捷隆控股(01425) - 2025 - 中期业绩

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's revenue for the six months ended June 30, 2025, was HK$362,235 thousand, a 5.9% decrease year-on-year, with profit for the period at HK$30,405 thousand, down 29.1%, and basic and diluted earnings per share at HK cents 2.44 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 362,235 | 385,093 | | Cost of sales | (266,876) | (277,380) | | Gross profit | 95,359 | 107,713 | | Other income | 8,563 | 7,537 | | Net other gains and losses | (334) | 2,716 | | Selling and distribution expenses | (21,117) | (19,744) | | Administrative expenses | (40,405) | (37,017) | | Finance costs | (6,968) | (7,297) | | Profit before tax | 35,098 | 53,908 | | Income tax expense | (4,693) | (11,002) | | Profit for the period | 30,405 | 42,906 | | Profit for the period attributable to owners of the Company | 30,443 | 42,906 | | Basic and diluted earnings per share (HK cents) | 2.44 | 3.43 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets less current liabilities were HK$823,869 thousand, a decrease from HK$857,402 thousand as of December 31, 2024, with net assets at HK$796,705 thousand and net current assets at HK$599,118 thousand Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current assets | | | | Property, plant and equipment | 138,619 | 128,849 | | Right-of-use assets | 75,386 | 75,385 | | Lease deposits | 5,674 | 5,608 | | Deferred tax assets | 5,072 | 3,465 | | Current assets | | | | Inventories | 243,931 | 133,457 | | Trade and other receivables | 59,447 | 105,205 | | Financial assets at fair value through other comprehensive income | 20,038 | 74,873 | | Financial assets at fair value through profit or loss | 115,878 | 111,110 | | Bank balances and cash | 451,829 | 418,507 | | Current liabilities | | | | Trade and other payables | 241,209 | 182,633 | | Lease liabilities | 2,541 | 1,795 | | Bank borrowings | 33,213 | - | | Tax payable | 15,042 | 14,629 | | Non-current liabilities | | | | Deferred tax liabilities | 14 | 12 | | Lease liabilities | 27,150 | 27,713 | | Net assets | 796,705 | 829,677 | | Equity attributable to owners of the Company | 793,233 | 829,677 | | Non-controlling interests | 3,472 | - | Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed notes to the condensed consolidated interim financial statements, covering preparation basis, accounting policy changes, revenue segmentation, income tax, profit for the period, dividends, earnings per share, receivables, payables, and contingent liabilities 1. Basis of Preparation This section outlines the basis for preparing the condensed consolidated interim financial results, adhering to HKEX Listing Rules and consistent accounting policies with the prior year, except for new standards - The condensed consolidated interim financial results are prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[8] - The accounting policies and methods of computation used are consistent with those adopted in the Group's 2024 annual financial statements, except for the adoption of new and revised standards effective from January 1, 2025[8] - Financial information for the fiscal year ended December 31, 2024, is derived from the statutory financial statements, for which the auditor issued an unmodified opinion report on March 31, 2025[8] 2. Changes in Accounting Policies This section details the adoption of new and revised accounting standards, specifically HKAS 21 (Amendment) 'Lack of Exchangeability', and their non-significant impact on the Group's financial position and performance - HKAS 21 (Amendment) "Lack of Exchangeability" was first applied during this interim period[9] - The application of the amendments to Hong Kong Financial Reporting Standards has not had a significant impact on the Group's financial position and performance for the current and prior periods[9] 3. Revenue and Segment Information This section provides details on the Group's revenue sources, primarily from sleepwear, loungewear, grey fabric manufacturing, and processing services, with a single reportable segment and geographical breakdown - Revenue primarily derived from sleepwear products, loungewear products, grey fabric manufacturing and sales, and processing services[10] - The Group has only one reportable segment, based on consolidated results presented to the chief operating decision maker[10] Revenue Recognition Timing (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sale of products (sleepwear products, loungewear products and grey fabric) | 362,235 | 385,093 | | At a point in time | 362,235 | 385,093 | Geographical Information - Revenue from External Customers (For the six months ended June 30) | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | United States | 223,409 | 250,169 | | Ireland | 55,086 | 57,632 | | United Kingdom | 48,799 | 45,817 | | Spain | 17,493 | 16,912 | | Canada | 16,054 | 7,006 | | Latin America | 1,214 | 650 | | China | 157 | 6,907 | | Honduras | 23 | - | | Total | 362,235 | 385,093 | Revenue from Major Customers (For the six months ended June 30) | Customer | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Customer A | 218,818 | 246,654 | | Customer B | 125,969 | 123,876 | 4. Income Tax Expense This section details the Group's income tax expense, including current and deferred tax, and outlines the applicable tax rates for its operations in Hong Kong, China, Cambodia, Vietnam, and Honduras Income Tax Expense (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current tax | 6,302 | 12,322 | | Deferred tax | (1,609) | (1,320) | | Total | 4,693 | 11,002 | - Hong Kong profits tax operates under a two-tiered system, with a tax rate of 8.25% on the first HK$2,000,000 of assessable profits and 16.5% on profits above this threshold[16] - Chinese subsidiaries are subject to a corporate income tax rate of 25%, with a 5% withholding tax on profits distributed to the Hong Kong holding company[17] - Cambodian and Vietnamese subsidiaries are subject to an income tax rate of 20%, while the Honduran subsidiary is subject to an income tax rate of 25%[18][19][20] 5. Profit for the Period This section details the components of profit for the period, specifically highlighting depreciation expenses for property, plant, and equipment, right-of-use assets, and short-term lease expenses Items Included in Profit for the Period (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 7,383 | 6,656 | | Depreciation of right-of-use assets | 2,397 | 2,275 | | Expenses relating to short-term leases | 980 | 900 | 6. Interim Dividend This section states that no interim dividend was paid or declared for the six months ended June 30, 2025, while noting the final dividend declared for the year ended December 31, 2024 - No interim dividend was paid or declared by the Company for the six months ended June 30, 2025 (2024: nil)[22] - The Board declared a final dividend of HK$0.056 per share (2024: HK$0.0485 per share), totaling approximately HK$70,000,000 (2024: HK$60,600,000), for the year ended December 31, 2024[22] 7. Earnings Per Share This section details the calculation of basic earnings per share, based on profit attributable to owners and the weighted average number of ordinary shares, noting the absence of potential ordinary shares Earnings Per Share Calculation (For the six months ended June 30) | Item | 2025 (HK$ thousand/thousand shares) | 2024 (HK$ thousand/thousand shares) | | :--- | :--- | :--- | | Profit for the purpose of calculating basic earnings per share | 30,443 | 42,906 | | Weighted average number of ordinary shares for basic earnings per share | 1,250,000 | 1,250,000 | - There were no potential ordinary shares issued for the six months ended June 30, 2025 and 2024, thus basic and diluted earnings per share are identical[23] 8. Trade and Other Receivables This section provides a breakdown of trade and other receivables, including an aging analysis of trade receivables, and outlines the Group's credit policy Trade and Other Receivables (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables, net | 37,263 | 42,572 | | Prepayments | 8,273 | 16,317 | | Prepayments to import and export companies | 460 | 34,694 | | Deposits | 101 | 327 | | Other taxes recoverable | 9,793 | 9,992 | | Other receivables, net | 3,557 | 1,303 | | Total | 59,447 | 105,205 | Aging Analysis of Trade Receivables (As of June 30) | Aging | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 19,878 | 24,346 | | 31 to 60 days | 12,963 | 15,321 | | 61 to 90 days | 4,418 | 2,531 | | Over 90 days | 4 | 374 | | Total | 37,263 | 42,572 | - The Group provides a credit period of 0 to 120 days for its trade receivables[24] 9. Trade and Other Payables This section details the Group's trade and other payables, including an aging analysis of trade payables, and specifies the credit period for goods purchased Trade and Other Payables (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 88,159 | 80,485 | | Prepayments and payables for purchases from import and export companies | 20,166 | 30,471 | | Accrued expenses | 48,281 | 63,694 | | Dividends payable | 70,000 | - | | Other taxes payable | 7,623 | 4,219 | | Payables for acquisition of property, plant and equipment | 1,193 | 1,207 | | Other payables | 5,787 | 2,557 | | Total | 241,209 | 182,633 | Aging Analysis of Trade Payables (As of June 30) | Aging | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 72,892 | 73,435 | | 31 to 60 days | 8,033 | 6,648 | | 61 to 90 days | 4,406 | 137 | | Over 90 days | 2,828 | 265 | | Total | 88,159 | 80,485 | - The credit period for goods purchased is 0 to 90 days from the invoice date[25] 10. Contingent Liabilities This section confirms that the Group had no significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Group had no significant contingent liabilities (2024: nil)[26] Management Discussion and Analysis This section provides an overview of the Group's business review, financial performance, future outlook, financial resources, liquidity, and corporate governance, highlighting strategies for diversification and market expansion amidst global economic challenges Business Review This section outlines the Group's core OEM apparel manufacturing business, its vertically integrated operations, and strategic initiatives for production base diversification and market expansion - The Group is primarily engaged in OEM apparel manufacturing, specializing in sleepwear and loungewear products, operating a vertically integrated business[27] - Production facilities are located in Henan Province, China, Phnom Penh, Cambodia, and Honduras, with production also carried out through subcontractors in Vietnam, and a representative office in the US to enhance design and pre/post-sales activities[27] - Facing global economic uncertainties, the Group maintains a diversified production base strategy, with a new factory in Cambodia commencing trial operations in the first half of 2025, and new bases under construction in Vietnam and Kenya[28] - Revenue from Customer B grew steadily by approximately 1.7% to HK$126,000,000; combined revenue from Europe and Canada increased by approximately 7.9% to HK$137,400,000, increasing their contribution to total revenue from 33.1% to 37.9%[28] Financial Review This section provides a detailed analysis of the Group's financial performance, covering revenue, gross profit, other income, expenses, and profit attributable to owners, along with key factors influencing these metrics - For the six months ended June 30, 2025, the Group's revenue slightly decreased by approximately 5.9%, gross profit margin decreased by 1.7%, and net profit margin decreased by 2.7%[29] - The trial operation of the new Cambodian factory and ongoing improvements in operational efficiency at the Honduran factory led to increased production costs and a lower gross profit margin[29] - Additional staff employment for operating new factories and constructing new production bases increased administrative expenses, reducing profit attributable to owners of the Company[29] Revenue This section reports the Group's revenue for the six months ended June 30, 2025, noting a slight decrease compared to the prior year - For the six months ended June 30, 2025, the Group's revenue was approximately HK$362,200,000, a decrease of approximately 5.9% compared to the same period in 2024[30] Gross Profit This section details the Group's gross profit and average gross profit margin for the first half of 2025, explaining the factors contributing to the decline - Gross profit for the first half of 2025 was approximately HK$95,400,000, with an average gross profit margin of approximately 26.3%, a decrease from HK$107,700,000 and 28.0% in the same period of 2024[31] - The decline in gross profit margin was primarily due to relatively higher production costs from the trial operation of the new Cambodian factory and ongoing improvements in operational efficiency at the Honduran factory[31] Other Income This section highlights the increase in other income for the six months ended June 30, 2025, primarily driven by higher interest income from bank deposits - For the six months ended June 30, 2025, other income was approximately HK$8,600,000, an increase from approximately HK$7,500,000 in the same period of 2024[32] - The increase was mainly due to an increase in interest income of approximately HK$1,300,000 resulting from higher bank deposit amounts[32] Other Gains and Losses This section reports a net other loss for the six months ended June 30, 2025, primarily due to losses on market-traded bonds and funds, and reduced foreign exchange gains - For the six months ended June 30, 2025, a net other loss of approximately HK$300,000 was recorded, compared to a gain of approximately HK$2,700,000 in the same period of 2024[33] - This was primarily due to realized and unrealized losses of HK$400,000 on market-traded bonds and fund investments (compared to a gain of HK$1,300,000 in 2024) and a decrease in foreign exchange gains of approximately HK$1,300,000[33] Selling and Distribution Expenses This section details the increase in selling and distribution expenses, primarily attributed to higher transportation costs for raw materials and increased air freight demand due to tariff disruptions - Selling and distribution expenses were approximately HK$21,100,000, an increase of 7% compared to the same period in 2024[34] - The increase was mainly due to higher transportation costs, including increased volume of raw materials shipped from Asia to the Honduran production base, rising average shipping fees, and increased demand for air freight due to tariff disruptions[34] Administrative Expenses This section explains the increase in administrative expenses, driven by the Group's expansion of operations, including new factory trials and production base constructions, leading to additional staff employment - Administrative expenses were approximately HK$40,400,000, an increase of approximately HK$3,400,000 compared to the same period in 2024[35] - The increase was primarily due to the Group's continuous expansion of operations, including the trial operation of the new Cambodian factory, ongoing operations at the Honduran factory, and the construction of new production bases in Vietnam and Kenya, leading to additional staff employment[35] Finance Costs This section reports a decrease in finance costs, mainly due to reduced trade finance interest expenses, partially offset by increased lease liability interest from new factory leases - Finance costs were approximately HK$6,900,000, a decrease from HK$7,300,000 in the same period of 2024[36] - Trade finance interest expenses decreased by approximately HK$1,400,000, mainly due to reduced financing amounts resulting from lower revenue and interest rate cuts by the US Federal Reserve[36] - Lease liability interest increased, primarily due to new leases for the Cambodian and Kenyan factories[36] Profit Attributable to Owners of the Company This section reports a significant decrease in profit attributable to owners of the Company, primarily due to reduced revenue, lower gross profit margins, and increased operating expenses - Profit attributable to owners of the Company decreased by approximately 29.1% from approximately HK$42,900,000 in the same period of 2024 to approximately HK$30,400,000 in the same period of 2025[37] - The decrease in net profit was mainly due to the aforementioned decline in revenue, lower gross profit margin, and increased expenses[37] Receivables and Payables This section details the changes in trade and other receivables and payables, attributing the decrease in receivables to reduced reliance on import/export companies and the increase in payables to higher trade payables and declared dividends - As of June 30, 2025, trade and other receivables were approximately HK$59,400,000, lower than approximately HK$105,200,000 as of December 31, 2024[38] - The decrease in receivables was mainly due to reduced reliance on import and export companies and timely receipt of raw materials[38] - Trade and other payables were approximately HK$241,200,000, an increase of approximately HK$58,600,000 compared to 2024, primarily due to increased trade payables and the recognition of dividends payable of approximately HK$70,000,000[38] Prospects This section outlines the Group's future strategies, including stabilizing existing businesses, expanding production bases in Vietnam and Kenya, diversifying customer base, and developing its own brand, while monitoring new tariff regulations - The Group aims to achieve stable growth in its existing businesses while planning future expansion to seize business opportunities once global and domestic demand regains resilience[39] - Management will closely monitor new tariff laws and regulations, integrate production facility resources in Henan Province, and evaluate new business opportunities[39] - The Honduran production facility will continue to help shorten delivery times to American customers and diversify political risks, while the new Cambodian factory will continue to improve operational efficiency, expected to reach optimal capacity within 2025[39] - The Vietnamese apparel production base is expected to have a monthly capacity of approximately 2,000,000 pieces, targeting initial trial production in 2026; the new Kenyan base aims for initial trial production in the first half of 2026 to increase capacity, diversify bases, reduce costs, and shorten delivery times to European customers[40] - The Group will continue to diversify its customer base and the geographical distribution of customer demand, with an anticipated increase in procurement orders from European customers[41] - Initial activities for the first own brand (COZ) continued during the period, with plans to gradually develop and promote this new brand[41] Financial Resources and Liquidity This section provides an overview of the Group's financial position, including current assets, liabilities, liquidity ratio, cash and bank balances, foreign exchange hedging, and investments in market-traded bonds and funds - As of June 30, 2025, current assets were approximately HK$891,100,000, current liabilities were approximately HK$292,000,000, and the current ratio was approximately 3.05 (December 31, 2024: 4.24)[42] - Cash and bank balances were approximately HK$451,800,000, comprising approximately 16.2% HKD, 8.8% RMB, 69.9% USD, and 5.1% other currencies[42] - The Group entered into foreign exchange option contracts to hedge exchange rate risk between RMB and HKD, totaling approximately HK$32,000,000[42] - As of June 30, 2025, the Group held 11 sets of market-traded bond instruments with a total principal of approximately US$6,250,000 (approximately HK$48,800,000) and a market value of approximately US$2,300,000 (approximately HK$17,700,000), recording an unrealized loss of approximately HK$1,800,000[44] - As of June 30, 2025, the Group held 10 sets of funds with a total principal of approximately US$12,800,000 (approximately HK$99,600,000) and a market value of approximately US$12,600,000 (approximately HK$98,200,000), recording realized gains and unrealized gains of approximately HK$100,000 and HK$1,300,000, respectively[45] Material Acquisitions and Disposals This section confirms that the Group did not undertake any material acquisitions or disposals during the six months ended June 30, 2025 - The Group had no material acquisitions and disposals during the six months ended June 30, 2025[47] Material Investments This section states that, apart from those mentioned in financial resources, the Group had no other material investments during the six months ended June 30, 2025 - Save as disclosed in the "Financial Resources and Liquidity" section, the Group had no other material investments during the six months ended June 30, 2025[48] Contingent Liabilities (MD&A) This section confirms that the directors were not aware of any significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Directors were not aware of any significant contingent liabilities[49] Events After the Reporting Period This section notes the payment of a HK$70 million dividend after the reporting period and confirms no other significant post-reporting period events affecting the Group's future operations - The Company paid a dividend of approximately HK$70,000,000 on July 9, 2025[50] - Save as disclosed above and in this announcement, no other significant events after June 30, 2025, occurred that might materially affect the Group's future operations, assets, and liabilities[50] Purchase, Sale or Redemption of Shares This section confirms that neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities of the Company 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 during the six months ended June 30, 2025[51] Employees and Remuneration Policy This section provides details on the Group's employee count and remuneration policy, which is based on performance and experience, including benefits like medical insurance, retirement plans, and training - As of June 30, 2025, the Group employed 1,916 staff and workers (December 31, 2024: 2,028)[52] - Employee remuneration is determined based on performance and experience, reviewed regularly, and benefits include medical insurance, retirement schemes, training, and share option schemes[52] Directors' Interests in Transactions, Arrangements or Contracts This section confirms that, apart from service contracts, no significant contracts in which directors had a material interest were entered into or remained in effect during the review period - Save for the service contracts and letters of appointment with each Director, neither the Company nor any of its subsidiaries entered into any material contracts in which a Director had a direct or indirect material interest that was subsisting at the end of the review period or at any time during the year[54] Standard Code for Securities Transactions This section confirms the Company's adoption and directors' compliance with the Standard Code for Securities Transactions as set out in Appendix C3 of the Listing Rules - The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules and confirms that the Directors have complied with all relevant requirements during the six months ended June 30, 2025[55] Corporate Governance Code This section confirms the Company's compliance with the Corporate Governance Code, noting a deviation where the Chairman and CEO roles are held by the same individual for consistent leadership - For the six months ended June 30, 2025, the Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[56] - One deviation exists: the roles of Chairman and Chief Executive Officer are held by the same individual (Mr. Tam Kwok Pui), an arrangement the Board believes ensures consistent leadership and efficient strategic planning[56] Interim Dividend (MD&A) This section states that the Board of Directors does not recommend paying any interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[57] Audit Committee This section identifies the members of the Audit Committee, chaired by Mr. Mak King Sau, and confirms its review of the Group's unaudited condensed consolidated interim financial statements - The Audit Committee is chaired by Mr. Mak King Sau, an independent non-executive Director, with members including Mr. Wu Chun Fai and Ms. Lau Chun Ni[58] - The Committee has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[58] Remuneration Committee This section identifies the members of the Remuneration Committee, chaired by Ms. Lau Chun Ni, including an executive director and an independent non-executive director - The Remuneration Committee is chaired by Ms. Lau Chun Ni, an independent non-executive Director, with members including Mr. Tam Kwok Pui, an executive Director, and Mr. Mak King Sau, an independent non-executive Director[59] Nomination Committee This section identifies the members of the Nomination Committee, chaired by Mr. Tam Kwok Pui, including two independent non-executive directors - The Nomination Committee is chaired by Mr. Tam Kwok Pui, an executive Director, with members including Mr. Wu Chun Fai and Mr. Mak King Sau, both independent non-executive Directors[60] Publication of Interim Results and Interim Report This section specifies that the interim results announcement will be published on the HKEX and Company websites, and the interim report will be dispatched to shareholders and published online in due course - The interim results announcement will be published on the HKEX website (www.hkexnews.hk) and the Company's website (www.justinallengroup.com)[61](index=61&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the Company's and HKEX websites in due course[61]