Financial Performance - Revenue for the first half of 2023 reached HKD 4,613,295, representing a 13.1% increase from HKD 4,080,615 in the same period last year[11]. - Gross profit increased by 19.2% to HKD 1,168,415, with a gross margin of 25.3%, compared to 24.0% in the previous year[11]. - Profit attributable to owners of the Company rose by 23.1% to HKD 312,965, with a profit margin of 6.8%[11]. - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 24.6% to HKD 811,016, reflecting a margin of 17.6%[11]. - The Group recorded revenue of approximately HK$4,613.3 million for the period, representing a year-on-year increase of 13.1%[18]. - Gross profit grew by 19.2% to approximately HK$1,168.4 million, with a gross profit margin up by 1.3 percentage points to 25.3%[18]. - EBITDA increased by 24.6% to approximately HK$811.0 million, with an EBITDA margin up by 1.7 percentage points to 17.6%[18]. - Net profit for the period was approximately HK$313.0 million, a year-on-year increase of 23.1%, with a net profit margin up by 0.6 percentage points to 6.8%[18]. - The Group's operating cash flows amounted to approximately HK$985.5 million during the period, significantly up from HK$422.9 million in the previous year[18]. - Net profit in 1HF2023 was approximately HK$313.0 million, an increase from approximately HK$254.3 million in 1HF2022, representing a growth of about 23%[50]. - The net profit margin improved to 6.8% in 1HF2023 from 6.2% in 1HF2022[50]. Segment Performance - The intimate wear segment contributed approximately HK$2,464.3 million in revenue, a year-on-year increase of 5.5%, accounting for 53.4% of the Group's total revenue[21]. - The sports products segment generated approximately HK$1,483.7 million in revenue, a 43.2% year-on-year increase, accounting for 32.2% of total revenue[23]. - Revenue from consumer electronics components increased by 11.0% year-on-year to approximately HK$258.3 million, accounting for 5.6% of the Group's total revenue[24]. - Revenue from bra pads and other moulded products decreased by 30.1% year-on-year to HK$213.0 million, representing 4.6% of total revenue[25]. - Footwear revenue rose by 13.5% year-on-year to approximately HK$193.9 million, accounting for 4.2% of total revenue[26]. - Revenue from intimate wear increased by 5.5% year-on-year, driven by higher sales volume of bras[32]. - Revenue from sports products surged by 43.2% year-on-year, primarily due to strong demand for sports-related products[32]. Cost and Expenses - Cost of sales increased from approximately HK$3,100.0 million in 1HF2022 to approximately HK$3,444.9 million in 1HF2023, primarily due to increased costs of raw materials and employee benefits[36]. - Cost of sales as a percentage of total revenue decreased from 76.0% in 1HF2022 to 74.7% in 1HF2023, attributed to improved production efficiency and increased revenue[36]. - Overall gross profit increased from approximately HK$980.6 million in 1HF2022 to approximately HK$1,168.4 million in 1HF2023, with a gross profit margin increase of 1.3 percentage points to 25.3%[39]. - Distribution and selling expenses increased from approximately HK$90.2 million in 1HF2022 to approximately HK$103.4 million in 1HF2023, remaining stable at 2.2% of total revenue[42]. - General and administrative expenses decreased from approximately HK$399.1 million in 1HF2022 to approximately HK$393.3 million in 1HF2023, representing a reduction of about 1.8%[43]. - General and administrative expenses as a percentage of total revenue decreased from 9.8% in 1HF2022 to 8.5% in 1HF2023, indicating improved operational efficiency[43]. - Finance costs increased from approximately HK$64.3 million in 1HF2022 to approximately HK$146.2 million in 1HF2023, an increase of about 127.5%[45]. - Finance costs as a percentage of total revenue rose from 1.6% in 1HF2022 to 3.2% in 1HF2023, reflecting the global trend of rising interest rates[45]. Market Outlook - The Group anticipates facing short-term challenges in the second half of the financial year due to increasing market pressures[15]. - Consumer sentiment is becoming increasingly cautious in some regions due to geopolitical conflicts and rising global inflation[15]. - The Group expects overall sales to decline by 10-20% year-on-year in the second half of the financial year, with full-year sales anticipated to remain flat or slightly decline[61]. - Revenue from the intimate wear sector is expected to record a teens level decline in the second half of the financial year, with a slight decline for the full year[60]. - Orders for sports products are projected to see a teens level decline year-on-year in the second half, while maintaining a slight double-digit growth for the full year[60]. - Significant year-on-year drops in revenue are expected for consumer electronics components and bra pads due to reduced orders from major overseas customers and weakening trends in brand partners[60][63]. Strategic Initiatives - The establishment of a joint venture with Victoria's Secret was completed on April 6, 2022, focusing on enhancing online operations and localization strategies[16]. - The Vietnam production base has optimized its organizational structure to improve cost efficiency and supply chain localization[16]. - The Group's Five-Year Plan (2022-2026) aims to drive steady sales growth through innovation and R&D, expand marginal profit, and maintain healthy cash flows while gradually lowering the debt ratio[65]. - The Group has achieved breakthroughs in craftsmanship innovation, enhancing product functionality and reducing labor costs, particularly through its proprietary technologies like RePersbond and ReMatrixPad[67]. - A series of flagship products featuring seamless bonding craftsmanship and innovative moulded cups have been successfully launched, receiving positive market feedback[70]. - The Group plans to implement measures to expand revenue and reduce expenses, including promoting innovative products and adjusting recruitment plans[62]. - The Group's innovative craftsmanship strategy aims to enhance competitiveness and achieve cost reduction and efficiency improvements, particularly through seamless bonding technology and injection moulded cups[71]. - The Group's strategic partnerships in materials and equipment development have created unique entry barriers, enhancing product differentiation[74]. - The Group plans to continue strengthening collaborations with traditional and e-commerce brand partners in the domestic lingerie market[77]. Sustainability and Development - The Group has set four sustainability goals for 2030, including carbon reduction and waste management, and has achieved outstanding results in relevant performance indicators during the period[78]. - The Group is committed to sustainable development goals while striving to create long-term value for shareholders and stakeholders[81]. Cash Flow and Investments - Net cash generated from operating activities increased by HK$562.6 million to approximately HK$985.5 million in 1HF2023 from approximately HK$422.9 million in 1HF2022[51]. - Net cash used in investing activities amounted to approximately HK$689.4 million in 1HF2023, primarily for investment in an associate and purchase of property, plant, and equipment[53]. - Net cash used in financing activities was approximately HK$394.8 million in 1HF2023, mainly due to repayment of borrowings and interest payments[53]. - Total capital expenditures for 1HF2023 were approximately HK$207.2 million, compared to HK$190.5 million in 1HF2022, mainly for production line additions and facility construction[56]. Employee and Operational Metrics - As of September 30, 2022, the Group employed 45,847 full-time staff, with total staff costs amounting to approximately HK$1,566.8 million, representing 34.0% of total revenue[58]. - Receivables turnover days improved from 49 days to 41 days as of September 30, 2022, indicating better working capital management[54]. - The average efficiency of the six plants in Vietnam improved during the period, contributing to the growth in the Group's gross profit[28]. - The production base in Vietnam has established significant regional and scale advantages, leading to improved production efficiency and reduced delivery lead times[72].
维珍妮(02199) - 2023 - 中期财报