Core Viewpoint - The company expects a significant decline in profit attributable to equity shareholders for the current interim period, projecting a profit range of approximately HKD 1 million to HKD 10 million, compared to HKD 62.5 million for the six months ending June 30, 2024 [1] Summary by Relevant Sections - **Profit Forecast**: The anticipated profit for the current interim period is between HKD 1 million and HKD 10 million, a stark decrease from HKD 62.5 million for the same period in the previous year [1] - **Reasons for Decline**: The primary reasons for the expected decrease in profit include: - (a) A reduction in customer demand due to a challenging and competitive market environment, leading to decreased revenue and segment profit in the garment business [1] - (b) The absence of one-time gains in the upcoming period, as the company recognized a non-recurring gain of HKD 21 million from the sale of certain land use rights and associated buildings in mainland China during the first half of 2024, which will not be repeated in the first half of 2025 [1]

Core Viewpoint - Lianya Group (00458) anticipates a significant decline in profit attributable to shareholders for the current interim period, projecting a profit between HKD 1 million and HKD 10 million, compared to HKD 62.5 million for the six months ending June 30, 2024 [1] Summary by Relevant Categories Financial Performance - The expected profit attributable to shareholders is projected to be between HKD 1 million and HKD 10 million for the current interim period [1] - For the six months ending June 30, 2024, the profit attributable to shareholders was HKD 62.5 million [1] Reasons for Profit Decline - The primary reasons for the anticipated decline in profit include: - A reduction in demand from several clients due to a challenging and competitive market environment, leading to decreased revenue and segment profit in the garment business [1] - The absence of one-time gains in the first half of 2025, as opposed to a non-recurring income of HKD 21 million recognized in the first half of 2024 from the sale of certain land use rights and associated buildings in mainland China [1]

Economic Overview - Liaoning's GDP reached 15,707.9 billion yuan in the first half of the year, with a year-on-year growth of 4.7% [1] - The province's economy demonstrated resilience amid complex internal and external challenges, with coordinated efforts across primary, secondary, and tertiary industries [1][4] Industrial Performance - The industrial sector showed growth, with the added value of industrial enterprises above designated size increasing by 3.3% year-on-year, with 27 out of 40 major industrial categories reporting growth [5][11] - The shipbuilding and marine engineering sectors are experiencing significant expansion, with 170 ship orders held by a major shipyard, extending production schedules to 2029 [2] Consumer Market - Social retail sales in the province grew by 6.3%, surpassing the national average by 1.3 percentage points, marking 28 consecutive months of higher growth than the national level [3][8] - The demand for green and healthy products surged, with new energy vehicle sales increasing by 22.7% and energy-efficient appliances rising by 55.8% [3] Employment and Income - The per capita disposable income for residents reached 21,343 yuan, reflecting a 5.1% increase, with urban and rural incomes growing by 4.7% and 5.6% respectively [7][20] - The province created 281,000 new urban jobs, marking a 5.1% increase [20] Innovation and Technology - The province is focusing on technological innovation, with significant advancements in high-tech manufacturing, which now accounts for a larger share of industrial output [11][12] - New materials and technologies are being developed, such as flexible polymer solar cells, showcasing the potential for market expansion [5][11] Trade and Logistics - The port operations in Liaoning showed resilience, with cargo throughput increasing by 2.1% and container volume by 3.7% [15] - The logistics sector is recovering, with significant increases in freight turnover across various transport modes [15][16] Government Support and Policy - The provincial government is implementing supportive policies to stabilize key industries, including oil, steel, and automotive sectors [6][18] - A series of reforms aimed at improving the business environment have been introduced, enhancing the confidence of various enterprises [17][18]

Core Viewpoint - Crystal International is a global leader in garment manufacturing, focusing on the sportswear segment to drive growth [1] Group 1: Company Overview - Crystal International is a pioneer in the global garment manufacturing industry, with a diverse product matrix including casual wear, sportswear, denim, intimate apparel, and knitwear [1] - The company acquired Vista in 2016, successfully entering the sportswear and outdoor apparel sectors, which has accelerated revenue growth [1] - The company has established deep partnerships with major brands such as Uniqlo, GAP, Levi's, and Under Armour [1] - As a family-owned business, the controlling shareholders hold 76.5% of the company, ensuring stable management and succession [1] - The company has strong operating cash flow and an increasing dividend payout ratio [1] Group 2: Industry Outlook - The global garment manufacturing industry is expected to reach approximately $518.1 billion in 2024, with a compound annual growth rate (CAGR) of 0.6% over the past five years [1] - The sportswear segment is identified as a high-potential area with strong growth certainty, characterized by better profitability and higher concentration across the supply chain [1] Group 3: Competitive Landscape - The current landscape shows a high dependency on the U.S. for garment exports, but there is a clear trend towards overseas production [2] - Rising tariff costs are prompting manufacturers to establish overseas capacities, enhancing competitive advantages for those with such capabilities [2] - Secondary suppliers are expected to capture a larger market share as the industry undergoes consolidation [2] Group 4: Strategic Initiatives - Crystal International has a well-rounded strategy focusing on good positioning, deep supply chain engagement, and a diversified product offering [2] - The company has established a global production network, allowing for local capacity support and flexible production adjustments [2] - Cost reduction and efficiency improvements are being achieved through early overseas capacity investments and enhanced automation [2] Group 5: Future Growth and Profitability - The company is pursuing vertical integration to shorten lead times, reduce costs, and enhance production stability, which is expected to increase order volumes and profitability [3] - Revenue growth is projected to remain in double digits over the next three years, driven by existing customer expansion and new customer acquisition in the sportswear segment [3] - Profitability is anticipated to improve due to cost reductions from automation and vertical integration, with net profits expected to reach $230 million, $260 million, and $300 million from 2025 to 2027, respectively [3]