Core Insights - Bosideng reported a revenue increase of 11.6% year-on-year to 25.9 billion yuan and a net profit increase of 14.3% to 3.51 billion yuan for the fiscal year 2024/25, indicating stable growth in core business segments [1] - The company declared a final dividend of 0.22 HKD per share, maintaining a high payout ratio of over 80% [1] - The brand's down jackets and OEM segments saw revenue growth of 11.0% and 26.4%, respectively, while women's wear and diversified apparel experienced declines of 20.6% and growth of 2.8% [1] Revenue and Growth - The main brand Bosideng and Xuezhongfei achieved revenue growth of 10.1% and 9.2% to 18.41 billion yuan and 2.21 billion yuan, respectively, driven by enhanced brand building and optimized channel structures [2] - The number of franchise and self-operated stores increased by 253 to a total of 3,470, contributing to revenue growth [2] - Online sales for brand down jackets grew by 9.4% to 7.47 billion yuan, reflecting a strong digital presence [2] Profitability and Cost Management - The company's gross margin decreased by 2.3 percentage points to 57.3%, primarily due to structural adjustments in business segments [2] - Operating profit margin increased by 0.3 percentage points to 19.2%, supported by improved operational efficiency and reduced distribution and administrative expenses [2] - The company is expected to see profit recovery after completing channel and product structure adjustments [2] ESG Initiatives - Bosideng's ESG rating was upgraded from A to AA by MSCI, positioning it as a leader in the Chinese textile and apparel industry [3] - The company joined the United Nations Global Compact and participated in initiatives aimed at carbon neutrality in the textile industry [3] - The ESG strategy focuses on sustainability across the value chain, with themes centered on environmental improvement, product innovation, and human-centric approaches [3] Forecast and Valuation - Due to uncertainties in retail recovery, the company has adjusted its revenue growth forecast for the main brand Bosideng, with net profit estimates for FY26-28 revised down by 5.6% to 39.1 billion yuan [3] - The target price is set at 5.5 HKD, with a price-to-earnings ratio of 13.9x for FY26, reflecting confidence in operational efficiency and ESG leadership [3]

Core Insights - Bosideng achieved a record revenue of 25.902 billion yuan for the fiscal year 2025, marking an 11.58% year-on-year growth, with net profit increasing by 14.31% to 3.514 billion yuan, continuing a nine-year trend of record highs in both revenue and profit [1] Group 1: Brand Evolution and Market Position - Bosideng has transformed from a budget brand to a high-end player, with product prices rising significantly from an average of 1,000 yuan in 2017 to a range of 1,800 to 3,000 yuan in 2024, appealing to middle-class consumers willing to pay for brand quality [5][11] - The brand's image has shifted dramatically since 2013-2017, a period marked by declining sales and negative consumer perceptions, leading to a strategic overhaul starting in 2018, including a focus on high-end down jackets and participation in international fashion events [6][7][8] - The company has successfully repositioned itself through marketing strategies that include high-profile fashion shows and collaborations with celebrities, enhancing its appeal among younger consumers [9][10] Group 2: Financial Performance and Challenges - In the fiscal year 2025, the main brand contributed 18.481 billion yuan, accounting for 71.3% of total revenue, while the OEM business generated approximately 3.373 billion yuan, representing 13.0% of total revenue [11][12] - Despite revenue growth, Bosideng faces challenges with rising marketing expenses, which have increased from 4.276 billion yuan in 2020 to 8.524 billion yuan in 2025, constituting about 32.9% of total revenue [10] - The company is experiencing pressure on gross margins, which fell by 2.3 percentage points to 57.3% in the latest fiscal year, indicating potential difficulties in maintaining profitability amid high-end market positioning [25] Group 3: Leadership and Strategic Direction - The leadership dynamic between founder Gao Dekang and his wife Mei Dong has been pivotal, with Gao focusing on strategic planning and Mei overseeing operational execution, driving the company's high-end transformation [13][15] - Mei Dong has initiated diversification efforts in response to market saturation in high-end down jackets, introducing new product lines to meet evolving consumer demands [15][18] - Concerns about succession are emerging as the couple ages, with their son Gao Xiaodong being groomed as a potential successor, although his past performance in non-core business areas raises questions about future leadership effectiveness [16][17]

Core Insights - Bosideng, known as the "King of Down Jackets," achieved a record revenue of 25.902 billion yuan for the fiscal year 2025, marking an 11.58% year-on-year growth, with net profit reaching 3.514 billion yuan, up 14.31% [1] - The brand has transformed from a budget-friendly option to a high-end player, appealing to middle-class consumers who are willing to pay for quality and brand prestige [1][6] Revenue and Profitability - The revenue from Bosideng's main down jacket business was approximately 21.668 billion yuan, accounting for 83.7% of total revenue, while OEM management business contributed about 3.373 billion yuan, or 13.0% [9] - The average price of Bosideng's products has increased significantly, with the average price range now between 1,800 to 3,000 yuan, compared to 1,000 yuan in 2017 [3][5] Brand Strategy and Market Positioning - Bosideng underwent a major brand transformation starting in 2018, focusing on high-end down jackets and successfully participating in international fashion events, which helped elevate its brand image [5][6] - The company has optimized its sales channels by opening high-end flagship stores and expanding its online presence, which has contributed to its sales growth [5][6] Marketing and Consumer Perception - The brand's marketing strategies have included high-profile fashion shows and collaborations with celebrities, which have enhanced its visibility and appeal among younger consumers [6][7] - Despite the successful rebranding, there are concerns about the high marketing expenses, which have remained significant over the years [8] Challenges and Competition - Bosideng faces increasing competition from both international luxury brands and emerging domestic players, which are also targeting the high-end market [16][17] - Consumer acceptance of high-priced down jackets is limited, with most preferring prices between 200 to 1,000 yuan, indicating potential challenges for Bosideng's pricing strategy [19] Financial Health and Operational Efficiency - The company's inventory turnover days increased to 118 days, and inventory rose from 3.197 billion yuan to 3.951 billion yuan, suggesting a mismatch between revenue growth and inventory management [21] - Bosideng's overall gross margin decreased by 2.3 percentage points to 57.3%, reflecting challenges in maintaining profitability amid its high-end strategy [21]

Core Insights - Bosideng Group has been awarded the "ESG New Benchmark Enterprise Award" for its solid efforts and outstanding practices in the Environmental, Social, and Governance (ESG) field, marking another recognition in sustainable development after receiving MSCI ESG AA rating and being included in S&P Global's "Sustainable Development Yearbook (China Edition) 2025" [1] Governance Structure - The company has established a clear ESG governance structure with a Sustainable Development Supervisory Group under the board of directors, led by the chairman, responsible for setting ESG goals and strategies [2] - Bosideng has integrated the ambitious goal of achieving net-zero emissions in its operations by 2038 into its corporate strategy, linking executive compensation to carbon reduction progress [2] Environmental Practices - Bosideng focuses on enhancing energy efficiency and renewable energy use, achieving a photovoltaic power generation of 917.2 MWh and purchasing 5,284 MWh of solar energy green certificates for the fiscal year 2024/25 [4] - The company has developed protective fabrics with over 70% bio-based content and implemented a closed-loop design in its CIRCULAR 3.0 series, which has won multiple design awards [4] - All core clothing brands' logistics transportation boxes are certified by the Forest Stewardship Council (FSC), and the average carbon footprint of logistics per item has decreased by approximately 4% [4] Social Responsibility - Bosideng emphasizes the importance of human factors in driving ESG initiatives, with over 50% of its management being female and investing approximately RMB 8.908 million in employee training and development [5] - The company has achieved a 100% closure rate for customer complaints, with an average complaint handling time of 15.8 hours, improving efficiency by 23.8% year-on-year [6] Long-term Commitment - Bosideng recognizes that ESG is a continuous journey rather than a sprint, with ongoing efforts to integrate ESG principles into daily operations and supply chain management [7] - The company aims to create value for people through its ESG initiatives, believing that the ultimate goal is not just metrics but enhancing human well-being [5][7]

Core Insights - The "2024 China Fashion Retail and Fashion Consumption TOP 100" report indicates a decline in overall revenue for the top companies, totaling 820.68 billion yuan, a year-on-year decrease of 2.44% [1] - The total number of stores for these companies also saw a decline, with a year-on-year decrease of 7.50% [1] - Approximately 60% of the companies reported a decrease in revenue, primarily slight declines, while 40% experienced revenue growth, indicating a trend of industry differentiation [1] - Only 37% of the companies managed to increase their store count in 2024, with most companies reducing their number of stores compared to the previous year [1] - Some companies are shifting their focus from expanding store numbers to enhancing store quality to adapt to market changes and strengthen core competitiveness [1] Revenue and Store Count - The overall revenue for the top 100 companies in the fashion retail sector is 820.68 billion yuan, reflecting a 2.44% decrease compared to the previous year [1] - The total number of stores across these companies has decreased by 7.50% year-on-year [1] - A significant portion of companies, nearly 60%, reported a decline in revenue, while 40% achieved growth, showcasing a mixed performance across the industry [1] Strategic Adjustments - Companies are increasingly optimizing resource allocation and adjusting business strategies, focusing on improving store quality rather than merely expanding the number of stores [1] - This strategic shift is aimed at adapting to market changes and enhancing competitive advantages in a challenging retail environment [1]

Core Viewpoint - Bosideng Group has been awarded the "ESG New Benchmark Enterprise Award" for its solid efforts and outstanding practices in the field of Environmental, Social, and Governance (ESG) [1][3] Group 1: ESG Achievements - This award follows Bosideng's MSCI ESG AA rating and inclusion in S&P Global's "Sustainable Development Yearbook (China Edition) 2025" [3] - The company has established a clear ESG governance structure, with a Sustainable Development Supervisory Group under the board of directors, responsible for setting and overseeing ESG goals and strategies [5] Group 2: Carbon Neutrality Goals - Bosideng has set an ambitious goal of achieving net-zero emissions in its operations by 2038, linking executive compensation to carbon reduction progress [5][7] - The company announced its "1+3+X" ESG strategy and carbon goals during the 29th UN Climate Change Conference (COP29), committing to the UN Global Compact's ten principles on human rights, labor, and environmental protection [7] Group 3: Sustainable Practices - Bosideng aims to enhance energy efficiency and renewable energy use, achieving a photovoltaic power generation of 917.2 MWh for the fiscal year 2024/25 [8] - The company has developed protective fabrics with over 70% bio-based content and implemented a closed-loop design in its CIRCULAR 3.0 series, receiving multiple design awards [8] Group 4: Logistics and Supply Chain - The average carbon footprint of logistics per parcel has decreased by approximately 4% through the expansion of a new energy transportation fleet and smart logistics warehousing [10] - Bosideng's supply chain ESG digital management platform has been launched to track and manage key data on energy consumption, carbon emissions, and labor compliance in real-time [10] Group 5: Social Responsibility - In the fiscal year 2024/25, Bosideng's female management ratio exceeded 50%, with 178,100 hours of training provided to employees [13] - The company donated over 26.5 million yuan worth of high-quality cold-resistant clothing to more than 20,000 underprivileged individuals through its public welfare foundation [13] Group 6: Long-term Commitment - Bosideng views ESG as a continuous journey rather than a sprint, with ongoing efforts to achieve its 2038 net-zero emissions commitment and integrate more small and medium-sized factories into its supply chain ESG platform [14] - The company emphasizes the importance of human wisdom, responsibility, and collaboration in driving ESG initiatives, aiming to create value for people [11]

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 5.50 [3]. Core Views - The company reported revenue growth of 11.6% year-on-year to HKD 25.90 billion and a net profit increase of 14.3% to HKD 3.51 billion for the fiscal year 2024/25, indicating stable growth in its core business segments [1][6]. - The company maintains a high dividend payout ratio of over 80%, which is attractive to investors [1]. - The focus on fashion functional technology apparel and continuous improvement in channel management are expected to drive revenue growth in the future [1][6]. Revenue and Profit Forecast - For FY26, the company expects revenue growth of approximately 10% for its main brand, Bosideng, and around 20% for the Snow Flying brand, driven by innovative products and an extended Spring Festival peak season [2][6]. - The company anticipates a revenue of HKD 28.47 billion for FY26, with a year-on-year growth of 9.91% [9]. Margin and Efficiency - The gross margin for FY25 decreased by 2.3 percentage points to 57.3%, primarily due to structural adjustments in business segments [4]. - Despite the margin pressure, operating profit margin improved by 0.3 percentage points to 19.2% due to enhanced operational efficiency and reduced distribution and administrative expenses [4]. ESG Performance - The company has achieved an ESG rating upgrade from A to AA by MSCI, positioning it as a leader in the textile and apparel industry in terms of sustainability [5]. - The company has implemented a comprehensive ESG strategy focusing on sustainability across its entire value chain [5]. Valuation Metrics - The company is projected to have a PE ratio of 13.9x for FY26, reflecting its operational efficiency and leading ESG development [6]. - The estimated EPS for FY26 is projected at RMB 0.36, with a dividend yield of 5.74% [9].

目錄 | 關於本報告 | 01 | 4. 自然向好 | | | --- | --- | --- | --- | | 主席致辭 | 02 | 4.1 氣候責任 | 49 | | 績效回顧 | 06 | | | | | | 4.2 能源管理 | 67 | | 1. 關於波司登 | | 4.3 優選材料 | 73 | | | | 4.4 水資源 | 78 | | 1.1 集團簡介 | 10 | 4.5 廢棄物 | 80 | | 1.2 我們的文化 | 10 | 4.6 生物多樣性保護 | 82 | | 1.3 主要品牌 | 11 | 4.7 物流與包裝 | 84 | | 1.4 獎項和認可 | 12 | 4.8 數智化賦能低碳減排 | 86 | | 2. 我們的 ESG 戰略目標 | | 5. 產品先鋒 | | | 2.1 ESG 戰略 | 14 | 5.1 研發創新 | 89 | | 2.2 零碳目標 | 15 | 5.2 質量保障 | 97 | | 2.3 ESG 戰略支柱 | 16 | 5.3 客戶服務 | 99 | | | | 5.4 綠色產品 | 102 | | 3. ESG 管理 | | 5.5 綠色零 ...

(incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立之有限責任公司 ) (Stock Code 股份代號：3998) Dear Non-registered Shareholder(s), Bosideng International Holdings Limited (the "Company") – Notice of Publication of (i) 2024/25 Annual Report, (ii) Circular dated July 29, 2025, (iii) Notice of Annual General Meeting (the "Current Corporate Communication") and (iv) Environmental, Social and Governance Report (the "ESG Report") The English and Chinese versions of the Company's Current Corporate Communic ...

(Stock Code 股份代號：3998) Dear Registered Shareholder(s), Bosideng International Holdings Limited (the "Company") – Notice of Publication of (i) 2024/25 Annual Report, (ii) Circular dated July 29, 2025, (iii) Notice of Annual General Meeting, (iv) Annual General Meeting Proxy Form (the "Current Corporate Communication") and (v) Environmental, Social and Governance Report (the "ESG Report") The English and Chinese versions of the Company's Current Corporate Communication are available on the Company's website ( ...