2025-12-09 07:48Financial Performance - Revenue for the six months ended September 30, 2025, was HK$2,711,814, a decrease of 9.6% from HK$3,001,360 in the same period of 2024[13] - Gross profit increased to HK$749,445, representing a gross margin of 27.6%, compared to HK$719,529 and a margin of 24.0% in 2024[13] - Profit for the period was HK$111,244, up 9.0% from HK$101,429 in the previous year[16] - Basic and diluted earnings per share increased to 8.1 HK cents, compared to 7.3 HK cents in the same period last year[13] - Total comprehensive income for the period was HK$160,637, down from HK$181,369 in 2024[16] - Other income and gains decreased to HK$79,996 from HK$110,371, reflecting a decline of 27.5%[13] - Selling and distribution expenses reduced to HK$266,510, down 20.0% from HK$333,425 in the previous year[13] - Administrative expenses decreased slightly to HK$391,326 from HK$406,949, a reduction of 3.9%[13] - Finance costs significantly decreased to HK$20,832, down 50.3% from HK$41,981 in the previous year[13] Assets and Liabilities - As of September 30, 2025, total assets less current liabilities amounted to HK$5,403,455,000, a slight decrease from HK$5,429,917,000 as of March 31, 2025[17] - Net current assets increased to HK$2,777,966,000 from HK$2,670,549,000, reflecting a growth of approximately 4%[17] - Non-current assets totaled HK$2,625,489,000, down from HK$2,759,368,000, indicating a decrease of about 5%[17] - Trade receivables rose significantly to HK$819,139,000, up from HK$662,790,000, representing an increase of approximately 24%[17] - Cash and bank balances slightly decreased to HK$1,607,123,000 from HK$1,633,407,000, a decline of about 2%[17] - Total equity increased to HK$4,846,904,000 from HK$4,769,169,000, marking an increase of approximately 2%[19] - Interest-bearing bank borrowings decreased to HK$245,745,000 from HK$539,424,000, a reduction of about 54%[17] - Lease liabilities increased to HK$140,387,000 from HK$118,519,000, reflecting an increase of approximately 18%[17] Dividends and Share Capital - Dividends declared decreased to HK$55,268,000 from HK$82,902,000, a decline of approximately 33%[19] - The interim dividend per ordinary share was declared at HK4.0 cents for the six months ended September 30, 2025, up from HK1.0 cent in 2024[54] - The issued capital remains stable at HK$69,085,000, indicating no changes in share issuance[20] - The issued share capital of the Company is 1,381,696,104 shares as of September 30, 2025[156] Cash Flow and Operations - Cash generated from operations increased significantly to HK$467,728,000 for the six months ended September 30, 2025, compared to HK$157,030,000 in the same period of 2024, representing a growth of 197%[22] - Net cash flows from operating activities reached HK$468,247,000, up from HK$147,910,000, indicating a substantial increase of 216% year-over-year[22] - The net cash flows used in investing activities were HK$944,878,000, compared to HK$343,891,000 in the previous year, reflecting an increase of 175%[22] - Cash and cash equivalents at the end of the period decreased to HK$679,666,000 from HK$1,564,742,000, a decline of 57%[22] Segment Performance - Segment revenue for textile and garment was HK$2,265,919,000, a decrease of 8.5% from HK$2,476,315,000 in the previous year[37] - Retailing and distribution segment revenue decreased to HK$445,693,000, down 15% from HK$523,893,000[37] - Total consolidated revenue for the six months ended September 30, 2025, was HK$2,764,557,000, a decline of 10.2% compared to HK$3,079,205,000 in the same period last year[37] - Profit before tax increased to HK$147,709,000, up 9.5% from HK$134,690,000 year-over-year[37] Taxation - Current tax for the six months ended 30 September 2025 was HK$26,023,000, a decrease from HK$29,753,000 in the same period of 2024[48] - Deferred tax increased to HK$10,442,000 for the six months ended 30 September 2025, compared to HK$3,508,000 in 2024[48] - The Group's effective tax rate for Hong Kong profits tax remained at 16.5% for both periods ended 30 September 2025 and 2024[49] Strategic Initiatives - The Group's strategic "China + Vietnam" dual-location manufacturing model has helped mitigate regional risks and reduce dependency on single-location production[97] - The Group is actively expanding its domestic sales footprint in Mainland China while strengthening customer bases in Japan, Korea, Europe, and the United States[148] - The Group plans to implement stringent controls on procurement, labor costs, and energy consumption to enhance operational efficiency[142] - The Group will prioritize the expansion of its e-commerce business by leveraging direct sales and strategic partnerships with leading online shopping platforms[149] Governance and Compliance - The company complied with all code provisions of the Corporate Governance Code throughout the accounting period, except for a deviation regarding the attendance of the chairman at the annual general meeting[174][175] - The Audit Committee, consisting of three independent non-executive directors, reviewed the interim report and risk management processes during the review period[166][167] Future Outlook - Future outlook remains positive with projected revenue growth of 15% year-over-year for the next fiscal year[181] - The company has set a performance guidance of $200 million in net income for the next fiscal year[181] - Cost management initiatives are expected to reduce operational expenses by 5%[181]