Virgin Annual Revenue Growth Is Low, Underwear Category Is Popular.

Underwear manufacturer vivieni International Holdings Limited (hereinafter referred to as Virginia) has announced the year-round results announcement for the year ended March 31, 2020.

As the secret of Vitoria, the representative factory of China used to have a lot of interest in the past few years. Jeanne's interest fluctuation is closely related to the fact that the decline of the brand side's fine performance can have a great impact on the foundries. But this year, Victoria's British company is no longer affected by the global economic fluctuation and epidemic situation, but Virginia has maintained a small growth under the severe operating environment.

The report shows that although the new crown has brought a shock to the global economy, Virginia's financial performance this year is still more optimistic. During the year, the Group recorded an income of HK $6 billion 341 million, an increase of 1.2% over the 2019 fiscal year. Gross profit increased by 7.4% to HK $1 billion 441 million, and gross margin increased to 22.7%. Thanks to the continuous improvement of productivity and efficiency in Vietnam, Virginia's profit margin has continued to improve. Among them, as the three branches of Virginia group, the annual revenue of bust and chest Cup products is on the rise, and the sales of functional sports products have declined year by year.

With the change of underwear consumer groups' preferences and needs, underwear products with high comfort and high cost performance have been favored by consumers. Bra and underwear products are still the main source of income for virgin, and many innovative products such as fashion, underwear and so on have also brought steady orders during the epidemic. This part contributed HK $5 billion 61 million over the past year, an increase of 3.8% over the same period last year, accounting for about 79.8% of the total revenue.

The revenue of chest and other moulded products business was HK $677 million, a significant increase of 27.5% over the same period last year, accounting for 10.7% of the total revenue. The growth of this sector is mainly due to the doubling of the sales of fabric processing and other accessories for consumer electronics, which is the result of Virginia's research and development in the past two years.

Functional sports products contributed HK $603 million in revenue during the year, representing a decrease of 29.8% compared to the same period in 2019, accounting for 9.5% of the group's total revenue. Virginia said that this part of the decrease in income is related to the optimization strategy of brand implementation. In shoes and sportswear business, Virginia always maintained good cooperation with other brands, while adhering to the innovative attitude of production design, so the number of orders also showed an increasing trend.

In addition, as the efficiency of Vietnam's factories continued to improve and the cost of raw materials decreased, the percentage of group sales cost to total revenue fell from 78.6% in fiscal 2019 to 77.3% in fiscal 2020. In recent years, Virginia has accumulated several years of experience in plant operation, and its cost reduction is conducive to maintaining production during the epidemic. At the same time, Virginia pioneered a number of leading products, consolidating its partnership with world-renowned brand partners, making better use of existing technologies and resources to develop anti epidemic products, developing household and health concept products, and actively enhancing risk tolerance.

In the report, Virginia also pointed out that the challenge posed by the new crown is still thorny. A series of customs clearance and government anti epidemic measures affect normal business. The delay in order of the brand partners is also a major factor. The closure policy of the Vietnamese government affects the overall production efficiency, and the operation of deleveraging has led to the challenge of pure profit performance. Therefore, sales in the first quarter of fiscal year 2021 are expected to decline by a double digit decline over the same period in the 2020 fiscal year. But in addition to the challenge, Virginia is actively expanding its sales channels, improving product strength and improving confidence in the development of the group.