Financial Performance - For the fiscal year ending December 31, 2022, the company reported a revenue of RMB 18,638,021, a decrease of 20.2% compared to RMB 23,350,235 in 2021[14] - Gross profit for the same period was RMB 6,688,046, down 19.4% from RMB 8,299,283 in the previous year, resulting in a gross margin of 35.9%[14] - Operating profit fell significantly by 55.4% to RMB 414,530 from RMB 928,457 in 2021, leading to an operating margin of 2.2%[14] - Profit attributable to owners of the company decreased by 75.0% to RMB 89,164, compared to RMB 356,587 in 2021[14] - Basic earnings per share dropped to RMB 1.72, a decline of 74.9% from RMB 6.86 in the previous year[14] - The company did not declare a final dividend, marking a 100% reduction from the previous year's HKD 0.016[14] - The company recorded a net profit of RMB 100.2 million in 2022, a decrease of 73.3% compared to the previous year[45] Balance Sheet and Cash Flow - Inventory decreased by 19.9% to RMB 6,071,858 from RMB 7,578,037 in 2021[14] - Accounts receivable and other receivables fell by 23.4% to RMB 2,149,713 compared to RMB 2,807,379 in the prior year[14] - Bank balances and cash decreased slightly by 3.5% to RMB 1,190,148 from RMB 1,233,783 in 2021[14] - Bank borrowings were reduced significantly by 71.2% to RMB 456,162 from RMB 1,581,640 in the previous year[14] - As of December 31, 2022, the group's cash and cash equivalents amounted to RMB 1,190.1 million, a decrease from RMB 1,233.8 million in the previous year[46] - The group's operating working capital was RMB 5,475.0 million, up from RMB 5,105.2 million year-on-year[46] - Total bank borrowings decreased to RMB 456.2 million from RMB 1,581.6 million as of December 31, 2021, with 92% of borrowings under fixed-rate arrangements[46] - Net cash from operating activities for 2022 was RMB 2,666.4 million, supporting liquidity needs[46] Market and Sales Strategy - The omnichannel sales contribution increased from 21% in 2021 to 24% in 2022, reflecting efforts to enhance sales quality and profitability[22] - The retail sales of clothing, footwear, and textiles in China decreased by 6.5% year-on-year in 2022, indicating significant challenges in the overall retail market[28] - The company recorded strong growth in private domain channels, including WeChat stores and Douyin live streaming, which helped offset weak physical store sales[28] - The company plans to enhance its integration of online and offline channels to provide a seamless shopping experience for consumers[22] - The company is focusing on optimizing its physical store network by prioritizing high-quality stores and integrating digital tools[22] - The company aims to deepen collaboration with brand partners to improve inventory structure and accelerate sales cycles[22] - The company is preparing for economic recovery by refining its retail strategy and enhancing customer interaction[28] - The company anticipates that the upcoming 2024 Paris Summer Olympics will further drive market demand[24] Operational Efficiency and Digital Transformation - The company continued to invest in digital transformation, enhancing its ERP and business intelligence systems to improve operational efficiency[37] - The company is focusing on enhancing its omnichannel strategy, integrating various sales platforms to improve customer interaction and operational efficiency[34] - The group plans to accelerate digital transformation and enhance member integration programs in 2023 to drive profitable growth[51] - The group aims to optimize inventory management and reduce reliance on promotions through a new omnichannel hub plan[53] Corporate Governance and Management - 廖元煌 has been serving as the executive director since June 2021 and has over 25 years of experience in banking, finance, corporate governance, and operations[56] - 王軍 is the current CEO and has extensive experience in corporate strategy, marketing planning, brand planning, and large retail operations[63] - The company has a strong focus on strategic planning and corporate development, with key personnel having significant experience in these areas[58] - The board includes members with diverse backgrounds in finance, corporate governance, and operational management, enhancing the company's strategic capabilities[59][60][61][62] - The company is committed to corporate governance and transparency, as evidenced by the establishment of various committees within the board[59][60] - The management team has a proven track record in their respective fields, which is expected to drive the company's future growth and performance[58][63] Risk Management - The company has established a risk management unit responsible for executing the risk management system and coordinating risk mitigation measures[198] - The internal audit department operates independently to assess and monitor the risk management and internal control systems, reporting quarterly to the audit committee[197] - The risk management framework includes four core stages: risk identification, risk assessment, risk response, and risk monitoring and reporting[199] - The audit committee reviews the effectiveness of the risk management and internal control systems annually, confirming their adequacy as of December 31, 2022[200] Shareholder Relations and Dividends - The company has adopted a dividend policy to distribute approximately 20% to 30% of the net profit available for distribution as dividends, subject to sufficient profits for its own development[186] - The company reported no dividend distribution for the year ending December 31, 2022, compared to a dividend of HKD 0.016 per share in 2021[73] - The annual general meeting will be held on May 25, 2023, at 10:00 AM in Hong Kong[91] Sustainability and Social Responsibility - The group has established a sustainability team to manage environmental risks and has implemented measures to reduce carbon emissions, as detailed in the ESG report[80] - The group is actively monitoring economic and social developments in China, as the economic environment significantly impacts consumer sentiment and business prospects[83] - The group has developed a climate change policy to assess and manage climate-related risks and opportunities[87] - The group made donations totaling approximately RMB 0.5 million in the current year, compared to RMB 0.2 million in the previous year[92]

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 18,638,021 thousand, a decrease of 20.2% compared to RMB 23,350,235 thousand in 2021[2] - Gross profit for the same period was RMB 6,688,046 thousand, down 19.4% from RMB 8,299,283 thousand in the previous year[2] - Operating profit decreased by 55.4% to RMB 414,530 thousand from RMB 928,457 thousand in 2021[2] - Profit attributable to owners of the company was RMB 89,164 thousand, a decline of 75.0% compared to RMB 356,587 thousand in the prior year[2] - Basic earnings per share dropped by 74.9% to RMB 1.72 from RMB 6.86 in 2021[2] - The proposed final dividend was zero, compared to HKD 0.016 in the previous year, marking a 100% decrease[2] - The company's net profit attributable to shareholders for 2022 was RMB 89,164, a significant decline of 75% compared to RMB 356,587 in 2021[21] - Net profit for 2022 was RMB 100.2 million, a decrease of 73.3% compared to the previous year[38] Revenue and Sales - The company's revenue from sports apparel and footwear products for 2022 was RMB 18,528,602, a decrease of 20% from RMB 23,222,060 in 2021[12] - In 2022, the company's revenue decreased by 20.2% to RMB 18,638.0 million compared to the previous fiscal year[33] - Online sales accounted for approximately 24% of total sales in 2022, despite challenges from COVID-19 restrictions[30] - The retail environment in mainland China faced significant challenges, with a 6.5% year-over-year decline in retail sales for clothing and footwear in 2022[26] Costs and Expenses - The total employee costs for 2022 amounted to RMB 2,425,598, down from RMB 2,764,107 in 2021, reflecting a reduction of approximately 12%[17] - Selling and distribution expenses for 2022 were RMB 5,806.8 million, accounting for 31.2% of total revenue, an increase from 29.8% in 2021[36] Assets and Liabilities - Inventory decreased by 19.9% to RMB 6,071,858 thousand from RMB 7,578,037 thousand in 2021[6] - Accounts receivable and other receivables fell by 23.4% to RMB 2,149,713 thousand from RMB 2,807,379 thousand[6] - The accounts receivable at the end of 2022 was RMB 862,084, a decrease from RMB 1,165,003 in 2021, indicating a reduction of approximately 26%[22] - The accounts payable at the end of 2022 was RMB 819,396, down from RMB 1,655,096 in 2021, representing a decrease of about 50%[24] - Cash and cash equivalents as of December 31, 2022, were RMB 1,190.1 million, down from RMB 1,233.8 million in 2021[40] - Bank borrowings were significantly reduced by 71.2% to RMB 456,162 thousand from RMB 1,581,640 thousand in the previous year[6] Store Operations - The number of directly operated stores decreased from 4,631 at the beginning of 2022 to 4,093 by the end of the year, a net reduction of 538 stores[28] - As of December 31, 2022, the retail network covered 7,293 stores, including 4,093 directly operated and 3,200 franchised stores[27] Digital Transformation and Strategy - The company continued to enhance its digital transformation, investing in ERP systems and other digital tools to improve operational efficiency[32] - The private traffic channels, including WeChat mini-programs and Douyin live streaming, showed strong sales growth, contributing to better sales conversion rates[30] - The company aims to optimize its omnichannel strategy to reduce reliance on promotions and improve inventory management efficiency, targeting better profit margins and operational efficiency[45] - The company plans to accelerate its digital transformation and expand its membership integration program in 2023[44] Future Outlook - The company remains cautiously optimistic about sales growth in 2023, driven by a recovery in consumer sentiment and increased foot traffic[44] - The sports industry outlook in the Greater China region remains promising, with an expected industry value of RMB 5 trillion by 2025, aiding the company in recovering and surpassing previous growth trends[45] Corporate Governance - The company has complied with the corporate governance code as per the listing rules during the year ending December 31, 2022[52] - The company will hold its 2023 Annual General Meeting on May 25, 2023[48]

Financial Performance - For the nine months ended September 30, 2022, the company reported unaudited consolidated revenue of approximately RMB 14,393.6 million, a decrease of 20.1% compared to RMB 18,021.3 million in the same period last year[3][7] - The company's attributable profit for the period was approximately RMB 98.6 million, representing a significant decline of 83.4% from RMB 594.3 million in the previous year[3][7] - Operating profit for the nine months was RMB 342.6 million, down 65.6% from RMB 996.7 million year-on-year[3][7] - The net profit margin decreased to 0.8%, down from 3.4% in the previous year, reflecting a decline of 2.6 percentage points[7] - The operating profit margin for the nine months was 2.4%, down from 5.5% in the previous year, a decrease of 3.1 percentage points[7] - The total comprehensive income for the period was RMB 108.1 million, compared to RMB 609.4 million in the previous year, reflecting a significant decline[4] Quarterly Performance - The company experienced a turnaround in the third quarter, achieving attributable profit of approximately RMB 81.2 million, reversing losses from the same quarter last year and the second quarter of this year[6] Market Conditions - The decline in revenue and profit was attributed to weakened consumer sentiment due to the ongoing COVID-19 pandemic, resulting in reduced foot traffic in shopping areas and fluctuating retail market conditions[6] Other Financial Metrics - The company recorded other operating income and gains of RMB 233.4 million, down from RMB 323.5 million year-on-year[3] - The financial costs decreased to RMB 133.4 million from RMB 153.6 million in the previous year, indicating a reduction in financing expenses[3]

Financial Performance - For the six months ended June 30, 2022, the company's revenue was RMB 9,864,815 thousand, a decrease of 24.5% compared to RMB 13,073,865 thousand in the same period of 2021[9]. - Gross profit for the same period was RMB 3,495,946 thousand, down 26.0% from RMB 4,722,074 thousand year-on-year[9]. - Operating profit decreased significantly by 77.7% to RMB 208,329 thousand from RMB 933,383 thousand in the previous year[9]. - Profit attributable to owners of the company plummeted by 97.3% to RMB 17,413 thousand, compared to RMB 635,852 thousand in the prior year[9]. - The gross profit margin was 35.4%, a decline of 0.7 percentage points from 36.1% in the previous year[9]. - The operating profit margin fell to 2.1%, down 5.0 percentage points from 7.1% in the same period last year[9]. - The net profit attributable to the company's owners for the first half of 2022 was RMB 24,187 thousand, a decrease of 96.3% from RMB 650,268 thousand in the same period of 2021[18]. - Total comprehensive income for the first half of 2022 was RMB 22,305 thousand, compared to RMB 649,727 thousand in the same period of 2021, reflecting a decline of 96.6%[18]. - The company reported a significant reduction in financing costs, with a cost of RMB (91,451) thousand in the first half of 2022 compared to RMB (109,509) thousand in the same period of 2021[17]. Assets and Liabilities - Inventory as of June 30, 2022, was RMB 6,649,444 thousand, a decrease of 12.3% from RMB 7,578,037 thousand at the end of 2021[10]. - Accounts receivable and other receivables increased by 10.7% to RMB 3,108,387 thousand from RMB 2,807,379 thousand at the end of 2021[10]. - Bank balances and cash remained relatively stable at RMB 1,236,716 thousand, a slight increase of 0.2% from RMB 1,233,783 thousand[10]. - The company's total liabilities decreased to RMB 5,700,648 thousand as of June 30, 2022, from RMB 6,587,713 thousand at the end of 2021[20]. - The net asset value of the company as of June 30, 2022, was RMB 8,156,306 thousand, slightly down from RMB 8,202,196 thousand at the end of 2021[20]. - Current assets as of June 30, 2022, amounted to RMB 11,038,182 thousand, a decrease from RMB 11,692,962 thousand at the end of 2021[19]. Cash Flow - For the six months ended June 30, 2022, the net cash generated from operating activities was RMB 324,083 thousand, a decrease of 67.2% compared to RMB 989,350 thousand in the same period of 2021[26]. - The net cash used in investing activities was RMB (110,075) thousand, down from RMB (195,493) thousand year-over-year, indicating a 43.7% improvement[27]. - The net cash used in financing activities totaled RMB (202,127) thousand, a significant reduction from RMB (746,029) thousand in the previous year, reflecting a 72.9% decrease[27]. - Cash and cash equivalents increased by RMB 11,881 thousand, compared to an increase of RMB 47,828 thousand in the prior year[27]. - The cash balance at the end of the period was RMB 1,236,716 thousand, down from RMB 1,789,880 thousand at the end of the previous year[27]. Market and Strategic Initiatives - The company has plans to expand its market presence in overseas regions, focusing on enhancing its product offerings and customer engagement strategies[22]. - The company is investing in new product development, with a focus on innovative technologies to improve operational efficiency and customer satisfaction[22]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product portfolio[22]. - The company plans to continue focusing on expanding its retail space and enhancing its product offerings in the sports apparel sector[36]. - The company reported a significant increase in user data, with a total of 8,503,858 active users as of June 30, 2022, up from 7,770,201 in the previous period[21]. - The company plans to enhance its online and offline channel integration to improve sales conversion rates and operational efficiency[60]. - The company is focusing on enhancing its private traffic channels, including the WeChat mini-program and Douyin live shopping, to improve profitability and customer loyalty[66]. Store Operations - As of June 30, 2022, the total number of retail stores in Greater China was 7,961, comprising 4,455 directly operated stores and 3,506 franchised stores[61]. - The number of directly operated stores decreased by 176 from 4,631 at the beginning of the period to 4,455 at the end of the period[62]. - The retail sales area of stores measuring 300 square meters or less accounted for 83.1% of the total directly operated stores as of June 30, 2022[63]. - The company continues to close or upgrade underperforming stores while strategically planning new store openings[61]. Shareholder Information - The total number of issued shares as of June 30, 2022, was 5,326,179,615 shares[88]. - Major Focus Management Limited holds 3,331,551,560 shares, representing 62.55% of the issued shares as of June 30, 2022[102]. - The company decided not to declare an interim dividend for the period, compared to a dividend of RMB 70,805,000 declared for the same period in 2021[41]. - The company has not participated in any arrangements to allow directors to benefit from purchasing shares or debt securities[99]. Corporate Governance - The company has adhered to the principles of the Corporate Governance Code as per the Listing Rules Appendix 14 for the six months ending June 30, 2022[110]. - The independent auditor has reviewed the unaudited condensed consolidated financial information for the six months ending June 30, 2022, in accordance with the relevant standards[111]. - The board of directors includes three executive directors, two non-executive directors, and three independent non-executive directors as of the report date[113].

Financial Performance - For the fiscal year ending December 31, 2021, the company reported a revenue of RMB 23,350,235, a decrease of 8.8% compared to RMB 25,611,125 in 2020[16] - Gross profit increased by 6.0% to RMB 8,299,283, resulting in a gross margin of 35.5%, up 4.9 percentage points from 30.6% in the previous year[16] - Operating profit rose significantly by 40.4% to RMB 928,457, with an operating margin of 4.0%, an increase of 1.4 percentage points from 2.6% in 2020[16] - The net profit attributable to shareholders was RMB 356,587, reflecting a growth of 17.7% from RMB 302,840 in 2020[16] - In 2021, the company recorded operating revenue of RMB 23,350.2 million, a decrease of 8.8% compared to RMB 25,611.1 million in 2020[39] - Gross profit for 2021 was RMB 8,299.3 million, representing a 6.0% increase from RMB 7,826.3 million in 2020, with a gross margin of 35.5%[42][43] - The company's operating profit for 2021 was RMB 928.5 million, with an operating margin of 4.0%[44] - The company reported a net profit of RMB 375.8 million for the fiscal year 2021[46] Inventory and Receivables - Inventory levels increased by 29.1% to RMB 7,578,037, while accounts receivable decreased by 16.5% to RMB 2,807,379[16] - The average inventory turnover period increased to 163 days in 2021, compared to 143 days in 2020, with inventory balance at RMB 7,578.0 million as of December 31, 2021[46] Store Operations and Strategy - The company opened its second "Next Store" in Shenyang, aimed at testing new sports services and concepts to enhance customer loyalty and sales conversion rates[24] - The company plans to continue optimizing its store formats by closing or upgrading underperforming small stores while focusing on larger stores for enhanced customer engagement[24] - The retail network in Greater China comprised 8,417 stores as of December 31, 2021, including 4,631 directly operated stores and 3,786 franchised stores[31] - The number of directly operated stores decreased from 5,240 at the beginning of 2021 to 4,631 by the end of the year, reflecting a net reduction of 609 stores[33] - The sales area of stores larger than 300 square meters increased to 752, representing 16.2% of total directly operated stores, up from 13.0% in the previous year[34] Omnichannel Strategy - The company achieved a sales contribution of 21% from its omnichannel strategy, including both private and public traffic, indicating resilient growth[24] - The company’s omnichannel strategy contributed to 21% of total sales in 2021, a significant increase compared to the previous fiscal year[36] - The company has focused on enhancing digital sales capabilities through private channels like WeChat and Douyin, despite challenges from COVID-19 and changing consumer preferences[30] - The company aims to deepen collaboration with brand partners and optimize engagement models to adapt to the evolving retail landscape in Greater China[30] - The company continues to invest in optimizing store formats and integrating digital platforms to enhance consumer experience and drive higher-margin seasonal sales[34] Financial Position and Cash Flow - Cash and cash equivalents decreased by 29.2% to RMB 1,233,783, while bank borrowings were reduced by 18.8% to RMB 1,581,640[16] - As of December 31, 2021, the company had cash and cash equivalents of RMB 1,233.8 million, down from RMB 1,742.3 million in 2020[47] - The debt-to-equity ratio was 19.3% as of December 31, 2021, compared to 24.7% in 2020, indicating improved financial stability[47] - Capital expenditures decreased to RMB 452.4 million in 2021 from RMB 585.0 million in 2020[48] Market and Industry Outlook - The Chinese government's sports development plan aims to increase the proportion of people participating in regular exercise to 38.5% by 2025, with the sports industry expected to reach RMB 5 trillion (approximately $774 billion) by the same year, a 70% increase from 2019 levels[30] - The retail sales of clothing, shoes, and textiles in China grew by 12.7% in 2021, outpacing the overall retail sales growth[50] - The company expresses optimism about maintaining a leading position in the rapidly growing sports market in Greater China, leveraging the outlined opportunities[30] Corporate Governance and Compliance - The board of directors emphasizes the importance of good corporate governance practices to enhance shareholder returns and ensure effective management[147] - The company has complied with all provisions of the corporate governance code as set out in the Hong Kong Stock Exchange Listing Rules[148] - The board consists of eight members, including three executive directors and three independent non-executive directors, ensuring a balanced composition[149] - The company has established a nomination policy to ensure the board's composition reflects diverse skills and experiences necessary for the business[175] - The company has established a risk management framework to identify and manage risks that may adversely affect its business objectives[193] Shareholder and Dividend Information - The company reported a proposed final dividend of HKD 0.016 per share for the year ended December 31, 2021, totaling approximately HKD 85.2 million, subject to shareholder approval[68] - The company has adopted a dividend policy, stating that it will distribute approximately 20% to 30% of the net profit available for distribution as dividends each fiscal year[184] Employee and Talent Management - The company had approximately 29,600 employees as of December 31, 2021, offering competitive compensation packages[53] - The company has implemented a performance management system designed to attract and retain talent through competitive compensation and challenging development opportunities[75] - The stock reward plan aims to retain and attract suitable talent for the company's future development[118] Risk Management - The internal audit department operates independently to evaluate and monitor the company's risk management and internal control systems[191] - The risk assessment process includes four core stages: risk identification, risk assessment, risk response, and risk monitoring and reporting[196][197] - The company has a risk library that consolidates all identified risks for further assessment and prioritization[196] Strategic Partnerships and Acquisitions - A strategic partnership was established in January 2022 to scale retail concepts in the Chinese market, integrating products and services for a seamless customer experience[25] - The company plans to acquire a 45% stake in Bao Wei Group, with a maximum purchase price not exceeding RMB 300,000,000[127] - The acquisition is expected to be completed by March 31, 2022, pending certain conditions[127] Sustainability and Social Responsibility - The company has established a sustainability team to manage environmental risks and has ensured proper insurance coverage for its assets[76] - The company is committed to reducing energy and resource consumption in response to climate change and follows local environmental laws[84] - The company made donations totaling approximately RMB 0.2 million in the current year, consistent with the previous year[89]

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 13,073,865 thousand, representing an increase of 11.4% compared to RMB 11,740,200 thousand in 2020[4] - Gross profit increased by 34.1% to RMB 4,722,074 thousand, with a gross margin of 36.1%, up from 30.0% in the previous year[4] - Operating profit surged by 362.6% to RMB 933,383 thousand, resulting in an operating margin of 7.1%, compared to 1.7% in 2020[4] - Profit attributable to owners of the company reached RMB 635,852 thousand, a significant increase of 5,064% from RMB 12,314 thousand in the prior period[4] - Basic earnings per share rose to RMB 12.24, compared to RMB 0.23 in the same period last year[4] - The company reported a profit of RMB 650,268,000 for the six months ended June 30, 2021, compared to RMB 17,379,000 for the same period in 2020, representing a significant increase[11] - Total comprehensive income for the period was RMB 649,727,000, up from RMB 18,624,000 in the previous year[11] Assets and Liabilities - Non-current assets amounted to RMB 5,791,426,000 as of June 30, 2021, down from RMB 6,029,181,000 at the end of 2020[12] - Current assets increased to RMB 11,208,118,000 from RMB 10,972,676,000, driven by higher inventory levels[12] - Current liabilities decreased to RMB 6,311,608,000 from RMB 7,001,742,000, indicating improved liquidity[13] - The company's net asset value rose to RMB 8,503,858,000 from RMB 7,876,030,000, reflecting a strong financial position[13] - The company reported a decrease in total liabilities to RMB 1,492,936,000 from RMB 1,486,701,000 in the previous year[18] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2021, was RMB 989,350,000, a decrease of 63.6% compared to RMB 2,719,431,000 in the same period of 2020[18] - The net cash used in investing activities was RMB (195,493,000), compared to RMB (273,654,000) in the previous year, indicating a 28.6% improvement[18] - The company received RMB 14,557,000 in interest income, an increase from RMB 6,864,000 in the same period last year[18] - The company incurred a loss of RMB (4,971,000) related to the failure of certain investments during the period[17] Inventory and Receivables - Inventory as of June 30, 2021, was RMB 6,063,907 thousand, reflecting a 3.3% increase from RMB 5,869,541 thousand at the end of 2020[5] - The accounts receivable aging analysis showed that receivables aged 0-30 days were RMB 1,229,779,000, down 24.7% from RMB 1,634,315,000 at the end of 2020[39] Market Strategy and Outlook - The company plans to continue expanding its market presence and investing in new product development to sustain growth[4] - Future outlook remains positive with expectations of continued revenue growth driven by strategic initiatives and market expansion efforts[4] - The company is currently assessing the potential impact of new accounting standards on its financial statements, with no significant effects reported so far[26] - The company plans to enhance its omnichannel strategy and digital transformation, focusing on consumer-to-business sales, particularly through its "Pan-Micro Store Ecosystem"[84] Employee and Shareholder Information - As of June 30, 2021, the company had approximately 31,200 employees and offers competitive compensation packages based on market levels and individual performance[88] - The board of directors decided not to declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[89] - Major Focus Management Limited holds 3,311,090,560 shares, representing 61.81% of the total issued shares as of June 30, 2021[107] Corporate Governance - The company complied with all principles and code provisions of the Corporate Governance Code during the six-month period ending June 30, 2021[114] - The independent auditor, Deloitte, reviewed the unaudited condensed consolidated financial information for the six months ending June 30, 2021, in accordance with the relevant standards[116] - The board expresses gratitude to customers, suppliers, shareholders, and employees for their support and contributions during the reporting period[118]

Financial Performance - The company's revenue for 2020 was RMB 25,611,125, a decrease of 5.8% compared to RMB 27,189,765 in 2019[13] - Gross profit for 2020 was RMB 7,826,305, reflecting a decline of 15.6% from RMB 9,275,469 in the previous year[13] - Operating profit dropped significantly by 55.1% to RMB 661,403 from RMB 1,471,932 in 2019[13] - Profit attributable to owners of the company was RMB 302,840, down 63.7% from RMB 833,275 in 2019[13] - The gross profit margin decreased to 30.6%, down 3.5 percentage points from 34.1% in 2019[13] - The operating profit margin fell to 2.6%, a decrease of 2.8 percentage points compared to 5.4% in the previous year[13] - Basic earnings per share for 2020 were RMB 5.75, a decline of 63.8% from RMB 15.87 in 2019[13] - The company recorded a net profit of RMB 314.7 million for the fiscal year 2020[41] Inventory and Cash Management - Inventory decreased by 26.8% to RMB 5,869,541 from RMB 8,021,487 in 2019[13] - Cash and cash equivalents increased by 183.9% to RMB 1,742,290 from RMB 613,591 in the previous year[13] - The average inventory turnover period improved to 143 days in 2020, down from 150 days in 2019, indicating better inventory management[42] - The company's operating days improved to 142 days in 2020, down from 200 days in Q1 2020, indicating better management of receivables[34] Sales and Distribution - The company experienced a significant increase in online sales, achieving a historical high during the year, driven by improved efficiency in omnichannel operations and strategic alliances with major online platforms[20] - The pandemic has accelerated the shift from offline to online shopping, with the company expecting this trend to continue evolving[21] - The company has integrated online and offline sales channels to maintain its leading position in the rapidly growing sports market[21] - The company’s online-to-offline (O2O) initiatives contributed to a significant increase in overall omnichannel sales in 2020[31] Cost Control and Operational Efficiency - Selling, general, and administrative expenses were reduced by 8.3% due to strict cost control and improved operational efficiency[22] - The company implemented cost control measures, including rent negotiations and employee number management, leading to a rebound in profitability after a loss in the first quarter of 2020[34] - The company is focused on enhancing customer loyalty and increasing full-price sales through personalized store setups based on local conditions[22] Store Network and Expansion Plans - The retail network covers Greater China, consisting of 5,240 directly operated stores and 3,835 franchised stores as of December 31, 2020[28] - The company recorded a net decrease of 643 stores, ending the year with 5,240 stores compared to 5,883 stores in the previous year, reflecting a focus on optimizing store structure during the pandemic[29] - The company plans to open new "Next Stores" in Northern China and other regions, building on the success of its first store in Taiwan, which has led to higher conversion rates[22] Future Outlook and Strategic Initiatives - The company remains optimistic about the consumer spending outlook in the sports sector, bolstered by major national events such as the 2022 Beijing Winter Olympics[22] - The company plans to accelerate its digital transformation strategy in 2021, focusing on larger stores and enhancing omnichannel sales[46] - The company aims to continue effective inventory management and diversify its sales channels, including the "Pan WeChat Ecosystem" for new sales opportunities[46] - The company plans to resume capital expenditure projects in 2021, focusing on upgrading and expanding experience-oriented physical stores and improving online and retail networks[47] Corporate Governance and Management - The group reported no dividend distribution for the year ended December 31, 2020, consistent with the previous year[62] - The group has implemented effective retention systems and succession planning to ensure leadership continuity and professional skill retention[65] - The board of directors consists of executive, non-executive, and independent non-executive members, with some eligible for re-election at the upcoming annual general meeting[93] - The company has arranged appropriate directors' and officers' liability insurance for its directors and senior management[97] Risk Management and Compliance - The company has established a risk management framework to identify and manage risks that may adversely affect its business objectives[178] - The internal audit department operates independently to evaluate and monitor the company's risk management and internal control systems[177] - The company has established procedures to handle and disclose inside information in compliance with the Securities and Futures Ordinance[184] Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the period from January 1, 2020, to December 31, 2020, focusing on sports goods and footwear retail, brand agency products, and sports services[193] - The company is committed to promoting green living and ensuring the ecological safety of its products[195] - The total amount of non-hazardous waste generated by the company in 2020 was 233.6 tons, an increase from 140.8 tons in 2019, representing a growth of approximately 66%[197] - The company implemented a paperless office initiative, saving approximately 0.5% in paper usage annually[198]

Financial Performance - The company's revenue for the six months ended June 30, 2020, was RMB 11,740,200, a decrease of 12.2% compared to RMB 13,371,614 for the same period in 2019[4] - Gross profit for the same period was RMB 3,520,136, down 23.7% from RMB 4,615,952 in 2019, resulting in a gross margin of 30.0%, a decline of 4.5 percentage points[4] - Operating profit decreased by 73.9% to RMB 201,757 from RMB 774,387 in the previous year, leading to an operating margin of 1.7%, down 4.1 percentage points[4] - Profit attributable to owners of the company plummeted by 97.1% to RMB 12,314 compared to RMB 427,435 in the prior year[4] - The company reported a basic earnings per share of RMB 0.23, a significant drop of 97.2% from RMB 8.15 in the same period last year[4] - The company's profit for the six months ended June 30, 2020, was RMB 17,379 thousand, a significant decrease of 96.25% compared to RMB 463,425 thousand in the same period of 2019[11] - Total comprehensive income for the same period was RMB 18,624 thousand, down 96.99% from RMB 464,187 thousand in 2019[11] Assets and Liabilities - The company's assets as of June 30, 2020, totaled RMB 10,477,883 thousand, a decrease from RMB 11,662,935 thousand as of December 31, 2019[12] - Current liabilities decreased to RMB 6,496,420 thousand from RMB 7,773,601 thousand, reflecting a reduction of 16.43%[13] - The company's total liabilities decreased to RMB 8,140,974 thousand from RMB 9,684,704 thousand, reflecting a reduction of 15.93%[13] - Bank and other borrowings decreased by 22.7% to RMB 2,742,356 from RMB 3,545,995[4] Cash Flow and Investments - Cash and cash equivalents increased by 163.4% to RMB 1,616,168 from RMB 613,591 at the end of 2019[4] - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 2,719,431 thousand, compared to RMB 930,277 thousand for the same period in 2019, representing a significant increase[19] - The net cash used in financing activities was RMB (1,445,085) thousand, compared to RMB (732,433) thousand in the previous year, indicating an increase in financing outflows[20] - The company reported a decrease in cash used for the purchase of property, plant, and equipment, amounting to RMB (163,298) thousand compared to RMB (290,654) thousand in the prior year[19] Operational Efficiency - The company is focused on improving operational efficiency and exploring new market opportunities to enhance future performance[9] - The company achieved over 20% year-on-year growth in omnichannel sales during the first half of 2020, driven by strategic alliances with online partners[57] - The operating cash conversion days improved to 155 days in the first half of 2020, down from 200 days in the first quarter[56] - The company implemented various cost control measures, including rent negotiations and workforce management, contributing to a strong V-shaped recovery in the second quarter[55] Market and Strategic Focus - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[27] - The group remains optimistic about long-term growth opportunities in the Chinese sports apparel and consumption market, supported by increased health awareness and participation in sports[71] - The group plans to adopt a cautious approach to capital expenditures for the remainder of 2020, depending on the recovery pace of sports events and any signs of a second wave of the pandemic[73] Employee and Shareholder Information - As of June 30, 2020, the company had approximately 34,200 employees, providing competitive compensation packages based on current market levels and individual performance[74] - The board of directors decided not to declare an interim dividend for the six months ended June 30, 2020, compared to no dividend declared for the same period in 2019[75] - The company emphasizes the importance of a share-based incentive mechanism to attract and retain talent, aligning employee interests with company goals[83] Share Option Plan - The share option plan allows for a maximum of 10% of the total issued shares at the time of the initial listing to be issued under the plan, equating to 355,000,000 shares[85] - A total of 31,125,000 shares were issued due to the exercise of share options under the share option plan as of June 30, 2020, with an additional 2,332,640 shares available for issuance[86] - The total number of shares granted during the period was 1,500,000, with 3,905,000 shares lapsed or canceled[93]

Financial Performance - Total revenue for the year ended December 31, 2019, was RMB 27,189,765, representing a 19.9% increase from RMB 22,677,375 in 2018[23] - Operating profit for 2019 was RMB 1,471,932, reflecting a significant increase of 52.2% compared to RMB 966,881 in 2018[23] - Profit attributable to owners of the company was RMB 833,275, up 53.5% from RMB 542,888 in the previous year[23] - Basic earnings per share increased by 52.7% to RMB 15.87 from RMB 10.39 in 2018[23] - Gross profit for 2019 was RMB 9,275.5 million, with a gross profit margin of 34.1%, up 0.6 percentage points from 2018[42] - The company's net profit attributable to shareholders in 2019 was RMB 833.3 million, representing a 53.5% increase from the previous year[42] - Operating profit for 2019 was RMB 1,471.9 million, with an operating profit margin of 5.4%, compared to 4.3% in 2018[43] - The proposed final dividend for 2019 was not declared, marking a 100% decrease from the previous year's dividend of HKD 0.025[23] Business Strategy and Expansion - The company plans to launch its first "Next Store" in the first half of 2020, which will utilize an omnichannel approach for selling sports products and services[30] - B2C sales accounted for approximately 50% of total sales by the end of 2019, up from less than 1% in 2016, with a target of contributing 20% to total sales in the near future[32] - The company aims to transition from low conversion offline sales and high discount online sales to a "full-price" model, enhancing customer loyalty and conversion rates through improved services and experiences[34] - The company is expanding its product sharing platform, integrating sales data from physical stores and online platforms, which is expected to improve sales profit margins and reduce reliance on peak sales periods and discounts[34] - The company plans to launch a new large store concept to better integrate in-store sports services with online product offerings, capitalizing on the growing sports and leisure trends[40] Customer Experience and Engagement - The company is focusing on providing high-quality services and memorable experiences alongside its products to better serve customers[30] - A new YYsports app has been launched, along with a revamped YYsports mini-program, to reactivate existing members and attract consumer interest through a comprehensive omnichannel approach[32] - The company is enhancing its membership program and has relaunched an upgraded version of the Yysports mobile app in Taiwan and mainland China, featuring diverse sports services and improved customer relationship management[39] - The company aims to enhance consumer experience by investing in physical store upgrades and integrating offline and digital channels[41] - The company is focused on enhancing customer satisfaction by offering exclusive and tailored benefits to improve customer loyalty[76] Market Trends and Consumer Behavior - Consumer spending in China grew by 8.0% year-on-year in 2019, reaching RMB 41.16 trillion, with spending on sports and leisure products also increasing by 8.0%[40] - Despite short-term challenges from the COVID-19 pandemic affecting physical store operations, the long-term outlook for the company's business remains strong due to the growing demand for health and sports-related activities in Greater China[36] - The management remains optimistic about the long-term growth opportunities in the Chinese sports apparel and consumer market, with sports consumption expected to reach RMB 1.5 trillion by 2020[48] Operational Efficiency and Technology - The company has implemented dashboards and other devices in physical channels to enhance operational efficiency and decision-making[32] - The company is leveraging big data to analyze customer purchase records and participation in sports events, aiming to improve business model efficiency and sales conversion rates[39] - The company continues to implement better procurement planning and inventory integration to enhance seasonal sales and effectively clear out-of-season products[40] - The company is investing significantly in logistics and delivery infrastructure to improve cost control and operational efficiency[77] Corporate Governance and Management - The company has established governance policies to ensure compliance with various laws and regulations, mitigating legal risks[79] - The board of directors includes experienced professionals with backgrounds in finance, management, and technology, contributing to strategic decision-making[60][63] - The company has adopted a dividend policy to distribute approximately 20% to 30% of the net profit available for distribution as dividends, subject to sufficient profits for its own development and shareholder returns[188] - The company has established a shareholder communication policy, which was revised on March 22, 2019, to ensure effective communication with shareholders and potential investors[195] Risk Management - The company has established a clear reporting mechanism to facilitate communication between operational units and the risk management unit[199] - The internal audit department operates independently to evaluate and monitor the company's risk management and internal control systems, reporting quarterly to the audit committee[196] - The risk management framework includes policies and procedures designed to identify, assess, manage, and minimize risks that could adversely affect the achievement of business objectives[198] - The board conducts an annual review of the effectiveness of the risk management and internal control systems, including changes in the nature and severity of key risks[196]

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 13,371,614 thousand, representing a 19.4% increase from RMB 11,202,006 thousand in 2018[8] - Operating profit increased by 46.0% to RMB 774,387 thousand compared to RMB 530,360 thousand in the previous year[8] - Profit attributable to owners of the company rose by 39.3% to RMB 427,435 thousand from RMB 306,833 thousand in 2018[8] - Basic earnings per share increased by 38.6% to RMB 8.15 from RMB 5.88 in the same period last year[8] - Total comprehensive income for the period was RMB 464,187 thousand, up from RMB 317,526 thousand in 2018[18] - The gross profit margin improved, with gross profit reaching RMB 4,615,952 thousand against sales costs of RMB 8,755,662 thousand[16] - The company reported a foreign exchange gain of RMB 762 thousand from overseas operations, compared to a loss of RMB 41 thousand in 2018[18] - The company reported a total comprehensive income of RMB 428,222,000 for the six months ended June 30, 2019, compared to RMB 464,187,000 in the same period of 2018[27] - The company’s revenue for the six months ended June 30, 2019, was RMB 5,174,836,000, compared to RMB 5,156,422,000 in the same period of 2018[29] - The company’s net profit attributable to equity holders for the six months ended June 30, 2019, was RMB 787,000, compared to RMB 762,000 in the previous year[27] Financial Position - As of June 30, 2019, the company's non-current assets totaled RMB 4,524,680 thousand, compared to RMB 2,519,010 thousand as of December 31, 2018, indicating a significant increase[19] - Current assets amounted to RMB 10,684,108 thousand, slightly down from RMB 10,718,459 thousand in the previous period[19] - The company's total liabilities decreased to RMB 6,398,333 thousand from RMB 6,090,438 thousand, reflecting improved financial health[21] - The net asset value increased to RMB 7,482,525 thousand from RMB 7,035,537 thousand, showing a growth of approximately 6.3% year-over-year[21] - The company reported a decrease in accounts payable and other payables to RMB 1,934,648 thousand from RMB 2,097,581 thousand, indicating better cash flow management[21] - The company’s goodwill remained stable at RMB 532,756 thousand, compared to RMB 532,808 thousand in the previous period[19] - The company has introduced new leasing liabilities amounting to RMB 718,627 thousand, reflecting a shift in asset management strategy[21] - The total equity attributable to owners of the company increased to RMB 7,202,590 thousand from RMB 6,867,567 thousand, representing a growth of approximately 4.9%[21] - The company’s cash and cash equivalents decreased to RMB 641,240 thousand from RMB 730,956 thousand, indicating a need for improved liquidity management[19] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2019, was RMB 930,277,000, compared to a net cash used of RMB 62,971,000 in the same period of 2018[29] - The company reported a net cash outflow from investing activities of RMB 530,000,000 for the acquisition of properties, machinery, and equipment, which is an increase from RMB 290,654,000 in the previous year[29] - The net cash used in financing activities was RMB 732,433,000, a significant decrease from RMB 478,621,000 in the prior year[31] - The total cash and cash equivalents at the end of the period were RMB 641,240,000, compared to RMB 600,738,000 at the end of the same period last year[31] - The company paid dividends amounting to RMB 115,326,000, an increase from RMB 87,298,000 in the previous year[31] Market Strategy and Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[15] - The management remains optimistic about the company's performance in the second half of 2019, expecting continued revenue growth[15] - The company plans to continue investing in upgrading physical stores and integrating digital channels to enhance consumer experience and drive seasonal sales[104] - The company maintains an optimistic outlook on the long-term growth opportunities in the Chinese sports apparel and consumption market, expecting sports consumption to reach RMB 1.5 trillion by 2020[117] - The company plans to continue developing new store formats and enhance its online and offline channels to provide high-quality sports products and engaging services[120] - The competitive business environment for the second half of 2019 is anticipated to remain challenging, but the company expects to enhance long-term performance and profitability through its strategies[120] Employee and Governance - As of June 30, 2019, the company had approximately 34,000 employees and offered competitive compensation packages based on market levels and individual performance[121] - The board of directors decided not to declare any interim dividend for the six months ended June 30, 2019[122] - The company emphasizes the importance of stock-based incentive mechanisms to attract and retain talent, aligning employee interests with company goals[130] - The board of directors includes executive directors, non-executive directors, and independent non-executive directors, ensuring a diverse governance structure[161] Stock Options and Incentives - The average exercise price of stock options as of January 1, 2019, was HKD 1.75, with a total of 28,244,190 options available[98] - A total of 30,750,000 shares have been issued due to the exercise of stock options under the stock option plan as of June 30, 2019[139] - The stock option plan allows for a maximum of 355,000,000 shares to be issued, which is 10% of the total shares issued on the first trading day[132] - The stock reward plan, adopted on May 9, 2014, allows for a maximum of 4% of the issued shares to be granted as rewards[143] - The total number of shares awarded under the share incentive plan increased from 1,700,000 to 2,400,000 during the reporting period, reflecting a net increase of 700,000 shares[146] Compliance and Audit - The independent auditor has reviewed the unaudited condensed consolidated interim financial information for the six months ending June 30, 2019, in accordance with the relevant standards[160] - The company has adhered to the principles of the Corporate Governance Code as per the Listing Rules Appendix 14 for the six months ending June 30, 2019[157]