Total Revenue Increased 8.1%1 to HK$19,418 Million Despite Market Volatility

(26 January 2023 – Hong Kong) Vinda International Holdings Limited(stock code: 3331) announced today its annual results for the twelve months ended 31 December 2022 (the “Year”).

Annual Results Highlights：

Total revenue increased by 4.0% to HK$19,418 million, with a growth of 8.1% excluding exchange rate effects

   ?   E-commerce sales grew by 16.7% organically1

   ?   Feminine care in mainland China continued to grow and gain share

   ?   Consistent and focused investment in premium products

Gross profit was HK$5,483 million, with a gross margin of 28.2%

Net profit was HK$706 million and net profit margin was 3.6%

Net gearing ratio2 dropped by 1.9 ppts to 28.6%

Basic earnings per share was 58.7 HK cents

Proposed final dividend per share was 30 HK cents. Together with the interim dividend, total dividend per share for the Year was 40 HK cents

Tissue Segment:

   ?   Revenue increased by 3.9% to HK$16,103 million, with an organic growth1 of 7.8%, representing 83% of the Group’s total revenue

   ?   Premium tissue portfolio continued a double-digit growth in mainland China. The Group further strengthened its clear market leadership in the mainland China market3

Personal Care Segment:

   ?   Revenue increased by 4.4% to HK$3,314 million, with an organic growth1 of 9.6%, represented 17% of the Group’s total revenue

   ?   Both the incontinence care business and the feminine care business made strong progress during the Year, and sales have maintained a high growth momentum

Ms. Karen Li, Chief Executive Officer said, “2022 has been a year of significant macro volatility and unprecedented level of cost inflation. Despite the challenging operating environment, the Group delivered solid top-line growth, driven from positive price, mix and volume developments. In offsetting the impact of significant higher costs, the Group has taken multiple pricing actions throughout the Year which helped to improve net selling prices. The Group also continued to make committed investments in innovation, brand development and commercial capabilities with a focus in premium portfolio.

Looking ahead, the Group will continue to support our brands in the tissue segment, especially in premium portfolio with new innovations and superior market execution. We had strong organic sales growth and share momentum in personal care in the past years and we will continue to make committed investments to support the category’s future development. We remain confident in the growth potential of the categories and the markets we operate in. We are also confident that our innovation and commercial capabilities will help us further enhance our product portfolio, continue to differentiate from our competitors, and position us well for long-term sustainable and profitable growth.”

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Remarks 1. Excluding exchange rate effects

   2. Net gearing ratio: Net debt divided by total shareholders' equity

   3. Source: Kantar Worldpanel, sales value year-to-date at 2 December 2022