Market Overview
In 2025, the global apparel industry continued the growth momentum of the previous year, although performance varied among apparel brands. End-customer demand remained resilient, characterised by a focus on product differentiation and price sensitivity. Apparel brands that adapted swiftly to market changes and continued product development were better positioned to capture consumer preferences.
During the reporting period, the reciprocal tariff policy implemented by the United States of America (“USA”) presented the most prominent challenge for the garment industry. Particularly in the initial phase of its implementation, policy fluctuation created uncertainty within the global apparel supply chain. However, with the rollout of the final tariff scheme, the differential tariff rates across key garment-exporting countries proved less severe than the initial concerns. Additionally, cost pressures stemming from tariffs were gradually passed on to consumers. Consequently, the overall operational impact on garment manufacturers remained manageable. Brand customers refocused their purchasing priorities on core elements, such as overall supply chain efficiency and response speed.
Meanwhile, Vietnam further strengthened its position as a preferred destination for labour-intensive manufacturing. In particular, following the implementation of USA tariffs, an increasing number of Chinese companies relocated their production lines to Vietnam. Strong growth in labour demand intensified competition in the local labour market. Rising employment costs and shortages of skilled workers posed new challenges for business expansion in Vietnam.
Business Review
Leveraging its co-creation business model and diversified multi-category product portfolio, the Group deepened collaboration with brand customers, supporting them to respond quickly to evolving consumer needs for differentiation and value. This strategy enabled the Group to gain market share among key brand customers and achieve revenue growth across all five business segments.
In response to the uncertainties stemming from the USA reciprocal tariff policy, the Group relied on its global production network and strong brand customer partnerships to effectively mitigate tariff-related disruptions. Continued investment in automation upgrades and production optimisation further offset the pricing pressures from tariffs, contributing to improved operating returns.
Vietnam, currently the Group’s largest production base, faced intensifying labour market competition, which imposed constraints on the Group’s growth. Some enterprises raised recruitment packages to attract skilled workers to accelerate shipments during tariff window periods. Such workforce mobility adversely affected the Group’s overall productivity. To address labour market dynamics in Vietnam, the Group initiated satellite factories towards the end of 2025 to broaden access to labour pools and improve recruitment flexibility.
The Group’s revenue for the year ended 31 December 2025 increased by 6.9% to US$2,641 million (2024: US$2,470 million).
The gross profit margin increased to 19.9% in 2025 from 19.7% in 2024. The net profit margin expanded to 8.5% in 2025 from 8.1% in 2024.
The Group’s net profit for the year ended 31 December 2025 increased by 12.0% to US$225 million (2024: US$201 million).
Consistent with practice of sharing its operation results with shareholders, the Board has proposed a final dividend of HK24.5 cents per ordinary share. Together with the interim dividend declared and paid, the total dividend per ordinary share for the year ended 31 December 2025 will amount to HK40.8 cents.
During the reporting period, capital expenditure totalled US$183 million, with approximately 66% allocated to increasing garment production capacity and automation upgrades, and the remainder supporting upstream fabric business development.
As part of the Group’s overarching sustainability strategy, it continued to make steadfast progress towards its Crystal Sustainability Vision 2030 and Net Zero 2050 vision to tackle broader environmental, people and community challenges.
To ramp up its decarbonisation efforts, the Group progressively increased its solar photovoltaic (“PV”) installations in its operating countries, expanding its total PV capacity to 23MW. Solar electricity generated accounted for approximately 15% of the electricity consumed in factories with solar PV systems. The Group is also conducting a consultancy study on a solar roadmap to maximise its potential solar capacity. Regarding social sustainability, the Group joined Reimagining Industry to Support Equality (RISE), an industry-transforming initiative to promote women’s empowerment and accelerate gender equality across global factories.
In recognition of its collective efforts and achievements, the Group was honoured to receive the Sustainable Corporate Leadership Award in the Standard Chartered Corporate Achievement Awards 2025 and the Distinction Award (Large Organisations Category) in the Hong Kong Management Association’s Hong Kong Sustainability Award 2025. In addition, the Group was commended for the Best ESG Report – Mid- cap, the Carbon Neutral Award, and the Excellence in Environmental Positive Impact in the Hong Kong ESG Reporting Awards 2025.
Outlook and Prospects
Entering 2026, the Group is placing greater emphasis on improving the capabilities of its unskilled workforce to drive productivity improvement. Consequently, the Group moderated the pace of expansion in Vietnam, prioritising workforce upskilling and efficiency gains.
The Group has developed a systematic approach to address its long-term development needs, including acquiring land in Egypt for future expansion. Leveraging Egypt’s geographic advantages, favourable trade policies, and abundant labour resources, the Group aims to accelerate capacity growth and further diversify its production footprint.
The Group will continue to deepen vertical integration. The self-built fabric mill in Vietnam is scheduled to commence operations by the end of 2026. This will improve the Group’s fabric supply capabilities for the lifestyle and sports categories, enhancing supply chain responsiveness and creating greater synergy.
Capital expenditure in 2026 will continue to focus on automation upgrades, garment capacity expansion, and fabric development. Total capital expenditure for 2026 is expected to be significantly higher than that in 2025, owing largely to the one-off expenditure related to land acquisition and expansion in Egypt.
Since robust operational cash flow generation is expected to sufficiently cover the increased capital expenditure, and in light of its net cash position, the Group is well- positioned to maintain its longstanding dividend policy and share growth achievements with shareholders.