[Announcement Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) [Key Financial Highlights](index=1&type=section&id=%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E4%BA%AE%E9%BB%9E) Daphne International Holdings Limited demonstrated strong performance in the first half of 2025, with significant growth in revenue, operating profit, and profit attributable to owners of the Company, alongside an increase in basic earnings per share Key Financial Highlights for H1 2025 | Metric | H1 2025 (RMB million) | Change | | :--- | :--- | :--- | | Revenue | 198.3 | increased by 17% | | Operating profit | 70.5 | increased by 24% | | Profit attributable to owners of the Company | 64.7 | increased by 15% | | Basic EPS | RMB 0.033 | - | [Interim Results](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) During the reporting period, the company achieved substantial year-on-year growth in revenue and gross profit, with significant improvements in operating profit and profit for the period, reflecting strong operational efficiency and profitability Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 198,297 | 168,796 | | Cost of sales | (92,184) | (83,027) | | Gross profit | 106,113 | 85,769 | | Other income | 27,114 | 24,948 | | Operating profit | 70,518 | 56,732 | | Profit for the period | 64,599 | 55,860 | | Profit attributable to owners of the Company | 64,685 | 56,055 | | Basic earnings per share | 0.033 | 0.028 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The company's total comprehensive income for the period increased year-on-year, primarily driven by higher profit for the period, but partially offset by other comprehensive loss from exchange differences on translating foreign operations Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 64,599 | 55,860 | | Exchange differences on translating foreign operations | (2,686) | 525 | | Total comprehensive income for the period | 61,913 | 56,385 | | Total comprehensive income attributable to owners of the Company | 61,999 | 56,580 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, non-current assets slightly decreased, while other financial assets within current assets significantly increased, and cash and cash equivalents decreased. Both current and non-current liabilities declined, with steady growth in net assets and equity attributable to owners Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | 2025年6月30日 (RMB thousand) | 2024年12月31日 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 384,098 | 392,887 | | Current assets | 535,551 | 538,285 | | Current liabilities | 120,370 | 156,934 | | Non-current liabilities | 11,478 | 11,995 | | Net assets | 787,801 | 762,243 | | Equity attributable to owners of the Company | 784,193 | 758,549 | - Other financial assets within current assets significantly increased from **RMB 30,477 thousand** as of December 31, 2024, to **RMB 133,819 thousand** as of June 30, 2025[7](index=7&type=chunk) - Cash and cash equivalents decreased from **RMB 476,170 thousand** as of December 31, 2024, to **RMB 376,643 thousand** as of June 30, 2025[7](index=7&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [1 General Information](index=5&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Daphne International Holdings Limited and its subsidiaries primarily engage in the licensing, distribution, and sale of footwear products and accessories in Mainland China, with the company registered in the Cayman Islands and listed on the Hong Kong Stock Exchange - The Group primarily engages in the licensing, distribution, and sale of footwear products and accessories in Mainland China[8](index=8&type=chunk) - The Company is a limited company incorporated in the Cayman Islands, with its shares listed on The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk) [2 Basis of Preparation](index=5&type=section&id=2%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and have been reviewed by the audit committee and approved by the Board, with no significant impact from new or revised standards adopted during the period - The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[10](index=10&type=chunk) - This statement has been reviewed by the Company's Audit Committee and approved for issue by the Board of Directors on August 20, 2025[9](index=9&type=chunk) - The adoption of amendments to HKAS 21 and HKFRS 1 had no significant impact on the Group's operations or financial position[10](index=10&type=chunk) [3 Revenue and Segment Information](index=6&type=section&id=3%20%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates a single reportable segment, primarily deriving revenue from licensing fees and sales of goods to customers in Mainland China - The Group has only one reportable segment, with revenue derived from customers located in Mainland China[12](index=12&type=chunk) Composition of Revenue (For the six months ended June 30) | Source of Revenue | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | License fee income | 85,153 | 68,575 | | Sales of goods | 113,144 | 100,221 | | **Total Revenue** | **198,297** | **168,796** | [4 Other Income](index=6&type=section&id=4%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) The Group's other income primarily consists of gross rental income and interest income, with government grants and other miscellaneous income contributing a smaller portion Composition of Other Income (For the six months ended June 30) | Source of Income | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Gross rental income | 20,941 | 19,281 | | Interest income | 5,487 | 4,703 | | Government grants | 9 | 553 | | Others | 677 | 411 | | **Total Other Income** | **27,114** | **24,948** | [5 Other (Losses)/Gains — Net](index=6&type=section&id=5%20%E5%85%B6%E4%BB%96(%E虧%E6%90%8D)%E2%88%95%E6%94%B6%E7%9B%8A%20%E2%80%94%20%E6%B7%A8%E9%A1%8D) The Group's other net losses were primarily impacted by exchange losses, partially offset by fair value gains on financial assets at fair value through profit or loss and gains on disposal of property, plant and equipment Other (Losses)/Gains — Net (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Fair value gain on financial assets at fair value through profit or loss | 230 | 158 | | Gain on disposal of property, plant and equipment | 6 | - | | Net exchange (loss)/gain | (874) | 545 | | **Net** | **(638)** | **703** | [6 Operating Profit](index=7&type=section&id=6%20%E7%B6%93%E7%87%9F%E7%9B%88%E5%88%A9) Operating profit is stated after deducting various expenses, with cost of inventories sold, employee benefit expenses, and marketing and promotion expenses being major components, and inventory provision significantly decreased year-on-year Operating Profit Deductions (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Auditor's remuneration | 1,003 | 1,083 | | Cost of inventories sold | 92,184 | 83,027 | | Depreciation of investment properties | 8,388 | 8,405 | | Depreciation of property, plant and equipment | 675 | 520 | | Depreciation of right-of-use assets | 1,551 | 2,149 | | Employee benefit expenses | 25,613 | 23,129 | | Marketing and promotion expenses | 11,117 | 5,241 | - Cost of inventories sold includes an inventory provision of **RMB 1,180,000** (2024: RMB 3,339,000), representing a significant year-on-year decrease[16](index=16&type=chunk) [7 Finance Costs](index=7&type=section&id=7%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs primarily consist of interest on lease liabilities, which decreased year-on-year during the reporting period Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on lease liabilities | 112 | 193 | [8 Income Tax Expense](index=7&type=section&id=8%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense significantly increased year-on-year, primarily due to tax charges from the utilization of deferred tax assets related to tax losses and the net impact of tax credits from the reversal of excess provisions for deferred income tax liabilities related to unremitted earnings in China Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax – Mainland China | 660 | 732 | | Deferred income tax | 5,178 | - | | **Total Income Tax Expense** | **5,838** | **732** | - The increase in income tax expense was primarily due to tax charges arising from the utilization of deferred tax assets related to tax losses, and the net impact of tax credits from the reversal of excess provisions for deferred income tax liabilities related to unremitted earnings in China from the previous year[18](index=18&type=chunk) [9 Earnings Per Share](index=8&type=section&id=9%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Both basic and diluted earnings per share increased, with diluted earnings per share calculation considering the impact of share option exercises Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic earnings per share | 0.033 | 0.028 | | Diluted earnings per share | 0.032 | 0.028 | - In the first half of 2025, the exercise of share options had a dilutive effect on earnings, with the adjusted weighted average number of shares being **2,028,219,774**[19](index=19&type=chunk) - In the corresponding period of 2024, share options had no dilutive effect as their exercise price was higher than the average market price of the Company's shares, resulting in identical basic and diluted earnings per share[20](index=20&type=chunk) [10 Dividends](index=8&type=section&id=10%20%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the first half of 2025, but the final dividend for 2024, which was accrued or paid, increased compared to the previous year Dividends Accrued or Paid (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Final dividend for the year ended December 31, 2024 | 36,355 | 17,934 | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[22](index=22&type=chunk) [11 Trade Receivables](index=9&type=section&id=11%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E8%B3%B4%E6%AC%BE) Net trade receivables decreased year-on-year, with a lower proportion of receivables within 30 days and an increased proportion of receivables over 60 days in the ageing analysis Net Trade Receivables and Ageing Analysis | Metric | 2025年6月30日 (RMB thousand) | 2024年12月31日 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables – net | 5,844 | 7,235 | | **Ageing analysis (net of loss allowance):** | | | | 0 to 30 days | 2,794 | 5,433 | | 31 to 60 days | 957 | 1,251 | | Over 60 days | 2,093 | 551 | - The Group generally grants credit terms of **30 to 60 days** to its trade customers[23](index=23&type=chunk) [12 Trade Payables](index=9&type=section&id=12%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E8%B3%B4%E6%AC%BE) Total trade payables slightly decreased year-on-year, with the majority of payables still falling within the 0 to 30 days ageing category Ageing Analysis of Trade Payables | Ageing | 2025年6月30日 (RMB thousand) | 2024年12月31日 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 33,074 | 34,729 | | 31 to 60 days | 278 | 43 | | Over 60 days | 2,091 | 2,119 | | **Total Trade Payables** | **35,443** | **36,891** | [Management Discussion and Analysis](index=10&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Business Review](index=10&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2025, despite global uncertainties, China's economy showed resilience with 5.3% GDP growth, and 'trade-in' policies boosted retail sales amid rational consumer behavior and rising e-commerce competition, prompting the Group to adopt a balanced strategy of brand licensing, wholesale, and direct retail to achieve steady revenue and operating profit growth [Macroeconomic and Market Environment](index=10&type=section&id=%E5%AE%8F%E8%A7%80%E7%B6%93%E6%BF%9F%E8%88%87%E5%B8%82%E5%A0%B4%E7%92%B0%E5%A2%83) In H1 2025, global geopolitical conflicts and market volatility created uncertainty, yet China's GDP grew by 5.3%, demonstrating economic resilience, while 'trade-in' policies boosted retail sales, but consumers shifted to rational spending, and e-commerce continued to grow amidst intensifying competition and the rise of content-driven platforms - In the first half of 2025, China's Gross Domestic Product (GDP) increased by **5.3%** year-on-year[25](index=25&type=chunk) - China's 'trade-in' policy for consumer goods boosted retail sales, with total retail sales of consumer goods increasing by **5.0%** year-on-year[25](index=25&type=chunk) - In the first half of 2025, national online retail sales reached **RMB 7.43 trillion**, representing an **8.5%** year-on-year increase[26](index=26&type=chunk) [Group Performance](index=10&type=section&id=%E9%9B%86%E5%9C%98%E8%A1%A8%E7%8F%BE) The Group implemented a robust and forward-looking strategy, balancing brand licensing, wholesale, and direct retail to strengthen its core 'Daphne' brand and cultivate 'Daphne.Lab', achieving steady growth in revenue and operating profit despite market challenges through optimized operations, enhanced brand licensing, and lean supply chain management - The Group adopted a dual-focus strategy, consolidating the industry-leading position of its core brand 'Daphne' while actively cultivating the 'Daphne.Lab' brand[27](index=27&type=chunk) - For the six months ended June 30, 2025, the Group's total revenue increased by **17%** year-on-year to approximately **RMB 198.3 million**, and operating profit increased by **24%** to approximately **RMB 70.5 million**[28](index=28&type=chunk) - Basic earnings per share were **RMB 0.033**, compared to **RMB 0.028** in the corresponding period of 2024[29](index=29&type=chunk) [Brand Licensing and Distribution Business](index=11&type=section&id=%E5%93%81%E7%89%8C%E6%8E%88%E6%AC%8A%E5%8F%8A%E5%88%86%E9%8A%B7%E6%A5%AD%E5%8B%99) The Group continues to strengthen the 'Daphne' brand's leading position in China's women's footwear industry through brand revitalization, celebrity endorsements, product innovation, and multi-channel marketing, enhancing brand image and market penetration, with significant growth in both license fee income and wholesale sales of goods, and continued expansion of online and offline store count - The 'Daphne' brand announced Chinese celebrity Victoria Song as its global brand ambassador in May 2025 and launched the 'Free Rebirth' fashion campaign[31](index=31&type=chunk) - The Group actively strengthened its brand licensing business, consolidating its influence on mainstream e-commerce platforms like Tmall and JD.com, while also achieving considerable growth on emerging channels such as Douyin and Pinduoduo[32](index=32&type=chunk) Brand Licensing and Distribution Business Revenue (For the six months ended June 30) | Source of Revenue | 2025 (RMB million) | 2024 (RMB million) | Year-on-year growth | | :--- | :--- | :--- | :--- | | License fee income | 85.2 | 68.6 | +24% | | Wholesale sales of goods | 102.7 | 91.5 | +12% | - As of June 30, 2025, the Group had **116** physical stores and **1,150** online stores, all operated by franchisees under the Group's licensing arrangements[33](index=33&type=chunk) [Retail Business](index=12&type=section&id=%E9%9B%B6%E5%94%AE%E6%A5%AD%E5%8B%99) The Group's avant-garde fashion brand 'Daphne.Lab' received acclaim for its unique aesthetics and brand image, enhancing brand awareness and e-commerce growth through collaborations with trendy artists, K-pop dance community events, and celebrity/influencer partnerships, while actively exploring offline retail models and continuously optimizing its supply chain for increased competitiveness - The 'Daphne.Lab' brand received widespread acclaim for its bold and avant-garde aesthetic style and distinct brand image, attracting attention and affection from numerous renowned Chinese and Korean celebrities and K-pop girl group members[34](index=34&type=chunk) - This spring, 'Daphne.Lab' collaborated with a trendy artist to launch the 'Slightly Floral Lollipop Generation 2' co-branded slippers, which received a positive market response[35](index=35&type=chunk) - Currently, the Group operates **2** directly-managed offline and **6** online 'Daphne.Lab' stores, continuously refining its offline strategy based on consumer trends and retail dynamics[36](index=36&type=chunk) - The Group continuously optimizes its supply chain processes to enhance overall efficiency and ensure stringent quality control, enabling a swift response to market demands[36](index=36&type=chunk) [Financial Review](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group achieved double-digit growth in revenue, operating profit, and profit attributable to owners in H1 2025, with improved operating profit margin and increased basic earnings per share; cash and cash equivalents decreased, but equity attributable to owners grew, and asset liquidity ratio and net debt ratio remained healthy, despite a significant increase in income tax expense [Financial Summary](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group achieved double-digit growth in revenue, operating profit, and profit attributable to owners in H1 2025, with improved operating profit margin and increased basic earnings per share; cash and cash equivalents decreased, but equity attributable to owners grew, and asset liquidity ratio and net debt ratio remained healthy Financial Summary (For the six months ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 198.3 | 168.8 | +17% | | Other income | 27.1 | 24.9 | +9% | | Operating profit | 70.5 | 56.7 | +24% | | Profit attributable to owners of the Company | 64.7 | 56.1 | +15% | | Operating profit margin (%) | 35.6 | 33.6 | +2.0 percentage points | | Net profit margin (%) | 32.6 | 33.2 | -0.6 percentage points | | Basic earnings per share (RMB) | 0.033 | 0.028 | +18% | | **Balance Sheet Metrics:** | | | | | Cash and cash equivalents (RMB million) | 376.6 | 476.2 | -21% | | Equity attributable to owners of the Company (RMB million) | 784.2 | 758.5 | +3% | | Current ratio (times) | 4.4 | 3.4 | +29% | | Net debt ratio (%) | Net cash | Net cash | N/A | [Revenue and Gross Profit](index=14&type=section&id=%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5%E5%8F%8A%E6%AF%9B%E5%88%A9) The Group's total revenue increased by 17% year-on-year, primarily driven by growth in license fee income, wholesale sales of goods, and retail business, with the gross profit margin for sales of goods improving to 18.5%, reflecting better cost and inventory control Composition of Revenue and Gross Profit (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | License fee income | 85.2 | 68.6 | +24% | | Sales of goods – wholesale | 102.7 | 91.5 | +12% | | Sales of goods – retail | 10.4 | 8.7 | +20% | | Total sales of goods | 113.1 | 100.2 | +13% | | Cost of sales | (92.2) | (83.0) | +11% | | Gross profit from sales of goods | 20.9 | 17.2 | +22% | | Gross profit margin from sales of goods | 18.5% | 17.2% | +1.3 percentage points | | Total revenue | 198.3 | 168.8 | +17% | | Total gross profit | 106.1 | 85.8 | +24% | - The increase in license fee income was primarily due to an overall increase in the number of footwear and other product categories licensed to online franchisees[40](index=40&type=chunk) - The improvement in gross profit margin from sales of goods was mainly due to better cost and inventory control[41](index=41&type=chunk) [Other Income](index=15&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income increased by 9% year-on-year, primarily benefiting from higher rental income from investment properties, partly due to the recovery of long-outstanding rents - For the six months ended June 30, 2025, the Group's other income was approximately **RMB 27.1 million** (2024: RMB 24.9 million), primarily comprising gross rental income from investment properties of approximately **RMB 20.9 million** (2024: RMB 19.3 million)[42](index=42&type=chunk) - The increase in gross rental income was mainly due to the recovery of long-outstanding rents from certain tenants[42](index=42&type=chunk) [Operating Expenses](index=15&type=section&id=%E7%B6%93%E7%87%9F%E9%96%8B%E6%94%AF) Overall operating expenses increased, primarily driven by higher marketing and promotion expenses and employee benefit expenses - During the review period, the Group's operating expenses were approximately **RMB 62.7 million**, compared to approximately **RMB 54.0 million** in the corresponding period of 2024[43](index=43&type=chunk) - The overall increase in operating expenses was primarily attributable to higher marketing and promotion expenses and employee benefit expenses[43](index=43&type=chunk) [Operating Profit](index=15&type=section&id=%E7%B6%93%E7%87%9F%E7%9B%88%E5%88%A9) The Group's operating profit increased by 24% year-on-year, reaching approximately RMB 70.5 million, demonstrating strong profitability - For the first half of 2025, the Group recorded an operating profit of approximately **RMB 70.5 million**, an increase of approximately **RMB 13.8 million** or **24%** compared to approximately **RMB 56.7 million** in the corresponding period of 2024[44](index=44&type=chunk) [Finance Costs](index=15&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs primarily consisted of interest on lease liabilities, which decreased year-on-year during the reporting period - During the review period, interest on lease liabilities was approximately **RMB 0.1 million** (2024: RMB 0.2 million)[45](index=45&type=chunk) [Income Tax Expense](index=15&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense significantly increased, mainly due to the net impact of deferred tax asset utilization and the reversal of excess provisions for deferred income tax liabilities - For the six months ended June 30, 2025, the Group's income tax expense was approximately **RMB 5.8 million**, compared to approximately **RMB 0.7 million** in the corresponding period last year[46](index=46&type=chunk) - The increase in income tax expense was primarily due to tax charges arising from the utilization of deferred tax assets related to tax losses, and the net impact of tax credits from the reversal of excess provisions for deferred income tax liabilities related to unremitted earnings in China from the previous year[46](index=46&type=chunk) [Profit Attributable to Owners of the Company](index=15&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%B1%E6%87%89%E4%BD%B5%E7%9B%88%E5%88%A9) Profit attributable to owners of the Company increased by 15% year-on-year, with basic earnings per share rising to RMB 0.033 - For the six months ended June 30, 2025, profit attributable to owners of the Company was approximately **RMB 64.7 million** (2024: RMB 56.1 million), representing an increase of approximately **RMB 8.6 million** or **15%** compared to the corresponding period of 2024[47](index=47&type=chunk) - During the review period, basic earnings per share were **RMB 0.033** (2024: RMB 0.028)[47](index=47&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=16&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) As of June 30, 2025, cash and cash equivalents decreased primarily due to fixed deposit placements and dividend payments, but the Group maintained a net cash position and an improved current ratio, holding financial investments to optimize returns on surplus cash Net Change in Cash and Cash Equivalents (For the six months ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Net cash inflow from operating activities | 38.5 | 45.9 | | Placement of fixed deposits with original maturity over three months | (102.6) | - | | Dividends paid to owners of the Company | (35.8) | (14.9) | | Net (decrease)/increase in cash and cash equivalents | (96.9) | 43.3 | - As of June 30, 2025, the Group's cash and cash equivalents were approximately **RMB 376.6 million** (as of December 31, 2024: RMB 476.2 million)[48](index=48&type=chunk) - The Group maintained a net cash position for its net debt ratio, and the current ratio further improved to **4.4 times** (as of December 31, 2024: 3.4 times)[50](index=50&type=chunk) [Foreign Exchange Risk Management](index=17&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group primarily faces foreign exchange risks related to HKD and USD, which are managed through regular review of net foreign exchange exposure, though no forward foreign exchange contracts were entered into for hedging during the reporting period - The Group is primarily exposed to foreign exchange risks related to HKD and USD[51](index=51&type=chunk) - For the six months ended June 30, 2025, the Group did not enter into any forward foreign exchange contracts for hedging foreign exchange risks[51](index=51&type=chunk) [Material Investments](index=17&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of June 30, 2025, the Group had no material investments - As of June 30, 2025, the Group had no material investments[52](index=52&type=chunk) [Future Plans for Material Investments and Capital Assets](index=17&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E4%B9%8B%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of June 30, 2025, the Group had no future plans for any material investments or capital assets - As of June 30, 2025, the Group had no future plans for any material investments or capital assets[53](index=53&type=chunk) [Pledged Assets](index=17&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of the end of the reporting period, the Group had no pledged or charged assets - As of June 30, 2025, and December 31, 2024, the Group had no pledged or charged assets[54](index=54&type=chunk) [Capital Expenditure and Commitments](index=17&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF%E5%8F%8A%E6%89%BF%E6%93%94) Capital expenditure during the reporting period primarily related to leasehold improvements and office equipment, decreasing compared to the prior year, with no material capital commitments - During the review period, the Group's capital expenditure was approximately **RMB 0.2 million** (2024: RMB 0.4 million), primarily for leasehold improvements and office equipment[55](index=55&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no material capital commitments[55](index=55&type=chunk) [Contingent Liabilities](index=17&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of the end of the reporting period, the Group had no material contingent liabilities - As of June 30, 2025, and December 31, 2024, the Group had no material contingent liabilities[56](index=56&type=chunk) [Human Resources](index=17&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) The Group's total employee count slightly increased, with employee benefit expenses growing by 11% year-on-year, mainly due to an increase in headcount, discretionary performance bonuses, and staff benefits and allowances, as the Group values talent and provides competitive compensation and benefits - As of June 30, 2025, the Group's total number of employees in Mainland China and Hong Kong was **113** (as of December 31, 2024: 109)[57](index=57&type=chunk) - During the review period, employee benefit expenses were approximately **RMB 25.6 million** (2024: RMB 23.1 million), representing an **11%** year-on-year increase[57](index=57&type=chunk) - The increase in employee benefit expenses was primarily due to an increase in headcount, discretionary performance bonuses, and staff benefits and allowances[57](index=57&type=chunk) [Outlook](index=18&type=section&id=%E5%B1%95%E6%9C%9B) Looking ahead to H2 2025, despite global economic complexities, China's long-term economic fundamentals remain robust, with the retail sector transitioning towards value-driven consumption, and the Group will continue to optimize its strategy, integrating brand licensing, direct retail, and wholesale businesses, strengthening the positioning of 'Daphne' and 'Daphne.Lab' brands, and advancing its omnichannel strategy for sustainable growth - The Group will continue to adopt a diversified business model, integrating brand licensing, direct retail, and wholesale businesses to enhance adaptability and long-term competitiveness[58](index=58&type=chunk) - The 'Daphne' brand plans to collaborate with a designer brand during Paris Fashion Week in October to launch the 'Cloud Soft' new collection and leverage its global brand ambassador for live stream promotions[59](index=59&type=chunk) - The 'Daphne.Lab' brand plans to hold a fashion show and launch a designer brand collaboration series at Shanghai Fashion Week in October to reinforce its avant-garde fashion image[59](index=59&type=chunk) - The Group will further advance its omnichannel strategy, continuously strengthening its presence on traditional and emerging e-commerce platforms, and expanding its offline retail network with a proactive yet prudent approach[60](index=60&type=chunk) [Other Information](index=19&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Purchase, Sale or Redemption of the Company's Shares](index=19&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares[61](index=61&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates or Joint Ventures](index=19&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%88%96%E5%90%88%E8%B3%87%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[62](index=62&type=chunk) [Securities Transactions by Directors](index=19&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E4%B9%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The company's directors confirmed compliance with the 'Model Code for Securities Transactions by Directors of Listed Issuers' during the reporting period, with no breaches by senior management or employees identified - Following specific enquiries made to all Directors, all Directors confirmed that they had complied with the requirements set out in the Model Code for the six months ended June 30, 2025[63](index=63&type=chunk) [Changes in Directors' Information](index=19&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E5%8B%95) Effective June 19, 2025, Mr. Huang Shuncai resigned as an independent non-executive Director, and Ms. Xu Wenguan was appointed as an independent non-executive Director, Chairman of the Nomination Committee, and a member of the Audit and Remuneration Committees - Effective June 19, 2025, Mr. Huang Shuncai resigned as an independent non-executive Director[64](index=64&type=chunk) - Effective June 19, 2025, Ms. Xu Wenguan was appointed as an independent non-executive Director and the Chairman of the Nomination Committee, as well as a member of the Audit Committee and Remuneration Committee, respectively[64](index=64&type=chunk) [Compliance with Corporate Governance Code](index=19&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complied with all applicable code provisions of the Corporate Governance Code during the reporting period and will continue to strengthen its corporate governance practices - For the six months ended June 30, 2025, the Company complied with all applicable code provisions set out in the Corporate Governance Code[65](index=65&type=chunk) [Sufficient Public Float](index=19&type=section&id=%E8%B6%B3%E5%A4%A0%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) As of the end of the reporting period and the announcement date, the company maintained a sufficient public float, representing over 25% of its total issued share capital - For the six months ended June 30, 2025, and up to the date of this announcement, the Company maintained a sufficient public float, representing over **25%** of its total issued share capital, in accordance with the Listing Rules[66](index=66&type=chunk) [Events After the Reporting Period](index=20&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E4%BB%A5%E5%BE%8C%E4%BA%8B%E9%A0%85) From the end of the reporting period to the date of this announcement, the Directors were not aware of any material events affecting the Group - From June 30, 2025, to the date of this announcement, the Directors were not aware of any material events affecting the Group[67](index=67&type=chunk) [Review of Condensed Consolidated Interim Financial Statements](index=20&type=section&id=%E5%AF%A9%E9%96%B1%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Audit Committee reviewed and confirmed that the condensed consolidated interim financial statements were prepared in accordance with applicable accounting standards - The Audit Committee reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, and considered them to be prepared in accordance with applicable accounting standards[68](index=68&type=chunk) [Publication of Interim Results and Interim Report](index=20&type=section&id=%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement has been published on the company's website and HKEXnews website, and the interim report will be dispatched to shareholders and published on the aforementioned websites in due course - This announcement has been published on the Company's website (www.daphneholdings.com) and the HKEXnews website (www.hkexnews.hk)[69](index=69&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be dispatched to the Company's shareholders and published on the aforementioned websites in due course[69](index=69&type=chunk)

Group 1 - The company, Daphne International (00210.HK), announced that it will hold a board meeting on August 20, 2025, to approve the publication of its interim results for the six months ending June 30, 2025 [1] - The board meeting will also consider the distribution of an interim dividend, if applicable [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號： 210） 董事會會議召開日期 達芙妮國際控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈，本公司將 於二零二五年八月二十日（星期三）舉行董事會會議，藉以（其中包括）批准刊發本 公司及其附屬公司截至二零二五年六月三十日止六個月之中期業績公告，以及考慮派 發中期股息（如有）。 承董事會命 達芙妮國際控股有限公司 公司秘書 張晋熙 香港，二零二五年八月四日 於本公告日期，董事會包括四位執行董事，分別為張智凱先生、張智喬先生、王俊剛 先生及張椀絢女士；以及三位獨立非執行董事，分別為韓炳祖先生、談大成先生及許 文冠女士。 * 僅供識別 DAPHNE INTERNATIONAL HOLDINGS LIMITED * 達 芙 妮 國 際 控 股 有 限 公 司 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 達芙妮國際控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00210 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | 本月底法定/註冊股本總額： HKD ...

Core Viewpoint - The article discusses the resurgence of once-popular brands in the fashion industry, highlighting their strategies for adaptation and transformation in response to changing consumer preferences and market dynamics [1][2][3]. Group 1: Brand Resurgence - Many once-familiar brands have shown remarkable performance in recent years, with Daphne leading the women's shoe sales on Douyin, and brands like Meisibangwei and True Vivus experiencing significant online sales growth [5][6]. - Brands such as Camel and others are beginning to show signs of recovery despite undergoing painful transformations [6]. Group 2: Transformation Strategies - The article categorizes the transformation strategies of these brands into four types: Dolphin, Belt Fish, Octopus, and Flounder, each representing different approaches to adaptation [8]. - Dolphin-type brands actively explore new fields and shed their old images, exemplified by Camel's shift to outdoor apparel and collaborations with young influencers [8][9]. - Belt Fish-type brands focus on downsizing and outsourcing production, as seen with Daphne and Huili, which have reduced their physical stores significantly while enhancing brand management [9][11]. - Octopus-type brands, like Meisibangwei, aim to expand their reach by reopening stores in lower-tier markets while leveraging online promotions to drive foot traffic [11][12]. - Flounder-type brands, such as Bannilu and True Vivus, maintain a low profile, focusing on existing operations without aggressive expansion or contraction [12]. Group 3: Embracing E-commerce - The brands have recognized the necessity of embracing e-commerce to compete effectively, leveraging their established brand recognition to drive online sales [15]. - True Vivus has amassed 5 million followers on Taobao, with e-commerce sales accounting for over 80% of its revenue, while Daphne has developed a robust live-streaming strategy [16][18]. Group 4: Supply Chain and Product Innovation - Brands are investing in digital technologies and AI tools to enhance their supply chain efficiency, reducing design cycles and improving inventory turnover [18][21]. - Belle has successfully shortened its design cycle from 45 days to 15 days and has implemented a custom shoe service based on user data, increasing the price point of its products [18][20]. Group 5: Market Positioning and Consumer Engagement - The brands are focusing on creating premium experiences in flagship stores, which can generate significantly higher average transaction values compared to regular stores [21][22]. - In lower-tier markets, the strategies differ, with Belt Fish brands outsourcing production, which may dilute brand identity, while Octopus brands face challenges in maintaining consumer engagement [24][25]. Group 6: Future Outlook - The article suggests that the next phase of industry evolution is approaching, driven by improved logistics and changing consumer behaviors, particularly with the rise of instant retail [26][35]. - Brands must address supply chain weaknesses and re-establish connections with consumers to avoid fading into obscurity, emphasizing the importance of adapting to new market realities [37].

Group 1 - A total of 113 stocks reached a 52-week high as of July 9, with the top three being Wapstar Metaverse (08093) at 72.59%, Giant Star Legend (06683) at 48.08%, and Beihai Kangcheng-B (01228) at 46.55% [1] - Wapstar Metaverse closed at 0.233 and reached a high of 0.340, while Giant Star Legend closed at 12.440 with a peak of 17.000 [1] - Beihai Kangcheng-B had a closing price of 0.690 and a maximum price of 0.850 [1] Group 2 - Other notable stocks that reached new highs include China San San Media (08087) with a high rate of 32.70%, and Zhongshen Jianye (02503) at 27.66% [1] - The list also includes Shengli Securities (08540) at 23.71% and Heng Rui Pharmaceutical (01276) at 14.94% [1] - The data indicates a strong performance in the market, with various sectors represented among the top gainers [1] Group 3 - The report also highlights stocks that reached new lows, with the worst performer being Jiaming Group Holdings (01271) at -28.81% [3] - Other significant declines include Baiwang Shares (06657) at -23.89% and Chenxun Technology (02000) at -10.34% [3] - The report provides a comprehensive overview of market movements, indicating both highs and lows across different stocks [3]

Core Viewpoint - Nengte Technology announced two buyback plans that could lead to the cancellation of approximately 1 billion yuan worth of shares, directly enhancing the company's per-share equity [1][4]. Group 1: Buyback Plans - The company plans to use its own and self-raised funds to repurchase A-shares, with a total budget of 300 million to 500 million yuan, at a price not exceeding 4.70 yuan per share, within 12 months from the date of shareholder meeting approval [3][5]. - All repurchased shares will be canceled, leading to a reduction in registered capital, reflecting the company's confidence in its future development and recognition of its value [4][6]. Group 2: Share Cancellation Impact - Nengte Technology intends to cancel 157 million shares previously repurchased, reducing total share capital from 2.633 billion shares to 2.476 billion shares, pending shareholder approval [6]. - The cancellation of shares will increase various per-share metrics, such as revenue per share, which will rise from 4.66 yuan to 4.96 yuan, and the price-to-sales ratio will decrease from 0.74 to 0.70 [7]. Group 3: Market Performance and Future Outlook - The previous buyback helped stabilize the stock price, which had experienced a 30% decline but rebounded nearly 12% after the buyback period ended, with a recent trading halt on July 1 [8]. - Nengte Technology is currently experiencing a recovery in performance, reporting a profit of 216 million yuan in Q1 after a loss last year, and is focused on enhancing profitability through its fine chemical business [9].

Core Viewpoint - During the recent "618" shopping festival, Daphne, known as a national women's shoe brand, achieved impressive sales performance and announced the popular artist Song Qian as its global brand ambassador, which has garnered significant attention [1] Group 1: Sales Performance and Brand Strategy - Daphne ranked fifth in Tmall's sales of men's and women's shoes during the "618" festival, following Belle, Crocs, Skechers, and others [1] - The brand has maintained its position as the top seller in women's shoes on Douyin for over two years, with approximately 55% of its revenue from brand self-broadcasting, which has significantly supported sales growth [1] - In 2024, Daphne reported revenue of approximately 322 million yuan, a year-on-year increase of 23%, and a net profit attributable to shareholders of approximately 107 million yuan, reflecting a 71% increase [2] Group 2: Business Model Transformation - Daphne's continuous growth is attributed to its business model transformation initiated at the end of 2020, which involved reducing self-operated stores and adopting a "strongly controlled brand authorization" model [2] - The company has focused on controlling the overall supply chain while empowering agents to select products, ensuring product quality from the source [2] - The brand has maintained a strong national recognition, which has been a foundation for the success of its transformation [2] Group 3: Market Trends and Consumer Behavior - The women's shoe industry is experiencing a concentration of head brands, with top brands dominating the market due to their influence, supply chain efficiency, and marketing resources [3] - The consumer market is evolving into a "dumbbell" structure, with a growing demand for high-cost performance products and a flourishing high-end luxury market, while the mid-range market is being squeezed [3] - Daphne aims to expand its market share by maintaining a pricing strategy between 200 yuan and 300 yuan, targeting the mass women's shoe segment [3] Group 4: Future Strategies - The company plans to continue expanding its e-commerce channels as the proportion of e-commerce in total retail sales increases [4] - Daphne is optimistic about the Chinese retail market and will cautiously expand its offline franchise retail network, adjusting strategies based on macroeconomic conditions and store performance [4] - The brand is also exploring opportunities to enter overseas markets and plans to expand into children's shoes and bags while maintaining strong brand management [4]

Core Viewpoint - Daphne, once on the brink of bankruptcy, has made a remarkable comeback by focusing on online sales and adapting to market trends, achieving significant revenue growth and profitability in recent years [5][8][37]. Financial Performance - In 2024, Daphne reported a revenue of 322.3 million RMB, a 23% increase from 262.6 million RMB in 2023 [6][8]. - The profit attributable to shareholders reached 106.6 million RMB, marking a 71% year-on-year growth [6][8]. - Operating profit increased by 43% to 96.6 million RMB, with an operating margin of 30% [6][8]. - Cash and cash equivalents rose by 30% to 476.2 million RMB, indicating improved liquidity [6][8]. Market Position and Strategy - Daphne has become a leading brand in the online women's shoe market, ranking first in sales on Douyin since February 2023 [5][8]. - The brand has shifted from a traditional retail model to a "light asset" model, focusing on e-commerce and brand licensing [30][37]. - The introduction of the sub-brand Daphne.Lab targets younger consumers and expands the price range, with products priced up to 1,000 RMB [18][49]. Product Development and Consumer Engagement - Daphne has significantly reduced its product launch cycle, now comparable to fast fashion brands like H&M and ZARA [12][20]. - The brand's successful online strategy includes a robust promotional matrix and the establishment of 152 self-broadcast accounts for live selling [17][18]. - The company has diversified its revenue streams, with licensing fees contributing 39.4% of total revenue in 2024 [21][35]. Challenges and Future Outlook - Despite recent successes, Daphne faces challenges in maintaining brand identity and consumer loyalty, as it relies heavily on brand licensing and low-cost alternatives [41][45]. - The company plans to open one or two physical stores for its sub-brand in first-tier cities to enhance brand presence and consumer experience [49][50]. - The long-term sustainability of Daphne's business model remains uncertain, as it must balance online and offline strategies to meet consumer needs [45][48].

Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 322.3 million, representing a 23% increase from RMB 262.6 million in 2023[9] - Operating profit increased by 43% to RMB 96.6 million in 2024, up from RMB 67.6 million in 2023[9] - Profit attributable to shareholders surged by 71% to RMB 106.6 million in 2024, compared to RMB 62.4 million in 2023[9] - Operating margin improved to 30.0% in 2024, up from 25.8% in 2023, reflecting a 4.2 percentage point increase[9] - Net margin rose to 33.1% in 2024, an increase of 9.3 percentage points from 23.8% in 2023[9] - Basic earnings per share increased by 59% to RMB 0.054 in 2024, compared to RMB 0.034 in 2023[9] - Proposed dividend per share doubled to HK$ 0.02 in 2024 from HK$ 0.01 in 2023[9] - Cash and cash equivalents increased by 30% to RMB 476.2 million as of December 31, 2024, up from RMB 366.3 million in 2023[9] - Current ratio improved to 3.4 times in 2024, compared to 3.0 times in 2023, indicating better liquidity[9] - Total assets increased to RMB 931.2 million in 2024, up from RMB 816.5 million in 2023[14] Market and Economic Context - In 2024, China's GDP expanded by 5.0% year-on-year, supported by effective macroeconomic regulation[18] - The retail market's full recovery is hindered by cautious consumer sentiment, necessitating additional stimulus measures[18] - Total retail sales of consumer goods in China increased by 3.5% year-on-year, reflecting cautious consumer sentiment compared to pre-pandemic levels[33] - China's GDP grew by 5.0% year-on-year in 2024, indicating a stable economic growth trajectory despite global challenges[33] - In 2024, China's online retail sales reached RMB 15.5 trillion, marking a year-on-year growth of 7.2%[34] Brand and Product Strategy - The Group optimized its brand licensing and distribution business to enhance brand competitiveness, particularly for its core brand "DAPHNE" and the new brand "DAPHNE.LAB"[18] - The avant-garde brand "DAPHNE.LAB" has successfully engaged young consumers through bold designs and collaborations, including collections showcased at Paris Fashion Week[24] - The brand's entry into children's shoes and handbags has shown encouraging initial results, creating new growth opportunities[23] - "DAPHNE" aims to diversify its product offerings, having successfully expanded into children's shoes and handbags, while also addressing challenges from rising return rates and market competition in online sales[110] - The Group's annual sales for the "DAPHNE" brand exceeded expectations, driven by new store designs and the launch of the "CloudSoft" collection[23] Digital and E-commerce Strategy - The e-commerce market continues to grow, driven by young shoppers, despite increased competition and stagnant user growth[19] - The Group strengthened its presence on traditional online platforms like "Tmall", "Vip.com", and "JD.com", while also entering emerging platforms such as "Douyin" and "Pinduoduo"[19] - Enhanced digital marketing efforts and innovative sales channels have allowed the Group to connect more effectively with younger demographics[19] - The Group's commitment to its online business strategy resulted in consistent growth and a solid foundation for future success[19] - The Group enhanced its online presence by investing in emerging platforms like "Douyin" and "Pinduoduo," achieving higher-than-expected growth and establishing itself as a top player[48] Operational Efficiency and Supply Chain - The Group's investments in supply chain optimization contributed to its resilience amid external challenges[18] - The Group achieved a significant improvement in supply chain management and quality control through digitalization and integration of shipping processes[60] - The Group is committed to optimizing its supply chain through digitization and standardization, improving quality control and efficiency[25] Corporate Governance - The Company has complied with all applicable code provisions set out in the Corporate Governance Code for the year ended December 31, 2024[141] - The Board consists of at least three independent non-executive directors, representing at least one-third of the Board, with one possessing appropriate professional qualifications in accounting and financial management[153] - The Company has adopted corporate governance practices appropriate to its business operations and growth[140] - The Board is committed to enhancing corporate governance practices and reviewing them periodically to align with statutory and professional standards[142] - The Audit Committee assists the Board in reviewing financial information, risk management, and compliance with accounting principles and laws[191] Management and Leadership - Mr. Chang Chih-Kai has been the executive director and chairman since May 2017, previously serving as CEO from April 2016 to October 2020[121] - Mr. Chang Chih-Chiao was appointed as executive director in June 2009 and became CEO in October 2020, focusing on strategy and business planning[122] - Ms. Chang Wan-Hsun has been the finance director since October 2020, with extensive experience in procurement and cost control[124] - The management team has extensive experience in various sectors, including e-commerce and finance, enhancing strategic planning capabilities[122][135] Future Outlook - Looking ahead to 2025, the Group adopts a conservative yet optimistic view on China's economic prospects, focusing on refining its business strategies[28] - The Group plans to launch the Spring 2025 "Sweet Dreams" collection and introduce a new brand ambassador to enhance brand appeal[110] - The Group intends to open one to two "DAPHNE.LAB" stores in emerging "non-traditional" first-tier cities, targeting young consumers[111] - The Group will focus on e-commerce channels to capitalize on the vibrant online retail market and explore different market segments across e-commerce platforms[111] - The overall strategy includes increasing and seamlessly integrating online and offline experiences to improve customer engagement and satisfaction[111]