Gelonghui, May 16, 丨 Minhua Holdings (01999.HK) announced its results for the year ended March 31, 2024. During the review period, the company actively developed overseas markets, adjusted domestic sales strategies in the new period, and effectively strengthened internal management to better control costs and expenses. During the reporting period, it achieved operating income of HK$18.411 billion, an increase of 6.1% over the previous year. Profit attributable to the company's equity owners was HK$2,302 billion, an increase of 20.2% over the previous year. The brand sales business in China accounted for more than 65% of the Group's revenue during the review period, and the profit attributable to the company's equity owners increased by about 25.5% in RMB. The Board recommended declaring a final dividend of HK15 cents per share for the 2024 financial year.
Chinese market
The Group has long insisted on product development as the core, and the strategic advantage of simultaneous brand and pipeline empowerment has gradually become prominent. In a market environment of sluggish and relatively weak demand after the real estate regulation policy, the company achieved main business revenue (excluding other business revenue) of HK$11.987 billion in the Chinese market, an increase of 8.1% over the same period last year, and an increase of 12.8% in RMB.
The Group has a strong first-mover advantage in traditional e-commerce sales platforms such as Tmall and JD, as well as live e-commerce. Use the millions of user fans and brand benefits accumulated over the past ten years to empower the transformation of offline stores. Online, it continues to strengthen brand influence and increase sales through short video promotion, live streaming from its own stores, and in-depth cooperation with leading anchors. In the offline sales pipeline in the Chinese market, we are focusing on scientific store-to-store growth management this year to make store management more detailed and healthy. According to our national urban store layout and the current economic and consumer market situation in the 2024 fiscal year, we focus on developing stores in the sinking market and adding a cost-effective series in Tier 1 and 2 cities. On March 31, 2024, the Group had a total of 7,236 brand stores in China (not including Style and Suning stores), and achieved a net increase in the number of specialty stores by 765 during the review period.
Overseas markets
During the review period, overseas market demand and order recovery were quite obvious. We actively participated in the exhibition to expand new customers in new channels, reshaped the talent development of the sales team, and strengthened the development and upgrading of new export products. Since the second half of FY2024, the Group's overseas revenue has maintained rapid double-digit growth, making up for the impact of the decline in orders in the first half of FY2024.
During the review period, the Group's revenue from the North American market was HK$4.284 billion, up 2.3% year over year. During the review period, the Group's revenue from Europe and other overseas markets (excluding Home Group) was HK$1,195 million, up 2.9% year over year. During the period under review, Home Group's revenue increased by approximately 10.0% year-on-year to HK$674 million. The Group's production facilities in Ukraine were not seriously damaged during the review period, but management will continue to monitor the situation in Ukraine during the Russian-Ukrainian war.