Driven by a robust performance in its textiles business, Hong Long listed Victory City International Holdings Ltd witnessed an impressive rise in sales in the first half of the current financial year 2013-14.
The company, which is one of the world’s largest knitted fabric manufacturers, posted 25.4 per cent rise in consolidated revenue at HK$ 2,500 million in the six months ended 30 September 2013 from HK$ 1,994 million from the same period a year ago.
Sales from the knitted fabric and dyed yarn business, which accounted for nearly 70 per cent of the company’s total revenue in H1 FY 2013-14, rose by nearly 20 per cent, year on year at HK$ 1,745 million driven by higher export orders from the US even as domestic demand remained soft.
Driven by higher production efficiency amid economies of scale, margins of the company’s textiles business witnessed an improvement in in H1 FY 2013-14.
Sales from the company’s garment business witnessed a 6.7 per cent dip at HK$ 549.9 million in the six months ended 30 September 2013 from the same period a year ago as revenue from garment manufacturing fell due to a slowdown in orders in the Chinese domestic market amid sluggish economic growth.
The garment and the resin business which recently commenced operations, accounted for 22 per cent and 8 per cent of total consolidated sales, respectively, in H1 FY 2013-14.
The company posted a profit attributable to equity shareholders of HK$ 140.3 million in H1 FY 2013-14.
Victory City International Holdings Ltd has expressed optimism over the business growth and outlook. Expansion in production capacity and timely market response are factors that may help the company to build on the current growth momentum.