- Bonding Technology Empowers Product Category Upgrades
- Dual-Base Layout Strengthens Supply Chain Resilience
- Unwavering Focus on Core Businesses Bolsters Operational Foundation
HONG KONG, June 29, 2026 - (ACN Newswire) - Highlights
- Resilient Overall Performance: Total revenue reached HK$7,717.7 million for Fiscal 2026, maintaining business stability amid macroeconomic volatility and a polarized consumer market
- Continued Robust Performance of VS China, Effective Cost Reduction and Efficiency Enhancement Initiatives: The Group's net profit grew 53.9% to HK$283.0 million, and basic earnings per share rose to HK23.1 cents
- Positive Momentum in Sports Products Segment: Sports products segment revenue rose year-on-year to HK$3,083.4 million, accounting for 40.0% of total revenue, and achieving double-digit growth excluding base effects
- Commercial Breakthrough in Core Technology: Proprietary Bonding functional sportswear has officially entered the commercialization stage, expanding high value-added business opportunities while earning recognition from multiple international sports brands
- Optimization of Dual-Base Supply Chain Layout: Production capacity layout in China and Vietnam has continued to improve. The relocation of the Shenzhen R&D center to Zhaoqing is largely complete, and overseas production capacity ensures stable production and delivery through operational optimization
- Clear Profitability and Financial Planning: To focus on securing 'Better & Best' quality orders and optimize order structure, while striving to reduce debt level
- Committed to Shareholder Returns: Proposed a final dividend of HK5.3 cents per share, which together with the interim dividend of HK5.7 cents per share, brings the full-year dividend payout ratio to 47.6%
Regina Miracle International (Holdings) Limited ('Regina Miracle' or the 'Company', together with its subsidiaries, the 'Group') (HKEX: 2199), a leading global intimate wear company boasting an innovative design manufacturer ('IDM') business model, has announced its annual results for the year ended 31 March 2026 ('Fiscal 2026' or the 'Year").
Despite macroeconomic volatility and a polarized consumer market, the Group's revenue for Fiscal 2026 remained stable at approximately HK$7,717.7 million (Fiscal 2025: HK$7,840.0 million). Gross profit amounted to HK$1,739.0 million, representing a gross profit margin of 22.5% (Fiscal 2025: HK$1,832.6 million and 23.4%, respectively). Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled approximately HK$1,143.7 million, with an EBITDA margin of 14.8% (Fiscal 2025: HK$1,057.8 million and 13.5%, respectively). The Group recorded net profit of approximately HK$283.0 million, with a net profit margin of 3.7% for the Year (Fiscal 2025: HK$183.9 million and 2.3%, respectively). Basic earnings per share attributable to owners of the Company was HK23.1 cents (Fiscal 2025: basic earnings per share of HK15.0 cents). Excluding exceptional restructuring costs, adjusted EBITDA was approximately HK$1,382.3 million, and the adjusted EBITDA margin was 17.9% (Fiscal 2025: HK$1,276.3 million and 16.3%, respectively). Adjusted net profit for the Year was approximately HK$590.3 million, with an adjusted net profit margin of 7.6% (Fiscal 2025: HK$402.4 million and 5.1%, respectively).
During the Year, the Group maintained a solid financial position, with net current assets of approximately HK$1,806.8 million (Fiscal 2025: HK$1,566.6 million). As at 31 March 2026, total undrawn banking facilities amounted to approximately HK$4,153.9 million (31 March 2025: approximately HK$3,810.2 million). To share the positive results with shareholders, the Board has resolved to recommend the distribution of a final dividend of HK5.3 cents per share for Fiscal 2026 (Fiscal 2025: HK4.3 cents). Together with the interim dividend of HK5.7 cents per share, the total dividend amounts to HK11.0 cents, which is in line with the Group's dividend policy of distributing no less than 30% of its net profit for the financial year to its shareholders.
Mr.YY Hung, Chairman, Chief Executive Officer and Executive Director of Regina Miracle, said, 'Over the past year, Regina Miracle has steadfastly implemented its strategy of 'prioritizing and strengthening core segments', primarily focusing on four key pillars, namely product innovation, a robust brand portfolio, supply chain resilience and operational efficiency enhancements, to advance its business. We have continued to innovate alongside our brand partners and are encouraged that our proprietary Bonding functional sportswear business has effectively responded to the market's pursuit of specialized vertical scenarios and refined user experiences, successfully entering the commercialization stage. The Group has also strengthened its supply chain resilience and service capabilities for brand partners. Leveraging our synergistic dual-base layout, we have proactively addressed external challenges and strived to establish a supply chain combining stability, agility, and cost-effectiveness. Meanwhile, we have enhanced efficiency through lean management, thereby reinforcing our development foundation. These multiple measures reflect Regina Miracle's unwavering determination to consolidate its position as a core supplier to brand partners, and its commitment to creating long-term and sustainable value for all stakeholders.'
Business Review
Sustaining competitive advantage in the intimate wear segment, supported by continued strong sales of key collections from the core brand partner
As the Group's main source of revenue, this business segment contributed approximately HK$4,198.3 million in revenue during Fiscal 2026, accounting for 54.4% of the Group's total revenue. The segment's gross profit was approximately HK$997.1 million, with a gross profit margin of 23.8%. During the Year, business with the Group's core brand partner delivered strong performance, particularly in the second half of the fiscal year, with the continued robust sales of the key collections driving up its revenue. The related revenue growth effectively offset the impact of order adjustments by certain international brand partners due to weak market demand and tariff policies.
Sports products segment delivers solid performance, with expansion into specialized categories yielding fruitful results
This business segment contributed approximately HK$3,083.4 million in revenue for Fiscal 2026, representing a year-on-year increase of 5.1% and accounting for 40.0% of the Group's total revenue. Segment gross profit was approximately HK$660.3 million, with a gross profit margin of 21.4%. During the Year, the Group targeted the development of specialized sports categories such as running and high-end outdoor sports, driving favorable growth in order revenue from major sports brand partners. Excluding the high-base effect resulting from the launch of sports product lines by a major US intimate wear brand partner last year, the segment delivered sustained double-digit growth. In particular, the Bonding functional apparel business, as the Group's core development focus, maintained strong momentum, further contributing to the Group's business growth.
Enhancing dual-base supply chain resilience with domestic base consolidation in place and ongoing optimization of overseas capacity
In terms of production capacity layout, the relocation of the Shenzhen R&D center to Zhaoqing was largely completed, with overall operations gradually stabilizing. Corresponding asset write-offs and seniority compensation expenses will be concluded within Fiscal 2027. The Zhaoqing base will continue to uphold the 'China for China' strategy, leveraging its rapid response capabilities as well as R&D and manufacturing advantages to precisely meet the agile demands of brand partners in the PRC market.
For overseas production capacity, in response to the dual impact of the changing geopolitical landscape and the continuous rise in labor costs driven by the local investment boom, the Group has implemented a series of operational optimization measures during the Year. On one hand, it has reinforced workforce stability; on the other hand, it has coped with order growth by improving production efficiency and arranging compliant overtime, so as to ensure stable production and on-time delivery.
During the Year, the Vietnam production base accounted for 83% of the Group's total revenue. As at 31 March 2026, the Group employed approximately 29,000 staff in Vietnam and approximately 6,000 staff in the Chinese Mainland, with the latter contributing 17% of the Group's total revenue.
VS China further deepens its localized footprint, contributing steadily to the Group's IDM business growth
VS China recorded revenue of approximately HK$2,799.0 million in Fiscal 2026, representing a year-on-year increase of 42.4%. Net profit reached approximately HK$524.5 million, a year-on-year increase of 512.7%. The Group holds a 49% equity interest in VS China, and its share of net profits of associates accounted for using the equity method was HK$257.0 million for the Year. During the Year, VS China sustained robust growth momentum, primarily attributable to the continuous enhancement of brand awareness in the PRC market, as well as its long-term strategic deployment in localized merchandising and marketing initiatives. These efforts have optimized the consumer experience and solidified the brand image in the local market, delivering a steady incremental contribution to the Group's IDM business.
Focusing on High-Quality Orders to Drive Core Business Performance; Navigating Macro Uncertainties with Prudence while Enhancing Operational Efficiency to Solidify Competitive Advantages and Create Long-Term Shared Value
The global macroeconomic and geopolitical environment is expected to remain challenging. In particular, recent fluctuations in oil prices caused by geopolitical conflicts have directly impacted energy and raw material costs across the industry's supply chain. Additionally, the risk of exchange rate volatility arising from the anticipated appreciation of RMB will add further uncertainty to companies' operating costs. In the apparel consumer market, demand is generally evolving toward more granular segmentation, enhanced precision, and a heightened focus on specialized experiences. Consumers are attaching increasing importance to product functionality, comfort, and quality-driven value, prompting brands to refocus on in-depth product innovation and pursue a differentiation strategy to stand out from their peers. This trend is fueling particularly strong growth in niche segments such as professional sports and outdoor apparel. As global brands place increasingly stringent demands on supply chain reliability, product innovation, and rapid response capabilities, the competitive advantages of leading supply chain enterprises that possess scalable manufacturing capacity, global presence, and robust R&D capabilities will become more pronounced. In the face of an evolving industry, Regina Miracle will continue to deepen its craftsmanship and technological innovation, optimize production capacity allocation, and actively seize opportunities arising from industry consolidation.
Elevate the Bonding apparel business and steadily expand the professional sports market
Leveraging the technical expertise and development momentum gained from its proprietary Bonding craftsmanship, the Group has not only continued to fuel the growth of its foundational core businesses of intimate wear and sports bras, but also successfully extended this technical advantage into the professional sportswear segment and achieved breakthroughs. Its competitive edge has now been recognized by major brand partners, with partnerships expanding from emerging brands to various international sports brands. Looking ahead to the next three to five years, the Group will focus on the demand for affordable premium Bonding sportswear, striking a balance between order scale and operating efficiency, and further expanding the economies of scale for high value-added products. This business is expected to serve as a sustained growth engine, propelling steady enhancements in overall performance.
Focus on 'Better & Best' positioning, optimize production capacity structure and restore profitability
The Group will further strengthen the synergistic operations of its dual production bases in China and Vietnam to comprehensively enhance its operational agility and risk resilience. With regard to overseas production capacity, operations in Vietnam consistently maintain a solid level of profitability overall. As for domestic production capacity, the Zhaoqing production base will focus on expanding its business scale to effectively amortize upfront fixed costs and strengthen its profit model. Overall, the Group will allocate core capacity towards orders that align with its 'Better & Best' positioning, and steadily restore and enhance overall profitability by optimizing its order structure.
Prudently evaluate capital allocation and adhere to three-year debt reduction target
Having passed the peak of capital expenditure, the Group will maintain a prudent approach when evaluating capital allocation to respond to market opportunities. During the Year, the Group repaid a portion of its bank borrowings. While balancing shareholder returns, the Group will continuously endeavor to reduce its debt level to enhance financial robustness.
Actively implement decarbonization targets and pioneer a sustainable future
Since establishing the '2030 Sustainable Development Goals', Regina Miracle has consistently integrated environmental, social and corporate governance (ESG) principles into its core operations, with a focus on the four key areas of carbon reduction, waste management, sustainable innovation, and people and community. During the year, the Group's short-term, medium-term, long-term and net-zero greenhouse gas (GHG) emission targets were officially approved and validated by the Science Based Targets initiative (SBTi), marking steady progress towards its vision of achieving net-zero emissions by 2050.
Mr. Hung concluded, 'Looking ahead to Fiscal 2027, while there remain numerous uncertainties in the business environment and consumer market, the Group notes that industry-wide inventory levels have improved compared with last year, and the market is gradually returning to rationality. Regina Miracle will continue to optimize the allocation of its R&D resources, leverage its integrated strengths, including innovative craftsmanship, to strengthen the development of its core businesses. Going forward, it will strategically focus its core production capacity on quality orders that align with its 'Better & Best' positioning, and drive high-quality business growth by optimizing the order structure while maintaining economies of scale. Meanwhile, the Group will continue to advance automation upgrades and craftsmanship innovation to comprehensively enhance operational efficiency and steadily restore profitability, ensuring its long-term, resilient and sustainable development.'
About Regina Miracle International (Holdings) Limited (HKEX: 2199)
Founded in Hong Kong in 1998, Regina Miracle International (Holdings) Limited is a global leader in the intimate wear manufacturing industry. By adopting an innovative design manufacturer ('IDM') business model and building on a diverse technology matrix with three core technologies: computer aided mold design and production, 3D compression molding, and seamless bonding, Regina Miracle is able to develop and produce market-leading products for its long-standing world-renowned brand partners which cover various key sectors comprising intimate wear (including bras, panties, shapewear), bra pads and other accessory products, sports products (including sports bras, functional sports apparel), and consumer electronics components, and facilitate cross-sector and cross-category applications.
Source: Regina Miracle International (Holdings) Limited
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