Gelonghui November 8th 丨Yingmei (02368.HK) announced interim results. For the six months ended September 30, 2023, the Group's total sales remained stable at HK$2,521.9 billion, with sales falling by HK$25.7 million (or 1.0%). Gross profit declined slightly by HK$5.9 million (or 1.1%) to HK$517.9 million. Gross margin declined slightly by 0.1% from 20.6% to 20.5%. The Group's pre-tax profit declined slightly by HK$5 million (or 1.5%) to HK$326.6 million, and the pre-tax profit margin fell slightly from 13.0% to 0.1% to 12.9%.Profit attributable to company owners was HK$229.2 million, down 4.1% year on year. The board of directors decided to declare an interim dividend of HK30 cents per share.
After the epidemic eased in 2022, the recovery of the global economy prompted a rise in demand for consumer goods, which led to an increase in the Group's sales last year. However, in 2023, the global economy will continue to be adversely affected by high interest rates, and demand in the consumer goods market will slow down. The Group's main sales markets are mainland China, the US and Europe. Based on the fact that the penetration rate of the sportswear market in mainland China is lower than that of mature countries in Europe and the US, there is more room for potential growth. In addition to the fact that local sportswear brands in mainland China are gradually receiving attention from local consumers, mainland China has become one of the world's major sporting goods consumer markets.
In the review period, the sales volume of the mainland China market increased significantly by HK$278,400,000 over the same period last year, accounting for the Group's total sales ratio increased by 11.6% to 58.5% from 46.9%. Domestic sales orders from international sportswear brands and local sportswear brands both increased significantly during the review period. However, the European and American markets were affected by high interest rates, and consumer attitudes became more cautious. The sales volume of the US and European markets decreased by HK$161.4 million and HK$122.6 million, respectively, accounting for 6.2% and 4.7% of the Group's total sales. As the consumption continued, the Group's total sales during the period remained stable compared to the same period last year.