Best Pacific FY2025 Results: Revenue Slips 0.8% to HK$5.02 B, Net Profit Down 4.5%, Dividend Cut to HK$0.14

Bulletin Express03-23

Best Pacific International Holdings reported FY2025 revenue of HK$5.02 billion, a marginal 0.8 % decrease from FY2024’s HK$5.06 billion. Profit attributable to shareholders fell 9.3 % to HK$551.36 million, while total net profit declined 4.5 % to HK$567.61 million.

Gross profit eased 1.4 % to HK$1.34 billion, with margin edging down 0.2 ppt to 26.6 %. Net margin slipped 0.4 ppt to 11.3 %. Basic EPS dropped to HK$0.5302 (FY2024: HK$0.5848).

Product mix—Elastic fabric remained dominant at 78.2 % of sales: • Sportswear & apparel elastic fabric: HK$2.80 billion (flat YoY, –0.2 %). • Lingerie elastic fabric: HK$1.13 billion (–6.9 %). • Elastic webbing: HK$1.05 billion (+6.1 %). • Lace: HK$50.29 million (–17.8 %).

Cost of sales decreased 0.6 % to HK$3.68 billion, supported by softer raw-material prices, but higher labour costs limited margin expansion. Other income more than doubled to HK$85.11 million, buoyed by a HK$42 million performance bonus from customers and higher scrap-sales proceeds. A HK$8.76 million foreign-exchange loss weighed on earnings versus a HK$38.86 million gain a year earlier.

Operating cash flow strengthened to HK$1.11 billion (FY2024: HK$760.6 million), aided by lower raw-material purchases. Capital expenditure rose to HK$540.90 million, reflecting investment in new machinery and land for the Nghe An facility in Vietnam. Net debt fell to HK$247.93 million, cutting the net gearing ratio to 6.4 % (FY2024: 13.5 %).

The board proposes a final dividend of HK$0.14 per share (FY2024: HK$0.1591), bringing the full-year payout to HK$0.265 per share (–6.7 % YoY). Payment is scheduled for 6 July 2026, subject to shareholder approval at the 9 June 2026 AGM.

Looking ahead, management plans to resume construction of the Nghe An facility, targeting phase-one completion by end-2026. The project is expected to lift group production capacity by 10–15 % with capex of HK$500 million–HK$1 billion over the next 12 months, funded by internal cash and bank borrowings.

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