Dai Lingsi, A Global Lingerie Company, Made A Profit Of HK $1 Billion 132 Million.

Dai Li Si International Limited, an underwear processing enterprise, released its 2014 annual report (June 30th July 1, 2013 ~2014). During the period, the company made a profit of HK $1 billion 132 million, with a net profit of HK $39 million.

In addition, the board of directors and dis international decided to pay HK $0.05 per share and a special dividend of HK $0.05 per share.

Delis's main underwear, mainly bra products, is one of the largest bra manufacturers in the world (OEM).

The group is mainly concentrated in the European and American markets, but it has been underperforming in the past 5 years due to the double attack of cost increase and financial crisis.

Last fiscal year,

The loss was HK $4 million 300 thousand, but the amount of loss has narrowed further than before.

On the performance of the year, the board expressed satisfaction with the increase in sales and gross profit, the decrease in general administrative expenses and the profits from the sale of leased land and buildings, which amounted to about HK $18 million 500 thousand.

According to the annual report, the gross profit margin increased from 17% last year to 18% this year.

In the half year, the gross profit margin in the first half of 2014 was improved from 17% to 19% in the second half of the year.

Delis chairman Feng Weiyao has said before that the company will continue to attack the high-end underwear and trousers business with high gross profit margins in the future.

In fact, with the increase of the gross profit margin, the turnaround of performance is mainly due to the implementation of cost control measures by the group.

As domestic labor costs continue to rise, Dai Li Si, a foundry company, has been reducing domestic production capacity in various ways in recent years.

At the end of 2011, there was a downtime in Shenzhen. In mid 2012, she announced the closure of the Shenzhen plant which has been in operation for more than 20 years.

Since then, the company's management has said that no new factories will be built in the mainland in the future.

Public data show that since 2011, dilis international has begun to expand Thailand's capacity continuously and has invested in building a new factory in Kampuchea.

Latest annual report

The proportion of overseas production in China has been adjusted from last year's 55%:45% to 47%:53% this year.

The output of Thailand's factory buildings was the highest, reaching 47%, up 7% from the previous year, and the output of Kampuchea's factory buildings was 6%, up 1% from the same period last year.

Feng Weiyao said that it will continue to control the cost and maintain gross profit margins by expanding the scale of production in Thailand and Kampuchea. It is estimated that the proportion of mainland production will drop to 1/3 in the future.

It is worth noting that in recent years, the cost of labor in Southeast Asia has been rising, and strikes in some countries have been frequent, which has also affected Delis.

It is understood that at the end of December 2013 ~2014, at the beginning of January, the Kampuchea plant was temporarily suspended.

To compensate for the related losses,

A new plant has been built in Burma and is expected to be put into operation in the fourth quarter of 2014.

According to the plan, the new plant will be used as a satellite plant in Thailand headquarters, and the initial operation will be small.

At the same time, goods imported from Europe to Burma are exempt from customs duties. Dis says European customers are very supportive of their development in Burma.

Since the financial crisis, Europe and the United States continued to be weak in the market atmosphere, which is one of the main reasons for Delis's previous performance slump.

In the latest earnings report, Delis said that the consumption of the market is still weak, and its consumer attitudes in the European and American markets have become prudent since the financial crisis and continue to be priced.

Although sales are relatively low, the company is still optimistic about its future development. It believes that it will continue to be the preferred business partner of the group with its production scale and production technology, capacity distribution facilities in many countries and good reputation established over the years.