Financial Performance - For the first half of the fiscal year 2023, the company reported revenue of HKD 3,099.4 million, reflecting a growth of 11.0% compared to the previous year[12]. - The gross profit for the same period was HKD 527.6 million, with a gross margin of 17.4%[15]. - The profit attributable to the owners of the company was HKD 270.9 million, representing an increase of 18% year-on-year[16]. - The adjusted net profit for the first half of the fiscal year was HKD 342.9 million, with an adjusted net profit margin of 11.1%[17]. - The company's revenue for the first half of the 2023 fiscal year increased by 26.4% to HKD 3,099.4 million compared to the same period in 2022[23]. - Net profit rose by 25.6% to HKD 255.1 million, while adjusted net profit surged by 78.9% to HKD 342.9 million, with an adjusted net profit margin increasing from 7.8% to 11.1%[27]. - Revenue for the six months ended September 30, 2022, was HKD 3,099,367, an increase of 26.4% compared to HKD 2,452,469 in 2021[180]. - Gross profit for the same period was HKD 516,400, representing a gross margin of 16.7%[180]. - Operating profit increased to HKD 320,470, up 31.5% from HKD 243,659 in the previous year[180]. - The company reported a profit attributable to owners of HKD 232,848,000 for the period, compared to HKD 203,075,000 in the previous year, marking an increase of about 14.6%[197]. Market Conditions - The company experienced a temporary rebound in consumer sentiment due to the easing of social distancing measures in key markets such as Japan, the United States, and Europe[21]. - The ongoing geopolitical tensions and inflationary pressures have impacted global economic conditions, affecting consumer spending[21]. - The company anticipates continued uncertainty in the global market due to rising interest rates and fluctuating raw material prices, prompting a cautious approach[28]. Manufacturing and Operations - The company’s manufacturing facility in Vietnam has fully resumed production, allowing it to meet customer demands during lockdowns in various cities in mainland China[21]. - The company aims to diversify risks by maintaining manufacturing capabilities in both mainland China and Vietnam[21]. - The company plans to enhance productivity at its Vietnam manufacturing base and expand customer service functions in response to increasing demand[28]. - The company is focused on integrating renewable energy into its production facilities to improve energy efficiency and support environmental protection initiatives[31]. - The company aims to increase its overseas production ratio to adapt to changing customer procurement preferences, particularly in light of trade tensions between China and the U.S.[31]. Sales and Pricing - The average selling price of men's and women's knitted products rose by 23.3% to HKD 136.2 per piece, with total sales volume increasing to 18.7 million pieces[23]. - Sales of men's and women's knitted products rose by 4.5% in volume from 17.9 million pieces to 18.7 million pieces, with the average selling price increasing by 23.3% from HKD 110.5 to HKD 136.2 per piece[40]. Income and Expenses - The company has experienced a significant increase in other income, primarily from the sale of upgraded machinery and foreign exchange gains[26]. - Other income rose from HKD 13.1 million to HKD 29.6 million, mainly due to an increase in insurance claims and government subsidies[44]. - Selling and distribution expenses slightly increased from HKD 23.3 million to HKD 23.7 million, mainly due to rising transportation costs[46]. - General and administrative expenses decreased from HKD 169.9 million to HKD 168.4 million, reflecting ongoing cost control measures despite business expansion[47]. Impairment and Valuation - The impairment loss for the Myanmar production base amounted to HKD 109.0 million due to a reassessment of business development prospects amid economic challenges[48]. - The company engaged an independent valuation firm to assess the recoverable amount of the Myanmar cash-generating unit, leading to the recognition of the impairment loss[52]. - The company’s valuation as of September 30, 2022, using the income approach, was HKD 298.4 million, down from HKD 429.6 million as of March 31, 2022[54]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended September 30, 2022, was HKD 168.4 million, compared to a net cash used of HKD 166.9 million for the same period in 2021[73]. - The company’s investment activities generated a net cash inflow of HKD 28.9 million, primarily from the sale of properties, plants, and equipment[74]. - As of September 30, 2022, the net cash used in financing activities was HKD 26.8 million, primarily due to dividend payments of HKD 34.2 million, partially offset by an increase in bank borrowings and lease liabilities of HKD 6.2 million[75]. - The company incurred a net cash outflow from investing activities of HKD 28,876,000, a significant improvement from HKD 56,569,000 in the prior year, indicating better capital management[200]. Shareholder Information - The company declared an interim dividend of HKD 0.051 per share for the six months ended September 30, 2022, compared to HKD 0.042 per share in 2021, representing a 21.4% increase[108]. - Major shareholder South旋 Investment Limited holds 1,500,000,000 shares, accounting for 65.81% of the issued share capital[131]. - The total number of ordinary shares issued as of September 30, 2022, is 2,279,392,000 shares[125]. Governance and Compliance - The board of directors emphasizes high-quality governance and compliance with corporate governance codes, maintaining adherence to all mandatory provisions as of September 30, 2022[109]. - The company’s audit committee consists of three independent non-executive directors, responsible for overseeing financial reporting and internal controls[112].
南旋控股(01982) - 2023 - 中期财报