港股公司报告 | 公司点评 公司发布 25Q1 业绩公告 九兴控股（01836） 证券研究报告 25Q1 预计量增价减 由于高基数效应，公司收入同比减少 2.2%至 3.3 亿美元。 制造业务 25Q1 收入 3.2 亿美元，同比-1.8%，其中出货量同比+3.4%至 1210 万双，受运动类别所带动；ASP 同比-5.0%至 26.4 美元/双，主要由于平均 售价较低的运动产品订单占比较高所致。 生产工艺与效率：具备高端联名款和限量款生产能力，快反能力强，能够 迅速响应客户订单。 公司 2024 年已实现经营利润率 OPM 约 11.9%，提前达成三年规划 （2023-2025）目标。 公司已建议支付 6000 万美元现金作为 2024 年特别股息，并仍承诺于 2025 年及 2026 年除维持在通常水平 70%的派息率派付定期股息（包括末期股息 及中期股息）外，将通过结合股份回购及派付特别股息的方式向股东返还 每年最多 6000 万美元的额外现金。 具备开发设计能力及核心生产工艺，产能全球布局 开发设计能力：公司拥有强大的研发能力和自主设计能力，能够快速响应 市场需求，开发高附加值产品。 归母净利润 1. ...

Financial Performance - The company's revenue for 2023 was $1,545,114 thousand, reflecting a 3.5% increase compared to 2022[15]. - Shareholders' profit attributable for 2023 was $171,049 thousand, representing a 21.2% increase from 2022[18]. - The compound annual growth rate (CAGR) from 2021 to 2024 is projected to be 21.5%[24]. - The operating profit margin for 2023 was 10.7%, with a forecasted increase to 11.9% in 2024[25]. - The company achieved an operating profit margin of 11.9% in 2024, up from 10.7% in 2023, exceeding the target of 10% set in the three-year plan (2023-2025) for the second consecutive year[34]. - Return on invested capital (ROIC) increased significantly to 21.6% in 2024, more than double the 10% recorded in 2019, reflecting the effectiveness of the long-term strategy implemented in 2023[35]. - Consolidated revenue increased by 3.5% to $1,545,100,000, with shipment volume rising by 8.2% to 53,000,000 pairs[49]. - Gross profit grew by 4.7% to $384,000,000, resulting in a gross profit margin of 24.9%[51]. - Operating profit rose by 15.7% to $184,500,000, benefiting from increased orders for athletic footwear and improved operational efficiency[52]. - Net profit for the year was $170,100,000, reflecting an increase from $140,300,000 in the previous year[53]. - The return on invested capital (ROIC) reached 21.6%, significantly up from approximately 10% in 2019[55]. - Net cash position improved by 45.3% to $417,600,000, compared to $287,400,000 at the end of 2023[56]. - The company aims to achieve a low double-digit percentage compound annual growth rate for after-tax profit in the upcoming years[37]. - The company has a history of strong financial performance, which supports its dividend distribution strategy[171]. Strategic Initiatives - The company has launched its first three-year strategic plan for 2023-2025[12]. - The company plans to further invest in design and development capabilities for leather products, including handbags and accessories[10]. - The company aims to become a preferred partner in the leather goods sector, enhancing its supply chain efficiency[5]. - The three-year plan includes expanding and diversifying production bases to stabilize cost structures and enhance operational efficiency[46]. - The company is expanding its production capabilities in Southeast Asia, including new factories in Indonesia and Vietnam[12]. - The company is focusing on strengthening partnerships with major sports brands and luxury fashion brands to support growth in the athletic and luxury footwear categories[46]. - The company anticipates moderate growth in overall shipments by 2025, despite macroeconomic challenges and geopolitical uncertainties, by increasing shipments to high-end fashion clients and new customers in the sports category[59]. - The company aims to enhance its handbag and accessories manufacturing business as a key growth pillar, considering the acquisition of a small handbag and accessories factory in Vietnam to leverage its expertise[60]. Corporate Governance - The board of directors is responsible for leading and overseeing the company’s affairs to promote success and ensure decisions align with the group’s best interests[80]. - The corporate governance committee focuses on compliance, risk management, investor relations, and corporate social responsibility, ensuring adherence to governance codes[81]. - The company has adopted stock option and share reward plans to recognize and reward employee contributions, aiming to retain talent and support ongoing operations[75]. - The board consists mainly of independent non-executive directors, ensuring strong independent elements for effective judgment and decision-making[86]. - The corporate governance practices reflect compliance with all governance code provisions throughout the year 2024[84]. - The corporate governance committee has conducted reviews of the annual governance report and related disclosures, ensuring transparency and accountability[85]. - The board has adopted a continuous evaluation process to assess its performance regularly[91]. - The company has established a board diversity policy, considering various factors such as gender, age, and professional experience in the nomination process[88]. - The gender ratio among employees is currently 4:1 in favor of males, with ongoing efforts to enhance gender diversity in recruitment[90]. - The nomination committee consists of four independent non-executive directors, with a focus on maintaining board diversity and independence[97]. - Independent non-executive directors are subject to a nine-year term limit, after which their reappointment requires an independence assessment[96]. - The company has implemented a formal and transparent procedure for appointing new directors, ensuring a structured succession plan[95]. - Directors receive ongoing training to stay updated on the company's operations and regulatory environment, with various training types categorized as legal, business, and financial[101]. - The board evaluation process includes feedback through questionnaires and interviews to improve efficiency and effectiveness[92]. - The company has established a system for regular review of business and financial performance, allowing for timely follow-up on unresolved issues[106]. Risk Management - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve strategic objectives, including significant risks related to environmental, social, and governance (ESG) factors[118]. - The internal control system is designed to manage risks within an acceptable risk profile rather than completely eliminate risks associated with achieving business objectives[118]. - The company conducts an annual review of its risk management and internal control systems to ensure they meet the requirements for financial reporting and listing rules[119]. - No significant internal control failures or weaknesses were identified during the year, indicating the effectiveness of the company's risk management and internal control systems[119]. - The internal audit team reports directly to the audit committee, chairman, and CEO, ensuring oversight of internal control matters[120]. - The company’s risk management and internal control systems have been comprehensively reviewed and positively assessed by third-party professional institutions[119]. Shareholder Returns - A final dividend of HKD 0.50 per share and a special dividend of HKD 0.56 per share were proposed, reflecting a commitment to return approximately 70% of adjusted net profit to shareholders[36]. - The board proposed a final dividend of HKD 0.50 per ordinary share and an interim dividend of HKD 0.65 per ordinary share, maintaining a payout ratio of approximately 70% based on adjusted net profit of USD 4,171,200,000[63]. - For the fiscal year ending December 31, 2024, the total dividend per ordinary share is projected to be HKD 1.71, subject to shareholder approval[64]. - The company plans to return up to $60,000,000 in additional cash to shareholders annually over the next three years as part of its excess cash return plan[49]. - The board aims to provide a cash return of 70% to shareholders through dividends and share buybacks, ensuring sufficient financial resources for business growth[170]. - The company has adopted a dividend policy to provide stable and sustainable dividends during profitable periods while maintaining financial resources for growth[170]. Employee Relations - The company emphasizes the importance of human resources as a key asset for development and expansion, actively seeking to attract, train, and retain motivated talent[75]. - The company is committed to a caring culture for employees, recognizing human resources as a vital asset for development and expansion, and aims to build management teams through effective training and development programs[191]. - As of December 31, 2024, the group has approximately 42,600 direct employees, an increase from about 39,900 on December 31, 2023, with a total workforce of around 63,200[75]. Market Position - The company has established a strong customer base, including leading global brands such as Nike and Coach[9]. - The company has been included in the Hang Seng Composite Index (HSCI), enhancing its market position and attractiveness to investors[35]. - The company was included in the Hang Seng Composite Index, enhancing global investor participation and liquidity[48]. - The company is focused on expanding its high-end fashion customer base and establishing a fashion sports footwear business, which is a key growth driver[157].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [7]. Core Insights - The company is a leading high-end footwear manufacturer with strong design and development capabilities, focusing on high-value-added sports, luxury, and fashion brand clients. Following a successful management transition in 2019, the company has accelerated its expansion into luxury fashion clients and increased its market share in sports categories. The company has initiated its first three-year plan for 2023-2025, targeting a low double-digit profit CAGR [1][2][3]. Summary by Sections Company Overview - The company specializes in high-end footwear manufacturing, with a global production footprint in China, Vietnam, Bangladesh, Indonesia, and the Philippines. It serves notable clients such as Nike, Deckers, Balenciaga, and Cole Haan across various categories including sports, luxury, and fashion. The management transition in 2019 has revitalized the company, leading to accelerated growth in luxury fashion client acquisition and sports category share [2][16][18]. Competitive Advantages - The company boasts leading design and development capabilities, with an average selling price (ASP) of $28.4 in 2024, significantly ahead of the industry. Its R&D expense ratio stands at 3.1%, placing it in the top tier of the industry. The company has established deep ties with high-end brands like Nike and Balenciaga, effectively diversifying its client base and mitigating trend cycle risks. The revenue distribution for 2024 is projected at 45% from sports, 8% from luxury, 27% from fashion, and 20% from leisure [3][4][18]. Financial Performance and Projections - The company is expected to achieve revenues of $1.62 billion in 2025, with a year-on-year growth of 5%. The projected net profit for 2025 is $185.3 million, reflecting an 8.34% increase. The company maintains a commitment to a 70% dividend payout ratio and plans to repurchase $60 million worth of shares annually from 2024 to 2026, resulting in a projected dividend yield of 10% in 2025 [5][6][21]. Production Capacity and Efficiency - The company has diversified its production capacity, with 51% of its output expected from Vietnam and 27% from China in 2024. The average output per employee is projected to reach 1,244 pairs per year, with revenue per employee at $36,000, indicating a continuous improvement in production efficiency [4][21][22].

[Table_MainInfo] 公司研究/纺织与服装/服装与奢侈品 证券研究报告 九兴控股（1836）公司年报点评 2025 年 3 月 25 日 [Table_InvestInfo] 投资评级 优于大市 维持 股票数据 分析师:盛开 Tel:(021)23154510 Email:sk11787@haitong.com 证书:S0850519100002 | [Table_StockInfo] 3 月 24 日收盘价（港元） | 18.02 | | --- | --- | | 52 周股价波动（港元） 9.90-19.44 | | | 总股本（百万股） | 829 | | 总市值（百万港元） | 14930 | | 相关研究 | | | [Table_ReportInfo] 《24Q4 量增超预期，看好产能扩张+新客订单 | | | 带动盈利水平提升》2025.01.15 | | | 《24Q3 订单稳健增长，入通后流动性改善》 | | | 2024.10.22 | | | 《发布 3 年回购和特别股息方案，9 月入港股通 | | | 在即》2024.8.26 | | | 《发布盈利预喜，预计 24H1 ...

Financial Performance - Shipment volume increased by 8.2%[2] - Operating profit rose by 15.7% to $184.5 million, with an operating margin increase from 10.7% to 11.9%[2] - Net profit increased by 21.2% to $170.1 million[2] - Revenue for the year reached $1,545.1 million, compared to $1,492.7 million in the previous year[5] - Gross profit increased to $384.0 million from $366.7 million, reflecting a growth in gross margin[5] - Basic earnings per share increased to HK$1.6490 from HK$1.3937, equivalent to $0.2113 from $0.1780[7] - The operating profit before fair value changes of financial instruments was $184,534 thousand, with a net profit before tax of $198,822 thousand, reflecting a solid financial performance[25][29] - The company reported a pre-tax profit of $198,822,000 for 2024, up from $161,336,000 in 2023, reflecting a growth of approximately 23%[52] - Net profit for the year was $170,100,000, reflecting an increase from $140,300,000 in 2023, with an adjusted net profit margin of 11.1%[95] Cash Flow and Financial Position - Strong net cash position of $417.6 million, up 45.3% from $287.4 million as of December 31, 2023[2] - Cash flow from operating activities amounted to $264.1 million, compared to $229.2 million in the previous year[12] - Cash and cash equivalents increased by $130,071 thousand in 2024, up from $81,792 thousand in 2023[14] - The ending cash and cash equivalents balance for 2024 was $423,547 thousand, an increase from $294,471 thousand in 2023[14] - The company maintained a net cash position of USD 417.6 million as of December 31, 2024, compared to USD 287.4 million as of December 31, 2023, with a net capital debt ratio of -37.4%[107] - The current ratio as of December 31, 2024, was 3.2, indicating strong liquidity and financial stability, compared to 3.1 as of December 31, 2023[105] Dividends and Shareholder Returns - Proposed final dividend of HK$0.50 per share and an additional special dividend of HK$0.56 per share, totaling HK$1.71 for the year 2024[2] - The proposed final dividend for 2024 is approximately $112,998,000, compared to $63,415,000 in 2023, indicating a commitment to returning value to shareholders[57] - The company achieved a cash return to shareholders with a proposed final dividend of HKD 0.50 per share and an interim dividend of HKD 0.65 per share, maintaining a payout ratio of approximately 70% based on adjusted net profit of USD 171.2 million[103] Investments and Capital Expenditures - Capital expenditures for the year were $66,980 thousand, indicating ongoing investment in property, plant, and equipment[27][31] - The company plans to gradually increase production capacity in new factories in Solo, Indonesia, and Bangladesh as part of its 2023-2025 strategy[81] - The company is considering acquiring a small handbag and accessories factory in Vietnam to enhance its production capabilities and accelerate growth in this segment[102] Market and Revenue Segmentation - North America accounted for the largest share of revenue at $732,874 thousand, followed by Europe at $361,676 thousand and China at $260,219 thousand[32] - The manufacturing segment generated external sales of $1,542,519 thousand, while the retail and wholesale segment contributed $2,595 thousand, indicating a strong reliance on manufacturing for revenue[25][37] - The average selling price of footwear decreased by 4.4% to $28.4 per pair due to a higher proportion of lower-priced athletic products[88] Employee and Operational Metrics - The total number of employees increased to approximately 63,200 as of December 31, 2024, from about 59,800 the previous year, reflecting the company's growth and expansion efforts[117] - The company’s total employee benefits expenses rose to $376,224,000 in 2024, up from $363,132,000 in 2023, reflecting increased workforce costs[44] Sustainability and Governance - The MSCI ESG rating improved from "B" to "A" in 2024, reflecting the company's commitment to sustainability goals[78] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange and has complied with all relevant provisions for the year ending December 31, 2024[121] Miscellaneous - The company did not recognize any impact from the revised Hong Kong Financial Reporting Standards on its financial position or performance for the year[19] - The company has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended December 31, 2024[112] - The board is not aware of any significant matters affecting the company or its subsidiaries since the end of the financial year[127]

Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of HKD 19.35 per share, representing an 11% upside potential [5][16]. Core Insights - The company experienced a 3.5% annual revenue growth, reaching USD 1.55 billion, driven by an 8.2% increase in shipments to 53 million pairs, despite a 4.4% decline in average selling price (ASP) [12][13]. - The company is expanding its production capacity and optimizing its order structure, which is expected to enhance profitability, particularly with new luxury clients and a focus on high-margin products [14][15]. - A significant cash return of USD 180 million is planned for shareholders from 2024 to 2026, with an expected total return per share of 9.7% [16]. Financial Data and Forecast - The company's revenue for 2022 was USD 1.63 billion, with a projected revenue of USD 1.49 billion for 2023, and expected growth to USD 1.64 billion by 2026 [3]. - Net profit is forecasted to grow from USD 141 million in 2023 to USD 205 million by 2026, reflecting a compound annual growth rate (CAGR) of 10.2% [5][9]. - The gross profit margin (GPM) and EBIT margin reached a decade high in 2023, indicating improved operational efficiency [5][16].

Investment Rating - The report assigns an "Accumulate" rating for the company with a target price of HKD 19.60, based on the current price of HKD 17.62 [2][8]. Core Insights - The company is a global leader in footwear development and manufacturing, with over 30 years of experience in the footwear OEM industry, focusing on expanding product categories and developing high-quality clients [5][11]. - The company has a strong commitment to shareholder returns, maintaining a high dividend payout ratio of over 70% annually, except in 2020, and plans to distribute additional cash through share buybacks and special dividends [5][21]. - The company has successfully optimized its customer and product category mix, leading to improved operational efficiency and production capacity expansion [6][7]. Summary by Sections 1. Company Overview - The company has established itself as a trusted partner for leading global brands, including Nike and Balenciaga, and has launched its own brand, Stella Luna [11][12]. - The management team possesses extensive industry experience, which aids in the company's sustained focus on business development [12]. 2. Customer and Product Optimization - The company has invested over USD 40 million annually in R&D since 2020, with a high R&D expenditure-to-revenue ratio of 2.68% in 2023, surpassing competitors [6][25]. - The revenue distribution among product categories has shifted, with fashion and sports products increasing their share, while casual products have decreased [29][34]. 3. Operational Efficiency - The company has successfully reduced labor costs as a percentage of revenue, achieving a labor cost ratio of 9.8% in 2023, down from 11.5% in 2021 [7][43]. - The gross margin has improved significantly, reaching 25.8% in 2024H1, driven by better product mix and production efficiency [20][43]. 4. Market Demand and Competitive Landscape - Demand for footwear is stabilizing, with reduced inventory pressure observed in the U.S. apparel market since mid-2023 [44]. - The concentration of suppliers for major brands like Nike has increased, indicating a more favorable competitive landscape for companies with strong production capabilities [50]. 5. Financial Forecast and Valuation - Revenue projections for 2024-2026 are USD 16.2 billion, USD 17.6 billion, and USD 19.2 billion, respectively, with corresponding net profits of USD 1.7 billion, USD 1.9 billion, and USD 2.1 billion [8][52]. - The target market capitalization is set at USD 2.1 billion, with a target price of USD 2.52, reflecting a valuation based on a 11x PE ratio for 2025 [55].

Investment Rating - The report assigns an "Accumulate" rating for the company with a target price of HKD 19.60, based on the current price of HKD 17.62 [2]. Core Viewpoints - The company is a global leader in footwear development and manufacturing, with over 30 years of experience in the industry, focusing on high-quality customer relationships and product diversification [5][11]. - The company has a strong commitment to shareholder returns, maintaining a high dividend payout ratio of over 70% annually, except in 2020, and plans to distribute additional cash through share buybacks and special dividends [5][21]. - The company has successfully optimized its customer and product mix, leading to improved operational efficiency and production capacity expansion [6][7][8]. Summary by Sections 1. Company Overview - The company has established itself as a trusted partner for leading global brands, including Nike and Balenciaga, and has launched its own brand, Stella Luna [11]. - The management team possesses extensive industry experience, which supports the company's focus on sustainable growth [12]. 2. Customer and Product Optimization - The company has invested over USD 40 million annually in R&D since 2020, with a high R&D expenditure-to-revenue ratio of 2.68% in 2023, surpassing competitors [25]. - The product mix has been optimized, with fashion and sports categories increasing their revenue share, while the leisure category has decreased [29]. - The company has diversified its manufacturing bases across Vietnam, China, Indonesia, the Philippines, and Bangladesh, allowing for flexible capacity adjustments [34][35]. 3. Financial Performance - The company achieved a revenue of USD 15.45 billion in 2024, with a CAGR of -1.50% from 2015 to 2024, but has shown a strong recovery with a net profit of USD 0.92 billion in 2024H1, up 63.99% year-on-year [17][20]. - The gross margin improved to 25.8% in 2024H1, driven by better product mix and production efficiency [20][43]. 4. Demand and Competitive Landscape - Demand for footwear is stabilizing, with reduced inventory pressure observed in the U.S. apparel market since mid-2023 [44]. - The concentration of suppliers in the footwear industry is increasing, with the number of Nike's footwear suppliers decreasing, which may benefit the company due to its strong production capabilities [50]. 5. Earnings Forecast and Valuation - The company is expected to generate revenues of USD 16.2 billion, USD 17.6 billion, and USD 19.2 billion from 2024 to 2026, with corresponding net profits of USD 1.7 billion, USD 1.9 billion, and USD 2.1 billion [52][53]. - The target market capitalization is set at USD 21 billion, with a target price of USD 2.52, reflecting a PE ratio of 11x for 2025 [55].

Investment Rating - The investment rating for the company is "Outperform the Market" [4][11]. Core Views - The company is expected to provide an additional cash return of $180 million over the next three years, with a total return rate of 11.1% anticipated for 2024. The company plans to maintain a 70% dividend payout ratio and return up to $60 million annually through special dividends or buybacks, totaling $180 million [4]. - The company has shown stable order growth in Q3 2024, with a revenue increase of 0.6% to $390 million. Manufacturing revenue grew by 0.2% to $380 million, with a shipment volume increase of 5.7% to 12.9 million pairs, although the average selling price (ASP) decreased by 4.9% to $29.3 [4][5]. - The company’s gross margin and EBIT margin reached a ten-year high in 2023, indicating improved production efficiency and profitability for 2024 [4]. Financial Performance Summary - Revenue for 2023 is projected at $1,493 million, with a slight increase to $1,497 million in 2024, followed by $1,563 million in 2025 and $1,640 million in 2026. Year-over-year growth rates are expected to be -8% in 2023, 0% in 2024, 4% in 2025, and 5% in 2026 [5][7]. - Net profit is forecasted to grow from $141 million in 2023 to $166 million in 2024, $186 million in 2025, and $205 million in 2026, reflecting year-over-year growth rates of 20%, 17%, and 12% respectively [5][7]. - The company’s gross margin is expected to improve from 24.6% in 2023 to 25.3% in 2024, and further to 25.9% by 2026 [5][7]. Market Position and Valuation - The company has been included in the Hang Seng Composite Index and Hong Kong Stock Connect since September 9, leading to improved liquidity and significant net inflows from southbound funds [4]. - The estimated price-to-earnings (P/E) ratio for 2024 is projected to be between 10-11 times, with a corresponding fair value range of HKD 15.80 to 17.38 per share [4][5].

Financial Performance - The company achieved an operating profit margin of 12.9% in the first half of 2024, up from 10.7% in 2023, exceeding initial targets[3]. - Revenue and shipment volume increased significantly in the first half of 2024, driven by early shipments to clients in anticipation of the summer travel season[3]. - The company's consolidated revenue for the six months ended June 30, 2024, increased by 7.5% to $770 million, compared to $716.1 million in the same period of 2023[10]. - The gross profit grew by 20.0% to $198.9 million, with a gross margin of 25.8%, up from 23.1% in the previous year[11]. - Operating profit surged by 52.9% to $99.1 million, with an operating profit margin of 12.9%, compared to 9.0% in the same period last year[12]. - Net profit reached $91.5 million, significantly higher than $55.2 million in the prior year, with adjusted net profit at $392.9 million, up from $60.3 million[13]. - The group reported a profit before tax of $572,005,000 for the six months ended June 30, 2024, up from $546,018,000 in the same period of 2023, indicating a growth of approximately 4.8%[41]. - Basic earnings per share for the six months ended June 30, 2024, were $0.114, compared to $0.070 for the same period in 2023, representing a significant increase of 62.9%[45]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.65 per share, consistent with a long-term payout ratio of 70%[3]. - The company plans to return up to USD 60 million to shareholders annually over the next three years through a combination of share buybacks and dividends[3]. - A mid-term dividend of HKD 0.65 per share was declared, maintaining a payout ratio of approximately 70% based on adjusted net profit[17]. - The group declared an interim dividend of 65 Hong Kong cents per share, amounting to approximately $67,857,000, compared to 45 Hong Kong cents per share in the previous year[44]. Production and Operational Efficiency - The company is focusing on expanding high-margin product capacity, starting with a new factory in Solo, Indonesia, to optimize production efficiency[3]. - The company aims to enhance production capacity in its new factory in Indonesia and continue expanding its manufacturing facilities in Bangladesh[16]. - The company is enhancing its production capabilities in Bangladesh and Indonesia to stabilize its cost base and improve operational efficiency[8]. - The company’s non-sport footwear production facilities have been operating near full capacity since last year, despite a slowdown in the global luxury market[3]. Cash Flow and Financial Position - The company maintained a strong net cash position of $326.1 million as of June 30, 2024, compared to $162.5 million a year earlier[14]. - As of June 30, 2024, the group's cash and cash equivalents amounted to approximately $334.6 million, an increase of 92.9% compared to $173.5 million on June 30, 2023[18]. - The net cash inflow from operating activities for the six months ended June 30, 2024, was $99.2 million, significantly higher than $28.2 million for the same period in 2023[18]. - The group’s current ratio as of June 30, 2024, was 3.2, indicating strong liquidity compared to 3.1 on December 31, 2023[18]. - The group reported a decrease in cash outflow for investing activities to $15.7 million, down 29.9% from $22.4 million for the same period in 2023[18]. Employee and Workforce Metrics - The total number of direct employees increased to approximately 42,100 as of June 30, 2024, compared to about 39,900 on December 31, 2023[21]. - The total remuneration paid to key management personnel was $871,000, down from $1,066,000 in the previous year, indicating a decrease of 18.3%[100]. Stock Options and Incentive Plans - The company’s long-term incentive plan allows for the issuance of stock options, with a total of 27,970,000 options granted under the plan[59]. - The company has a practice of not cash settling stock options, and all options are accounted for as equity-settled plans[64]. - The new share option plan ("2024 Plan") was approved by shareholders on May 9, 2024, and is effective for ten years from the adoption date[133]. - The purpose of the 2024 Plan is to reward qualified participants for their contributions to the group's growth, attract and retain talent, and align the interests of participants with those of shareholders[134]. - The total number of stock options granted across the three periods amounts to 34,000,000, with varying exercise prices and vesting schedules[126]. Sustainability and ESG Ratings - The company received an upgraded MSCI ESG rating to "A" as part of its commitment to sustainability and transparency[4]. Market and Revenue Breakdown - North America and Europe accounted for 46.8% and 24.6% of total revenue, respectively, while China, Asia (excluding China), and other regions contributed 16.7%, 9.0%, and 2.9%[10]. - Revenue from footwear and handbag sales in the manufacturing segment was $769,067 thousand, with significant contributions from various regions including North America at $360,241 thousand[39]. Governance and Compliance - The company has complied with all provisions of the corporate governance code during the six-month period ending June 30, 2024[118]. - The company emphasizes a governance model that combines corporate governance with business governance to create long-term value[119].