Financial Performance - Best Pacific reported a sales revenue of approximately HK$2,278.5 million for the six months ended June 30, 2022, representing a growth of approximately 9.7% compared to the same period in 2021[13]. - Overall sales revenue for the first half of 2022 reached approximately HK$2,278.5 million, representing a growth of about 9.7% compared to the same period in 2021[15]. - Revenue for the six months ended June 30, 2022, was HK$2,278,466, an increase of 9.8% compared to HK$2,076,272 for the same period in 2021[160]. - Profit for the period attributable to owners of the Company was HK$168,384, down from HK$175,230 in the same period last year, representing a decrease of 3.8%[161]. - Basic earnings per share for the period was 16.19 HK cents, compared to 16.85 HK cents for the same period in 2021, reflecting a decline of 3.9%[160]. - The Group's gross profit for the reporting period amounted to approximately HK$456.1 million, a decrease of approximately 10.0% compared to the six months ended June 30, 2021[28]. - Gross profit for the period was HK$456,083, a decrease of 10.1% from HK$507,035 in the previous year[160]. - The net profit margin for the reporting period was approximately 7.4%, a decrease of approximately 0.7 percentage point compared to 8.1% for the same period in 2021[28]. Revenue Breakdown - Revenue from the sales of elastic fabric increased by approximately 11.4% to approximately HK$1,720.7 million, while revenue from elastic webbing sales rose by approximately 6.3% to approximately HK$519.3 million[27]. - Revenue for the six months ended June 30, 2022, included HK$1,720,740,000 from elastic fabric sales and HK$519,279,000 from elastic webbing sales[199]. - The revenue from elastic fabric for sportswear and apparel was HK$1,046,714,000, while lingerie sales contributed HK$674,026,000[199]. - Domestic sales revenue of the sportswear and apparel fabric segment achieved an encouraging growth of approximately 38.1%[27]. Cost and Profitability - The gross profit margin decreased by approximately 4.4 percentage points to approximately 20.0% for the reporting period[28]. - The significant increase in raw material costs has negatively impacted the Group's gross profit and gross profit margin for the reporting period[28]. - Cost of sales for the six months ended June 30, 2022, amounted to approximately HK$1,822.4 million, representing an increase of approximately HK$253.1 million or approximately 16.1% compared to the six months ended June 30, 2021[47]. - Raw materials cost increased by approximately 26.4%, contributing to 51.8% of the total cost of sales during the Reporting Period[47]. Economic Environment - The U.S. experienced a negative GDP growth of 1.6% and 0.6% in the first and second quarters of 2022, respectively, raising concerns about a potential recession[12]. - China's GDP growth was recorded at 4.8% and 0.4% for the first and second quarters of 2022, respectively, negatively impacted by lockdown measures due to the resurgence of COVID-19[12]. - The inflation rate in the U.S. reached 9.1% for the first half of 2022, driven by rising food and fuel prices due to geopolitical tensions[12]. - The macroeconomic environment in the first half of 2022 forced households to allocate a larger portion of disposable income to daily necessities[13]. - The textile and apparel sector faced volatility due to international geopolitical tensions and global economic headwinds[12]. Strategic Initiatives - Best Pacific is committed to further penetrating its existing customer base to sustain growth[13]. - The company continues to innovate and maintain high product quality to meet customer expectations[13]. - The Group plans to continue strengthening its innovation and R&D capabilities to meet rising customer demand for innovative apparel products[100]. - The Group aims to capture more market share, particularly in the sportswear and apparel business segment, leveraging its recent growth in domestic sales[100]. - The Group is committed to a multi-location manufacturing strategy and will explore opportunities for production capacity expansion both domestically and internationally[101]. - The Group emphasizes risk management and agility in response to ongoing market challenges, including elevated inflation and high living costs[99]. Cash Flow and Financial Position - Net cash generated from operating activities increased to approximately HK$274.8 million for the six months ended June 30, 2022, compared to approximately HK$255.9 million for the same period in 2021[82]. - Net cash used in investing activities rose to approximately HK$198.9 million for the six months ended June 30, 2022, from approximately HK$97.0 million for the same period in 2021, primarily for the purchase of property, plant, and equipment[83]. - Net cash used in financing activities increased to approximately HK$41.0 million for the six months ended June 30, 2022, compared to approximately HK$13.6 million for the same period in 2021, mainly for repayment of borrowings and interests[84]. - The Group's net gearing ratio was approximately 29.3% as of June 30, 2022, compared to approximately 28.9% as of December 31, 2021[85]. - The effective tax rate decreased to approximately 11.1% for the six months ended June 30, 2022, from approximately 13.6% for the same period in 2021, mainly due to increased profit contributions from overseas subsidiaries with better tax incentives[78]. Shareholding and Corporate Governance - As of June 30, 2022, Grandview Capital Investment Limited held 637,500,000 ordinary shares, representing approximately 61.30% of the company's total shareholding[122]. - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2022[135]. - The company entered into a facility agreement for a syndicated loan comprising HK$1.8 billion equivalent multicurrency term loan and revolving credit facilities, maturing in 42 months from the first drawdown[140]. - The company has adopted a securities dealing code for senior management and relevant employees to ensure compliance with the Model Code[139]. Dividend and Financial Reporting - The Board declared an interim dividend of HK7.28 cents per ordinary share for the six months ended 30 June 2022[145]. - The interim dividend is expected to be paid on 30 November 2022 to shareholders registered by 19 September 2022[145]. - The unaudited condensed consolidated results for the six months ended June 30, 2022 were reviewed by Deloitte Touche Tohmatsu[152]. - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with relevant provisions[152].
超盈国际控股(02111) - 2022 - 中期财报