On November 8, GLONGHUI (02368.HK) announced that in the six months ended September 30, 2024, operating income increased by 18.3% to HK$2.983 billion, and gross margin decreased by 3.4% to 17.1% from 20.5%. Profit attributable to company owners was HK$0.183 billion, a year-on-year decrease of 20.1%. The board of directors decided on an interim dividend of HK22 cents per share.
The Group's main sales markets are still mainland China, the United States and Europe. Mainland China is still the Group's largest market. Sales in the mainland China market account for nearly 60% of the Group's total sales, similar to the same period last year. The Group's production base in mainland China is mature and can provide stable enough production capacity to meet domestic sales needs. In response to the imposition of tariffs on products produced in mainland China and sold to the European and American markets due to the Sino-US trade war, the Group has concentrated on actively developing overseas production bases in recent years to further develop the European and American markets. As mentioned above, in January 2024, the Group acquired land adjacent to its existing production base in Bandung, Indonesia, with a land area of about 93,000 square meters. The acquisition of the production base “Vietnam Eagle Beauty” in Long An Province, Vietnam in May 2022 was officially put into operation during the period. It not only increased the Group's production capacity, but also became another development center for the Group, providing the Group with development model functions and further enhancing the Group's business development capabilities. In July 2024, the Group completed the acquisition of “Vietnam Dingsen”, another production site in Long An Province, Vietnam. The production base is a factory already in operation. Prior to the acquisition, it had provided manufacturing services to one of the Group's major customers. The factory not only immediately provided production capacity, but also provided huge development space to expand potential production capacity. It is currently in the process of integration with the Group's operating process.
