Revenue and Profitability - Revenue for the year ended December 31, 2023, was $1,492.651 million, a decrease from $1,630.771 million in 2022[4] - Adjusted net profit increased by 23.5% to $147.6 million, excluding a fair value loss of $7.3 million related to financial instruments[2] - The total comprehensive income for the year was $134.676 million, compared to $92.537 million in the previous year[5] - The company reported a pre-tax profit of $133,195 thousand for the year, compared to $141,168 thousand in the previous year, indicating a decline of approximately 5.9%[22] - The group’s profit before tax increased to $161,336 thousand in 2023 from $133,195 thousand in 2022, reflecting a growth of approximately 21.1%[38] Gross and Operating Margins - Gross profit increased to $366.728 million, with a gross margin of 24.6%, up 3.0 percentage points from the previous year[2] - Operating profit rose by 18.2% to $159.353 million, with an operating margin increasing from 8.3% to 10.7%[2] - The gross profit margin improved by 3.0 percentage points to 24.6% in 2023, driven by enhanced product offerings and operational efficiencies[53] - The operating profit margin increased by 2.4 percentage points to 10.7% in 2023, attributed to strict cost control and improved productivity[53] Cash Flow and Financial Position - The company reported a strong net cash position of $287.4 million, up from $206.1 million in 2022, with approximately $140 million reserved for capacity expansion in Bangladesh and Indonesia[2] - Cash and cash equivalents at the end of 2023 amounted to $294,471 thousand, up from $213,303 thousand in 2022, reflecting an increase of 38.0%[10] - Operating cash flow before tax profit for 2023 was $161,336 thousand, an increase from $133,195 thousand in 2022, representing a growth of 21.5%[9] - Net cash flow from operating activities for 2023 was $229,153 thousand, slightly down from $240,076 thousand in 2022, a decrease of 4.3%[9] - The net cash flow from financing activities in 2023 was a negative $90,788 thousand, compared to a negative $106,412 thousand in 2022, indicating improved cash management[10] Dividends and Shareholder Returns - The company declared a final dividend of HK$0.61 per share, resulting in a total annual dividend of HK$1.03 per share, with a payout ratio of approximately 70% based on adjusted net profit[2] - The proposed final dividend for the year ended December 31, 2023, is $62,169 thousand, up from $45,590 thousand in 2022, marking an increase of approximately 36.3%[42] - The board declared a final dividend of HK$0.61 per share, resulting in a total annual dividend of HK$1.03 per share, maintaining a payout ratio of approximately 70% based on adjusted net profit[69] Assets and Liabilities - Non-current assets totaled $532.174 million, with current assets amounting to $827.527 million, reflecting a solid asset base[6] - The total assets of the group amounted to $1,359,701,000, with segment assets of $1,315,496,000 for manufacturing and $25,576,000 for retail and wholesale[20] - The group’s total liabilities were $292,237,000, with segment liabilities of $281,529,000 for manufacturing and $1,536,000 for retail and wholesale[20] - Current assets were approximately $827,500,000, with current liabilities of about $265,200,000, resulting in a current ratio of 3.1, indicating strong liquidity[71] Investments and Capital Expenditures - Capital expenditures for the manufacturing segment were $67,616,000, while the retail and wholesale segment incurred $22,000, totaling $67,638,000[21] - The company’s investment in joint ventures amounted to $42,449 thousand, while losses from associates were $84 thousand[23] - The company plans to expand production capacity in its new factory in Solo, Indonesia, and is also advancing the construction of a new factory in Bangladesh[53] Market Performance and Strategy - The average selling price grew by 4.2%, enhancing the customer portfolio, particularly in the luxury and high-end fashion categories[2] - The company is strategically reducing the scale of its brand business, closing all retail stores and wholesale distribution points in Europe[53] - North America generated $680,183 thousand in revenue, down from $836,053 thousand in 2022, reflecting a decrease of about 18.6%[24] - The luxury and fashion category revenue increased by 4.1%, while the casual category revenue decreased by 18.0% as production capacity was reallocated[61] Employee and Operational Efficiency - The workforce decreased to approximately 39,900 employees from about 42,500 in the previous year, reflecting the company's focus on efficiency and talent retention[78] - The company is restructuring its organizational framework to improve customer service and operational efficiency[58] Compliance and Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with all relevant provisions[81] - The board confirmed that all directors have adhered to the standard code for securities trading throughout the year ending December 31, 2023[82] - The audit committee has reviewed the group's annual performance for the year ending December 31, 2023[83]

[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）公司研究报告 2024年03月12日 [Table_InvestInfo] 首次 低估值+高股息+稳增长顶尖时尚与休闲鞋类 投资评级 优于大市 覆盖 制造企业 股票数据 [Table_Summary] 3[T月ab11le日_S收t盘oc价kI（nf港o元] ） 11.00 投资要点： 52周股价波动（港元） 6.46-11.00 总股本（百万股） 797 总市值（百万港元） 8768  全球顶尖时尚与休闲鞋履制造企业。公司从事鞋履及皮具产品的开发及制造， 市场表现 品类涵盖奢华、运动及休闲品类，产能分布于国内、越南及印尼。公司拥有 [Table_QuoteInfo] 全球众多全球知名品牌客户，包括①运动品牌：Nike、Saucony、Under Armour 等，②时尚鞋履品牌：Cole Haan、Kate Spade、Michael Kors、Tory Burch 等，③高端时尚品牌：Amiri、Ambush、Alexander Wang、Balenciaga、 Balmain、Chloe、Jimmy ...

Financial Performance - Total revenue for the six months ended June 30, 2023, decreased by 13.4% to $716.1 million, down from $827.2 million in the same period last year[10]. - Gross profit increased by 1.2% to $165.8 million, with a gross margin of 23.1%, compared to 19.8% in the previous year[10]. - Operating profit decreased by 5.5% to $64.8 million, impacted by a provision for uncollectible receivables of $216 million related to The Rockport Company[10]. - Net profit for the period was $55.2 million, down from $60.2 million year-on-year, with adjusted net profit at $360.3 million, compared to $60.2 million in the previous year[10]. - Profit before tax for the period was $63,453 thousand, compared to $68,440 thousand in the previous year, representing a decline of 7.2%[22]. - Basic earnings per share for the six months ended June 30, 2023, were $0.0703, down from $0.0763 for the same period in 2022[45][46]. Dividends and Payouts - The company announced an interim dividend of HKD 0.42 per share, maintaining a long-term payout ratio of 70%[3]. - The board declared an interim dividend of HKD 0.42 per share, maintaining a payout ratio of approximately 70% based on adjusted net profit of USD 360.3 million, excluding a fair value loss of USD 5.1 million related to the Lanvin Group investment[13]. Market and Product Strategy - The three-year plan (2023-2025) focuses on strengthening customer categories, particularly with luxury and high-end fashion brands, to enhance product offerings[5]. - The demand for high-quality and complex products from luxury and high-end fashion brands has outperformed the general footwear market[3]. - The company is leveraging its product development capabilities to support major sports brands in expanding their athletic and luxury-priced footwear categories[5]. Operational Efficiency and Capacity Expansion - The company is enhancing operational efficiency through organizational restructuring and improved customer management[6]. - The company is expanding production capacity in Solo, Indonesia, and plans to enhance capacity in Bangladesh starting in 2023[6]. - The company is focusing on long-term capacity expansion and diversification, with a new factory in Solo, Indonesia, while delaying some planned capacity expansion projects due to weak macroeconomic conditions[11]. Cash Flow and Financial Position - The net cash position as of June 30, 2023, was $162.5 million, significantly up from $69 million a year earlier, with a net capital debt ratio of -15.9%[11]. - As of June 30, 2023, the group's cash and cash equivalents were approximately USD 173.5 million, an increase of 127% compared to USD 76.4 million on June 30, 2022[14]. - The net cash inflow from operating activities for the six months ended June 30, 2023, was USD 28.2 million, down from USD 33.5 million in the same period of 2022[14]. - The net cash outflow for investing activities was USD 22.4 million, a decrease of 29.1% from USD 31.6 million for the same period in 2022[14]. Employee and Management Information - The group employed approximately 39,200 employees as of June 30, 2023, down from approximately 42,500 employees at the end of 2022[18]. - The total remuneration paid to key management personnel was $1,066,000 for the six months ended June 30, 2023, compared to $1,217,000 in the same period of 2022[94]. Stock Options and Incentive Plans - The company has a total of 70,173,000 unexercised stock options under the 2017 plan, representing approximately 8.79% of the company's issued shares[90]. - The total number of options available for exercise at the end of the reporting period is 8,967,750 shares, with a weighted average exercise price of HKD 11.48 per share[67]. - The company recognized stock option expenses of $221,000 for the six months ended June 30, 2023, compared to $549,000 for the same period in 2022[75]. Corporate Governance and Compliance - The company has adhered to the corporate governance code and principles as outlined in the listing rules, ensuring high standards of transparency and accountability[111]. - The governance model combines corporate governance with business governance to enhance accountability and shareholder assurance[112]. Future Outlook - The company aims for a low double-digit percentage annualized growth rate in post-tax profit[6]. - The company anticipates maintaining strong gross and operating margins, supported by orders from new luxury and high-end fashion clients[12].

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，概不對因本公告全部或任何部分內 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。 1 Stella International Holdings Limited 九興控股有限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號︰1836） 截至二零二三年六月三十日止六個月的中期業績 | --- | --- | |--------|-----------------------------------------------------------------------| | | | | 摘要： | | | － | 奢華、時尚及運動品類顧客對高端產品款式的需求旺盛 | | － | 平均售價上漲 6.5% ，毛利率上升 3.3 個百分點至 23.1% | | － | 生產效率增加，使經營利潤 1 率上升至 9.0% （二零二二年上半年： 8.3% ） | | － | 經調整純利 2 率增加至 8.4% ，而二零二二年上半年為 7.3% | | － | 產能的擴張充分由穩健的淨現金 ...

Financial Performance - Revenue in 2022 increased to $1,630.77 million, up from $1,540.61 million in 2021[11] - Net profit attributable to shareholders in 2022 was $118.03 million, compared to $89.69 million in 2021[12] - Revenue increased by 5.9% to $1.6308 billion in 2022, with shipment volume rising by 0.4% to 56 million pairs[20] - Average selling price of footwear increased by 5.2% to $28.5 per pair in 2022, driven by changes in customer and product mix[20] - Revenue for 2022 increased to $1,630.77 million, up from $1,540.61 million in 2021, representing a growth of 5.85%[133] - Gross profit rose to $352.13 million in 2022, compared to $316.85 million in 2021, an increase of 11.14%[133] - Net profit attributable to owners of the parent company increased to $118.03 million in 2022, up from $89.69 million in 2021, a growth of 31.61%[134] - Total comprehensive income for 2022 was $92.54 million, slightly higher than $92.24 million in 2021[134] - Earnings per share (basic) increased to $0.1490 in 2022, up from $0.1133 in 2021, a rise of 31.51%[134] - The company reported a net profit of $117.2 million for the year ended December 31, 2022, compared to $90.8 million in 2021[22] - Net profit for the year was $89,694 thousand, contributing to a total comprehensive income of $91,314 thousand[138] - Operating cash flow from activities increased to $240,076 thousand, up from $120,256 thousand in the previous year[140] - Cash and cash equivalents at the end of the year stood at $213,303 thousand, compared to $135,170 thousand at the beginning of the year[141] - The company's total equity increased to $1,016,721 thousand from $923,839 thousand at the beginning of the year[138] - The company's cash flow from financing activities was a net outflow of $106,412 thousand, compared to $22,622 thousand in the previous year[141] Revenue Distribution and Market Performance - The company's revenue distribution was 51.3% from North America and 49.7% from other regions[10] - The company's revenue from China (including Hong Kong) accounted for 24.1% of total revenue[14] - North America and Europe remained the company's largest markets, accounting for 51.3% and 24.1% of total revenue, respectively[22] - Total revenue for 2022 reached $1,630.77 million, with manufacturing contributing $1,620.05 million and retail & wholesale contributing $10.73 million[194] - North America accounted for the largest share of external customer revenue at $836.05 million, followed by Europe at $393.77 million and China at $220.88 million[191] - Revenue from footwear and handbag sales increased to $1,630.77 million in 2022, up from $1,540.61 million in 2021[194][196] - Customer A contributed $563.62 million in revenue from the manufacturing segment, representing a significant portion of the company's total income[193] Production and Capacity Expansion - In 2022, the company expanded its production capacity by building a third factory in Indonesia[9] - The company is expanding its manufacturing capacity, including a new factory in Solo, Indonesia, and increasing capacity in Bangladesh[17] - The company plans to expand production capacity in Indonesia and Bangladesh, with significant capital expenditure expected in 2023[24] - Capital expenditures for the year totaled $55.88 million, primarily driven by the manufacturing segment[190] Product Portfolio and Market Entry - The company's product portfolio includes fashion, luxury, sports, and casual footwear for global brands such as Nike, Under Armour, and Prada[5] - Stella Luna brand successfully entered the Hong Kong and US markets through renowned department stores like Lane Crawford[8] - The company operates over 220 Stella Luna retail outlets globally[8] - The company's luxury and high-end fashion customers achieved sales growth despite a challenging macroeconomic environment in Western markets[15] - Revenue from the sports shoe category increased by 14.7% year-on-year, accounting for 42.6% of total manufacturing revenue (2021: 39.4%)[21] - Revenue from the luxury category decreased by 14.4% year-on-year, accounting for 8.3% of total manufacturing revenue (2021: 10.2%)[21] - Revenue from the fashion category increased by 50.3% year-on-year, accounting for 25.5% of total manufacturing revenue (2021: 18%)[22] - Revenue from the leisure category decreased by 22.9% year-on-year, accounting for 23.6% of total manufacturing revenue (2021: 32.4%)[22] Corporate Governance and Board Structure - The company focuses on corporate governance through compliance, risk management, investor relations, and corporate social responsibility (4 Rs)[32] - The Corporate Governance Committee reviewed annual reports, ESG reports, and governance frameworks during the year[33] - The company fully complied with the Corporate Governance Code throughout 2022[33] - The board of directors consists mostly of independent non-executive directors, ensuring strong independent elements and diverse backgrounds[34] - The nomination committee is responsible for reviewing the board's structure, size, and composition, and recommending suitable candidates[35] - Measurable goals for the board diversity policy include increasing functional experience diversity and understanding of target markets and customer groups[36] - Gender diversity on the board is achieved with two female independent non-executive directors, and the company aims to maintain this diversity[36] - The board evaluation process includes reviewing current practices, assessing directors' business knowledge, and identifying areas for improvement[37] - A third-party consultant is engaged to ensure independence and effectiveness in the board evaluation process[38] - The company maintains a formal and transparent process for appointing new directors, with a focus on industry knowledge and established track records[39] - The nomination committee has five members, all of whom are independent non-executive directors[40] - The Nomination Committee reviewed the board's structure, size, and composition, as well as the board diversity policy and succession planning[41] - Newly appointed directors received tailored induction training, including an overview of the company's business and statutory responsibilities[41] - Directors received monthly updates on financial data and business performance, along with market intelligence reports[41] - The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as per Appendix 10 of the Listing Rules[41] - Directors participated in training courses covering legal, business, and financial topics to stay updated on industry and regulatory changes[43] - The Chairman is responsible for setting broad strategic direction and ensuring effective communication between the board, management, and shareholders[45] - The CEO is responsible for leading management, overseeing the achievement of board-set objectives, and maintaining relationships with stakeholders[45] - The board retains authority over key decisions, including strategy, budget approval, major investments, and significant contracts[46] - The board has established four governance-related committees: Audit, Corporate Governance, Remuneration, and Nomination Committees[47] - The Board of Directors held a total of 8 meetings, with attendance rates for executive directors ranging from 7/8 to 8/8, and independent non-executive directors maintaining high attendance rates of 7/8 to 8/8[48] - The Chairman maintained open dialogue and interaction with independent non-executive directors outside formal board meetings[49] - The company's financial reporting process includes monthly updates to the Board, providing detailed internal financial data, peer comparisons, and market intelligence[51] - The Board ensures compliance with corporate governance codes and facilitates director attendance by scheduling regular meetings in advance[50] - The company secretary plays a crucial role in supporting the Board by ensuring effective information exchange and compliance with policies and procedures[51] - Directors have the right to seek independent legal advice at the company's expense and must declare any conflicts of interest before Board meetings[50] - The Board is responsible for preparing financial statements that fairly reflect the company's affairs, in accordance with relevant laws and accounting standards[51] - Management presents business reviews and financial analyses to the Board for approval of financial performance, with annual business plans and budgets submitted before the new fiscal year[51] - The company's risk management and internal control systems are reviewed annually to ensure effectiveness, covering financial, operational, and compliance controls[52] - The company has a process for handling significant control failures or weaknesses, with monthly reporting to senior management and the audit committee[52] - No significant control failures or weaknesses were identified during the year[52] - The company's internal control system is based on the COSO framework, including five elements: control environment, risk assessment, control activities, information and communication, and monitoring[53] - The internal audit team reports directly to the audit committee and the CEO, with external auditor EY providing a report on internal control matters for the year ended December 31, 2022[54] - The company has established a whistleblowing policy and system for employees and key stakeholders to report concerns anonymously[54] - The audit committee reviewed the financial reporting system, risk management, and internal control systems during the year[55] - The company paid $607,000 for audit services and $120,000 for non-audit services to the external auditor for the year ended December 31, 2022[56] Shareholder Relations and Dividends - The company declared a final dividend of HK$0.45 per share, bringing the total annual dividend to HK$0.87 per share, with a payout ratio of approximately 75%[15] - The company declared a final dividend of 45 HK cents per share, bringing the total dividend for the year to 87 HK cents per share, with a payout ratio of approximately 75%[24] - The Board proposes a final dividend of 45 HK cents per ordinary share for the year ended December 31, 2022, amounting to approximately $45.5 million[77] - The company aims to provide a 70% cash return to shareholders through dividends and share buybacks[76] - The final dividend, if approved, will be paid on or around June 9, 2023[77] - Shareholders must submit transfer documents and related shares by 4:30 PM on May 18, 2023, to be eligible for the proposed final dividend[77] - The company will suspend share transfer registration from May 8, 2023, to May 11, 2023, inclusive, during which no share transfers will be registered[78] - The distributable reserves available to shareholders as of December 31, 2022, were $440.7 million, compared to $449.2 million in 2021[79] - The company declared a final dividend for 2021 of $56.65 million and an interim dividend for 2022 of $42.48 million[137] - The company paid dividends totaling $99,130 thousand, a significant increase from $21,409 thousand in the previous year[141] Share Options and Incentive Plans - The company granted a total of 19,740,000 share options to 72 grantees, including 1,500,000 to the CEO and 18,195,000 to 70 other employees[58] - The share options granted to the CEO and employees are part of the 2017 Share Option Plan, with no performance targets attached[58] - A total of 27,970,000 share options were granted to 107 eligible participants on March 17, 2017, with an exercise price of HKD 11.48 per share[94] - The share options have a validity period of six years from the grant date, with specific vesting dates tied to the company's fiscal year-end performance announcements[94] - Each vesting date allows for the exercise of up to 5,594,000 share options, contingent on achieving the company's net profit margin and revenue growth targets[95] - If either the net profit margin or revenue growth target is not met, only 50% of the share options scheduled to vest on that date will be granted[95] - If both targets are not met, all share options scheduled to vest on that date will automatically lapse[95] - 3,417,500 share options were granted to the company's executive director, Qi Leren, while 24,552,500 share options were granted to other employees and eligible participants[96] - During the review year, 989,500 share options lapsed under the 2007 Plan[97] - As of December 31, 2022, 8,967,750 share options remained unexercised[97] - 8,967,750 share options under the 2007 plan remained unexercised as of the annual report date, representing approximately 1.1% of the issued shares[99] - A total of 8,967,750 unexercised share options under the 2007 plan expired on March 16, 2023[99] - The 2007 plan expired on July 5, 2017, and no further share options, awards, or restricted unit awards could be granted under it after that date[99] - The 2017 plan was approved by shareholders on May 19, 2017, and its terms comply with Chapter 17 of the applicable listing rules[100] - The 2017 plan aims to reward selected participants for their contributions to the group, with performance targets and minimum holding periods determined by the board[101] - The 2017 plan allows the board to grant share options to a broad range of participants, including employees, directors, suppliers, customers, and consultants[102] - From January 1, 2023, the company can only grant share options under the 2017 plan to "qualified participants" as defined by Chapter 17 of the listing rules[102] - The trustee held 1,778,000 shares in trust as of December 31, 2022, unchanged from the previous year[99] - The trustee is authorized to transfer, assign, or otherwise deal with the trust shares as directed by the company[99] - The 2017 plan includes provisions for granting share options to participants who contribute to the group's development and growth through joint ventures or business alliances[102] - The total number of shares that may be issued upon the exercise of all options granted under the 2017 Plan and any other share option schemes of the Group shall not exceed 79,437,950 shares, equivalent to 10% of the issued shares as of the effective date of the 2017 Plan[103] - As of December 31, 2022, the number of options granted was 59,298,000, and the number of options that could still be granted under the existing general plan limit was 27,957,950[104] - The maximum number of shares that may be issued and to be issued upon the exercise of options granted to each participant under the 2017 Plan and any other share option schemes of the Group within any 12-month period shall not exceed 1% of the issued shares at that time[104] - During the year, a total of 19,740,000 options were granted and 5,409,000 options lapsed under the 2017 Plan, with 50,580,000 options remaining unexercised as of December 31, 2022[108] - The exercise price of the options granted under the 2017 Plan shall not be less than the highest of: (i) the closing price of the shares on the day of the grant, (ii) the average closing price of the shares over the five trading days immediately preceding the grant date, and (iii) the par value of the shares[107] - 2020 November stock options were granted at an exercise price of HKD 9.15 per share, with a total of 2,308,500 options unexercised as of December 31, 2022[111] - Employee stock options granted in November 2020 saw 1,869,000 options expire during the year, leaving 11,386,500 options unexercised as of December 31, 2022[111] - 2021 March stock options were granted at an exercise price of HKD 9.46 per share, with a total of 3,150,000 options unexercised as of December 31, 2022[113] - Employee stock options granted in March 2021 saw 1,875,000 options expire during the year, leaving 13,860,000 options unexercised as of December 31, 2022[113] - 1,500,000 share options granted to Executive Director Mr. Qi Leren[117] - 450,000 share options granted to Executive Director Mr. Gillman Charles Christopher[117] - 1,200,000 share options granted to Executive Director Mr. Jiang Yimin[117] - 16,610,000 share options granted to 53 other employees of the group[118] - Total of 19,760,000 share options granted to 56 eligible employees in March 2023[117] - Total share options granted in 2022 amounted to 19,740,000 shares, representing approximately 2.49% of the issued shares during the year[116] - The maximum number of shares that can be issued under the 2017 plan is 79,437,950 shares, representing 10% of the issued shares as of May 19, 2017[118] - As of the annual report date, 78,537,950 shares are available for issuance under the 2017 plan, representing approximately 9.9% of the issued shares[118] - The share incentive plan adopted on March 16, 2017, will remain effective for ten years until March 15, 2027[119] - The share options granted in January 2022 have an exercise price of HK$9.10 per share[114] Financial Statements and Auditing - The company's financial statements for the year ended December 31, 2022, were audited by Ernst & Young[122] - The company's financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and comply with the disclosure requirements of the Hong Kong Companies Ordinance[124] - Trade receivables and other receivables amounted to $317.5 million, representing 25.2% of total assets, with an expected credit loss provision of $26 million[127] - Inventory stood at $188.8 million, accounting for 15.0% of total assets, with an inventory provision of $12.1 million[128] - The company's audit procedures included evaluating the effectiveness of key controls and assumptions used in the expected credit loss model[129] - The audit assessed the company

Financial Performance - Group revenue increased by 5.9% to $1,630,800,000, driven by a 5.2% growth in average selling price[2] - Operating profit rose by 30.9% to $134,800,000, with an operating margin increasing to 8.3%, up 1.6 percentage points from the previous year[2] - Net profit increased by 29.1% to $117,200,000, reflecting strong financial performance[2] - Total comprehensive income for the year was $92,537,000, slightly up from $92,243,000 in the previous year[6] - The company reported a pre-tax profit of $133,195 thousand for the year ended December 31, 2022[18] - The company’s financial liabilities did not undergo any modifications or exchanges during the year, thus the related accounting revisions had no impact on its financial position[16] Cash Flow and Liquidity - Strong net cash position reached $206,100,000, a year-on-year increase of 61.6%[2] - Operating cash flow before tax profit increased to $133,195 thousand in 2022 from $103,488 thousand in 2021, representing a growth of 28.8%[10] - Net cash flow from operating activities reached $240,076 thousand in 2022, up from $120,256 thousand in 2021, indicating a 99.5% increase[10] - Cash and cash equivalents balance at the end of 2022 was $213,303 thousand, up from $135,170 thousand at the end of 2021, marking a 57.7% increase[11] - The current ratio improved to 3.3, indicating strong liquidity, compared to 2.9 the previous year[60] Dividends and Shareholder Returns - Declared a final dividend of 45 HK cents, totaling an annual dividend of 87 HK cents per share[2] - The proposed final dividend for the year ended December 31, 2022, is $45,520,000, compared to $56,646,000 in 2021, a decrease of approximately 19.6%[36] - The company announced a final dividend of HKD 0.45 per share, with a total annual dividend of HKD 0.87 per share, resulting in a payout ratio of approximately 75%[45] Assets and Liabilities - Current assets decreased to $725,973,000 from $734,885,000, while current liabilities also decreased to $219,869,000 from $257,562,000[8] - Total equity slightly decreased to $1,015,949,000 from $1,016,721,000, indicating stable financial health[9] - Total assets amounted to $1,258,083 thousand, with manufacturing segment assets at $1,209,631 thousand and retail and wholesale segment assets at $28,221 thousand[19] - Total liabilities were $242,134 thousand, with manufacturing segment liabilities at $237,843 thousand and retail and wholesale segment liabilities at $269 thousand[19] Revenue Segmentation - Manufacturing segment generated external sales of $1,620,045 thousand, while retail and wholesale segment generated $10,726 thousand, totaling $1,630,771 thousand in revenue[18] - North America contributed $836,053 thousand to total revenue, up from $765,257 thousand in 2021, reflecting a growth of about 9.3%[21] - Manufacturing segment revenue was $1,620,045 thousand, while retail and wholesale segment revenue was $10,726 thousand for the year ended December 31, 2022[24] - Revenue from the fashion category increased by 50.3% year-on-year, accounting for 25.5% of total manufacturing revenue, compared to 18% in the previous year[51] Cost and Expenses - The cost of sold inventory increased to $1,279,104,000 in 2022 from $1,226,930,000 in 2021, reflecting an increase of about 4.2%[28] - Research and development expenses decreased to $40,252,000 in 2022 from $42,381,000 in 2021, a reduction of approximately 5.0%[28] - Employee benefits expenses rose to $404,479,000 in 2022 from $382,063,000 in 2021, marking an increase of about 5.9%[29] Operational Strategy and Future Outlook - The company continues to invest in Indonesia as part of its capacity expansion and diversification strategy[2] - The company aims to achieve an operating profit margin of 10% and a low double-digit percentage annual growth rate in post-tax profit during the 2023-2025 three-year plan[48] - The company plans to enhance production capacity in its new factory in Solo, Indonesia, and expand capacity in its factory in Bangladesh starting in 2023[48] - The company is focusing on strengthening its product portfolio and enhancing collaboration with major global sports brands[47] - The company anticipates challenges in 2023 due to economic weakness and inventory issues among clients, but remains cautiously optimistic about growth in luxury and high-end fashion orders[56] Employee and Governance - As of December 31, 2022, the group had approximately 42,500 employees, consistent with the previous year[65] - The company has adopted long-term incentive and share reward plans to recognize and retain employees' contributions[65] - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules for the year ending December 31, 2022[67] Accounting and Compliance - The company adopted revised accounting standards effective from January 1, 2022, but these changes did not impact the financial position or performance due to no business combinations occurring during the year[16] - Ernst & Young has agreed that the figures presented in the preliminary announcement for the group's consolidated financial statements are accurate[69] - There were no purchases, sales, or redemptions of the company's listed securities during the year ending December 31, 2022[70]

Financial Performance - The company's consolidated revenue for the six months ended June 30, 2022, increased by 18.9% to $827.2 million, compared to $695.5 million in the same period last year[7]. - The total shipment volume rose by 9.4% to 29 million pairs, up from 26.5 million pairs in the previous year[7]. - The average selling price of footwear products increased by 7.8% to $27.8 per pair, compared to $25.8 per pair in the same period last year[7]. - Demand for the sports footwear segment grew by 18.7% year-on-year, accounting for 42.3% of total manufacturing revenue[7]. - Revenue from the high-end luxury segment increased by 7.8% year-on-year, representing 8.8% of total manufacturing revenue[7]. - Revenue from existing customers in the fashion footwear category increased by 90.1% year-on-year, accounting for 23.6% of total manufacturing revenue[10]. - Gross profit grew by 17.9% to $163.9 million, with a stable gross margin of 19.8%[11]. - Operating profit increased by 89.0% to $68.6 million, driven by increased revenue and improved customer mix[12]. - Net profit reached $60.2 million, compared to $32.2 million in the same period last year[13]. - The total comprehensive income for the period amounted to $50.952 million, compared to $36.501 million in the prior year, representing an increase of approximately 39.7%[28]. - The basic earnings per share for the period was 7.64 US cents, compared to 3.93 US cents in the same period last year, indicating an increase of about 94.4%[28]. Dividends and Shareholder Returns - The company announced an interim dividend of HKD 0.42 per share, reflecting a long-term payout ratio of 70%[3]. - The company declared an interim dividend of 42 Hong Kong cents per share for the six months ended June 30, 2022[23]. - The company plans to pay the interim dividend on or around September 23, 2022, to shareholders listed as of September 13, 2022[23]. Cash Flow and Financial Position - Cash and cash equivalents were approximately $76.4 million as of June 30, 2022, down from $135.2 million at the end of 2021[16]. - The net cash position was $69 million, with a net capital debt ratio of -6.8% as of June 30, 2022[18]. - The net cash flow from operating activities for the six months ended June 30, 2022, was $33,533,000, a significant improvement compared to a cash outflow of $9,308,000 in the same period last year[32]. - The company reported a total equity of $1,014,488,000 as of June 30, 2022, compared to $1,016,721,000 at the end of 2021[29]. - The company experienced a significant increase in depreciation expenses, with property, plant, and equipment depreciation at $23,580,000 for the current period[32]. Operational Developments - The new factory in Solo, Indonesia, is progressing as planned and is expected to provide additional capacity competitively next year[3]. - The company continues to focus on improving long-term cost structure and operational efficiency[3]. - The company aims to expand its production in Southeast Asia and implement robust cost control measures to enhance operating profit margins[5]. - The company remains cautiously optimistic about moderate growth in shipment volume for the full year compared to 2021[14]. - The average selling price is expected to remain flat year-on-year in the second half of the year due to inflation[14]. - The company is committed to expanding its long-term capacity projects, including the construction of a new factory in Indonesia[14]. Employee and Talent Management - The company had approximately 43,360 employees as of June 30, 2022, up from about 42,500 employees at the end of 2021, reflecting a growth in workforce[22]. - The company continues to focus on attracting and retaining talent through effective training and reward programs, emphasizing human resources as a key asset for growth[22]. Segment Performance - The company operates two reportable segments: manufacturing segment for footwear and handbags, and retail and wholesale segment for self-developed brands[38]. - The manufacturing segment focuses on sales and production of footwear and handbags, while the retail segment emphasizes self-developed brand sales[38]. Financial Reporting and Standards - The financial data is prepared in accordance with the Hong Kong Financial Reporting Standards and is presented in USD, with all values rounded to the nearest thousand[34]. - The company has adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2022, but these revisions did not impact the financial position or performance[36]. - The company's interim financial data does not include all information and disclosures required for annual financial statements, necessitating a review alongside the annual reports[34]. Stock Options and Incentive Plans - The company has a long-term incentive plan that requires certain performance conditions to be met for stock options to vest, including profit margin and revenue growth targets[62]. - The company has implemented high standards of corporate governance, adhering to the principles of the corporate governance code[108]. - The company has adopted a long-term incentive plan to attract and retain talent, with 27,970,000 options granted to 107 eligible participants[111]. - The exercise price for the granted options is HKD 11.48 per share[112]. - The company has a structured plan for stock options with specific vesting dates and exercise periods[128][130]. - The stock options granted to employees include 1,336,250 options for the 2019 vesting date and 3,291,750 options for the 2020 vesting date[116]. - The company aims to retain and incentivize its consultant by granting stock options as a reward for their contributions to the business[133].

Financial Performance - In 2021, Stella International Holdings Limited reported revenue of $1,540,608 thousand, a significant increase from $1,135,880 thousand in 2020, reflecting a growth of approximately 35.6%[27]. - The net profit attributable to shareholders for 2021 was $89,694 thousand, a substantial rise from $1,685 thousand in 2020, indicating a remarkable recovery in profitability[28]. - The company's consolidated revenue increased by 35.6% to $1,540,600,000 for the year ended December 31, 2021, compared to $1,135,900,000 in 2020[43]. - The total shipment volume rose by 28.5% to 55,800,000 pairs in 2021, up from 43,400,000 pairs in 2020[43]. - Gross profit rose by 57.1% to $316,800,000, with a gross margin of 20.6% in 2021, up from 17.8% in 2020[47]. - Operating profit increased to $103,000,000 in 2021, compared to $2,100,000 in 2020, driven by improved operational leverage and production efficiency[48]. - Net profit for the year ended December 31, 2021, was $90,800,000, a significant increase from $1,100,000 in 2020[49]. - The company maintained a net cash position of $127,500,000 as of December 31, 2021, compared to $105,800,000 in 2020[49]. - Cash and cash equivalents as of December 31, 2021, were approximately $135.2 million, up from $108.7 million on December 31, 2020[52]. Production and Capacity Expansion - The company plans to continue expanding production capacity, with a new factory in Solo, Indonesia expected to significantly increase output starting in 2023[34]. - A new factory in Solo, Indonesia, is under construction, which will significantly increase production capacity starting in 2023[50]. - The company is focusing on expanding production in Southeast Asia and optimizing operational performance to enhance profit margins and shareholder returns[41]. Product Development and Market Focus - Stella International is focusing on strengthening its sports and luxury footwear business, aiming to enhance relationships with major clients in these categories[34]. - The sports leisure market presents significant growth potential, particularly in the high-end segment, with ongoing collaborations with luxury brands to develop athletic fashion footwear[34]. - The company has been expanding its product offerings to include leather accessories, leveraging its strong customer base and experience in leather products[11]. - The company aims to enhance its product offerings by focusing on high average selling price and differentiated product designs[41]. - The company is focusing on expanding its high-end fashion customer base and developing new athletic footwear lines as key growth drivers[186]. Dividends and Shareholder Returns - The board declared a final dividend of HK$0.56 per share, in addition to an interim dividend of HK$0.21 per share, totaling an annual dividend of HK$0.77[34]. - The company remains optimistic about sustainable returns for shareholders despite ongoing risks related to supply chain fluctuations and the COVID-19 pandemic[34]. - The company plans to continue focusing on long-term profitability and sustainable growth, particularly in the luxury footwear and sneaker categories[50]. Environmental, Social, and Governance (ESG) Initiatives - The board has delegated ESG governance responsibilities to the Corporate Governance Committee, which meets at least twice a year to discuss ESG matters and report to the board[64]. - The company identified 21 significant ESG issues relevant to its business, with 15 of these deemed highly important based on stakeholder feedback[66]. - The company actively engages with stakeholders, including board members, employees, investors, and customers, to understand their expectations and concerns regarding ESG issues[66]. - The company has established environmental goals to track and monitor its environmental footprint, utilizing past operational data and industry benchmarks[72]. - The company emphasizes compliance with local environmental laws and regulations, with no reported violations during the reporting period[71]. - The company aims to create long-term sustainable growth for shareholders and value for all stakeholders through a robust corporate governance framework[64]. - The company is committed to ethical and responsible business practices, focusing on improving resource efficiency and reducing environmental impact[71]. - The company aims to achieve zero growth in absolute greenhouse gas emissions by 2025, with a target to reduce greenhouse gas emission intensity by 15% from the 2021 baseline[73]. - The company plans to reduce electricity consumption intensity by 15% by 2025, using 2021 as the baseline year[73]. - The company intends to reduce water consumption intensity by 15% by 2025, based on 2021 figures[73]. - The company aims to decrease total waste generation intensity by 10% by 2025, using 2021 as the baseline year[73]. Employee Welfare and Management - The workforce increased to approximately 42,500 employees as of December 31, 2021, compared to about 37,200 employees a year prior[57]. - The company provides various employee benefits including paid annual leave, marriage leave, and maternity leave[93]. - The company has implemented a special program in 2021 to provide free vision tests and glasses for workers in need[93]. - The company emphasizes equal opportunity and non-discrimination in hiring, compensation, and promotion[91]. - The company has zero fatalities due to work-related incidents in 2020 and 2021[110]. - The company provides various support measures for employees, including free shuttle services for those with long commutes to reduce COVID-19 exposure risks[108]. Corporate Governance - The company emphasizes corporate governance by integrating business governance with compliance and risk management[136]. - The corporate governance committee consists of three members, all independent non-executive directors, ensuring strong independent judgment[138]. - The board composition includes a majority of independent non-executive directors, enhancing the board's independent element for effective decision-making[140]. - The company has established a clear division of responsibilities between the chairman and the CEO, with specific duties outlined in writing[153]. - The board has authorized the management to handle daily operations, while retaining decision-making authority on significant matters such as major investments and mergers[156]. - The company has established a framework for ongoing communication with institutional analysts and investors[175]. Risk Management and Internal Controls - The company aims to maintain effective risk management and internal control systems, reviewing their effectiveness at least annually[164]. - The internal audit team reports directly to the audit committee and the chairman, ensuring effective internal controls and compliance with financial reporting requirements[167]. - The audit committee has reviewed the financial reporting system and discussed interim and annual performance during the year[169]. - The company’s risk management and internal control systems have been comprehensively reviewed and assessed positively by third-party professionals[167]. Community Engagement and Charitable Contributions - The company made over $200,000 in charitable donations during the reporting period, in addition to physical donations[129]. - The company encourages employees to support community projects and environmental protection initiatives[129].

Financial Performance - The company's consolidated revenue for the six months ended June 30, 2021, increased by 36.0% to $695.5 million, compared to $511.5 million in the same period last year[5]. - Revenue from the sneaker division, a key growth driver, grew by 28.0% year-on-year, accounting for 42.1% of total manufacturing revenue[5]. - Revenue from the newly defined high-end luxury category nearly doubled, increasing by approximately 100% and representing 9.6% of total manufacturing revenue[5]. - Demand for leisure footwear increased by 51.3% year-on-year, accounting for 33.6% of total manufacturing revenue[6]. - North America and Europe remain the largest markets, contributing 49.5% and 21.3% to total revenue, respectively[8]. - Gross profit grew by 64.1% to $139 million, with a gross margin increase to 20.0% from 16.6%[11]. - Operating profit reported at $36.3 million, a significant recovery from an operating loss of $3.4 million in the same period last year[12]. - Net profit reached $32.2 million, compared to a net loss of $5.2 million in the previous year[12]. - Adjusted operating profit was $41.1 million, up from $10.9 million year-on-year, with an adjusted operating profit margin of 5.9%[12]. - The group reported a profit before tax of $36,688 thousand for the six months ended June 30, 2021, compared to a loss before tax of $3,565 thousand for the same period in 2020[32]. - The basic earnings attributable to equity holders of the parent for the six months ended June 30, 2021, was $31,132,000, a significant recovery from a loss of $5,247,000 in the same period of 2020[41]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.21 per share, with a payout ratio of approximately 70%[3]. - The board declared an interim dividend of HK$0.21 per share for the six months ended June 30, 2021, reflecting the company's commitment to shareholder returns[14]. - The group declared an interim dividend of 21 Hong Kong cents per share, amounting to approximately $21,371,000, compared to no interim dividend declared in the same period of 2020[40]. Production and Capacity Expansion - The company plans to increase production capacity steadily, with a new manufacturing facility in Indonesia expected to start operations in Q3 2021[3]. - A new factory in Indonesia is set to commence production in Q3 2021, expected to contribute to overall sales in 2022[13]. - The company is expanding its production in Southeast Asia to improve operational excellence and implement robust cost control[4]. Cash Flow and Financial Position - As of June 30, 2021, the group's cash and cash equivalents were approximately $76.6 million, down from $108.7 million as of December 31, 2020[15]. - The net cash outflow from operating activities for the six months ended June 30, 2021, was $9.3 million, compared to a net inflow of $25.2 million in the same period of 2020[15]. - The net cash outflow from investing activities was $26.7 million, a decrease of 34.4% from $40.7 million for the six months ended June 30, 2020[15]. - The current ratio as of June 30, 2021, was 3.0, indicating strong liquidity and a solid financial position[15]. - The group maintained a net cash position of $68.8 million as of June 30, 2021, down from $105.8 million as of December 31, 2020[16]. Employee and Operational Metrics - The group employed approximately 39,400 employees as of June 30, 2021, an increase from approximately 37,200 employees as of December 31, 2020[19]. - The total remuneration paid to key management personnel was $666,000 for the six months ended June 30, 2021, compared to $618,000 in the same period of 2020, representing an increase of 7.77%[79]. Governance and Compliance - The company has complied with all provisions of the corporate governance code, except for the disclosure of senior management remuneration details in the 2020 annual report[95]. - The company emphasizes a governance model that combines corporate governance with business governance to create long-term value[96]. - The audit committee, consisting of four independent non-executive directors, reviewed the interim report for the six months ending June 30, 2021, with no objections raised[98]. Stock Options and Incentive Plans - The company has a total of 10,564,500 unexercised share options under the 2007 plan, which represents approximately 1.33% of the total issued shares[62]. - The company granted a total of 2,700,000 stock options under the April 2020 plan, 17,163,000 under the November 2020 plan, and 19,695,000 under the March 2021 plan[66][69][71]. - The exercise price for the granted share options is HKD 11.48 per share, which matches the closing price on the grant date[105]. - The 2017 Share Option Scheme was approved by shareholders on May 19, 2017, aimed at rewarding selected participants for their contributions to the group[109]. Market Outlook and Strategic Initiatives - The company provided a positive outlook for the next quarter, projecting revenue growth of A% and an expected increase in user engagement[123]. - Strategic acquisitions are being considered to enhance product offerings and market reach, with potential targets identified[123]. - Research and development investments have increased by E%, focusing on cutting-edge technologies to drive future growth[123].