Financial Performance - The company reported revenue of RMB 749 million for the six months ended September 30, 2024, a decrease of 3.5% compared to RMB 776 million in the same period last year[14]. - Gross profit was RMB 516 million, down 3.7% from RMB 536 million year-on-year, with a gross margin of 68.9%[14]. - Operating profit was RMB 162 million, a significant recovery from an operating loss of RMB 471 million in the previous year[14]. - Profit attributable to equity holders was RMB 137 million, compared to a loss of RMB 410 million in the same period last year[14]. - Basic earnings per share were RMB 2.34, a turnaround from a loss per share of RMB 6.99 in the previous year[14]. - The group achieved a net investment income of RMB 171 million during the reporting period[27]. - The company reported a total comprehensive income of RMB 89,822 thousand, recovering from a comprehensive loss of RMB 247,410 thousand in the previous year[163]. - The company reported a net profit of RMB 136,965 thousand for the period, contributing to a total equity increase despite other comprehensive losses[173]. Dividends and Shareholder Returns - The company declared an interim dividend of RMB 1.40 per share, representing a 97.2% increase from RMB 0.71 in the previous year[14]. - The company maintains a dividend payout ratio of 60% of the net profit attributable to equity holders for the interim period[20]. - The company declared dividends amounting to RMB 29,878 thousand during the period[173]. Market and Economic Outlook - The upcoming 2024 Paris Olympics and other sporting events are expected to boost the sales of sports goods in China[18]. - In the first three quarters of 2024, China's GDP grew by 4.8%, indicating signs of economic recovery[37]. - Retail sales of consumer goods in China increased by 3.3% year-on-year in the first three quarters of 2024, with online consumption continuing to be a significant growth engine[37]. - The Chinese government has set a target for the sports industry to exceed 5 trillion yuan by 2025, with policies aimed at expanding sports consumption[40]. Brand and Product Development - The company aims to enhance product quality, technological innovation, and brand image to meet evolving consumer demands in the fashion sports sector[18]. - KAPPA launched several offline events, including "Beach Summer School" and "KAPPA Invites You to Watch the Game," enhancing brand engagement with consumers[22]. - PHENIX introduced the lightweight SP27 LITE series and outdoor apparel, catering to diverse outdoor needs[25]. - The group is committed to continuous product innovation in design and materials to improve market competitiveness[40]. - KAPPA's marketing strategy emphasizes consumer experience and content creation, aiming to strengthen emotional connections with young consumers[22]. Sales and Revenue Breakdown - KAPPA brand sales totaled RMB 705 million, a decrease of RMB 34 million compared to RMB 739 million in the previous period, representing a decline of 4.6%[63]. - The Kappa brand's apparel sales were RMB 520 million, accounting for 73.8% of total sales, while footwear sales dropped by 32.0% to RMB 100 million, representing 14.2% of total sales[60]. - The accessories segment saw significant growth, with sales increasing by 73.5% to RMB 85 million, making up 12.0% of total sales[60]. Investment and Asset Management - The investment division's net assets amounted to RMB 8,311 million, reflecting a slight increase of 0.5% from RMB 8,250 million as of March 31, 2024[27]. - The company aims to optimize its investment asset structure and cautiously advance new project investments[27]. - The group plans to optimize its investment asset structure and proceed cautiously with new project investments to ensure stable returns for shareholders[55]. Store and Brand Presence - As of September 30, 2024, the total number of KAPPA brand stores was 1,001, a net decrease of 11 stores compared to March 31, 2024[21]. - The total number of Kappa brand self-operated stores reached 557, with a total of 1,001 Kappa brand stores after adjustments and optimizations[63]. Corporate Governance and Compliance - The company aims to enhance corporate governance practices to align with shareholder interests[144]. - Deloitte has been appointed as the company's auditor effective September 30, 2024, following the resignation of the previous auditor[148]. Cash Flow and Financial Position - As of September 30, 2024, the group's cash and bank balance is RMB 3,170 million, an increase of RMB 135 million compared to RMB 3,035 million on March 31, 2024[1]. - The group reported a net cash outflow of approximately RMB 6 million from operating activities during the reporting period[1]. - The average trade receivables turnover days during the reporting period was 32 days, compared to 35 days in the previous period[1]. - The average inventory turnover days during the reporting period was 266 days, compared to 265 days in the previous period[1]. Stock Options and Employee Incentives - The company has implemented a share incentive plan for management to ensure long-term commitment to the group's success[84]. - The stock option plan was adopted on August 8, 2019, and will remain effective for ten years unless terminated or amended[114]. - The company has a structured vesting schedule for stock options, which aligns employee incentives with long-term performance[126].

Financial Performance - Revenue for the six months ended September 30, 2024, was RMB 749 million, a decrease of 3.5% compared to RMB 776 million in 2023[1]. - Gross profit for the same period was RMB 516 million, down 3.7% from RMB 536 million in 2023[1]. - Operating profit for the period was RMB 162 million, a significant improvement from a loss of RMB 471 million in the previous year[1]. - Basic earnings per share for the period was RMB 2.34, compared to a loss of RMB 6.99 per share in the same period last year[1]. - The group reported a profit attributable to owners of RMB 137 million, compared to a loss of RMB 410 million in the previous year[1]. - The gross profit margin was 68.9%, slightly down from 69.1% in 2023[1]. - The gross profit margin before inventory provision changes was 70.0%, up from 66.4% in the previous year, reflecting a 3.6 percentage point increase[1]. - The group recorded a net investment income of RMB 171 million during the reporting period[31]. - The group achieved a net financial income of RMB 1 million, down from RMB 30 million in the same period last year[85]. - The company reported a net loss after tax for the total group was RMB 409,713,000, compared to a profit of RMB 14,541,000 in the previous period, indicating a shift in performance[195]. Dividends and Shareholder Returns - The company declared an interim dividend of RMB 1.40 per share, an increase of 97.2% from RMB 0.71 in 2023[1]. - The basic earnings per share were RMB 2.34, and the board announced a dividend payout ratio of 60% based on the net profit attributable to equity holders for the interim period[24]. - The company declared dividends amounting to RMB 29,878 thousand during the period[177]. Market and Industry Trends - The Chinese sports goods industry is experiencing growth due to the upcoming 2024 Paris Olympics and increased consumer interest in fitness[22]. - The overall economic growth rate in China for the first three quarters of 2024 was 4.8%, supported by effective policy adjustments and a steady increase in domestic consumption[21]. - The Chinese sports industry is projected to exceed 5 trillion yuan by 2025, supported by government policies promoting sports development[44]. - Online consumption continues to be a significant growth engine, with the number of online shopping users exceeding 900 million, a year-on-year growth of 8.6%[41]. Brand and Product Development - The group is focusing on enhancing its omnichannel layout and improving the online and offline consumer experience to drive sales and customer retention[25]. - KAPPA launched several offline events to enhance brand culture and consumer engagement, including "Beach Summer School" and "KAPPA Invites You to Watch the Game"[26]. - PHENIX introduced the lightweight SP27 LITE series and outdoor clothing to meet diverse outdoor needs, while also expanding into the non-ski season market[29]. - The company is committed to continuous product innovation in design and materials to enhance market competitiveness[44]. - KAPPA launched the KAPPA 1916 series, KAPPA Player series, and KAPPA Gara series, focusing on retro sports and fashion technology, with significant upgrades to product lines[51]. Investment and Asset Management - As of September 30, 2024, the group's investment segment net assets amounted to RMB 8,311 million, a slight increase of 0.5% compared to March 31, 2024[31]. - The group plans to optimize its investment asset structure and strengthen collaboration with project management parties[31]. - The group has reduced its receivables loan business and is actively addressing current receivables from borrowers[102]. - The group aims to ensure long-term growth by incentivizing management personnel involved in lending arrangements[99]. Operational Efficiency - The group’s total distribution and administrative expenses amounted to RMB 526 million, representing 70.2% of total sales, an increase of 3.3 percentage points compared to the previous period[80]. - The company is focused on optimizing its omnichannel layout and strengthening business synergy to enhance efficiency and performance[44]. - The company emphasizes digital transformation and resource integration to improve operational efficiency and enhance the member system[54]. Financial Position and Cash Flow - The company's cash and bank balance as of September 30, 2024, was RMB 3,170 million, an increase of RMB 135 million compared to RMB 3,035 million as of March 31, 2024[92]. - The total assets increased to RMB 9,976,286 thousand from RMB 9,740,563 thousand as of March 31, 2024, representing a growth of approximately 2.42%[170]. - Cash and cash equivalents decreased to RMB 1,436,779 thousand from RMB 1,764,656 thousand, a decline of approximately 18.5%[170]. - The company reported a net cash outflow from financing activities of RMB (48,078,000), slightly improved from RMB (52,639,000) in the previous year[190]. Corporate Governance and Compliance - The company has complied with the corporate governance code and has no share buybacks during the six months ending September 30, 2024[148]. - Deloitte has been appointed as the auditor effective September 30, 2024, following the resignation of the previous auditor[152]. - The company has adopted a revised set of articles of association at the annual general meeting held on August 21, 2024[151].

Financial Performance - Revenue for the reporting period reached RMB 1,744 million, a year-on-year increase of 3.9%[37] - The company recorded a loss attributable to equity holders of RMB 639 million, compared to a loss in the previous year[37] - KAPPA brand's offline business grew significantly by 14% year-on-year, with gross margin increasing by 2.1 percentage points to 69.4%[37] - The company's total sales for the reporting period were RMB 1,744 million, a 3.9% increase compared to the previous year's RMB 1,679 million[89] - Kappa brand sales increased by 6.2% to RMB 1,638 million, with total group sales growing by 3.9% to RMB 1,744 million[114][117] - Gross profit margin improved by 4.9 percentage points to 68.3%, driven by higher new product mix and increased retail discount rates[121][123] - The group reported an operating loss of RMB 778 million, with an operating loss margin of 44.6%, compared to an operating profit of RMB 138 million and an operating profit margin of 8.2% in the previous period[141] - Net financial income for the period was RMB 19 million, down from RMB 40 million in the previous period, with bank deposit interest income of RMB 25 million and a foreign exchange loss of RMB 3 million[141] - The company recorded a pre-tax loss of RMB 759 million, resulting in an income tax credit of RMB 120 million, with an effective tax rate of 15.8%[141][142] - The company's attributable loss was RMB 639 million, with an attributable loss margin of 36.6%, compared to an attributable profit of RMB 115 million and an attributable profit margin of 6.8% in the previous period[142] - Revenue for the fiscal year ending March 31, 2024, was RMB 1,744,023 thousand, an increase of 3.9% compared to RMB 1,678,916 thousand in 2023[186] - Gross profit for 2024 was RMB 1,192,292 thousand, up 12.1% from RMB 1,063,544 thousand in 2023[186] - Operating loss for 2024 was RMB 778,219 thousand, compared to an operating profit of RMB 137,848 thousand in 2023[186] - Net loss for 2024 was RMB 639,359 thousand, a significant decline from a net profit of RMB 114,997 thousand in 2023[186] - Other comprehensive income for 2024 was RMB 114,915 thousand, down 59.3% from RMB 282,620 thousand in 2023[186] - Total comprehensive loss for 2024 was RMB 524,444 thousand, compared to a total comprehensive income of RMB 397,617 thousand in 2023[186] - Financial income decreased to RMB 25,089 thousand in 2024 from RMB 51,682 thousand in 2023[186] - Financial expenses decreased to RMB 6,556 thousand in 2024 from RMB 11,677 thousand in 2023[186] - Net financial income for 2024 was RMB 18,533 thousand, down 53.7% from RMB 40,005 thousand in 2023[186] Operational Efficiency - Average trade receivables turnover days decreased to 31 days from 33 days in the previous period[1] - Average trade payables turnover days decreased to 94 days from 115 days in the previous period[1] - Average inventory turnover days decreased to 206 days from 218 days in the previous period[1] - The company reduced the number of stores by 11 during the reporting period[23] - KAPPA brand's total number of stores as of March 31, 2024, was 1,012, a net decrease of 11 stores compared to the same period last year[51] - The company's sales cost decreased by RMB 63 million to RMB 552 million compared to the previous period[94] - Employee compensation and benefits expenses increased by RMB 36 million to RMB 127 million, while outsourcing labor costs decreased by RMB 1 million to RMB 155 million[101][102] - The company's digital transformation strategy improved operational efficiency by integrating online and offline resources and enhancing data systems[82] - Distribution and administrative expenses increased to RMB 1,196 million, accounting for 68.6% of total sales, up 0.9 percentage points[126] - Product design and development expenses increased by RMB 4 million to RMB 41 million[127] - Operating cash inflow was RMB 199 million, while other cash outflows totaled RMB 94 million[131] - Logistics and warehouse operating expenses decreased by RMB 5 million to RMB 34 million during the reporting period, attributed to optimized warehouse structure and improved operational efficiency[148] Brand and Marketing Strategy - The company's KAPPA brand focused on enhancing user engagement through media and holiday campaigns[21] - KAPPA sponsored the popular variety show "Unstoppable," significantly boosting brand exposure and attention[38] - The company aims to optimize brand strategy, increase consumer interaction, and deepen market layout[38] - The company's core brands, KAPPA and PHENIX, focus on brand philosophy and product quality, aiming to meet consumer demands[37] - The company plans to continue focusing on the younger generation through cross-border collaborations, innovative brand promotions, and sponsoring popular programs to enhance brand visibility and competitiveness[53] - KAPPA's sponsorship of the variety show "Unstoppable" resulted in over 5 billion exposures across the internet, with hundreds of influencers wearing KAPPA products, significantly boosting brand visibility[75] - KAPPA launched a New Year special edition clothing with magnetic buttons, which attracted consumers to visit stores and sparked discussions on social media[75] - PHENIX collaborated with NIO to create exclusive snow suits for NIO car owners, combining the fields of new energy and skiing[76] - PHENIX became the designated sponsor of Tsinghua University's ski team and launched custom ski suits, contributing to the promotion of university ski culture[76] - PHENIX partnered with Dongfang Zhenxuan for team-building ski suits, with top influencers wearing PHENIX ski apparel, increasing online exposure and search index[76] - PHENIX plans to establish a 600-square-meter member service center at Wanlong Ski Resort to enhance the skiing experience for enthusiasts[76] - PHENIX organized the FREERIDE training camp for the 2023/24 ski season, offering professional safety courses and fostering interest in skiing among youth[76] - PHENIX collaborated with Chicamp to host freestyle training camps at major ski resorts, inviting renowned skiers to lead the sessions[76] - PHENIX's product lines include professional ski gear, urban fashion, and outdoor functional wear, catering to diverse consumer needs[75] - Kappa brand's self-operated retail stores reached 557, with self-operated channel sales reaching RMB 953 million, an increase of RMB 8 million compared to the previous period, accounting for 58.2% of Kappa's total sales[93] - Kappa brand's gross profit margin increased by 2.1 percentage points to 69.4%, driven by higher new product ratios and increased retail discounts[97] - Kappa brand's non-self-operated channel sales grew by 14.7% to RMB 685 million, accounting for 41.8% of Kappa brand sales[120] - The number of Kappa brand self-operated stores reached 1,012 after optimization and adjustment[118] - Group sales and advertising expenses decreased by RMB 72 million to RMB 386 million, primarily due to the transfer of store fixture costs to depreciation and amortization and adjustments in marketing campaign timing[136] Investment and Financial Strategy - The company proposed a special dividend of RMB 0.51 per share for the fiscal year ending March 31, 2024[8] - The company plans to leverage its financial strength and industry experience to explore opportunities in international brands within China and regional markets[27] - The company will adjust its investment asset structure, strengthen cooperation with project management, and carefully advance new investments to ensure stable returns for shareholders[53] - The company faces risks from macroeconomic fluctuations in China, which could impact consumer purchasing power and the company's profitability[54] - The company acknowledges risks in its investment business, including market volatility, regulatory changes, and project failures, but will adhere to strict decision-making processes to mitigate these risks[55] - The investment division's net assets were RMB 8,268 million, a decrease of 5.4% year-on-year, with a total loss of RMB 724 million in the investment sector[82][100] - The company's investment strategy includes equity, stock, fixed income, and cash management, aiming to optimize asset structure and ensure stable returns[82] - Investment division reported a net loss of RMB 724 million, primarily due to RMB 824 million in fair value losses on financial assets[135] - The group's financial assets at fair value through profit or loss amounted to RMB 4,727 million as of March 31, 2024[134] - The company proposed a final special dividend of RMB 0.51 cents per ordinary share for the twelve months ended March 31, 2024[141] - The total number of ordinary shares issued by the company as of March 31, 2024, was 5,887,561,025[138] - The company paid an interim special dividend of RMB 0.71 cents per ordinary share, totaling RMB 41,802,000, for the six months ended September 30, 2023[138] - The final special dividend will be paid in Hong Kong dollars based on the official exchange rate of 1.00 HKD = RMB 0.91234 as reported by the People's Bank of China on June 25, 2024[138] - The company's shareholder register will be closed from August 28, 2024, to August 30, 2024, to determine shareholders' entitlement to the final special dividend[142] - The company's provision for impairment of receivables increased by RMB 112 million to RMB 138 million as of March 31, 2024, compared to RMB 26 million as of March 31, 2023, primarily due to a decline in the fair value of collateral for some loans[146] - The total book value of receivables from loans was RMB 901 million as of March 31, 2024, down from RMB 936 million as of March 31, 2023, with loans to independent third parties accounting for RMB 575 million and loans to management totaling RMB 313 million[146] - The company has 16 borrowers under its loan arrangements, with the largest borrower accounting for RMB 313 million, and the top five borrowers collectively accounting for RMB 600 million, representing a significant portion of the total receivables[146] - The company paid dividends of approximately RMB 70 million during the reporting period[157] - As of March 31, 2024, the net asset value attributable to equity holders was RMB 9,075 million, compared to RMB 9,665 million as of March 31, 2023[157] - The company's current assets exceeded current liabilities by RMB 3,990 million as of March 31, 2024, with a current ratio of 9.0x[157] - The company's cash and bank balances increased by RMB 477 million to RMB 3,035 million as of March 31, 2024, compared to RMB 2,558 million as of March 31, 2023[165] - The company invested RMB 2,340 million in financial assets and received RMB 2,745 million from the disposal of financial assets and dividend income during the reporting period[165] - The company entered into a limited partnership agreement with Yunfeng Fund IV in February 2021, with a total commitment of USD 20 million, of which USD 9 million has been paid as of March 31, 2024[160] - The company entered into a limited partnership agreement with CPE Global Select Fund, L.P. in November 2023, with a total commitment of USD 10 million, of which USD 2 million has been paid as of March 31, 2024[170] - The company entered into a limited partnership agreement with TH Capital China Growth Fund I, L.P. in August 2023, with a total commitment of USD 10 million, of which USD 5 million has been paid as of March 31, 2024[175] - The company reported a basic and diluted loss per share of RMB 0.109 for the reporting period, compared to a profit of RMB 0.0196 per share in the previous period[164] - The company has no significant investments or acquisitions of subsidiaries, associates, or joint ventures as of March 31, 2024[170] - Transactions under the 2020 renewed framework agreement with Maisheng Yuehe reached RMB 61,292,000 in the fiscal year ending March 31, 2024[195] ESG and Sustainability - The company plans to continue deepening ESG practices and contributing to the construction of a sustainable society[39] - The company emphasizes the importance of environmental, social, and governance (ESG) performance and has established an ESG committee to oversee related policies[60] - The company maintains a strict supplier selection process, requiring suppliers to have experience producing for top-tier brands and passing comprehensive evaluations[57] Product Innovation and Technology - The company emphasized product innovation and channel optimization to enhance market competitiveness[35] - The company will continue to invest in new product development and integrate AI technology to inject new momentum into brand growth[53] - Kappa Gara series integrated technology elements such as K-UV CUT, K-ICE KOOL, and K-FLASH DRY, enhancing product quality and comfort[78] - Kappa's footwear series focused on retro running shoes, trendy running shoes, lightweight running shoes, and skate shoes, with stable sales growth in the first quarter of 2024[78] - PHENIX continues to invest in research on biomechanics, engineering, and biology to develop advanced sports apparel technology[76] Market and Industry Trends - The company highlighted the growth potential in outdoor and winter sports, driven by consumer interest and government support[35] - The company expects the sports industry to grow rapidly in 2024, driven by favorable policies and major events like the Paris Olympics, which will release consumer potential and expand market size[53][59] - The company recognizes the competitive challenges in the sports apparel industry, where consumer demands for brand reputation, fashion, and technology are increasing[60]

Financial Performance - For the fiscal year 2023/24, the company's revenue was RMB 1,744 million, representing an increase of 3.9% compared to RMB 1,679 million in the previous fiscal year[38]. - The company reported a net loss attributable to shareholders of RMB 639 million for the fiscal year 2023/24, compared to a profit of RMB 115 million in the previous year[38]. - The gross profit margin improved to 68.3% in 2023/24, up from 63.4% in 2022/23[38]. - The group's overall sales increased by 3.9% to RMB 1,744 million compared to the previous period's RMB 1,679 million[172]. - Kappa brand sales grew by 6.2% to RMB 1,638 million from RMB 1,542 million in the previous period[177]. - The gross profit margin for the group improved to 68.3%, up 4.9 percentage points from 63.4% in the previous period[180]. - Kappa brand's gross profit margin increased to 69.4%, a rise of 2.1 percentage points compared to 67.3% in the previous period[182]. - The group's operating loss was RMB 778 million, compared to an operating profit of RMB 138 million in the previous period, resulting in an operating loss margin of 44.6%[164]. - Other income and losses resulted in a net loss of RMB 659 million, compared to a net income of RMB 157 million in the previous period[182]. - The company reported a loss attributable to shareholders of RMB 639 million, with a loss ratio of 36.6%, compared to a profit of RMB 115 million and a profit ratio of 6.8% in the previous period[193]. Asset Management - Non-current assets decreased to RMB 5,253 million from RMB 5,808 million, a decline of 9.5% year-on-year[17]. - Current assets decreased to RMB 4,488 million from RMB 4,769 million, a decline of 5.9% year-on-year[17]. - Total assets decreased to RMB 9,741 million from RMB 10,577 million, a decline of 7.9% year-on-year[17]. - Net assets attributable to equity holders decreased to RMB 9,075 million from RMB 9,665 million, a decline of 6.1% year-on-year[17]. - The company reported a net asset per share of RMB 154.74, down from RMB 164.80, reflecting a decrease of 6.5% year-on-year[17]. - The investment division's net assets as of March 31, 2024, were RMB 8,268 million, reflecting a year-on-year decrease of 5.4%[38]. - KAPPA's investment segment net assets amounted to RMB 8,268 million as of March 31, 2024, representing a year-on-year decrease of 5.4%[132]. Market Strategy and Brand Development - The company plans to enhance the market competitiveness of its core brand KAPPA through emotional marketing and cross-industry collaborations[28]. - KAPPA aims to deepen market engagement and optimize brand strategy by focusing on consumer interaction and co-creation[27]. - The company is actively seeking partnerships and sponsorships to increase brand exposure, as seen with its collaboration on the popular variety show "Unstoppable"[27]. - The company will continue to adapt its marketing strategies to align with the lifestyle and preferences of younger consumers[28]. - The KAPPA brand's offline business experienced a notable growth of 14% year-on-year, reflecting strong market performance[50]. - The group aims to enhance its market influence and lead the industry towards high-quality development[50]. - The group emphasizes Kappa's brand philosophy of "passion, sexiness, and avant-garde," enhancing brand exposure through sponsorship of popular variety shows[70]. - KAPPA became the clothing sponsor for the variety show "Unstoppable," achieving over 5 billion exposures online since its airing[125]. - KAPPA launched a special New Year clothing line with magnetic buttons, engaging younger consumers and increasing brand interaction[125]. Sustainability and ESG Commitment - The company is focusing on sustainable development and has integrated ESG strategies into its daily operations to create long-term value[38]. - The company aims to promote green development and is committed to building a green sports environment[38]. - The group emphasizes its commitment to ESG practices and social contributions to promote sustainable development in the sports industry[55]. - The company has established an Environmental, Social, and Governance (ESG) committee to oversee its sustainability commitments[140]. Operational Efficiency and Cost Management - Sales and advertising expenses decreased to RMB 386 million from RMB 458 million, a reduction of RMB 72 million[161]. - The logistics and warehouse operating expenses were RMB 34 million, down from RMB 39 million, reflecting improved operational efficiency[162]. - Employee compensation and benefits expenses increased to RMB 127 million, up RMB 36 million from RMB 91 million in the previous period[186]. - Outsourced labor costs decreased slightly to RMB 155 million from RMB 156 million in the previous period[187]. - The company optimized its internal organizational structure to enhance employee engagement during the reporting period[186]. Market Trends and Economic Outlook - The global economic growth forecast for 2024 is projected to slow to 2.4%, presenting challenges for the company[50]. - The global economy is experiencing a weak recovery post-pandemic, with the World Bank projecting a growth rate of 2.4% for 2024, marking a slowdown for three consecutive years[63]. - The International Monetary Fund (IMF) has revised the global growth estimate for this year to 3.2%, with inflation expected to decline from an average of 6.8% in 2023 to 5.9% in 2024[63]. - China's GDP growth target for 2024 is set at around 5%, supported by policies aimed at stabilizing economic development and enhancing market confidence[63]. - The first quarter of 2024 saw a 6.2% year-on-year increase in per capita disposable income for residents, indicating a positive economic trend[50]. - China's GDP for 2023 reached 5.2%, with the first quarter of 2024 showing a preliminary year-on-year growth of 5.3%, exceeding market expectations[87]. Product Innovation and Development - The company plans to continue its focus on innovation and sustainable development, aligning with consumer demand for green products[55]. - The group is committed to product innovation, enhancing market competitiveness through new designs, materials, and functionalities[95]. - KAPPA launched the K-TECH technology platform, integrating advanced technology into the KAPPA Gara series, enhancing product functionality and fashion appeal[128]. - The KAPPA 1916 series draws inspiration from the brand's century-long history, focusing on retro sports designs and targeting a new generation of consumers[128]. - KAPPA's product line includes innovative collaborations with international brands, enhancing its market presence and appeal to younger consumers[128]. Retail and Sales Channels - The total number of Kappa brand stores reached 1,012 as of March 31, 2024, compared to the previous year, reflecting a focus on expanding retail networks[75]. - The group has reduced the number of KAPPA brand stores to 1,012 as of March 31, 2024, a net decrease of 11 stores compared to the same period in 2023[102]. - The number of self-operated Kappa stores reached 557, with self-operated channel sales amounting to RMB 953 million, representing 58.2% of Kappa's total sales[151]. - The non-self-operated Kappa sales reached RMB 685 million, accounting for 41.8% of Kappa's total sales, an increase from 38.7% in the previous period[179]. - The accessories business has shown steady growth, with online sales significantly increasing and contributing to overall sales performance[102]. - The group is actively exploring new sales channels to expand its business boundaries and improve customer satisfaction and loyalty[102]. - The group will continue to improve its online and offline sales channels to enhance business capabilities and sales performance[106]. Strategic Partnerships and Collaborations - The company is actively expanding offline channels and has established deep cooperation with Changli Wanlong Ski Resort to enhance brand experience[38]. - PHENIX, the group's high-end ski brand, continues to strengthen its market leadership by collaborating with NIO Life to design exclusive ski apparel[77]. - The PHENIX brand has partnered with NIO to create co-branded ski wear, expanding into the crossover market of electric vehicles and skiing[99]. - The PHENIX brand aims to promote the ice and snow industry by establishing long-term cooperation with ski resorts and enhancing brand visibility[99].

Financial Performance - The group recorded revenue of RMB 776 million for the six months ended September 30, 2023, remaining flat year-on-year [25]. - The apparel business achieved an operating profit of RMB 75 million, reversing from a loss compared to the previous year [25]. - The group recorded a pre-tax loss of RMB 441 million, with an effective tax rate of 7.2% [43]. - The operating loss for the group was RMB 471 million, compared to an operating loss of RMB 367 million in the previous period, resulting in an operating loss margin of 60.7% [67]. - The net loss attributable to the owners of the company was RMB 409,713,000, compared to RMB 346,000,000 in the same period last year, representing an increase of approximately 18.4% [119]. - The company reported a financial income of RMB 31,939,000, down from RMB 42,530,000 in the previous year, indicating a decrease of about 25% [119]. - The company’s equity attributable to owners decreased to RMB 9,390,847,000 from RMB 9,665,449,000, a decline of approximately 2.8% [122]. Investment and Assets - The group's investment segment reported a net asset value of RMB 8,565 million as of September 30, 2023, a slight decrease of 2.0% from RMB 8,750 million on March 31, 2023 [27]. - The total assets as of September 30, 2023, amounted to RMB 10,245,045,000, down from RMB 10,576,825,000 as of March 31, 2023 [122]. - The fair value of financial liabilities related to derivatives was RMB (26,249,000) as of September 30, 2023, compared to RMB (64,664,000) as of March 31, 2023 [164]. - The fair value of listed equity securities was RMB 804,785,000 as of September 30, 2023 [164]. - The fair value of other unlisted equity investments was RMB 319,916,000 as of September 30, 2023 [164]. - The fair value of investments in private equity funds decreased to RMB 4,200,527,000 from RMB 5,313,629,000 at the beginning of the period [193]. Sales and Market Trends - Retail sales of sports goods in China reached RMB 77.76 billion in the first seven months of 2023, representing an annual increase of 11.4% [31]. - The sports and leisure apparel sector is experiencing continuous growth in retail sales, driven by the enthusiasm for sports events like the Asian Games [32]. - During the reporting period, Kappa brand sales increased by 8.0% compared to the previous period, while overall sales remained flat [36]. - Kappa brand's total sales reached RMB 739 million in 2023, representing 95.2% of the group's total sales, an increase of 8.0% compared to RMB 684 million in 2022 [59]. - The Kappa brand focused on consumer research and optimized its product lines, launching the retro Kappa 1916 series and the Kappa Player series targeting new generation consumers [17]. Dividends and Shareholder Returns - The group proposed a special interim dividend of RMB 0.71 per share to reward shareholders for their continued support [25]. - The company announced an interim special dividend of RMB 0.71 per share, amounting to approximately RMB 41.8 million [43]. Operational Efficiency - The group's sales cost was RMB 240 million, a decrease of RMB 52 million compared to RMB 292 million in the previous period [38]. - The logistics and warehouse operating expenses were RMB 16 million, down from RMB 21 million in the previous period, reflecting improved operational efficiency [41]. - The average trade receivables turnover days during the reporting period was 35 days, compared to 36 days in the previous period [69]. - The average inventory turnover days during the reporting period was 265 days [69]. Sustainability and Innovation - The group emphasized green innovation in its products, actively using advanced eco-friendly materials to enhance sustainability [11]. - The company is committed to integrating ESG strategies into its daily operations to create long-term value and contribute to society [11]. - The company anticipates that sustainable development will be a significant growth driver for the sports goods market in the future [32]. - Over 80% of surveyed companies in the global sports goods industry have announced or plan to announce carbon reduction targets [32]. Brand Development and Marketing - The group aims to strengthen its brand identity and lead the fashion retro sports trend through innovative marketing events [26]. - The company continues to promote its Kappa brand's philosophy of "passion, sexiness, and avant-garde" through collaborations with trendsetters and outdoor experience events [32]. - The PHENIX brand sponsored the Tsinghua University ski team and launched custom ski suits, enhancing its engagement with the youth community [10]. Employee Compensation and Stock Options - The group's employee compensation and benefits expenses increased to RMB 62 million, up RMB 3 million from the previous period [65]. - The company has granted a total of 7,081,000 restricted shares under the restricted share award plan, representing approximately 0.125% of the issued shares as of the adoption date [76]. - The total number of stock options available for issuance under the stock option plan as of the report date is approximately 383,472,102, representing about 6.51% of the issued shares [89].

Financial Performance - For the first three quarters of 2023, the group recorded revenue of RMB 776 million, remaining flat year-on-year, while the apparel business turned a profit of RMB 75 million, compared to a loss previously[17]. - Revenue for the six months ended September 30, 2023, was RMB 775,993 thousand, a slight decrease of 0.4% compared to RMB 776,339 thousand in the same period of 2022[152]. - Gross profit increased to RMB 536,439 thousand, up 10.8% from RMB 484,321 thousand year-over-year[152]. - Operating loss for the period was RMB 471,481 thousand, compared to a loss of RMB 367,353 thousand in the previous year, reflecting a 28.4% increase in losses[152]. - Net loss attributable to the owners of the company was RMB 409,713 thousand, compared to RMB 346,000 thousand in the same period last year, representing an increase of 18.4%[154]. - Total comprehensive loss for the period amounted to RMB 247,410 thousand, a significant decline from a gain of RMB 17,415 thousand in the prior year[154]. - The company reported a loss of RMB 409,713 thousand for the period, compared to a loss of RMB 346,000 thousand in the previous year, indicating a year-over-year increase in losses of about 18.4%[168]. - The company’s total comprehensive income for the period was a loss of RMB 247,410 thousand, compared to a gain of RMB 17,415 thousand in the previous year, indicating a substantial decline in comprehensive income[168]. Dividends and Shareholder Returns - The company declared a special interim dividend of RMB 0.71 per share, payable on December 22, 2023[5]. - The group proposed a special interim dividend of RMB 0.71 per share to reward shareholders for their continued support[17]. - Interim special dividend per share decreased by 39.3% to RMB 0.71 from RMB 1.17 year-on-year[74]. Market and Economic Conditions - China's GDP growth rate for 2023 is projected to be around 5%, significantly higher than the global average, positioning China as the largest engine of global economic growth[19]. - The domestic economic recovery is supported by a series of consumption-promoting policies, leading to a noticeable rebound in the consumer market[12]. - In the first three quarters of 2023, China's GDP grew by 5.2% year-on-year, with the third quarter showing a growth of 4.9%, exceeding market expectations[40]. - The Chinese government has implemented a series of consumption-promoting policies, resulting in a significant rebound in the domestic consumption market[40]. - Retail sales of sports goods in China reached 77.76 billion RMB in the first seven months of 2023, representing an annual increase of 11.4%[40]. - The retail sales of consumer goods in China increased by 6.8% year-on-year in the first three quarters of 2023, with upgraded goods sales growing by 12.2%[40]. Brand and Product Development - The new Kappa 1916 series draws inspiration from the brand's century-long history, aiming to attract younger consumers with retro sports fashion[10]. - The PHENIX brand, focusing on high-end professional skiing products, has sponsored the Tsinghua skiing team and launched custom team uniforms[10]. - The company continues to innovate in product design, focusing on professional competitive gear and expanding its market presence with new product lines[39]. - Kappa introduced several new product lines, including the Kappa 1916 series and Kappa Player series, targeting the new generation of trend-conscious consumers[45]. - Kappa's historical best-selling item, the combat pants, has been fully upgraded, emphasizing quality details with 22-piece stitching[45]. - The Kappa Gara series continues to integrate functional technology with fashion design, enhancing the brand's core competitiveness through the K-TECH technology platform[47]. Sustainability and ESG Initiatives - The company is committed to enhancing its ESG management system and optimizing its ESG strategies to create long-term value[9]. - Over 80% of surveyed companies in the global sports goods industry have announced or plan to set carbon reduction targets, indicating a significant trend towards sustainability[38]. - Kappa launched a special low-carbon training outfit made from Sorona eco-friendly fabric for the national fencing team, reflecting its commitment to sustainability[39]. Store and Channel Management - The company is enhancing its store quality and targeting higher-end consumer groups for greater growth opportunities[11]. - As of September 30, 2023, the total number of Kappa brand stores was 1,002, a net decrease of 21 stores compared to March 31, 2023[12]. - The group plans to enhance channel management efficiency and reduce operational costs to improve competitiveness[12]. Investment and Financial Position - The investment division's net assets amounted to RMB 8,565 million, reflecting a slight decrease of 2.0% from March 31, 2023[28]. - The group's investment segment reported a loss due to fluctuations in the capital market, resulting in a loss attributable to the company's owners of RMB 410 million, compared to a loss of RMB 346 million in the previous year[54]. - The company maintains a cautious investment strategy, with net assets in the investment segment amounting to RMB 85.65 million, a slight decrease of 2.0% from March 31, 2023[54]. - The company aims to optimize its investment asset structure and strengthen collaboration with project management parties to ensure stable long-term returns for shareholders[54]. Corporate Governance and Compliance - The independent auditor has provided an unqualified review opinion on the interim financial information for the six months ending September 30, 2023[149]. - The company has made efforts to ensure high-quality corporate governance in line with shareholder interests[149]. - The company has confirmed compliance with the standards for securities trading by directors during the review period[149]. - The latest version of the company's articles of association has been published on the company's website and the stock exchange[149].

Financial Performance - Revenue for the fiscal year ended March 31, 2023, was RMB 1,679 million, a decrease of 12.4% from RMB 1,916 million in the previous year[12]. - Operating profit for the same period was RMB 138 million, recovering from an operating loss of RMB 1,786 million in the previous year[12]. - Net profit attributable to the company's owners was RMB 115 million, compared to a net loss of RMB 1,783 million in the previous year[12]. - Gross margin for the year was 61.2%, down from 63.9% in the previous year[12]. - The company reported a net asset value per share of RMB 164.80, an increase from RMB 159.46 in the previous year[12]. - Total assets as of March 31, 2023, were RMB 10,577 million, slightly up from RMB 10,485 million in the previous year[12]. - The debt-to-equity ratio improved to 0.09 from 0.12 in the previous year, indicating a stronger financial position[12]. - The company reported a debt-to-equity ratio of 0.14 for the fiscal year 2022/23, indicating a stable financial position[53]. - The total revenue for the group was RMB 1,678,916 thousand, down 12.4% from RMB 1,915,735 thousand in the previous year[159]. - The gross profit for the group was RMB 1,063,544 thousand, compared to RMB 1,122,175 thousand in the previous year, indicating a decrease in gross profit margin[159]. - The operating profit for the group was RMB 137,848 thousand, a significant recovery from an operating loss of RMB 1,786,216 thousand in the previous year[159]. - The net profit from continuing operations was RMB 114,997 thousand, compared to a loss of RMB 1,765,704 thousand in the previous year, marking a turnaround in profitability[159]. - Total comprehensive income for the year was RMB 397,617 thousand, a significant recovery from a loss of RMB (1,893,956) thousand in the prior year[160]. - Basic and diluted earnings per share from continuing operations were RMB 1.96, a turnaround from a loss of RMB (30.11) per share in the previous year[160]. Market Strategy and Development - The company aims to enhance user confidence and promote a high-quality healthy lifestyle through its products[6]. - The group plans to continue focusing on digital transformation and omnichannel strategies to enhance operational efficiency and consumer engagement[32]. - The group aims to expand its market presence by seeking opportunities to operate more international brands in China and regional markets[39]. - The company is focusing on digital transformation and leveraging new technologies to optimize supply chain management and user experience[98]. - The group plans to continue expanding its market presence and product offerings, focusing on innovative designs and functional products to enhance customer experience[110]. - The company is optimistic about the growth potential of the sportswear market in China, driven by government initiatives and increasing industry penetration[110]. - The brand's strategy includes collaborations with trendy brands and digital marketing initiatives to attract younger consumers[76]. - The group aims to strengthen brand interaction with younger consumers through innovative marketing and co-branding initiatives[81]. Product Development and Innovation - The Kappa brand launched the Kappa 1916 product series during the reporting period, drawing design inspiration from its century-long history[32]. - The Kappa Player series was launched, integrating current fashion trends with the brand's historical elements, aimed at appealing to the youth market[57]. - The company emphasized the development of Kappa Sports products, incorporating advanced technologies such as K-FLEX and K-BREATH to enhance product quality and comfort[75]. - Kappa launched a new product line themed around the Chinese New Year, integrating Italian style with Eastern aesthetics, aimed at enhancing brand engagement with young consumers[102]. - Kappa's product lines include the Kappa 1916 series, Kappa Player series, and Kappa Sports series, which have been upgraded to meet modern consumer preferences[104][105]. - Kappa brand launched new products across design, materials, and functionality to strengthen market competitiveness[100]. Sustainability and Corporate Responsibility - The group is committed to sustainable development by incorporating recyclable and bio-based fibers into its product development[35]. - The group will continue to deepen its environmental, social, and governance (ESG) strategies to achieve long-term sustainable development[35]. - The company is committed to sustainable development and creating long-term value for shareholders[58]. - The group recognizes the importance of environmental, social, and governance (ESG) factors for sustainable development[86]. - The company maintained a focus on responsible supply chain management, emphasizing environmental protection and supplier evaluation[135]. - The group is committed to sustainable development, investing in eco-friendly materials and technologies to align with environmental and social governance (ESG) goals[112]. Challenges and Risks - The decline in sales was attributed to a decrease in customer traffic due to localized COVID-19 outbreaks and the transition of the children's clothing business to a licensing model[124]. - The group acknowledges various operational risks, including rising material costs and potential disruptions in supply chains, and has implemented strategies to mitigate these risks[115]. - In the 2022/23 fiscal year, the overall retail market was significantly impacted by the pandemic, leading to weak market demand and high fluctuations in raw material costs[100]. - The overall industry is experiencing structural changes, with brand differentiation and product innovation becoming key factors influencing consumer purchasing decisions[98]. Store and Asset Management - The total number of Kappa brand stores reached 1,025 as of March 31, 2023, a net decrease of 158 stores compared to the previous year[32]. - The investment division net assets amounted to RMB 8,741 million, an increase of 3.0% year-on-year as of March 31, 2023[36]. - The total number of Kappa brand retail stores reached 1,025, reflecting ongoing optimization and expansion of the self-operated store network[139]. - The group plans to optimize its investment asset structure and pursue new project investments cautiously[82].

Economic Performance - The Chinese economy showed a strong recovery with a GDP growth of 4.5% in Q1 2023 compared to the same period in 2022, indicating a rebound in consumer spending with retail sales increasing by 5.8% year-on-year[9]. - The group has reported a significant increase in offline customer traffic and consumption market recovery, driven by the government's optimization of pandemic control measures[14]. - The company anticipates future economic growth, projecting an increase in stock value that will provide stable returns to shareholders[73]. Business Strategy and Development - The group plans to leverage its management team's extensive experience in the sports apparel industry and strong financial resources to seek opportunities for operating more international brands in China and/or regional markets[5]. - The group is committed to optimizing its business system and accelerating digital transformation to improve efficiency and business performance[14]. - The group aims to provide long-term stable returns to shareholders through prudent project investment and timely exits from existing projects[3]. - The group aims to enhance brand competitiveness through innovative design and functional products, targeting the growing sportswear market in China[21]. - The group plans to continue expanding its market presence and product offerings, including collaborations with trendy brands like FR2[1]. Product Innovation and Marketing - The group continues to enhance its product development efforts, focusing on innovation in design, materials, and functionality to strengthen market competitiveness[14]. - The Kappa brand has engaged in multiple collaborations with youth idols and virtual influencers, enhancing brand visibility and engagement among younger consumers[14]. - The Kappa brand's promotional strategy emphasizes its core values of "passion, sexiness, and avant-garde," with various innovative and interactive marketing activities[14]. - The group has successfully launched new products under the phenix brand, including a collaboration with the Japanese streetwear brand FR2, showcasing a blend of retro elements and high-end technology[2]. - The group has launched the Kappa 1916 series to connect with younger consumers, emphasizing the brand's pioneering spirit and retro style[1]. Financial Performance - The group's operating profit for the reporting period was RMB 138 million, compared to an operating loss of RMB 1,786 million in the previous period, resulting in an operating profit margin of 8.2%[38]. - The group's sales cost for the reporting period was RMB 652 million, a decrease of RMB 39 million compared to RMB 691 million in the previous period[33]. - The total distribution and administrative expenses amounted to RMB 1,137 million, representing 67.7% of total sales, a reduction of 4.1 percentage points from the previous period[36]. - The group's advertising and sales expenses were RMB 788 million, a decrease of RMB 130 million from RMB 918 million in the previous period, mainly due to lower sales[58]. - The group's financial income net amount was RMB 40 million, compared to a net financial expense of RMB 14 million in the previous period[60]. Corporate Governance - The company adheres to the Hong Kong Stock Exchange listing rules, ensuring transparent communication with shareholders regarding business strategies and investment plans[75]. - The company emphasizes the protection of minority shareholders' rights and interests in its governance practices[75]. - The board of directors includes independent non-executive members, ensuring diverse perspectives in decision-making[85]. - The company has implemented a policy for the appointment of external auditors, ensuring their independence and the effectiveness of audit procedures[139]. - The company has established various committees, including the Audit Committee, Remuneration Committee, Nomination Committee, Executive Committee, and Environmental, Social, and Governance Committee, to oversee specific areas of the company's affairs[154]. Environmental, Social, and Governance (ESG) Commitment - The group is committed to sustainable development by establishing an Environmental, Social, and Governance (ESG) committee to oversee its policies[26]. - The company has maintained a commitment to environmental, social, and governance (ESG) reporting guidelines[95]. - The environmental, social, and governance (ESG) committee held two meetings in the past twelve months to review the company's ESG policies and performance[198]. - The company has complied with the environmental, social, and governance reporting guidelines as per the listing rules, with relevant disclosures made in its reports[144]. Workforce and Diversity - The group has reduced its workforce to 471 employees as of March 31, 2023, down from 627 employees a year earlier[28]. - The employee gender ratio is approximately 67.1% female and 32.9% male, reflecting the company's commitment to diversity[194]. - The board consists of 8 members, including 1 female and 6 males, with 3 independent directors and 4 executive directors[193]. - The company will continue to implement measures to promote diversity at all levels of the workforce[194]. - The nomination committee has reviewed the board's composition and is satisfied with its diversity in terms of independence, skills, industry experience, gender, age, and tenure[192].

Accounts Receivable Loans - As of March 31, 2022, the total accounts receivable loans amounted to RMB 867.5 million, including RMB 625.0 million to independent third parties and RMB 242.5 million to management personnel[2]. - The largest single borrower accounted for RMB 242.4 million, representing approximately 27.9% of the total accounts receivable loans[5]. - The total amount of loans to the five largest borrowers was RMB 576.8 million, accounting for approximately 66.5% of the total accounts receivable loans[5]. - The total number of borrowers under the lending arrangements was ten as of March 31, 2022[5]. Impairment and Repayment - The total provision for impairment of accounts receivable loans was approximately RMB 108.0 million, an increase of about 35.5% from RMB 79.7 million as of March 31, 2021[6]. - As of March 31, 2022, approximately 79.0% of the accrued interest had been repaid following the signing of a deferral agreement[8]. Credit Assessment and Loan Management - The company has adopted strict credit assessment policies and procedures to ensure the recoverability of loans and the adequacy of collateral[9]. - The company will continue to monitor the repayment ability of borrowers and the value of collateral to ensure the recovery of related loans[8]. - The company has established a committee to review and approve each loan application, ensuring compliance with listing rules[10]. Loan Characteristics - The company provided short-term loans with a typical duration of no more than one year, utilizing idle cash not required for business operations[4].

Financial Performance - For the six months ended September 30, 2022, the company reported revenue of RMB 776 million, a decrease of 8.9% compared to RMB 852 million in the same period last year[12]. - Gross profit for the same period was RMB 484 million, down 12.3% from RMB 552 million year-on-year[12]. - The company recorded a loss attributable to equity holders of RMB 386 million, which is a 48.4% reduction from a loss of RMB 748 million in the previous year[12]. - Basic loss per share was RMB 6.59, reflecting a 48.4% improvement compared to RMB 12.76 in the prior year[12]. - The gross margin decreased to 62.4%, down 2.4 percentage points from 64.8% in the previous year[12]. - The operating loss improved significantly to RMB 392 million, a 49.1% reduction from RMB 770 million in the previous year[12]. - The Kappa brand's total sales during the reporting period amounted to RMB 684 million, down from RMB 747 million in the previous year, representing a decline of RMB 63 million[58]. - The group's gross profit for the reporting period was RMB 461 million, a decrease of RMB 97 million from RMB 558 million in the previous year, resulting in a gross margin of 59.4%, down 6.1 percentage points from 65.5%[62]. - The company reported a net loss of RMB 386,227 thousand for the period, compared to a net loss of RMB 747,949 thousand in the same period last year, indicating an improvement[167]. - The company’s total comprehensive income for the period was RMB 17,415 thousand, a significant recovery from a loss of RMB 812,443 thousand in the previous year[154]. Store Operations - As of September 30, 2022, the total number of Kappa brand stores was 1,099, a net decrease of 84 stores since March 2022[17]. - The number of Kappa brand self-operated stores reached 640, while the total number of Kappa brand stores was 1,099[58]. - The total number of Kappa brand stores reached 1,099 as of September 30, 2022, a net decrease of 84 stores compared to March 31, 2022[42]. Marketing and Brand Strategy - The company aims to enhance its digital marketing strategies and has collaborated with young idols and artists to engage with consumers in both real and virtual worlds[17]. - Kappa brand launched the "Endless Spirit" marketing theme and introduced the new Kappa Player series, targeting Gen Z consumers[18]. - Kappa's marketing strategy focused on engaging with Generation Z through collaborations with popular artists, resulting in over 100 million exposures across platforms for their summer theme song and MV[35]. - Kappa's promotional efforts included collaborations with youth idols and leveraging social media trends to strengthen brand engagement with younger consumers[35]. - The brand's focus on creating a warm and deep connection with consumers aims to encourage a positive attitude towards challenges posed by the pandemic[32]. - Kappa's marketing activities are aligned with the interests of Generation Z, utilizing social media and virtual collaborations to enhance brand visibility[35]. - Kappa brand launched a collaboration with British creative organization BRANDALISED® and Brazilian pop artist Romero Britto, introducing a street culture message to the youth[32]. Investment and Financial Strategy - The group's investment division net assets reached RMB 8,568 million as of September 30, 2022, a 0.9% increase from March 31, 2022[22]. - The group will maintain a prudent investment strategy to provide stable and sustainable returns to shareholders[22]. - The investment strategy remains cautious, with a focus on equity investments, stock investments, fixed income, and cash management to ensure investment safety[45]. - The group plans to continue optimizing its investment asset structure and manage new project investments prudently to provide stable returns to shareholders[52]. - The company has not adopted any new or revised standards that would have a significant impact on its financial statements for the current or future reporting periods[179]. Cash Flow and Liquidity - As of September 30, 2022, the group's cash and bank balance was RMB 2,613 million, an increase of RMB 1,061 million from RMB 1,552 million as of March 31, 2022[84]. - The company reported a net cash inflow from operating activities of approximately RMB 22 million[84]. - The cash flow from operating activities for the six months ended September 30, 2022, was RMB 22,287 thousand, a significant recovery from a cash outflow of RMB 172,386 thousand in the previous year[171]. - The company’s cash and cash equivalents at the end of the period were RMB 2,602,990 thousand, up from RMB 1,377,643 thousand at the end of the previous year[171]. Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations during the review period[143]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial information for the six months ending September 30, 2022[147]. - The company is committed to implementing high-quality corporate governance practices to align with shareholder interests[139]. Risk Management - Credit risk primarily arises from receivables and trade receivables from subsidiaries engaged in investment and operational activities[185]. - The company has maintained its risk management policies since March 31, 2022, with no significant changes reported[184]. - The company’s financial risk management includes market risk, credit risk, and liquidity risk, which are detailed in the annual financial statements[183].