維珍妮公佈 2020財年 業績收入上升 1.2%至 63.4億港元 純利及 EBITDA分別 增加 2.7%及 30.0%至290.0百萬 港 元 及 969.7百萬 港 元

06/29/2020 | 企業

維珍妮公佈 2020財年 業績收入上升 1.2%至 63.4億港元 純利及 EBITDA分別 增加 2.7%及 30.0%至290.0百萬 港 元 及 969.7百萬 港 元

越南海防 VSIP五 廠 大致 投 入營 運 産 能佈局完善

謹守「創新」精神「疫」境中尋機遇 迅速靈活 迎接經濟復蘇

(2020年 6月 29日 香港訊 ))— 全球領先的貼身內衣創新設計製造商 (「 IDM」) 維珍妮國際(控股)有限公司 (「維珍妮」或「公司」,連同附屬公司,統稱「集團」)(股份代號 2199公佈截至 2020年 3月 31日止年度(「 2020財年」或「年內」)的全年業績。


在2020財年,集團在嚴峻的經營環境下仍錄得收益港幣6,341.0百萬元(2019財年:港幣6,263.3百萬元),按年上升1.2%。受惠於越南廠房產能及效率持續提升,息稅折舊及攤銷前利潤(EBITDA)增長30.0%至港幣969.7百萬元,EBITDA率顯著提升至15.3%(2019財年:分別約港幣745.9百萬元及11.9%)。同時,純利亦提升2.7%至港幣290.0百萬元,純利率為4.6%(2019財年:分別約港幣282.4百萬元及4.5%)。公司擁有人應佔每股基本盈利為23.7港仙(2019財年:23.1港仙)。

集團財務狀況穩健,除了穩定的營運現金流,亦擁有充裕的手頭現金及未提取貿易及定期貸款融資總額。於2020年3月31日,兩者分別約港幣587.6百萬元及港幣2,571百萬元(2019年3月31日:分別為港幣466.4百萬元及港幣1,732百萬元)。董事會維持 與股東分享成果 的承諾 已議 決 建議 宣派末期股息每股 4.0港仙 連同 已派付的中期股息每股 3.8港仙,全年 總 股息為 7.8港仙( 2019財年: 7.6港仙) ),貫徹分派財政年度純利不少於 30%的股息政策 。

維珍妮主席、首席執行官兼執行董事洪游奕先生表示:「在疫情爆發前,我們在中越兩地的產能佈局及IDM能力已為業務奠定穩定基礎。憑藉持續推動創新工藝,我們於年內成功開拓多個引領潮流的產品及鞏固與全球知名品牌夥伴的合作關係,更在『疫』境下善用現有技術及資源,開拓防疫產品、同時投入資源開發家居和健康概念產品,以及運動周邊產品等,在推動業務多元化發展之餘,亦提升抗風險能力。」

業務回顧

時尚外穿內衣(Bra Top) 訂單倍增 與品牌 建立更緊密關係 使客戶組合更均衡

胸圍及貼身內衣繼續是維珍妮 的主要收入 來源, 貢獻 港 幣 5,061.4百萬元( 2019財年:港幣4,874.6百萬元),按年增長 3.8%,佔整體收益約 79.8%。 分部毛利為港幣 1,183.8百萬元,毛利率改善至 2019財年:分別為港幣 1,070.3百萬元及 22.0%)。

時尚外穿內衣(Bra Top) 系列 熱賣 令訂單倍增,不但成為此分部的主要增長動力,更重要的是與品牌建立更緊密的夥伴 關係, 使 客戶組合更均衡。 因此,縱使 疫情於 3月在全球大流行導致部分訂單的出貨時間延後 ,年內分部收益仍錄得增長。

胸杯及其他模壓產品業務穩定 為 知名跨國科技公司生產用於電子產品的布料加工及其他配件

胸杯及其他模壓產品業務的收入為 港幣 677.1百萬元( 2019財年:港幣 530.9百萬元),按年大幅增加 27.5%,佔總收入 10.7%。分部毛利及毛利率為 港幣 144.2百萬元及 2019財年:分別為港幣 111.6百萬元及 21.0%)。

此分部的雙位數收入增長,主要源自用於消費 電子產品的布料加工及其他配件的銷售倍增 ,此乃 維珍妮 近兩年 積極在跨行業及跨產品線拓展業務 的 研發成果 。 2020財 年 內 ,本集團 不僅於現 有 虛 擬實境 (VR)科技 夥伴的 VR眼鏡配件 訂單上錄得高雙位數增長,亦 增添 了 一家知名跨國科技公司 夥伴,除了 VR眼鏡 配件 之餘,亦為其生產 種類更廣泛的 消費電子 產品 配件 。而在胸杯 方面的收入保持溫和增長,由於對外銷售的胸杯收入輕微上升。近年, 集團保留大部份產能作自家生產胸圍成品之用,現時越南廠房的胸杯不但能完全自給自足,更可供應深圳廠房,同時有助加強成本控制。

國際運動及休閒品牌的運動服裝訂單數量增長


功能運動產品業務於年內貢獻收入港幣602.5百萬元( 2019財年:港幣 857.8百萬元),按年減少 29.8%,佔集團總收入 9.5%。分部毛利為港幣 112.7百萬元,而毛利率為 2019財年:分別為港幣 160.1百萬元及 18.7%)。集團自19財年下半年起 實施 優化品牌客戶 及產品組合 策略 旨在更有效分配研發及生產資源。在鞋履業務方面,在結束與另一個品牌的運動鞋業務後,集團於2020財年專注與一家美國休閒鞋履品牌夥伴的合作。 至於在運動服裝業務上 集團 同樣專注與優秀的 國際知名品牌合作以 促進 此 業務 平穩增長 。 憑藉 卓越的無縫拼接工藝技術, 維珍妮 為國際運動及休閒品牌夥伴開發出革新產品,因此縱使 退出與其他運動服裝客戶合作,運動服裝訂單數量依然錄得增長,成為集團另一業務增長點。

越南VSIP廠房朝 全面投運邁進一大步,生産效益顯著提升並達到預期

年內,配備更多自動化生產設施的越南 D及 E廠正式開始生產, 標誌著 集團於越南海防市越南新加坡工業園(「 VSIP」)內的廠房 朝 全 面 投運 邁進一大步 ,使當地生產佔總收入的比例由去年約 60%擴大至 2020財年約 73%。集團在越南 A及 B廠 的 運作日趨成熟,逾 一 年經驗的熟練員工比例已達 73%,推動生產效益顯著提升並達到預期。基於 A、 B廠房的成功運營經驗,集團因應需求調整 C、 D及 E三廠的生產線配置,務求將效率及效益提升至最佳水平。
「疫」 境 中尋機 遇 開源節流 並 全面 檢視 營運及生產流程, 打穩根基 迎接 經濟復蘇展望未來,預期2019冠狀病毒疫情為環球經濟帶來空前挑戰及更多不確定因素。因應疫情所帶來的衝擊,包括一系列的關 店及政府措施影響,部份品牌夥伴於過去數月需暫時將若干訂單推遲, 集團預期在封關措施過後, 市場需要時間 全面復原 ,而品牌夥伴很可能仍需時清理於疫情期間所積壓的存貨 因此 集團預期 2021財年的銷售將受到影響。

縱然前景未明,管理層仍深信機遇與挑戰並存。維珍妮 將積極為品牌夥伴研發能創造需求的產品,務求在疫情穩定後即能迅 速 推出市場,迎接反彈的消費需求。 而 在中國,隨著疫情受控和逐步復工復產,消費意欲將進一步釋放 ,預計將迎來新一輪機遇 。因此, 中長線而言, 集團有意 投放更多資源 拓展 於 中國市場, 產品包括 貼身內衣及功能運動產品。

在產能規劃方面,越南VSIP內的廠房已 大致投入營運 而尚在深圳生產的鞋類產品將在疫情穩定後轉移至越南 E廠, 至 於 主要應用無縫針織機技術的越南 興安省廠房 在 疫情影響下將稍延至 2021年 上半年 投產。 鑑於在現有廠房擴大生產線及改善生產效率將足以推動中短期內增長,因此 集團 於 2020財年上半年已表明 暫無計劃 再投資新生產設施 ,反而 專注提升現有及即將落成設施的效率及效益。 至於深圳廠房將繼續 專注 為品牌夥伴生產售予 中國 當地市場 的產品,
同時升級轉型,以支援 集團跨行業及跨產品線業務開拓、 用於 消費 電子產品的布料加工及其他配件業務。此外
,集團 亦已 投入開發 防疫產品 包括布 口罩 及 防護衣) 、 運動類周邊產品 及 健康類產品 等。此舉不但可豐富產品組合、 提升 業務 抗 風險能力 ,更可善用現有技術及資源 貢獻社區 ,達致三贏 。 自今年初起 集團 已 為 現有品牌 夥伴生產防疫產品 正 申請符合國際規定的 生產 認證,並尋求與更多元化的客戶合作,預期該等 需求將 持 續增長。

在開源 的 同時 ,集團亦致力 節流, 尤其在疫情下於 工 資 、原材料及營運上 實施更 嚴控 的 成本 控制 措施 如 按 實際 訂單需求調整生產人員 及員工 的工作時間 包括於 深圳廠房實行輪休制度),並加強上游供應鏈管 理 ,從而減低工資和其他周邊成本。 明白到 審慎的財務政策 對於應對 這場疫情 同樣重要, 集團會暫停不必要的固定資產投資,以降低資本開支 及確保營運現金流充裕 。除了穩定的營運現金流,集團亦擁有 充裕的 手頭現金及 未提取銀行信貸 總 額 ,能抵禦市場風浪。

洪先生總結 「 維珍妮於過去 20多年經歷不同經濟週期的高低起跌,憑藉管理團隊的豐富經驗及遠大目光,面對眼前挑戰,我們相信集團能迎難而上,並利用當前機會多角度深入檢視內部營運及生產流程,精簡架構及優化流程,以奠定更穩固的基礎。我們將為品牌夥伴開拓更多高增值及性價比的創新產品,冀在經濟復蘇時能夠迅速把握商機,並在行業整合中脫穎而出 。 」

维珍妮公布 2020财年 业绩收入上升 1.2%至 63.4亿港元 纯利及 EBITDA分别 增加 2.7%及 30.0%至290.0百万 港 元 及 969.7百万港元

06/29/2020 | 企业

维珍妮公布 2020财年 业绩收入上升 1.2%至 63.4亿港元 纯利及 EBITDA分别 增加 2.7%及 30.0%至290.0百万 港 元 及 969.7百万港元

越南海防 VSIP五 厂 大致 投 入营 运 产 能布局完善

谨守「创新」精神「疫」境中寻机遇 迅速灵活 迎接经济复苏

(2020年 6月 29日 香港讯 ))— 全球领先的贴身内衣创新设计制造商 (「 IDM」) 维珍妮国际(控股)有限公司 (「维珍妮」或「公司」,连同附属公司,统称「集团」)(股份代号 2199公布截至 2020年 3月 31日止年度(「 2020财年」或「年内」)的全年业绩。

在2020财年,集团在严峻的经营环境下仍录得收益港币6,341.0百万元(2019财年:港币6,263.3百万元),按年上升1.2%。受惠于越南厂房产能及效率持续提升,息税折旧及摊销前利润(EBITDA)增长30.0%至港币969.7百万元,EBITDA率显著提升至15.3%(2019财年:分别约港币745.9百万元及11.9%)。同时,纯利亦提升2.7%至港币290.0百万元,纯利率为4.6%(2019财年:分别约港币282.4百万元及4.5%)。公司拥有人应占每股基本盈利为23.7港仙(2019财年:23.1港仙)。

集团财务状况稳健,除了稳定的营运现金流,亦拥有充裕的手头现金及未提取贸易及定期贷款融资总额。于2020年3月31日,两者分别约港币587.6百万元及港币2,571百万元(2019年3月31日:分别为港币466.4百万元及港币1,732百万元)。董事会维持 与股东分享成果 的承诺 已议 决 建议 宣派末期股息每股 4.0港仙 连同 已派付的中期股息每股 3.8港仙,全年 总 股息为 7.8港仙( 2019财年: 7.6港仙) ),贯彻分派财政年度纯利不少于 30%的股息政策 。

维珍妮主席、首席执行官兼执行董事洪游奕先生表示:「在疫情爆发前,我们在中越两地的产能布局及IDM能力已为业务奠定稳定基础。凭借持续推动创新工艺,我们于年内成功开拓多个引领潮流的产品及巩固与全球知名品牌伙伴的合作关系,更在『疫』境下善用现有技术及资源,开拓防疫产品、同时投入资源开发家居和健康概念产品,以及运动周边产品等,在推动业务多元化发展之余,亦提升抗风险能力。」

业务回顾

时尚外穿内衣(Bra Top) 订单倍增 与品牌 建立更紧密关系 使客户组合更均衡

胸围及贴身内衣继续是维珍妮 的主要收入 来源, 贡献 港 币 5,061.4百万元( 2019财年:港币4,874.6百万元),按年增长 3.8%,占整体收益约 79.8%。分部毛利为港币 1,183.8百万元,毛利率改善至 2019财年:分别为港币 1,070.3百万元及 22.0%)。

时尚外穿内衣(Bra Top) 系列 热卖 令订单倍增,不但成为此分部的主要增长动力,更重要的是与品牌建立更紧密的伙伴 关系, 使 客户组合更均衡。因此,纵使 疫情于 3月在全球大流行导致部分订单的出货时间延后 ,年内分部收益仍录得增长。

胸杯及其他模压产品业务稳定 为 知名跨国科技公司生产用于电子产品的布料加工及其他配件

胸杯及其他模压产品业务的收入为 港币 677.1百万元( 2019财年:港币 530.9百万元),按年大幅增加 27.5%,占总收入 10.7%。分部毛利及毛利率为 港币 144.2百万元及 2019财年:分别为港币 111.6百万元及 21.0%)。

此分部的双位数收入增长,主要源自用于消费 电子产品的布料加工及其他配件的销售倍增 ,此乃 维珍妮 近两年 积极在跨行业及跨产品线拓展业务 的 研发成果 。 2020财 年 内 ,本集团 不仅于现 有 虚 拟实境 (VR)科技 伙伴的 VR眼镜配件 订单上录得高双位数增长,亦 增添 了 一家知名跨国科技公司 伙伴,除了 VR眼镜 配件 之余,亦为其生产 种类更广泛的 消费电子 产品 配件 。而在胸杯 方面的收入保持温和增长,由于对外销售的胸杯收入轻微上升。近年, 集团保留大部份产能作自家生产胸围成品之用,现时越南厂房的胸杯不但能完全自给自足,更可供应深圳厂房,同时有助加强成本控制。

国际运动及休闲品牌的运动服装订单数量增长

功能运动产品业务于年内贡献收入港币602.5百万元( 2019财年:港币 857.8百万元),按年减少 29.8%,占集团总收入 9.5%。分部毛利为港币 112.7百万元,而毛利率为 2019财年:分别为港币 160.1百万元及 18.7%)。集团自19财年下半年起 实施 优化品牌客户 及产品组合 策略 旨在更有效分配研发及生产资源。在鞋履业务方面,在结束与另一个品牌的运动鞋业务后,集团于2020财年专注与一家美国休闲鞋履品牌伙伴的合作。至于在运动服装业务上 集团 同样专注与优秀的 国际知名品牌合作以 促进 此 业务 平稳增长 。凭借 卓越的无缝拼接工艺技术, 维珍妮 为国际运动及休闲品牌伙伴开发出革新产品,因此纵使 退出与其他运动服装客户合作,运动服装订单数量依然录得增长,成为集团另一业务增长点。

越南VSIP厂房朝 全面投运迈进一大步,生产效益显著提升并达到预期

年内,配备更多自动化生产设施的越南 D及 E厂正式开始生产, 标志着 集团于越南海防市越南新加坡工业园(「 VSIP」)内的厂房 朝 全 面 投运 迈进一大步 ,使当地生产占总收入的比例由去年约 60%扩大至 2020财年约 73%。集团在越南 A及 B厂 的 运作日趋成熟,逾 一 年经验的熟练员工比例已达 73%,推动生产效益显著提升并达到预期。基于 A、 B厂房的成功运营经验,集团因应需求调整 C、 D及 E三厂的生产线配置,务求将效率及效益提升至最佳水平。


「疫」 境 中寻机 遇 开源节流并全面检视营运及生产流程, 打稳根基迎接经济复苏

展望未来,预期2019冠状病毒疫情为环球经济带来空前挑战及更多不确定因素。因应疫情所带来的冲击,包括一系列的关 店及政府措施影响,部份品牌伙伴于过去数月需暂时将若干订单推迟, 集团预期在封关措施过后, 市场需要时间 全面复原 ,而品牌伙伴很可能仍需时清理于疫情期间所积压的存货 因此 集团预期 2021财年的销售将受到影响。

纵然前景未明,管理层仍深信机遇与挑战并存。维珍妮 将积极为品牌伙伴研发能创造需求的产品,务求在疫情稳定后即能迅 速 推出市场,迎接反弹的消费需求。而 在中国,随着疫情受控和逐步复工复产,消费意欲将进一步释放 ,预计将迎来新一轮机遇 。因此, 中长线而言, 集团有意 投放更多资源 拓展 于 中国市场, 产品包括 贴身内衣及功能运动产品。

在产能规划方面,越南VSIP内的厂房已 大致投入营运 而尚在深圳生产的鞋类产品将在疫情稳定后转移至越南 E厂, 至 于 主要应用无缝针织机技术的越南 兴安省厂房 在 疫情影响下将稍延至 2021年 上半年 投产。鉴于在现有厂房扩大生产线及改善生产效率将足以推动中短期内增长,因此 集团 于 2020财年上半年已表明 暂无计划 再投资新生产设施 ,反而 专注提升现有及即将落成设施的效率及效益。至于深圳厂房将继续 专注 为品牌伙伴生产售予 中国 当地市场 的产品,
同时升级转型,以支援 集团跨行业及跨产品线业务开拓、 用于 消费 电子产品的布料加工及其他配件业务。此外
,集团 亦已 投入开发 防疫产品 包括布 口罩 及 防护衣) 、 运动类周边产品 及 健康类产品 等。此举不但可丰富产品组合、 提升 业务 抗 风险能力 ,更可善用现有技术及资源 贡献社区 ,达致三赢 。自今年初起 集团 已 为 现有品牌 伙伴生产防疫产品 正 申请符合国际规定的 生产 认证,并寻求与更多元化的客户合作,预期该等 需求将 持 续增长。

在开源 的 同时 ,集团亦致力 节流, 尤其在疫情下于 工 资 、原材料及营运上 实施更 严控 的 成本 控制 措施 如 按 实际 订单需求调整生产人员 及员工 的工作时间 包括于 深圳厂房实行轮休制度),并加强上游供应链管 理 ,从而减低工资和其他周边成本。明白到 审慎的财务政策 对于应对 这场疫情 同样重要, 集团会暂停不必要的固定资产投资,以降低资本开支 及确保营运现金流充裕 。除了稳定的营运现金流,集团亦拥有 充裕的 手头现金及 未提取银行信贷 总 额 ,能抵御市场风浪。

洪先生总结 「 维珍妮于过去 20多年经历不同经济周期的高低起跌,凭借管理团队的丰富经验及远大目光,面对眼前挑战,我们相信集团能迎难而上,并利用当前机会多角度深入检视内部营运及生产流程,精简架构及优化流程,以奠定更稳固的基础。我们将为品牌伙伴开拓更多高增值及性价比的创新产品,冀在经济复苏时能够迅速把握商机,并在行业整合中脱颖而出 。 」

Regina Miracle Announces FY2020 Annual Results Revenue Increases by 1.2% to HK$6.3 Billion Net Profit and EBITDA Increased 2.7% and 30.0% To HK$290.0 Million and HK$969.7 Million Respectively

06/03/2020 | Corporate

Regina Miracle Announces FY2020 Annual Results Revenue Increases by 1.2% to HK$6.3 Billion Net Profit and EBITDA Increased 2.7% and 30.0% To HK$290.0 Million and HK$969.7 Million Respectively

Optimised Production Layout with Factories in Vietnam VSIP Hài Phòng Largely Commenced Operation

Seize Business Opportunities by Innovations Amidst COVID-19 and Embrace Economic Recovery with Readiness

(Hong Kong, 29 June 2020) Regina Miracle International (Holdings) Limited (“Regina Miracle” or the “Company,” together with its subsidiaries, collectively the “Group”) (HKEX: 2199), a leading global intimate apparel company boasting an Innovative Design Manufacturer (“IDM”) business model, has announced its annual results for the year ended 31 March 2020 (“FY2020” or the “Year”).

In FY2020, the Group recorded a revenue of HK$6,341.0 million (FY2019: HK$6,263.3 million) amidst the difficult operating environment, representing a year-on-year increase of 1.2%. Benefiting from the rising production capacity and efficiency of its Vietnam factories, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 30.0% to HK$969.7 million, with EBITDA margin lifted meaningfully to 15.3% (FY2019: HK$745.9 million and 11.9%, respectively). Meanwhile, net profit rose by 2.7% to HK$290.0 million, with a net profit margin of 4.6% (FY2019: HK$282.4 million and 4.5%, respectively). Basic earnings per share attributable to owners of the Company amounted to HK23.7cents (FY2019: HK23.1 cents).

The Group is in a healthy financial position. In addition to stable operating cash flows, it also holds sufficient cash in hand and total undrawn bank facilities of approximately HK$587.6 million and HK$2,571 million, respectively as at 31 March 2020 (31 March 2019: HK$466.4 million and HK$1,731 million, respectively).
To share the positive results of the Group with shareholders, the Board has resolved to propose a final dividend of HK4.0 cents per share. Together with an interim dividend of HK3.8 cents per share paid, the total dividend will amount to HK7.8 cents per share (FY2019: HK7.6 cents), which is in line with the Group’s policy of paying no less than 30% of its net profit as dividends for the fiscal year.

Mr. YY Hung, Chairman, Chief Executive Officer & Executive Director of Regina Miracle, said, “Our production capacity layout and IDM capabilities in the PRC and Vietnam have already laid a solid foundation for the business before the Pandemic. By leveraging our ongoing advancements in craftsmanship, we have not only developed multiple trendsetting products and reinforced collaborative ties with world-renowned brand partners during the Year, but also made good use of our existing technologies and resources amidst this pandemic for business expansion towards pandemic prevention products such as fabric face masks and protective clothing, and at the same time invested resources in developing household and health concept products, as well as sports peripheral products, thereby enhancing our risk resilience while promoting the development of business diversification.”

Business Review

Doubled volume of Bra Top orders, strengthened ties with brand partners and better balanced customer portfolio
Bras and intimate wear products remain the major source of revenue of the Group. This segment contributed HK$5,061.4 million (FY2019: HK$4,874.6 million), representing a year-on-year increase of 3.8% and accounting for approximately 79.8% of the overall revenue. In addition, gross profit amounted to HK$1,183.8 million, with gross profit margin improving to 23.4% (FY2019: HK$1,070.3 million and 22.0%).

The chic bra top series sold successfully, which significantly bolstered the volume of orders. It not only became the major growth driver of this segment, but more importantly also contributed to a closer partnership with the brands, thus achieving a more balanced customer portfolio. Therefore, although the Pandemic spread across the globe in March had caused a delay in the shipment of certain orders, the revenue of this segment still recorded an increase during the Year.

Bra pads and other molded products remain stable; shipments of fabric processing and other electronic accessories for a well-known multinational tech firm

Revenue generated from bra pads and other molded products business amounted to HK$677.1 million (FY2019: HK$530.9 million), representing a significant year-on-year increase of 27.5%, amounting for 10.7% of the total revenue. Gross profit and gross profit margin from the segment were HK$144.2 million and 21.3% respectively (FY2019: HK$111.6 million and 21.0%, respectively).

The double-digit revenue growth of this segment was mainly driven by an increase in sales of fabric processing and other accessories used in consumer electronic products, which was the fruitful results of Regina Miracle’s R&D efforts in actively expanding its business across different sectors and product categories for nearly two years. During FY2020, not only did the Group record high double-digit growth in orders of virtual reality (VR) glasses accessories from its existing VR technology partner, but also gained a well-known multinational technology partner, for which the Group manufactured a wider range of components for consumer electronic products beyond VR glasses accessories. The revenue from bra pads maintained a moderate growth due to a slight increase in revenue from external sales of bra pads. The Group has reserved the majority of its bra pads capacity to facilitate in-house manufacturing of finished bras in recent years. At present, not only can the Vietnam factory completely self-supply bra pads, but it can also supply to the Shenzhen factory which helps strengthen its cost control.

Orders of international sports and leisure brand products achieve solid growth

The functional sports products business contributed HK$602.5 million (FY2019: HK$857.8 million) in revenue during the Year, a year-on-year decrease of 29.8%, and accounted for 9.5% of the total revenue of the Group. The segment also recorded a gross profit of HK$112.7 million and a gross profit margin of 18.7% (FY2019: HK$160.1 million and 18.7%, respectively).

The Group has executed the optimisation strategy for its brand customer and product portfolio in the second half of FY2019, with the aim of facilitating more effective allocation of R&D and production resources. For footwear business, the Group focused on cooperating with an American casual footwear brand partner during FY2020 after terminating its sports footwear business with another brand. As for the sportswear business, the Group also focused on cooperating with internationally renowned brands to promote the steady growth of its business. By leveraging the excellent craftsmanship of seamless bonding, Regina Miracle has developed innovative products for international sports and leisure brand partners. As a result, the Group recorded growth in sportswear order volume despite the exits of other sportswear customers, establishing another growth point of its business.

A big step towards the full commissioning of Vietnam VSIP factories, significantly drives productivity to an optimal level and meets expectations

During the Year, Factories D and E, which house more automated machineries, have formally commenced production, marking a big step towards the full commissioning of the Group’s factories located in Vietnam Singapore Industrial Park (“VSIP”) in Hài Phòng City, Vietnam, with the proportion of local production accounted for approximately 60% of the total revenue last year rising to approximately 73% in FY2020. Operations in Vietnam Factories A and B have steadily matured where skilled workers with over 1 year of experience accounted for 73%, which facilitated a significant improvement in production efficiency and met expectations. Based on the successful operation in Factories A and B, the Group adjusted the allocation of production lines across Factories C, D and E according to the demand, all in a bid to improve the efficiency of existing facilities and drive productivity to an optimal level.

Optimised cost structures, diversifying revenue streams, fully reviewing operation and production flows to lay solid foundation for seizing opportunities arising from the economic recovery

Going forward, the Pandemic is expected to bring unprecedented challenges and more uncertainties to the global economy. In response to the impacts brought by the Pandemic, including a series of shop closures and government pandemic prevention measures, some brand partners have temporarily postponed certain orders in the past few months. The Group expects the sales of FY2021 to be impacted given that the market will need some time to fully recover after the lockdown and it will likely take time for the brand partners to clear the inventory accumulated during the Pandemic.

Despite the uncertain outlook, the management is convinced that challenges coexist with opportunities. The Group will actively develop products that can generate demand for its brand partners, with a view to enabling swift market launch and catering to the rebound of consumer demands after the Pandemic has stabilised. In the PRC, as the Pandemic has come under control along with the gradual resumption of work and production, consumer sentiment is expected to revive and generate a new round of opportunities. Therefore, the Group intends to invest more resources for an expansion in the Chinese market in the medium-to long-term for business expansion, in relation to intimate wear and functional sports products.

In respect of capacity planning, the Group has largely commenced operation of all its factories at VSIP Hài Phòng in Vietnam, while the production of footwear products currently in Shenzhen is expected to be transferred to Vietnam Factory E after the Pandemic has stabilised. The facility in Hung Yen Province, Vietnam, which operates principally with seamless knitting technology, will defer its commencement of operation to the first half of 2021 due to the impact of the Pandemic. Given that production line expansion and production efficiency improvement in the existing factories will be sufficient to drive growth in the near- to medium-term, the Group has stated in the first half of FY2020 that it has no plans to invest in new production facilities in the next two years, but will focus on enhancing the efficiency and productivity of its existing and upcoming facilities. As for the Shenzhen factory, its will continue to focus on the manufacturing of products that are sold in the local Chinese markets of its brand partners, as the factory undergoes upgrade and transformation to support the Group’s business expansion that spans different sectors and product categories, fabric processing as well as other accessories for consumer electronic products.

Besides, the Group has also invested in the development of pandemic prevention products (including fabric face masks and protective clothing), sports peripheral products and health products. This will not only diversify its product portfolio and enhance business resilience against risks, but also contribute to communities by making the best use of its existing technology and resources to achieve an all-win outcome. Since the beginning of this year, the Group has produced pandemic prevention products for its existing brand partners. In the future, the Group will continue to apply for the production certificates of such products in line with international regulations, and seek cooperation with a more diverse clientele, as demand for pandemic prevention products is expected to continue to grow.

Given the commitment to reducing its costs while diversifying revenue streams, the Group imposes stricter cost control on labour, raw materials and operation, especially under the Pandemic, such as adjustments to the working hours of production staff and employees based on actual orders (including the implementation of a rota system in the Shenzhen factory), and the enhancement of upstream supply chain management, all in a bid to reduce labour costs and other peripheral costs. Also mindful of financial prudence during this Pandemic, the Group will temporarily suspend unnecessary investment in fixed assets to reduce capital expenditure and ensure sufficient cash flow for operations. Apart from its stable operational cash flow, the Group is positioned with ample cash on hand and undrawn total bank credit, enabling it to withstand market fluctuations.

Mr. Hung concluded, “Regina Miracle has undergone multiple economic cycles for more than two decades. Leveraging our experienced management team with great visions, we believe the Group can prevail over difficulties and break new grounds in business with steady and prudent development policies, and make good use of current opportunities to review internal operations and production processes so as to lay a solid foundation for long-term development by streamlining the structure and optimising processes. We will create more high value-added and cost-effective innovative products for our brand partners with the goal to swiftly seize opportunities when the economy recovers and stand out in the industry integration.”