Financial Performance - Revenue for the first half of 2024 reached RMB 168.8 million, a 54% increase compared to RMB 109.3 million in the same period of 2023[3]. - Operating profit rose to RMB 56.7 million, reflecting a 67% increase from RMB 33.9 million year-on-year[3]. - Profit attributable to shareholders increased by 83% to RMB 56.1 million, up from RMB 30.7 million in the previous year[3]. - Operating margin improved to 33.6%, up 2.6 percentage points from 31.0% in the prior year[3]. - Net margin increased to 33.2%, a rise of 5.1 percentage points compared to 28.1% in 2023[3]. - Basic earnings per share grew by 65% to RMB 0.028, up from RMB 0.017[3]. - Gross profit from sales of goods improved by 62% to approximately RMB 17.2 million, with a gross margin of 17.2%[38]. - Profit for the period reached RMB 55.9 million, compared to RMB 31.0 million in the previous year, indicating an 80.5% increase[70]. - Total comprehensive income for the period reached RMB 56,385,000, compared to RMB 32,399,000 in 2023, reflecting a growth of 74.1%[71]. Cash and Equity Position - Cash and cash equivalents as of June 30, 2024, were RMB 410.2 million, a 12% increase from RMB 366.3 million at the end of 2023[4]. - Equity attributable to shareholders rose to RMB 707.0 million, marking a 6% increase from RMB 668.1 million[4]. - Current ratio improved to 3.8 times, up 27% from 3.0 times in the previous year[4]. - Net cash generated from operating activities for the first half of 2024 was RMB 45.9 million, compared to RMB 35.5 million in the same period of 2023, representing a 29% increase[50]. - Current assets decreased to RMB 2,119,000 from RMB 5,058,000, a decline of 58.1%[73]. - Net current assets improved to RMB 324,784,000, compared to RMB 277,228,000, indicating a growth of 17.1%[73]. - Total equity attributable to shareholders increased to RMB 707,046,000 from RMB 668,084,000, reflecting a rise of 5.8%[73]. Business Operations and Strategy - The Group is focusing on strengthening its online operations and expanding its online licensing network through emerging e-commerce platforms[11]. - The online licensing business is a key growth driver, with sustained robust growth in sales and market penetration on platforms like "Douyin" and "Pinduoduo"[20]. - The Group is enhancing its digital marketing capabilities to better cater to evolving consumer preferences and strengthen brand presence[16]. - The Group is exploring new social media sales channels such as "RED" and "POIZON" to engage younger consumers and expand market share[20]. - The Group continues to optimize its offline business and supply chain system while integrating management teams for better operational performance[14]. - The Group's strategic focus on brand building and resource allocation has allowed it to maintain impressive growth despite market challenges[18]. - The Group plans to strategically invest in its "DAPHNE" and "DAPHNE.LAB" brands, launching new products and a new store concept to enhance brand image and attract a younger consumer base[67]. - The Group aims to expand its online sales channels and deepen online-offline integration to capture greater market share in the growing e-commerce market[68]. Market Trends and Consumer Demand - The overall retail sales of consumer goods in China grew by 3.7% year-on-year, indicating a slow recovery in consumer demand[10]. - In the first half of 2024, China's online retail sales surged 9.8% year-on-year to RMB7.1 trillion[11]. - The positive market response to new product themes, such as "Protagonist" and "Day Off," has further validated the Group's strategic direction in product development[26][27]. Employee and Operational Costs - Employee benefits expense for the first half of 2024 was approximately RMB 23.1 million, reflecting a 15% year-on-year increase from RMB 20.0 million in 2023[59]. - Operating expenses increased to approximately RMB 54.0 million from RMB 51.7 million, mainly due to higher employee benefits and marketing expenses[41]. - Marketing and promotion expenses increased to RMB 5,241,000 in 2024 from RMB 3,737,000 in 2023, an increase of 40.2%[6]. Shareholder Information - The company paid dividends of RMB 14,942,000 to shareholders during the period[76]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with 2023[100]. - As of June 30, 2024, Mr. Wang Jungang held 51,800,000 shares, representing approximately 2.62% of the total issued shares[138]. - Lucky Earn International Ltd. was the largest substantial shareholder, holding 527,442,915 shares, which is 26.66% of the total issued shares[142]. Compliance and Governance - All directors confirmed compliance with the Model Code for Securities Transactions during the review period[135]. - The Company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the reporting period[158]. - The audit committee reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[159].

Financial Performance - Revenue increased by 54% to approximately RMB 168.8 million for the six months ended June 30, 2024[1] - Profit attributable to shareholders rose by 83% to approximately RMB 56.1 million[1] - Basic earnings per share were RMB 0.028, compared to RMB 0.017 in the same period last year[3] - Operating profit for the period was RMB 56.7 million, up from RMB 33.9 million year-on-year[3] - Gross profit reached RMB 85.8 million, with a gross margin improvement due to increased sales[3] - Total comprehensive income for the period was RMB 56.4 million, compared to RMB 32.4 million in the previous year[4] - The group reported a total revenue of RMB 168,796,000 for the six months ended June 30, 2024, compared to RMB 109,294,000 for the same period in 2023, representing a growth of approximately 54.4%[11] - The group recognized royalty income of RMB 68,575,000 and product sales of RMB 100,221,000 for the six months ended June 30, 2024, compared to RMB 45,972,000 and RMB 63,322,000 respectively for the same period in 2023[11] - The group reported a net operating profit of RMB 24,948,000 for the six months ended June 30, 2024, compared to RMB 29,051,000 for the same period in 2023[12] - The group recorded an operating profit of approximately RMB 56.7 million, representing an increase of 67% from RMB 33.9 million in the same period of 2023[34] Cash and Assets - Cash and cash equivalents amounted to approximately RMB 410.2 million, an increase of 12%[1] - The company maintained a strong cash position with cash and cash equivalents amounting to RMB 410.2 million, a 12% increase from RMB 366.3 million[27] - The net cash generated from operating activities was RMB 45.9 million, compared to RMB 35.5 million in the previous year[38] - The company reported a net asset value of RMB 711.1 million as of June 30, 2024, up from RMB 672.3 million[5] - Trade receivables, net of impairment losses, amounted to RMB 2,525,000 as of June 30, 2024, down from RMB 3,271,000 as of December 31, 2023[17] - The group's net debt ratio remained at a net cash position, with a current ratio improving to 3.8 times as of June 30, 2024[38] Revenue Sources - Online licensing revenue grew by 49% year-on-year to approximately RMB 686 million, up from RMB 460 million in 2023[23] - Wholesale sales of licensed products increased by 46% year-on-year to approximately RMB 915 million, compared to RMB 625 million in 2023[23] - Revenue from licensing fees increased by 49% to approximately RMB 68.6 million, driven by higher unit prices and overall quantities sold to online franchisees[30] - Retail revenue from the "Daphne Laboratory" brand reached approximately RMB 8.7 million, a significant increase from RMB 0.8 million in 2023, following its launch in April 2023[31] Operational Strategy - The group continues to focus on expanding its distribution and sales of footwear products in mainland China[6] - The group changed its presentation currency from HKD to RMB to better reflect its primary business activities in mainland China[9] - The group’s non-current assets are primarily located in mainland China, indicating a focused operational strategy in that region[10] - The management team is optimizing operations and integrating young talent to enhance operational efficiency and adapt to market dynamics[20] - The company plans to continue investing in product competitiveness and brand awareness to attract new generation consumers[24] - The company aims to expand online sales channels by reallocating resources to capitalize on the booming e-commerce market[47] - The company emphasizes the importance of a seamless omnichannel experience by deepening online and offline integration and enhancing customer engagement through social media[47] Market Conditions - The overall retail sales of consumer goods in China grew by only 3.7% year-on-year, indicating a slower recovery in consumer demand[19] - The company anticipates a relatively stable global economic growth in the second half of 2024, despite external uncertainties due to global trade challenges and the U.S. presidential election[47] - The company plans to enhance its product mix, supply chain management, and brand building to seize growth opportunities while remaining cautious about domestic economic conditions[47] - Despite a soft offline retail environment, the company may cautiously expand its physical store network in the second half of the year to adapt to changing market conditions[47] Corporate Governance - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards[7] - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period[52] - The company’s audit committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ending June 30, 2024[55] - The company has maintained sufficient public float, with over 25% of its issued share capital held by the public as of June 30, 2024[53] Employee and Operational Costs - The total number of employees increased to 109 from 99 as of December 31, 2023, with employee benefit expenses rising by 15% year-on-year to approximately RMB 23.1 million[46] - The group's operating expenses for the period were approximately RMB 54.0 million, an increase of 4.5% compared to RMB 51.7 million in the same period of 2023[33] Dividends and Shareholder Returns - The group did not declare an interim dividend for the six months ended June 30, 2024, compared to a dividend of RMB 0.01 per share in 2023[16]

Financial Performance - The Group's total revenue for the year ended December 31, 2023, was approximately RMB262.6 million, representing a 53% increase from RMB172.1 million in 2022[141]. - The Group's operating profit surged by 59% to approximately RMB67.6 million for the same period, up from RMB42.4 million in 2022[125]. - Basic earnings per share for the year were RMB0.034, an increase from RMB0.021 in 2022, with a recommended final dividend of HK$0.01 per share, totaling approximately RMB17,526,000[126]. - The Group's licensing revenue grew by 28% year-on-year to approximately RMB103.6 million, compared to RMB81.0 million in 2022[128]. - The total gross profit for the year was approximately RMB131.4 million, an increase of 34% from RMB98.4 million in 2022[143]. - For the year ended December 31, 2023, the Group's product sales revenue increased significantly by approximately RMB 67.9 million or 75% to about RMB 159.0 million, compared to approximately RMB 91.1 million last year[48]. - The gross profit margin for product sales decreased from 19.1% to 17.5%, a decline of 1.6 percentage points[48]. Corporate Governance - The Group's consolidated financial statements for the year ended 31 December 2023 have been reviewed by the Audit Committee, which confirmed compliance with applicable accounting standards and adequate disclosures[19]. - During the financial year, two Audit Committee meetings were held to discuss the audit service plan and review the financial information of the Group, including annual and interim financial statements[16][18]. - The Nomination Committee is responsible for recommending suitable candidates for directorship, ensuring that all nominations are fair and transparent[20]. - The Company has established risk management procedures to identify and mitigate significant risks affecting the achievement of its goals, with annual updates on risk assessments[34][35]. - The Remuneration Committee reviewed the remuneration policy for executive directors and management during two meetings held in the financial year[28]. - The Company maintains liability insurance for directors and officers to cover legal liabilities arising from their duties[13]. - The Board holds regular meetings at least four times a year to monitor financial performance and formulate overall strategy[9]. - The Company has adopted a Whistleblowing Policy to promote compliance and ethical behavior across the Group[38]. - The Board is responsible for risk management and internal control systems, which are considered effective and adequate[60]. - The Group's commitment to ethical business practices is reinforced by its anti-corruption policy, which is part of its corporate governance framework[39]. - The Company has implemented a policy on the disclosure of inside information to ensure proper handling and dissemination[40]. - The Company has established procedures to handle inquiries related to market rumors and other affairs[66]. - The Company’s shareholder communication policy is considered effectively implemented[70]. - The Group's anti-corruption policy is part of its corporate governance framework, ensuring compliance with applicable laws and ethical conduct[63]. - All independent non-executive directors confirmed their independence as of December 31, 2023, in accordance with the listing rules[188]. Board Diversity and Composition - The Board currently has no female director but aims to appoint at least one female director by 31 December 2024[25]. - The Board is committed to diversity and will consider various factors, including gender, when appointing new directors[26]. - The Company aims to appoint at least one female director by December 31, 2024, as part of its board diversity policy[53]. Shareholder and Market Communication - The Company continues to enhance communication with shareholders and investors through various channels, including one-on-one meetings and investor briefings[69]. - The Company maintains a website providing updates on business, financial information, and corporate governance practices[69]. - The Company has not made any arrangements for shareholders to waive or agree to waive any dividends[110]. - The Company will continually review its dividend policy and reserves the right to amend or cancel it at any time[7.3]. Business Strategy and Market Position - The Group primarily engages in the licensing, distribution, and sale of footwear products and accessories in mainland China[107]. - The Group's strategic adjustments in online licensing and offline distribution networks were made in response to changing retail dynamics[132]. - The Group's efforts in business transformation and brand management have been crucial in navigating the challenging market conditions[125]. - The Group is focusing on enhancing its core brand DAPHNE and optimizing its supply chain and franchisee management to improve operational efficiency[158]. - The Group effectively utilized its resource advantages to optimize its online and offline licensing business, supply chain system, and brand building efforts, resulting in overall sales growth that outperformed the general market[199]. Economic Context - In 2023, China's GDP grew by 5.2% year-on-year, marking the slowest growth rate in 30 years, excluding the pandemic years[157]. - The economic recovery in China has been slower than expected, impacting consumer confidence and retail market performance[157]. - Consumer spending has become more cautious, with a shift towards value-for-money and cost-effective products[157]. - E-commerce in China continued to thrive, with online retail sales increasing by 11% to RMB 15.42 trillion in 2023, maintaining China's position as the largest online retail market globally[160].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 262,644,000, an increase of 52.7% from RMB 172,093,000 in 2022[3] - Gross profit for the same period was RMB 131,385,000, up 33.5% from RMB 98,402,000 in the previous year[3] - Operating profit increased to RMB 67,637,000, representing a 59.5% rise compared to RMB 42,422,000 in 2022[3] - Net profit for the year was RMB 62,872,000, a significant increase of 67.1% from RMB 37,575,000 in the prior year[3] - Basic and diluted earnings per share rose to RMB 0.034, compared to RMB 0.021 in 2022, reflecting a growth of 61.9%[3] - The company reported other income of RMB 59,631,000, which is an increase of 25.7% from RMB 47,413,000 in the previous year[3] - Total revenue for 2023 reached RMB 262,644,000, an increase of 52.6% compared to RMB 172,093,000 in 2022[26] - The company’s basic earnings per share for 2023 was RMB 62,435,000, compared to RMB 37,136,000 in 2022, indicating a growth of 68.1%[33] - The company’s net profit attributable to shareholders for the year was approximately RMB 62.4 million, representing a 68% increase from RMB 37.1 million in 2022[76] - Total comprehensive income for the year was RMB 63,554,000, up from RMB 40,459,000 in the previous year, indicating an increase of 57%[132] - The company's shareholders' share of total comprehensive income was RMB 62,210,000, compared to RMB 37,590,000 in 2022, reflecting a growth of 65%[132] Expenses and Liabilities - Sales and distribution expenses increased to RMB 46,704,000, up 75.6% from RMB 26,627,000 in 2022[3] - Financial assets impairment loss was RMB 1,991,000, compared to a reversal of RMB 731,000 in the previous year[3] - The company’s total liabilities decreased to RMB 136,602,000 in 2023 from RMB 152,807,000 in 2022, a reduction of 10.6%[20] - The operating expenses for the year were approximately RMB 123.4 million, an increase of 19% from RMB 103.4 million in 2022, primarily due to higher sales and distribution expenses[83] Assets and Cash Flow - Cash and cash equivalents increased to RMB 366,273,000 in 2023, compared to RMB 279,639,000 in 2022, reflecting a growth of 30.9%[20] - Trade receivables decreased to RMB 3,271,000 in 2023 from RMB 11,387,000 in 2022, a decline of 71.3%[20] - The company’s inventory stood at RMB 5,058,000 as of December 31, 2023, with no prior year comparison available[20] - The asset current ratio improved to 3.0 from 2.2 in the previous year, reflecting a 36% increase[70] - The company achieved a net cash position, with no convertible bonds outstanding as of December 31, 2023[70] Customer and Revenue Insights - Revenue from licensing fees rose by 28%, increasing from approximately RMB 81.0 million to approximately RMB 103.6 million, driven by higher unit prices and overall quantities of licensed footwear products[45] - Customer A's revenue significantly increased from RMB 24.215 million to RMB 91.863 million, while Customer B's revenue slightly decreased from RMB 47.626 million to RMB 48.932 million[56] - The company’s five largest customers accounted for approximately 84% of total revenue in 2023, up from 70% in 2022, indicating increased customer concentration[140] Strategic Initiatives - The company plans to continue enhancing its supply chain and efficiency management to maintain market competitiveness[42] - The company aims to implement strict quality control measures across its supply chain to ensure product quality and customer satisfaction[42] - The company plans to expand its "Daphne Lab" online and offline stores to enhance market coverage and customer engagement[68] - The company strategically adjusted its online licensing and offline distribution networks in response to changing retail dynamics[67] - The company will continue to explore collaboration opportunities to expand its customer base, particularly among high-spending younger generations[108] Market and Brand Development - The online retail market in China grew by 11% year-on-year to RMB 15.42 trillion, making it the largest online retail market globally[65] - The overall retail sales in China grew by 7.2% year-on-year, with consumer spending becoming more cautious and value-oriented[65] - The company emphasized enhancing its core brand "Daphne" to maintain its leading position in a competitive market[65] - The company successfully launched innovative product lines, including the "Sugar-Free Series" and collaborations with designer brands, which received positive market feedback[67] - The new brand "Daphne.Lab" has gained significant market attention and online engagement[108] Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes throughout the year[90] - The company maintained sufficient public float, with over 25% of the total issued share capital held by the public as of December 31, 2023[93] Future Outlook - The company maintains a cautious outlook for 2024 due to geopolitical and macroeconomic uncertainties[108] - The company plans to expand its online licensing network and cautiously advance offline retail expansion[109]

Financial Performance - Revenue for the first half of 2023 reached HK$123.0 million, a 134% increase compared to HK$52.6 million in the same period of 2022[8] - Operating profit rose to HK$38.2 million, reflecting a 71% increase from HK$22.3 million year-on-year[8] - Profit attributable to shareholders increased by 81% to HK$34.5 million, up from HK$19.1 million in the previous year[8] - For the six months ended June 30, 2023, the Group's total revenue amounted to HK$123.0 million, an increase of 134% compared to HK$52.6 million in the same period last year[36] - Gross profit for the same period rose to HK$66,724,000, up 73.5% from HK$38,526,000 in 2022[92] - Operating profit increased to HK$38,195,000, representing a 71.6% growth from HK$22,287,000 in the previous year[92] - Profit for the period reached HK$34,899,000, a 78.9% increase compared to HK$19,500,000 in 2022[94] - Basic earnings per share increased to 1.9 HK cents, compared to 1.1 HK cents per share for the same period in 2022[23] Revenue Sources - Licensing fee income expanded 46% year-on-year to approximately HK$51.7 million, compared to HK$35.4 million in 2022[18] - Revenue from licensing fee income increased by 46%, from HK$35.4 million to HK$51.7 million, primarily due to higher unit prices and overall volume of licensed footwear products[41] - Sales of goods surged by 315%, reaching HK$71.3 million compared to HK$17.2 million in the previous year[39] - Revenue from goods sales increased approximately 3 times to HK$71.3 million compared to HK$17.2 million in the corresponding period of 2022, with gross margin improving from 18.0% to 21.0%[42][48] Cash and Liquidity - Cash and cash equivalents grew by 14% to HK$356.2 million, compared to HK$312.8 million at the end of 2022[8] - Cash and cash equivalents as of June 30, 2023, amounted to HK$356,208,000, an increase from HK$312,776,000 at the end of 2022[99] - The Group's net increase in cash and cash equivalents for the period was HK$54,919,000, compared to HK$8,174,000 in the previous year, highlighting a significant improvement in cash flow management[1] - The current ratio improved to 2.8 times, up from 2.2 times at the end of 2022, an increase of 27%[8] Operational Efficiency - The Group has shifted to an asset-light business model, focusing on brand management and licensing, enhancing operational efficiency[17] - The Group is committed to enhancing product quality and optimizing the supply chain for greater efficiency and responsiveness[35] - Operating expenses rose to approximately HK$61.2 million from HK$45.0 million in the same period last year, mainly due to impairment losses on financial assets and losses on disposal of investment properties[44][50] Market Strategy - The company maintains a strategic focus on online licensing business targeting popular interest-based e-commerce platforms[13] - The Group is actively promoting its products on e-commerce platforms, particularly through cooperation with emerging short video platforms like "Douyin" to drive customer engagement[25] - The Group plans to cautiously expand its online licensing network and physical store network in response to the uncertain operating environment[25] - The Group aims to develop more original footwear products targeting young and high-spending consumers, maintaining brand relevance for long-term growth[84] Economic Outlook - The economic outlook remains challenging, but the overall consumer market is expected to gradually recover, with the Group remaining positive about the long-term development of China's consumer market[77] - The Group will closely monitor market developments and adjust its business strategy to reinforce its operational foundation amid a cloudy economic outlook[86] Dividend and Shareholder Returns - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2023[23] - The Group's equity attributable to shareholders increased to HK$600.7 million as of June 30, 2023, compared to HK$586.1 million on December 31, 2022[67] Store Operations - As of June 30, 2023, the Group operated approximately 110 physical shops and 554 online shops, down from 149 and 585 respectively at the end of 2022[25] - The Group's physical stores decreased to approximately 110 as of June 30, 2023, down from 149 stores at the end of 2022[28] - Online stores operated by franchisees decreased to about 554 from 585 at the end of 2022, indicating a strategic adjustment in the online licensing network[28]

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。 DAPHNE INTERNATIONAL HOLDINGS LIMITED * 達 芙 妮 國 際 控 股 有 限 公 司 (於開曼群島註冊成立之有限公司) (股份代號： 210) 截至二零二三年六月三十日止六個月之 中期業績公告 摘要  收益增加134%至123.0百萬港元  股東應佔盈利增加81%至34.5百萬港元  每股基本盈利為1.9港仙  現金及現金等價物金額為356.2百萬港元，上升14% ...

Financial Performance - In 2022, the Group's total revenue amounted to approximately HK$199.8 million, a significant increase from HK$105.7 million in 2021, representing an increase of 88.6% year-on-year[16]. - The Group's licensing fee income increased by 62% year-on-year to approximately HK$94.1 million, up from HK$58.2 million in 2021[16]. - The Group achieved an operating profit of approximately HK$49.2 million for the year ended December 31, 2022, compared to an adjusted operating loss of approximately HK$19.5 million in 2021[18]. - For the year ended 31 December 2022, the Group's total revenue increased by 89% to HK$199.8 million compared to HK$105.7 million in 2021[32]. - Licensing fee income rose by 62% to HK$94.1 million from HK$58.2 million, primarily due to the increase in online stores operated by franchisees[29]. - Sales of goods surged by 123% to HK$105.7 million, up from HK$47.5 million, with gross margin improving by 4.8 percentage points to 57.2%[33]. - Overall gross profit increased by 106% to HK$114.2 million from HK$55.4 million in 2021[27]. - Profit attributable to shareholders for the year was HK$43.1 million, down from HK$52.7 million in 2021, with basic earnings per share at 2.4 HK cents compared to 2.9 HK cents[44]. Market Environment - China's GDP growth slowed to a multi-decade low of 3.0% year-on-year in 2022, impacting consumer sentiment and the retail sector[12]. - The e-commerce market in China continued to grow, with online retail sales increasing by 4% year-on-year to approximately RMB 13.8 trillion in 2022[14]. - The macro environment remains volatile and unpredictable, with challenges and uncertainties expected in 2023, impacting the foundation of China's economic recovery[79]. Strategic Initiatives - The Group plans to enhance its product design and diversify its product mix to attract young consumers aged 18 to 28[21]. - The "Bubble Gum Series" launched in summer 2022 received enthusiastic market feedback, exceeding the Group's expectations[22]. - The Group will continue to expand its online presence and marketing efforts on high-traffic social media platforms to boost brand awareness and customer loyalty[25]. - The Group is well-positioned to capitalize on the recovery of consumption in the post-pandemic era by expanding its online and offline licensing networks[10]. - The Group plans to expand its online licensing network and enhance its presence on various e-commerce platforms to increase market share, while also recruiting more franchisees for offline channels[80][88]. - The Group's new collections with original designs received positive responses, and it aims to provide more high-quality yet affordable footwear products to attract younger consumers[90]. - The Group plans to actively and selectively recruit more online and offline franchisees to penetrate new markets, leveraging the synergy between online and offline channels[193]. - The Group has shifted to a light-asset business model focusing on brand management and licensing, optimizing its licensing network in response to market changes[194]. Operational Efficiency - Operating expenses were approximately HK$120.0 million, a decrease from adjusted operating expenses of HK$125.9 million in 2021[35]. - The Group incurred capital expenditure of HK$1.1 million in 2022, down from HK$3.5 million in 2021, mainly for leasehold improvements and office equipment[62][71]. - The Group's investment in a wealth management product amounted to approximately HK$34.3 million, with an unrealized gain of approximately HK$0.8 million for the year[47]. - The company has enhanced supply chain flexibility and responsiveness, leading to improved operational stability and resilience[195]. - The implementation of the "small orders quick returns" strategy has streamlined the supply chain, optimizing profitability for franchisees[195]. - The company established a special team to facilitate efficient collaboration between franchisees and suppliers, allowing for early feedback on product samples[195]. Corporate Governance - The Company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the year ended December 31, 2022[122]. - The Board of Directors consists of executive directors with extensive experience in footwear distribution and retail, as well as independent non-executive directors with professional qualifications in various industries[133]. - The Company is committed to enhancing its corporate governance practices to align with statutory and professional standards and the latest developments[122]. - The Nomination Committee assesses the independence of independent non-executive directors annually based on character, integrity, expertise, and experience[129]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance throughout the year ended December 31, 2022[125]. - The Board will continue to review and improve corporate governance practices to support the operation and growth of the business[122]. - The independent non-executive directors contribute to the effective direction of the Company and safeguard the interests of shareholders[133]. Cash Flow and Financial Position - As at 31 December 2022, cash and cash equivalents amounted to HK$312.8 million, an increase from HK$227.5 million in 2021[45]. - The Group's net gearing ratio remained in net cash position, with a current ratio of 2.2 times, down from 2.7 times in 2021[42]. - For the year ended 31 December 2022, net cash generated from operating activities was HK$137.8 million, a significant improvement from a cash usage of HK$28.8 million in 2021[146]. - Cash and cash equivalents increased by 37% to HK$312.8 million from HK$227.5 million in 2021[186]. - The company maintained a net cash position, indicating no net gearing ratio applicable[186]. - Total assets as of December 31, 2022, were HK$870,324,000, a slight increase from HK$836,721,000 in 2021[188]. - Total liabilities increased to HK$179,546,000 in 2022 from HK$134,990,000 in 2021, representing an increase of about 32.9%[188]. Future Outlook - The Group is still in the process of business transformation despite initial successes in 2022[91]. - The Group will maintain a cautious market outlook and make timely adjustments to its business model to enhance operations[91]. - Efforts will be strengthened to improve the supply chain management system and licensing business[91]. - Continuous optimization of the business model will be pursued to adapt to changing consumer preferences and market conditions, ensuring sustainable growth[197]. - The easing of COVID-19 restrictions in China is expected to support consumer growth, enabling the company to leverage its asset-light business model in the post-pandemic era[197]. - For 2023, the company anticipates potential consumer recovery challenges due to economic uncertainties, despite a positive long-term growth outlook for the Chinese economy[197].

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。 DAPHNE INTERNATIONAL HOLDINGS LIMITED * 達 芙 妮 國 際 控 股 有 限 公 司 (於開曼群島註冊成立之有限公司) (股份代號：210) 截至二零二二年十二月三十一日止年度之 全年業績公告 二零二二全年業績摘要  收益總額增加89%至199.8百萬港元  股東應佔盈利減少18%至43.1百萬港元  每股基本盈利為2.4港仙  現金及現金等價物金額為312.8百萬港元 ...

Financial Performance - Revenue for the first half of 2022 was HK$52.6 million, a 4% increase from HK$50.4 million in 2021[16] - Operating profit decreased significantly to HK$22.3 million, down 70% from HK$74.7 million in the previous year[16] - Profit attributable to shareholders was HK$19.1 million, representing a 57% decline from HK$44.8 million in 2021[16] - Operating margin fell to 42.4%, down 106.0 percentage points from 148.4% in the previous year[16] - Net margin decreased to 36.3%, a drop of 52.6 percentage points from 88.9% in 2021[16] - Basic earnings per share were HK$1.1, down 56% from HK$2.5 in the previous year[16] - For the six months ended 30 June 2022, the Group's total revenue amounted to HK$52.6 million, an increase of 4% compared to HK$50.4 million in the same period of 2021[43] - Profit for the period was HK$19,500,000, down from HK$46,459,000 in 2021, showing a decline of 58%[88] - Basic earnings per share for the period were 1.1 HK cents, compared to 2.5 HK cents in 2021, indicating a reduction in shareholder returns[85] - The company reported a total comprehensive loss of HK$9,798,000 for the period, contrasting with a comprehensive income of HK$54,698,000 in the previous year[88] Cash Flow and Liquidity - Cash and cash equivalents stood at HK$226.4 million, a slight decrease of 1% from HK$227.5 million[17] - The current ratio improved to 2.9 times, up 7% from 2.7 times in the previous period[17] - The Group generated net cash from operating activities of HK$42.6 million in the first half of 2022, compared to a cash outflow of HK$73.3 million in the same period of 2021[63] - As of June 30, 2022, cash and cash equivalents amounted to HK$226,373,000, a decrease from HK$227,489,000 at the beginning of the year[96] - The net cash used in investing activities was HK$32,916,000, compared to a net cash generated of HK$71,867,000 in the same period of 2021[96] Revenue Sources - Total revenue for the Group was approximately HK$52.6 million, up from HK$50.4 million in 2021, with licensing fee income contributing HK$35.4 million and sales of goods contributing HK$17.2 million[35] - In the first half of 2022, the Group's licensing fee income increased by 141% year-on-year to HK$35.4 million, driven by the growing e-commerce economy[27] - Revenue from sales of goods decreased to HK$17.2 million from HK$35.6 million, with a gross profit of HK$3.1 million and a gross margin of approximately 18.0%[47] - Licensing fee income for the Group was HK$35,428,000, while sales of goods amounted to HK$17,176,000 for the six months ended June 30, 2022[115] Operational Highlights - The number of online shops operated by licensees increased to approximately 480, up from 250 in December 2021, while physical shops operated by franchisees decreased to approximately 160 from 190[35] - The Group is focusing on brand management and licensing of footwear products, including women's dress shoes and casual shoes, to franchisees and licensees[32] - The Group launched the "Bubble Gum Series" this summer, which received enthusiastic responses from young consumers, exceeding expectations[36] - The Group aims to enhance product competitiveness and brand awareness by strengthening product design and development, as well as supply chain systems[36] - The Group's strategy includes a prudent approach to expanding both offline and online networks to tap into new markets[35] Economic Outlook - Despite economic challenges, the fundamentals of China's long-term economic growth remain unchanged[24] - The Group maintains a cautious outlook for the second half of the year due to ongoing economic uncertainties[80] Cost Management - Operating expenses decreased to approximately HK$45.0 million from HK$66.6 million in the previous year, primarily due to reduced impairment losses[54] - The cost of inventories sold, net of provision, was HK$14,078,000, significantly lower than HK$40,840,000 in the same period of 2021, indicating a reduction of about 65.5%[7] Shareholder Information - As of June 30, 2022, the Group's equity attributable to shareholders was HK$585.0 million, a slight decrease from HK$590.1 million as of December 31, 2021[62] - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2022, compared to no dividend in 2021[130] - The total interests of directors in underlying shares amounted to 95,200,000 shares, representing approximately 5.25% of the total issued shares[199] Accounting and Compliance - The Group has adopted new and amended accounting standards effective from January 1, 2022, with no material impact on its accounting policies[109] - The Group's financial statements are unaudited for the six months ended June 30, 2022, and 2021, indicating a preliminary assessment of financial performance[183]

Financial Performance - Revenue for the year ended December 31, 2021, was HK$105.7 million, a decrease of 71% compared to HK$363.9 million in 2020[9] - Gross profit for 2021 was HK$55.4 million, down 58% from HK$133.2 million in 2020[9] - Operating profit for 2021 was HK$84.6 million, a significant recovery from an operating loss of HK$237.1 million in 2020[9] - Profit attributable to shareholders for 2021 was HK$52.7 million, compared to a loss of HK$242.0 million in 2020[9] - Gross margin improved to 52.4% in 2021, up 15.8 percentage points from 36.6% in 2020[9] - Basic earnings per share for 2021 was HK$2.9, a recovery from a loss of HK$14.4 per share in 2020[9] - The Group's profit attributable to shareholders for the full year of 2021 was HK$52.7 million, compared to a basic loss of HK$14.4 million per share in 2020[49][50] - Licensing fee income increased significantly to HK$58.2 million from HK$5.2 million, representing a growth of 1,029%[68] - Revenue from sales of goods decreased by 87% to HK$47.5 million from HK$358.7 million due to the ongoing phase-out of retail operations[69] Liquidity and Financial Position - Cash and cash equivalents increased by 83% to HK$227.5 million in 2021, up from HK$124.6 million in 2020[10] - Equity attributable to shareholders rose by 12% to HK$590.1 million in 2021, compared to HK$528.2 million in 2020[10] - The current ratio improved to 2.7 times in 2021, up from 1.5 times in 2020, indicating better liquidity[10] - Total assets for the Group reached 4,153,860 million, with total equity at 3,035,661 million[15] - Current liabilities amounted to 1,104,790 million, while total liabilities were 1,118,199 million[15] - Shareholders' equity increased to 2,874,907 million, reflecting a solid financial position[15] Business Transformation and Strategy - The company is focusing on operational improvements and market expansion strategies to enhance future performance[8] - In 2021, the Group's operations turned profitable in the second half of the year, following a major transformation to an asset-light business model[24] - The Group shifted from a retailer to an asset-light brand owner, transforming its retail network into a franchising and licensing network[25] - The Group's strategic shift includes exploring collaborations with other brands to attract a younger demographic[30] - The Group's transformation efforts are anticipated to promote sustainable development moving forward[32] - The Group successfully transformed its business model to an asset-light approach, leading to a turnaround in the second half of 2021[32] - The Group's focus on brand management and licensing has shifted its operations towards a franchising model, enhancing its role as a brand owner[55] Market Trends and Consumer Insights - The total retail sales of consumer goods in China posted double-digit growth year on year, indicating a strong market recovery[24] - The Group's online retail sales grew by 14.1% year-on-year, with online retail sales of physical goods increasing by 12.0%, accounting for 24.5% of total consumer goods sales[41] - The data collected from the new platform will help the Group understand consumer preferences and identify market trends[26] - The "Sugar Cube Collection" targeting young consumers received positive feedback since its debut[30] - The "Sugar Cube Series" launched in the fall/winter season has become a popular product, with over 70% of purchases made by consumers born in the 1990s[61] Operational Efficiency and Cost Management - The disposal of inventories related to directly-managed and partnership stores significantly reduced operating and administrative costs, enhancing resource allocation[25] - The Group's operating expenses decreased to approximately HK$125.9 million from HK$411.4 million in the previous year, primarily due to the scaling down of operations[72] - Employee benefits expense decreased by 69% to HK$38.5 million, down from HK$126.0 million in 2020, due to headcount reduction and cost control measures[94] - The asset-light business model has alleviated pressure from operating and administrative costs, leading to profitability in the second half of 2021[48] Corporate Governance - The company emphasizes the importance of good corporate governance for its success and sustainability, committing to high standards of corporate governance practices[132] - Throughout the year ended December 31, 2021, the company complied with all applicable code provisions of the Corporate Governance Code, except for a brief period when it had only two independent non-executive directors[134] - The board of directors will continue to enhance corporate governance practices to align with statutory and professional standards[135] - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance by all directors throughout the year ended December 31, 2021[136] - The Company has established three board committees: Audit Committee, Nomination Committee, and Remuneration Committee, to oversee its affairs[178] Management and Board Structure - The Company’s governance structure includes a clear separation of roles between the Chairman and the Chief Executive Officer[181] - The Board has delegated responsibilities to executive directors and senior management for day-to-day operations and management of the Group[152] - The Nomination Committee is responsible for selecting and recommending candidates for directorship, ensuring appropriate professional knowledge and industry experience[153] - The Company has established a training and development program for directors, including induction and ongoing training[170] - The Board meets regularly to formulate overall strategy and monitor financial performance, with notices sent at least 14 days prior to meetings[161]