Speed Apparel achieved profit turnaround in the first half of FY2017/2018

Continue to explore opportunities to diversify operation and strengthen design team


Highlights

  • Revenue was recorded of approximately HK$197.2 million
  • Adjusted profit and total comprehensive income attributable to owners of the Company*  amounted to approximately HK$2.8 million
  • Continue to explore opportunities to diversify the Group’s operation, expand the markets and types of customers served
  • Intend to set up new merchandising teams and strengthen design team
  • Intend to set up a new office and showroom in Japan to enhance services to existing customers and explore new customers and business opportunities

 

Financial Highlights

 

 

 

 

6 months ended 30 September

 

HK$‘000

2017

2016

Change

Revenue

197,223

 204,328

-3.5%

 Sales of womenswear

155,247

157,738

-1.6%

 Sales of menswear

41,976

46,590

-9.9%

Gross Profit

27,914

29,781

-6.4%

Profit before taxation

1,364

176

+675%

Profit (loss) and total comprehensive income (expense) for the period attributable to owners of the Company

846

(907)

Adjusted profit and total comprehensive income attributable to owners of the Company*

2,797

5,587

-49.9%

Earnings (loss) per share (HK cents)

0.17

(0.23)

*Excluding non-recurring listing expenses

 

HONG KONG, CHINA – Media OutReach – 7 November 2017 – Speed Apparel Holding Limited (“Speed Apparel”, together with its subsidiaries, the “Group”; HKSE: 8183), announced its interim results for the year ended 30 September 2017 (the “Reporting Period”). During the Reporting Period, Speed Apparel recorded a total revenue of approximately HK$197.2 million (2016: HK$204.3 million). Profit and total comprehensive income attributable to owners of the Company amounted to approximately HK$0.8 million (2016: loss of HK$0.9 million). Earnings per share was HK$0.17 cents.

 

If the non-recurring listing expenses of approximately HK$2.0 million were excluded (2016 corresponding period: approximately HK$6.5 million), the Group’s adjusted profit and total comprehensive income attributable to owners of the Company for the six months ended 30 September 2017 would have been approximately HK$2.8 million.

 

Business Review

 

The Group’s knitwear products can be divided into two categories, namely womenswear and menswear. During the Reporting Period, the Group’s revenue was mainly derived from the sales of womenswear, which accounted for approximately 78.7% of the Group’s total revenue. Revenue derived from the sales of womenswear recorded approximately HK$155.2 million. The sales volume of the Group amounted to approximately 3.6 million pieces of finished knitwear products and the sales volume of womenswear increased to approximately 3.0 million pieces (2016: approximately 2.9 million pieces).

 

During the six months ended 30 September 2017, the Group’s revenue and profit were affected by the decrease in demand from existing customers although the end consumers’ sentiment improved in the global apparel retail market. Despite facing the challenging trading environment during the Reporting Period, Speed Apparel endeavoured to maintain the gross profit margin whilst offering satisfactory supply chain management total solutions to its customers.

 

Future Prospects

 

The Directors believe that the listing of the Shares on GEM will enhance the Group’s profile and the Net Proceeds from the Share Offer will strengthen the financial position and will enable the Group to implement its business plans set out in the Prospectus. Furthermore, the listing status on the Stock Exchange will offer the Group access to capital markets for corporate finance exercise, assist the Group in further business development and strengthen the Group’s competitiveness.

 

The Group always strives to remain flexible and sensitive to the increasing and changing needs of the customers and to create the best tailor-made designs and products for them at competitive prices. The Group plans to recruit suitable candidate(s), who should have extensive networks and immense experience in the apparel industry worldwide, to join the Group as employee(s) for introducing to the Group new customers and business opportunities with the aim to further broaden the Group’s customer base for continuous growth, if and when the opportunity arises.

 

The Group will set up new merchandising teams and strengthen the design team. The Group also plans to set up a new office and showroom in Japan with a view to enhancing services to existing customers as well as introducing to the Group new customers and business opportunities to the extent that the Group’s customer base will be further broadened for continuous growth of the Group. The Directors are confident that the Group is able to expand the markets and types of customers served and to become one of the major supply chain management companies in Hong Kong.

 

The Directors will also continue to explore opportunities to diversify the Group’s operation so that the customer base could be strengthened and diversified. The Directors will continue to review and evaluate the business objective and strategy and make timely execution taking into account the business risks and market uncertainties. The Directors believe that the Group is able to retain existing customers by offering satisfactory supply chain management total solutions.

 

About Speed Apparel Holding Limited

Speed Apparel is an apparel supply chain management services provider. Headquartered in Hong Kong, the Group principally sells knitwear products. The Group provides one-stop apparel supply chain management solutions for its customers ranging from fashion trend analysis, product design and development, sourcing and procurement of materials, production management, quality control and logistics services. Majority of the Group’s products were sold to Japan.