Revenue and Sales Performance - Revenue for the six months ended September 30, 2024, increased to HKD 2,667,177 thousand, up 16.2% from HKD 2,294,749 thousand in the same period last year[2] - Revenue for the six months ended September 30, 2024, was HKD 2,667.177 million, compared to HKD 2,294.749 million in the same period in 2023[15] - Revenue for the six months ended September 30, 2024, was HK2.29 billion in the same period in 2023[19] - Revenue for the period increased by 16.2% to HKD 2,667.2 million, driven by a 21.9% increase in sales volume and a 4.7% decrease in average selling price[42] - Overall sales volume and revenue increased by 21.9% and 16.2%, respectively, during the reporting period, with the Nansha plant in China showing significant growth of 28.3% in sales volume and 20.6% in revenue[78] Gross Profit and Margins - Gross profit for the six months ended September 30, 2024, decreased to HKD 200,086 thousand, down 6.5% from HKD 213,945 thousand in the same period last year[2] - Gross profit for the six months ended September 30, 2024, was HKD 200.086 million, with a gross profit margin of 7.5%, down from 9.3% in 2023[15] Operating Profit and EBITDA - Operating profit for the six months ended September 30, 2024, decreased to HKD 130,232 thousand, down 21.1% from HKD 165,124 thousand in the same period last year[2] - EBITDA for the six months ended September 30, 2024, was HKD 251.040 million, with an EBITDA margin of 9.4%, compared to 11.1% in 2023[15] - EBITDA for the six months ended September 30, 2024, was HK254.99 million in the same period in 2023[19] Net Profit and Earnings - Net profit attributable to equity holders for the six months ended September 30, 2024, decreased to HKD 106,862 thousand, down 14.1% from HKD 124,463 thousand in the same period last year[4] - Net profit attributable to equity holders for the six months ended September 30, 2024, was HKD 106.862 million, with a net profit margin of 4.0%, down from 5.4% in 2023[15] - Basic earnings per share for the six months ended September 30, 2024, were HK0.09 in the same period in 2023[30] - Profit attributable to equity holders decreased by 14.1% to HKD 106.9 million, impacted by factors including a HKD 48 million loss from the new Vietnam factory, HKD 12 million in losses due to a typhoon, and a HKD 28 million reduction in exchange gains[44][45] - Net profit attributable to equity holders decreased by 14.1% in the six months ended September 30, 2024, compared to the same period in 2023, primarily due to a pre-production loss of HKD 48 million at the new Nam Dinh plant in Vietnam, HKD 12 million in losses from Typhoon Mawar, and a reduction in exchange gains by HKD 28 million[76] Assets and Liabilities - Total assets as of September 30, 2024, were HKD 5,563,295 thousand, slightly down from HKD 5,565,971 thousand as of March 31, 2024[6] - Total liabilities as of September 30, 2024, were HKD 2,560,962 thousand, down from HKD 2,599,517 thousand as of March 31, 2024[9] - Total assets as of September 30, 2024, were HKD 5,563.295 million, up from HKD 5,375.191 million in 2023[15] - Total assets as of September 30, 2024, were HKD 5,563.3 million (March 31, 2024: HKD 5,566.0 million), including non-current assets of HKD 2,832.8 million and current assets of HKD 2,730.5 million[52] - Net debt level increased to HKD 673.8 million (March 31, 2024: HKD 585.7 million) due to higher accounts receivable and inventory[58] Cash and Cash Equivalents - Cash and cash equivalents as of September 30, 2024, decreased to HKD 548,091 thousand, down 38.7% from HKD 893,889 thousand as of March 31, 2024[6] - Cash and bank balances as of September 30, 2024, were HKD 548.407 million, down from HKD 815.528 million in 2023[15] - Cash and bank balances, including fixed deposits, totaled HKD 548.4 million (March 31, 2024: HKD 894.9 million), with significant holdings in USD, RMB, and VND[59] Inventory and Accounts Receivable - Inventory as of September 30, 2024, increased to HKD 1,125,113 thousand, up 9.1% from HKD 1,031,258 thousand as of March 31, 2024[6] - Accounts receivable and bills as of September 30, 2024, increased to HKD 989,154 thousand, up 34.5% from HKD 735,683 thousand as of March 31, 2024[6] - Accounts receivable and notes increased to HKD 993.456 million as of September 30, 2024, with the top two customers accounting for 48% and 15% of the total, respectively[36] - Accounts receivable turnover days were 59 days, while accounts payable turnover days were 56 days[50] Equity and Dividends - Total equity as of September 30, 2024, increased to HKD 3,002,333 thousand, up 1.2% from HKD 2,966,454 thousand as of March 31, 2024[6] - An interim dividend of HK97.70 million, consistent with the same period in 2023[33] - An interim dividend of HKD 0.07 per share was declared for the six months ended September 30, 2024, unchanged from the previous year[84] Costs and Expenses - Cost of raw materials and consumables increased to HK1.82 billion in the same period in 2023[27] - Employee benefits expenses, including directors' remuneration, rose to HK218.25 million in the same period in 2023[27] - Cost of sales rose by 18.6% to HKD 2,467.1 million, in line with the revenue growth[43] - Distribution and sales expenses increased to HKD 29.6 million (2023: HKD 19.0 million), primarily due to higher freight costs, in line with revenue growth[46] - Administrative expenses decreased to HKD 78.5 million (2023: HKD 82.8 million)[48] - Financial costs slightly decreased by 1% to HKD 34.2 million (2023: HKD 34.6 million)[49] Regional Performance - Southeast Asia contributed HK1.26 billion in the same period in 2023[19] - China revenue increased by 24.6% to HK607.58 million in the same period in 2023[19] Capital Expenditures and Commitments - Capital commitments for property, plant, and equipment amounted to HKD 175.558 million as of September 30, 2024[39] - Capital expenditures decreased by 80.1% to HKD 124.6 million (2023: HKD 624.9 million), mainly due to reduced investment in the Vietnam Nam Dinh plant[61] Corporate Governance and Compliance - The company's Chairman and CEO roles are currently held by the same individual, Mr. Au Fu Shing, which deviates from the Corporate Governance Code's requirement for role separation. However, decisions are made after consulting with knowledgeable board members and senior management, ensuring appropriate checks and balances[90] - All directors confirmed compliance with the standard code for securities transactions during the six months ending September 30, 2024[91] - The Audit Committee, chaired by Mr. Shih Kwok Wing, reviewed the unaudited condensed consolidated financial results for the six months ending September 30, 2024, and oversaw the financial reporting process, internal controls, and risk management[92] - The interim financial results were reviewed by the company's external auditor in accordance with Hong Kong Standard on Review Engagements 2410[92] - The interim results announcement is available on the Hong Kong Stock Exchange website and the company's website, with the interim report to be distributed to shareholders and published on the websites in due course[94] Operational Updates - The Nam Dinh plant in Vietnam began mass production in September 2024, with an average monthly output of 1.1 million pounds, expected to increase to 1.5 million pounds per month in the second half of the fiscal year[79] - The Hai Duong plant in Vietnam, affected by Typhoon Mawar, has restored production to 70% of pre-suspension levels, with full recovery expected to take several months[79] - The company expects improved profitability in the second half of the 2024/25 fiscal year[82] Share Repurchases and Employee Count - The company repurchased 3,027,000 shares for a total consideration of HKD 5,101,260 during the six months ended September 30, 2024, which were subsequently canceled[86] - Total number of full-time employees increased to 5,227 as of September 30, 2024, up from 4,874 as of March 31, 2024[75] Tax and Financial Ratios - The group recorded income tax expenses of approximately HKD 15.4 million (2023: HKD 23.0 million), with an average effective tax rate of 12.8% (2023: 15.2%)[51] - The group's capital structure showed a debt-to-equity ratio of 85.3% (March 31, 2024: 87.6%) and a capital gearing ratio of 40.8% (March 31, 2024: 50.2%)[64] Associates and Impairment - The company's share of profit from associates was HKD 7.316 million, up from HKD 1.620 million in the previous period[34] - The recoverable amount of the company's interest in PT Sri Lanka was HKD 226.470 million, higher than its carrying amount of HKD 213.677 million, resulting in no impairment loss being recognized[34] Accounts Payable and Notes - Accounts payable and notes rose to HKD 872.825 million as of September 30, 2024, with the majority (HKD 867.771 million) aged 0-60 days[39] - Accounts payable and notes turnover days decreased to 56 days in 2024 from 60 days in 2023[15] Inventory and Turnover Days - Inventory turnover days decreased to 80 days in 2024 from 86 days in 2023[15] Non-Current Assets - Non-current assets in Vietnam increased to HK1.49 billion as of March 31, 2024[24] Strategic Focus - The company continues to focus on diversification, cost control, and flexible resource allocation to enhance production efficiency and adaptability[81]
互太纺织(01382) - 2025 - 中期业绩