Financial Performance - Revenue for the year ended June 30, 2025, increased by 7.6% to HK$1,215,731,000 compared to HK$1,130,164,000 in 2024[18] - The company reported a loss for the year of HK$27,988,000, a decrease of HK$29,488,000 compared to a profit of HK$1,500,000 in 2024[14] - Total equity as of June 30, 2025, was HK$385,100,000, down from HK$396,034,000 in 2024, a decrease of HK$10,934,000[14] - Total debt increased to HK$99,855,000 from HK$91,951,000, an increase of HK$7,904,000[14] - Cash and cash equivalents decreased to HK$90,541,000 from HK$102,263,000, a decline of HK$11,722,000[14] - Gross profit margin decreased to 19.9% from 22.6%, reflecting a decline of 2.7 percentage points[14] - Other net income fell from HK$21.8 million to HK$15.9 million, primarily due to a decrease in government grants, interest income, and fair value losses in investment properties and financial assets[64][69] - Selling and distribution expenses rose to HK$44.2 million from HK$37.1 million, mainly due to additional delivery costs of HK$6.9 million related to the temporary operation suspension in the Indonesian factory[65][70] - The Group recorded a net loss of HK$28.0 million for the year ended 30 June 2025, compared to a profit of HK$1.5 million in the previous year[73][77] - Adjusted net loss, excluding exceptional costs, was approximately HK$0.9 million for the year[74][78] - As of June 30, 2025, the Group's bank balances and cash were HK$90.5 million, down from HK$102.3 million, while total bank borrowings increased to HK$99.9 million from HK$92.0 million[75][79] - The gearing ratio increased to 25.9% from 23.2% year-on-year[75][79] - The cash conversion cycle days were negative 17 days, compared to negative 8 days in the previous year, indicating a decline in working capital efficiency[80][81] - Capital expenditure for the year amounted to HK$13.0 million, primarily for machinery and equipment[82] - The total reserves available for distribution to equity shareholders as of June 30, 2025, amounted to HK$217,056,000, a slight decrease from HK$217,833,000 in 2024[154][159] Market and Operational Challenges - The company faced operational interruptions and rising logistics costs due to global uncertainties, impacting profitability[19] - The Group faced operational challenges and supply chain disruptions, leading to rising costs and logistical delays, which negatively impacted margins[58] - The temporary operation suspension in the Indonesian factory in the first half of the year resulted in additional manufacturing costs and subcontracting charges[59] - The company is experiencing a more unpredictable environment in 2025 due to global trade tensions, geopolitical conflicts, and inflationary pressures[47] - The global economic outlook is increasingly complex and uncertain, influenced by geopolitical tensions and shifting trade policies[93] Strategic Initiatives - The company aims to enhance its sustainability efforts with a "Zero Waste" target and alignment with global standards[20] - The company aims to achieve a "zero waste" goal by fiscal year 2025, enhancing its long-term competitive advantage[23] - The company is focused on innovation, customer proximity, supply chain agility, verticality, and sustainability as core strategies[52] - The company strengthened its multi-country supply chain and external manufacturing partnerships across Southeast Asia to enhance agility and risk diversification[38] - The focus on product and process innovation through Manufacturability and Automation Councils aims to streamline operations and improve efficiency[36] - The company deepened collaborations with leading brands to co-develop products in shapewear, activewear, and adjacent categories[31] - The strategic vertical integration of component businesses contributed to product innovation and margin expansion[37] - Signature Flex™, a proprietary innovation platform, is set for expanded commercialization in fiscal year 2026 after receiving strong validation from customers[35] Leadership and Governance - The Group's leadership includes experienced professionals with over 30 years of corporate finance experience, enhancing strategic decision-making capabilities[112] - The company has a strong governance structure with various committees, including the Audit and Compensation Committees, ensuring oversight and accountability[112] - The Group's management team is well-versed in both local and international markets, which is crucial for effective market expansion strategies[112] - The Group emphasizes the importance of employee development, providing training and competitive remuneration to enhance talent retention[150][156] - The Group's commitment to training and development is evident through the appointment of members to various industry committees, fostering industry growth[108] Connected Transactions - The Group has conducted transactions with Van de Velde N. V. for 43 years, supplying ladies' intimate apparel, with VdV holding approximately 25.66% of the Company's issued share capital[172] - The 6th Renewal Agreement with VdV, effective from July 1, 2023, sets annual caps for continuing connected transactions at HK$130 million, HK$140 million, and HK$150 million for the three financial years ending June 30, 2026[180] - The Independent non-executive Directors confirmed that the continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[185] - The Group expects continuing connected transactions with VdV to recur, following the renewal of the Master Agreement[179] Employee and Director Information - As of June 30, 2025, the Group employed approximately 6,727 employees, a slight decrease from approximately 6,740 employees as of June 30, 2024[85] - Mr. Wong Kai Chi, Kenneth has been with the Group since 1997 and is currently the Executive Director and Managing Director, responsible for business development and marketing functions[104] - Mr. Wong has a Bachelor's degree in Marketing and Operations Management and a Master's degree in International Business, highlighting his strong educational background[105] - Mr. Wang Man Hon, Sidney appointed as Independent Non-executive Director in November 2023, brings extensive experience in private banking and wealth management[116] - Mr. Tai Lun, Paul appointed as Independent Non-executive Director at the conclusion of the annual general meeting on November 28, 2024, with over 30 years of experience in corporate development and mergers and acquisitions[117] - Mr. Kwong Tony Wan Kit appointed as Chief Financial Officer in April 2024, overseeing finance functions and strategic developments[120] - The biographical details of Directors and senior management are available in the annual report[170] Compliance and Risk Management - The Group has maintained a commitment to environmental, social, and governance (ESG) performance, with policies detailed in the upcoming ESG report[143] - There were no reported non-compliance issues with relevant laws and regulations that significantly impacted the Group during the year[144][148] - The Group's financial risk management objectives and policies are outlined in note 26(b) of the consolidated financial statements[133] - The Group faces foreign exchange risks primarily related to USD, THB, RMB, HKD, IDR, and LKR, with minimal risk from HKD due to its peg to USD[87]
黛丽斯国际(00333) - 2025 - 年度财报