2.6% | 5,040 | 5,277 | -4.5% | | Group Total | 295,824 | 304,522 | -2.9% | 2,299 | (4,358) | Turnaround to Profit | - Corporate expenses significantly decreased from USD 5,450 thousand in 2024 to USD 2,045 thousand in 2025, a key factor in the turnaround to profit for the period[19] 4. Operating Profit / (Loss) Operating profit improved due to reduced depreciation, gains from asset disposal, and trade receivables impairment reversal, despite increased provisions for slow-moving inventories Components of Operating Profit (For the six months ended June 30) | Item | 2025 (USD thousands) | 2024 (USD thousands) | Change (USD thousands) | | :--- | :--- | :--- | :--- | | Amortisation of Intangible Assets | 334 | 334 | 0 | | Depreciation of Property, Plant and Equipment | 6,058 | 7,271 | -1,213 | | Depreciation of Right-of-Use Assets | 1,985 | 2,766 | -781 | | (Gain) / Loss on Disposal of Property, Plant and Equipment | (199) | 56 | -255 (Turned from Loss to Gain) | | Impairment (Reversal) / Provision for Trade Receivables | (79) | 41 | -120 (Turned from Provision to Reversal) | | Provision for Slow-Moving Inventories | 907 | — | +907 | 5. Finance Costs — Net For H1 2025, net finance costs significantly decreased due to lower interest expenses on bank loans and overdrafts, alongside increased bank deposit interest income Components of Net Finance Costs (For the six months ended June 30) | Item | 2025 (USD thousands) | 2024 (USD thousands) | Change (USD thousands) | | :--- | :--- | :--- | :--- | | Finance Costs | (5,203) | (6,755) | +1,552 | | Interest Expense on Bank Loans and Overdrafts | (4,415) | (5,880) | +1,465 | | Finance Income | 408 | 343 | +65 | | FINANCE COSTS — NET | (4,795) | (6,412) | +1,617 | 6. Income Tax (Credit) / Expense Income tax shifted from expense to credit due to prior year over-provision reversals, while the company navigates ongoing tax audits, disputes, and recognized current tax expenses under OECD Pillar Two rules Components of Income Tax (For the six months ended June 30) | Item | 2025 (USD thousands) | 2024 (USD thousands) | Change (USD thousands) | | :--- | :--- | :--- | :--- | | Current Income Tax | 1,912 | 1,243 | +669 | | Over-provision in Prior Years | (1,660) | — | -1,660 | | Deferred Income Tax | (407) | (89) | -318 | | Total | (155) | 1,154 | -1,309 (Turned from Expense to Credit) | - Settlement reached with Hong Kong Inland Revenue Department for offshore profit claims for assessment years 2000/01 to 2014/15, with an additional tax payable of USD 4,150 thousand already provided for[24] - Potential withholding tax exposure of approximately USD 1,533 thousand related to indirect transfers by Chinese companies has been fully provided for[25] - Current tax expense of USD 562 thousand recognized for the six months ended June 30, 2025, in relation to OECD Pillar Two rules[26] 7. Earnings / (Loss) Per Share For H1 2025, profit attributable to owners turned positive, resulting in basic EPS of 0.04 US cents (vs. -0.94 US cents last year), with diluted EPS matching basic EPS Earnings / (Loss) Per Share | Metric | 2025 (USD thousands) | 2024 (USD thousands) | | :--- | :--- | :--- | | Profit / (Loss) Attributable to Owners of the Company | 373 | (9,728) | | Weighted Average Number of Ordinary Shares in Issue (thousands of shares) | 1,034,113 | 1,034,113 | | Basic Earnings / (Loss) Per Share (US cents per share) | 0.04 | (0.94) | - Diluted earnings per share are the same as basic earnings per share due to the absence of dilutive potential ordinary shares[29] 8. Dividends The Board decided not to declare an interim dividend for H1 2025, consistent with the prior year - The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025[30] 9. Trade and Other Receivables As of June 30, 2025, net trade and other receivables increased, mainly in current assets, with customer credit up to 120 days and the largest portion aged 0-30 days Trade and Other Receivables (Current Portion) | Item | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | Change (USD thousands) | | :--- | :--- | :--- | :--- | | Trade Receivables — Net | 108,585 | 104,197 | +4,388 | | Amounts Due from Related Parties — Net | 18,050 | 19,234 | -1,184 | | Deposits, Prepayments and Other Receivables | 27,124 | 25,285 | +1,839 | | Indemnity Guarantee Assets | 16,723 | 16,723 | 0 | | Total Current Portion | 170,482 | 165,439 | +5,043 | Ageing Analysis of Trade Receivables (As at June 30, 2025) | Ageing | Amount (USD thousands) | Percentage (%) | | :--- | :--- | :--- | | 0 to 30 days | 56,356 | 49.98% | | 31 to 60 days | 25,421 | 22.55% | | 61 to 90 days | 16,517 | 14.65% | | 90 to 120 days | 10,241 | 9.08% | | Over 120 days | 4,214 | 3.74% | | Total | 112,749 | 100.00% | 10. Trade and Other Payables As of June 30, 2025, total trade and other payables increased, driven by a significant rise in trade payables, with the largest portion aged 0-30 days Trade and Other Payables | Item | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | Change (USD thousands) | | :--- | :--- | :--- | :--- | | Trade Payables | 50,635 | 40,404 | +10,231 | | Other Taxes Payable | 9,266 | 9,033 | +233 | | Accrued Wages and Salaries | 19,306 | 23,177 | -3,871 | | Total | 93,377 | 86,796 | +6,581 | Ageing Analysis of Trade Payables (As at June 30, 2025) | Ageing | Amount (USD thousands) | Percentage (%) | | :--- | :--- | :--- | | 0 to 30 days | 44,680 | 88.24% | | 31 to 60 days | 3,437 | 6.79% | | 61 to 90 days | 863 | 1.70% | | Over 90 days | 1,655 | 3.27% | | Total | 50,635 | 100.00% | 11. Other Reserves As of June 30, 2025, total other reserves were negative USD 6,936 thousand, slightly down from January 1, 2025, mainly due to negative currency translation differences Movement in Other Reserves (For the six months ended June 30) | Item | January 1, 2025 (USD thousands) | Currency Translation Differences (USD thousands) | June 30, 2025 (USD thousands) | | :--- | :--- | :--- | :--- | | Capital Reserve | 7,891 | — | 7,891 | | Other Capital Reserve | (4,031) | — | (4,031) | | Employee Benefit Reserve | 870 | 43 | 913 | | Exchange Reserve | (11,415) | (294) | (11,709) | | Total | (6,685) | (251) | (6,936) | Management Discussion and Analysis Operating Results and Overview Despite global economic uncertainties and slight revenue decline, the Group achieved a profit turnaround by cutting non-recurring expenses, improving gross margin, and reducing finance costs - Global economic growth is projected to slow to 2.3%, with US tariff policies introducing uncertainty[44] Key Financial Metrics Changes (For the six months ended June 30) | Metric | 2025 (USD thousands) | 2024 (USD thousands) | Change (USD thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 295,824 | 304,522 | (8,698) | -2.9% | | Gross Profit | 41,179 | 38,621 | +2,558 | +6.6% | | Profit / (Loss) Attributable to Owners of the Company | 373 | (9,728) | +10,101 | Turnaround to Profit | - Financial performance improvement primarily attributed to: (i) absence of non-recurring expenses related to US customs laws and regulations (approximately USD 3,900 thousand in prior period); (ii) overall gross profit margin increase of 1.2 percentage points to 13.9%; (iii) finance costs reduction of approximately USD 1,617 thousand to USD 4,795 thousand[36] Segment Review Apparel revenue declined but losses narrowed due to streamlined customer portfolio and eliminated non-recurring expenses, while accessories revenue grew but profit slightly decreased - Apparel and accessories businesses accounted for approximately 58.0% and 42.0% of total revenue, respectively[37] - Apparel segment revenue decreased by 6.4% to USD 171,553 thousand, but segment loss significantly reduced by 71.6% to USD 2,741 thousand, mainly due to the absence of non-recurring expenses[38] - Accessories segment revenue increased by 2.6% to USD 124,271 thousand, but segment profit decreased by 4.5% to USD 5,040 thousand[39] Markets Europe and the US remain key export markets, contributing 62.6% of total revenue, while Asia (mainly China and Japan) accounted for 20.5% - Total revenue from European and US customers was approximately USD 185,196 thousand, accounting for approximately 62.6% of total revenue[40] - Revenue from Asian markets (primarily China and Japan) was approximately USD 60,773 thousand, accounting for approximately 20.5% of total revenue[40] Liquidity and Financial Resources The Group's financial position is sound, with increased cash and bank deposits, but also higher bank borrowings, leading to a 62.0% capital gearing ratio, with all borrowings due within one year Liquidity Metrics | Metric | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | Change (USD thousands) | | :--- | :--- | :--- | :--- | | Total Cash and Bank Deposits | 72,756 | 54,871 | +17,885 | | Total Bank Borrowings | 169,587 | 143,501 | +26,086 | - All bank borrowings (approximately USD 169,587 thousand) are repayable within one year[42] - Capital gearing ratio is approximately 62.0%[42] Foreign Exchange Risk Management The Group prudently hedges against exchange rate fluctuations by reviewing net foreign exchange exposure and using hedging arrangements, with no forward foreign exchange or hedging contracts entered this period - The Group adopts a prudent policy to hedge against exchange rate fluctuations, with major operating activities denominated in multiple currencies including USD, EUR, and HKD[43] - No forward foreign exchange or hedging contracts were entered into during the period[43] Future Plans and Prospects Facing global economic slowdown and US tariff challenges, the Group will implement strict cost controls, streamline production, enhance strategic resilience, and adapt business strategies for sustainable development - Global economic growth is projected to slow to 2.3%, with US tariff policies introducing uncertainty[44] - Will continue to implement stringent cost control measures, including reducing production, distribution, and administrative expenses, and achieving synergies through shared internal resources[45] - Will adhere to a long-term sustainable development strategy, streamlining and integrating diversified production bases to strengthen strategic resilience[45] Significant Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures For the period ended June 30, 2025, the Group had no significant investment, acquisition, or disposal activities involving subsidiaries, associates, or joint ventures - No significant investment, acquisition, or disposal activities during the period[46] Future Plans for Material Investments or Capital Assets As of June 30, 2025, or the announcement date, the Group has no specific plans for material investments or capital assets - No specific plans for material investments or capital assets during the period[47] Charge on Assets As of June 30, 2025, the Group had no assets charged to third parties - No assets charged to third parties during the period[48] Contingent Liabilities As of June 30, 2025, total contingent liabilities were approximately USD 16,723 thousand, mainly for overseas import duties, taxes, and penalties, with some related to Universal and Sachio business combinations settled - Total contingent liabilities approximately USD 16,723 thousand, involving overseas import duties, taxes, and penalties[49] - Contingent liabilities of USD 5,504 thousand related to the Universal business combination have been recognized as indemnity guarantee assets, with USD 22 thousand settled[49] - Contingent liabilities of USD 11,461 thousand related to the Sachio business combination have been recognized as indemnity guarantee assets, with USD 220 thousand settled[50] Human Resources and Corporate Social Responsibility Li & Fung recruits talent via targeted HR strategies and social responsibility programs, committed to providing a safe work environment, fair compensation, career growth, and promoting global supply chain development - Li & Fung recruits through targeted human resource strategies and adopts social responsibility programs[51] - Committed to providing a safe and pleasant working environment, fair compensation and benefits, and career advancement opportunities[51] - As a global corporate citizen, promotes global supply chain development and improves the surrounding environment[51] Other Information Interim Dividend The Board resolved not to declare an interim dividend for H1 2025, consistent with the prior year - The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025[52] Purchase, Sale or Redemption of the Company's Listed Securities For H1 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed shares - No purchase, sale, or redemption of the company's listed securities during the period[53] Corporate Governance Practices The company complied with Appendix C1 of the Listing Rules' Corporate Governance Code, with the Board establishing Audit, Remuneration, Nomination, and Finance & Banking Committees for enhanced oversight - The company complies with the applicable provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[54] - The Board has established an Audit Committee, Remuneration Committee, Nomination Committee, and Finance and Banking Committee[55][56] Compliance with the Standard Code for Directors' Securities Transactions The company adopted a directors' securities transaction code, no less exacting than Listing Rules Appendix C3, with all directors confirming compliance during the reporting period - All directors confirmed compliance with the company's adopted code of conduct for directors' securities transactions, which is no less exacting than the Standard Code set out in Appendix C3 of the Listing Rules[57] Review of Interim Financial Information The Audit Committee reviewed accounting principles, internal controls, and financial reporting, while PricewaterhouseCoopers reviewed the unaudited interim financial information per HKSRE 2410 - The Audit Committee reviewed accounting principles, internal controls, and financial reporting matters[58] - External auditor PricewaterhouseCoopers reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[58] Publication of Interim Results Announcement and Interim Report This results announcement is published on HKEX and company websites; the full interim report, with all Listing Rules information, will be dispatched to shareholders and published online - This results announcement has been published on the websites of HKEX and the company[59] - The interim report will be dispatched to shareholders and published on the website in due course[59] Board of Directors As of this announcement, the Board comprises five executive, one non-executive, and three independent non-executive directors, including CEO Mr. Chan Cho Lung - Board members include Executive Directors Wang Weimin, Chan Sau Yan, Chan Cho Lung, Zhang Min, Jin Xin; Non-Executive Director Huo Yushan; Independent Non-Executive Directors Chan Ming Yin, Li Cheuk Yan, Shi Min[61]