Baleno's parent company TEXWINCA HOLD: Double 11 single-day sales hit a new high, prioritizing the development of e-commerce business

Baleno's parent company TEXWINCA HOLD (00321.HK) Executive Vice Chairman Pan Haode indicated that this year's Double 11 single-day sales reached a record high, exceeding 10 million yuan. In the first half of the year, the e-commerce business GMV grew by 46% year-on-year to HKD 350 million, and there will be increased light asset investment in e-commerce in the future.

Regarding the textile and apparel business, Pan Haode stated that the market generally expects U.S. tariffs to be adjusted, renegotiated, and expanded in phases, and ongoing volatility may become the new normal. The situation of customers delaying orders may reoccur, and the group will continue to strictly control inventory to reduce the risks of inventory backlog or shortages caused by tariffs, while accelerating inventory turnover and reducing working capital occupancy.

In terms of retail business, TEXWINCA Executive Director and CEO He Lihong hopes that the business losses in the second half of the fiscal year will continue to narrow. The group continues to optimize its physical store network in mainland China and Hong Kong to reduce segment losses in offline retail and distribution. In the short to medium term, the group will prioritize the expansion of e-commerce business through self-operated sales and strategic cooperation with leading e-commerce platforms. As of September 30 of this year, the number of self-operated physical stores in mainland China and Hong Kong decreased by 244 compared to the same period last year.

He Lihong stated that there are currently no plans to open new stores in Hong Kong. In the first half of the year, same-store sales in physical stores in Hong Kong increased by 5% to 6% year-on-year, reflecting a stabilization in the local retail environment, and hopes to maintain stability in the second half of the fiscal year.

Regarding dividends, he mentioned that the dividend payout ratio for the first half of the year was about 50%, and the group hopes to maintain a payout ratio of 60% to 80% for the entire year. Additionally, the group maintains a healthy cash flow, with net cash reaching HKD 1 billion in the first half of the year, an increase of HKD 300 million compared to the end of March, mainly due to increased operating cash flow