Financial Performance - Revenue for the year ended February 28, 2023, was RMB 27,073.2 million, a decrease of 15.5% from RMB 31,876.5 million in 2022[6] - Gross profit for the same period was RMB 11,284.2 million, down 18.4% from RMB 13,824.4 million, resulting in a gross margin of 41.7% compared to 43.4% in the previous year[6] - Operating profit decreased to RMB 2,430.9 million, a decline of 29.2% from RMB 3,430.1 million, leading to an operating profit margin of 9.0%[6] - Profit attributable to equity holders was RMB 1,836.6 million, down 25.0% from RMB 2,446.5 million, with a profit margin of 6.8%[6] - Basic and diluted earnings per share were RMB 29.62, down from RMB 39.45 in the previous year[6] - Total revenue decreased by 15.1% year-on-year to RMB 27,073.2 million[11] - The group’s revenue decreased by 15.1% from RMB 31,876.5 million for the year ended February 28, 2022, to RMB 27,073.2 million for the year ended February 28, 2023[38] - Revenue from the main brands (Nike and Adidas) was RMB 23,324.0 million, accounting for 86.2% of total revenue, down 15.4% from RMB 27,569.3 million in the previous year[38] - The group's operating profit fell by 29.1% to RMB 2,430.9 million for the year ended February 28, 2023, while profit attributable to equity holders decreased by 24.9% to RMB 1,836.6 million[42] - Gross profit declined by 18.4% to RMB 11,284.2 million, with a gross margin of 41.7%, down from 43.4% in the previous year[43][44] Cash Flow and Liquidity - Free cash flow reached RMB 3,995.5 million, demonstrating strong cash generation capabilities[12] - The company generated a net cash inflow from operating activities of RMB 4,350.7 million, with free cash flow reaching RMB 3,995.5 million[30] - As of February 28, 2023, the company's bank balance and cash amounted to RMB 2,357.4 million, a year-on-year increase of 34.5%[30] - The net cash generated from operations decreased from RMB 6,592.3 million for the year ended February 28, 2022, to RMB 5,241.5 million for the year ended February 28, 2023, a reduction of RMB 1,350.8 million[52] - The net cash used in investing activities was RMB 305.6 million for the year ended February 28, 2023, compared to RMB 671.3 million in the previous year[52] - The net cash used in financing activities was RMB 3,440.3 million for the year ended February 28, 2023, down from RMB 4,494.4 million in 2022[53] Inventory and Receivables Management - The average trade receivables turnover period improved to 14.6 days from 18.8 days, while the average inventory turnover period increased to 149.5 days from 130.4 days[6] - Inventory amount decreased by 6.6% year-on-year, and cash and bank balances increased by 34.5% to RMB 2,357.4 million[12] - The company aims to optimize inventory structure and maintain inventory efficiency as a top priority[11] - Inventory value decreased by 6.6% compared to February 28, 2022, and by 2.4% compared to August 31, 2022, aligning with changes in total sales area[24] Store Operations and Network - As of February 28, 2023, the company operated 6,565 directly operated stores, a year-on-year decrease of 14.7%, with total sales area down 6.8%[22] - The average sales area per store increased by 9.2% year-on-year, indicating improved efficiency in store operations despite a reduction in total store count[22] - The company closed 1,559 stores during the fiscal year, while opening only 429 new stores, resulting in a net decrease of 1,130 stores[24] - The company focused on optimizing its store network, leading to a significant advantage in store efficiency metrics for newly opened stores compared to closed ones[22] Strategic Initiatives and Future Outlook - The company plans to optimize its physical store network and enhance online presence to adapt to changing consumer behaviors[8][9] - The company remains confident in the long-term growth potential of the sports footwear and apparel industry despite current market challenges[9] - The company aims to improve operational efficiency by refining its retail capabilities and optimizing organizational structure[9] - The company is optimistic about the recovery of the sports footwear and apparel industry, citing strong demand potential[13] - Future strategies include refining user operations and transitioning from traffic-focused to user value-oriented thinking[36] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[135] Shareholder and Corporate Governance - The board proposed a total dividend of RMB 0.33 per share, with a payout ratio of 111.4%[12] - The board consists of two executive directors, four non-executive directors, and three independent non-executive directors as of February 28, 2023[145] - The company has adopted the corporate governance code as its own governance code, ensuring compliance with the updated regulations effective from January 1, 2022[144] - The company has established three board committees: audit committee, remuneration committee, and nomination committee to oversee various aspects of governance[145] - The company has mechanisms in place to ensure the board receives independent opinions and advice[155] - The company has implemented a shareholder communication policy to facilitate active engagement and ensure shareholders can exercise their rights with full information[196] Employee and Social Responsibility - The total employee cost for the year ended February 28, 2023, was RMB 2,890.5 million, accounting for 10.7% of the group's revenue, compared to 10.9% in the previous year[61] - The company employed a total of 30,978 staff as of February 28, 2023, down from 40,913 in the previous year[61] - The company is committed to actively practicing corporate social responsibility and building long-term sustainable development[36] - The board of directors emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon footprint by 2030[134] Risk Management and Compliance - The board is responsible for establishing and reviewing the effectiveness of the risk management and internal control systems[178] - The group has identified significant risks affecting its strategic objectives, considering environmental, social, and governance (ESG) factors in its annual risk assessment[179] - The internal audit department has been established to review operational, financial, compliance, and risk management controls, identifying deficiencies and suggesting improvements[180] - The board conducted a comprehensive review of the risk management and internal control systems for the fiscal year ending February 28, 2023, and deemed them effective and sufficient[182]

Financial Performance - Total revenue for the year ended February 28, 2023, was RMB 27,073.2 million, a decrease of 15.5% from RMB 31,876.5 million in the previous year[2]. - Gross profit for the same period was RMB 11,284.2 million, down 18.4% from RMB 13,824.4 million, resulting in a gross margin of 41.7% compared to 43.4%[2][4]. - Operating profit decreased to RMB 2,430.9 million, representing a decline of 29.2% from RMB 3,430.1 million, with an operating margin of 9.0% compared to 10.8%[2][4]. - Profit attributable to equity holders was RMB 1,836.6 million, down 25.0% from RMB 2,446.5 million, leading to a basic and diluted earnings per share of RMB 29.62, down from RMB 39.45[2][4]. - Sales of goods decreased to RMB 26,844.3 million, down 15.0% from RMB 31,574.5 million in the previous year[16]. - Basic earnings per share decreased to RMB 29.62 for the year ended February 28, 2023, down from RMB 39.45 in the previous year, representing a decline of about 25%[22]. Dividends - The company proposed a final dividend of RMB 5.00 per share, down from RMB 7.00, with total dividends for the year amounting to RMB 15.00 compared to RMB 23.00 in the previous year[2]. - The company has proposed a final dividend of RMB 5.00 per share and a special dividend of RMB 15.00 per share for the year ended February 28, 2023, totaling RMB 1,240.3 million[23]. - The total dividend for the fiscal year was RMB 0.33 per share, with a payout ratio of 111.4%[42]. Cash Flow and Liquidity - The net cash generated from operating activities for the year ended February 28, 2023, was RMB 5,241.5 million, a decrease of 20.5% from RMB 6,592.3 million in the previous year[8]. - The net cash used in investing activities was RMB 305.6 million, significantly improved from RMB 671.3 million in the previous year, indicating a reduction of 54.5%[8]. - The net cash used in financing activities was RMB 3,440.3 million, a decrease of 23.5% compared to RMB 4,494.4 million in the previous year[8]. - The company reported a net increase in cash and cash equivalents of RMB 604.8 million for the year, compared to an increase of RMB 523.8 million in the previous year[8]. - The cash and cash equivalents at the end of the year were RMB 2,357.4 million, up from RMB 1,752.6 million at the beginning of the year[8]. - As of February 28, 2023, the group held cash and cash equivalents totaling RMB 3,643.4 million, resulting in a net cash position of RMB 2,098.4 million after deducting short-term borrowings of RMB 1,545.0 million[59]. Assets and Liabilities - Total assets as of February 28, 2023, were RMB 16,820.7 million, a decrease from RMB 17,796.3 million in the previous year[6]. - Total liabilities decreased to RMB 6,987.1 million from RMB 7,214.8 million, resulting in a net asset value of RMB 9,833.6 million compared to RMB 10,581.5 million[7]. - The company maintained a current ratio of 2.3, consistent with the previous year[2]. - Trade receivables amounted to RMB 1,054.9 million as of February 28, 2023, compared to RMB 1,106.9 million as of February 28, 2022, showing a decrease of approximately 4.7%[25]. - As of February 28, 2023, accounts payable amounted to RMB 991.0 million, an increase from RMB 926.7 million on February 28, 2022, reflecting a growth of 6.9%[27]. - Short-term bank loans totaled RMB 1,545.0 million as of February 28, 2023, compared to RMB 518.2 million on February 28, 2022, indicating a significant increase of 197.5%[28][29]. Operational Efficiency - Average trade receivables turnover period improved to 14.6 days from 18.8 days, while average inventory turnover period increased to 149.5 days from 130.4 days[2]. - The company reported a foreign exchange gain of RMB 82.1 million, compared to a loss of RMB 20.5 million in the previous year[5]. - The company reported a total of RMB 24,942.3 million in total expenses for sales costs, selling and distribution expenses, and general and administrative expenses for the year ended February 28, 2023, down from RMB 28,783.9 million in 2022, a reduction of about 13.4%[18]. - Employee costs decreased to RMB 2,890.5 million in 2023 from RMB 3,463.7 million in 2022, reflecting a reduction of about 16.5%[18]. - Total financing costs netted to RMB (108.5) million for the year ended February 28, 2023, compared to RMB (104.0) million for the previous year, indicating a slight increase in financing costs[19]. Market and Strategic Initiatives - The retail environment remains challenging due to the impact of COVID-19 and inflationary pressures, yet the company is committed to adapting its strategies to maintain consumer engagement[30]. - The company has implemented a strategy to optimize its store network, closing underperforming stores while cautiously opening new ones, aiming to enhance overall operational efficiency[34]. - Online private domain sales showed the most significant year-on-year growth, reflecting a shift in consumer purchasing behavior towards digital platforms[32]. - The overall retail market is experiencing a polarization in demand, with a growing preference for both mass-market and niche high-end sports products[30]. - The company aims to actively pursue sustainable development and corporate social responsibility initiatives as part of its long-term strategy[43]. Employee and Governance - The group employed a total of 30,978 employees as of February 28, 2023, down from 40,913 employees in 2022[62]. - The remuneration committee is responsible for establishing transparent compensation policies for directors and senior management[69]. - The nomination committee evaluates board performance and recommends suitable candidates for directorship[70]. - The audit committee reviewed the consolidated financial statements for the year ended February 28, 2023[67]. - The external auditor confirmed that the preliminary performance announcement aligns with the audited financial statements for the year ended February 28, 2023[68].

Financial Performance - Revenue for the six months ended August 31, 2022, was RMB 13,218.0 million, a decrease of 15.2% from RMB 15,573.4 million in 2021[5] - Gross profit was RMB 6,030.7 million, down from RMB 6,923.5 million, resulting in a gross margin of 45.6%, compared to 44.5% in the previous year[5] - Operating profit decreased to RMB 1,580.5 million, with an operating margin of 12.0%, down from 13.2% in the prior year[5] - Profit attributable to equity holders was RMB 1,145.4 million, a decline from RMB 1,430.8 million, leading to a profit margin of 8.7% compared to 9.2%[5] - Basic and diluted earnings per share were RMB 18.47, down from RMB 23.07 in the previous year[5] - Total revenue for the first half of the fiscal year ending February 28, 2023, decreased by 15.1% year-on-year to RMB 13,218.0 million[11] - Profit attributable to equity holders decreased by 19.9% to RMB 1,145.4 million for the six months ended August 31, 2022, down from RMB 1,432.0 million in the same period last year[27] - Basic earnings per share fell by 19.9% to RMB 18.47 from RMB 23.07 in the same period last year[33] - The total comprehensive income for the period was RMB 1,174.5 million, with a profit of RMB 1,145.4 million contributing to this figure[56] Operational Efficiency - The average trade receivables turnover period improved to 16.4 days from 19.4 days, while the average payables turnover period also improved to 16.4 days from 21.2 days[5] - The average inventory turnover period increased to 167.6 days, compared to 147.8 days in the previous year[5] - Inventory as of August 31, 2022, decreased by 16.6% compared to August 31, 2021, and by 4.2% compared to February 28, 2022, indicating effective inventory management[11] - Selling and distribution expenses were RMB 4,090.8 million, accounting for 30.9% of revenue, up from 29.2% in the prior year[30] - General and administrative expenses decreased to RMB 574.3 million, representing 4.3% of revenue, compared to 4.1% in the previous year[30] Market Environment - The retail environment remains challenging, with a 0.7% year-on-year decline in total retail sales of consumer goods, contrasting with a 23.0% increase in the previous year[8] - The national fitness plan (2021-2025) is expected to generate RMB 5 trillion in revenue for the sports goods industry, supported by various government policies[8] - The company continues to see an increase in public health awareness, leading to a growing participation in sports and fitness activities despite the challenging consumption environment[8] Digital and Online Sales - Online sales in the retail business saw significant growth, particularly community-driven private domain sales, which doubled their contribution to total sales compared to the previous year[12] - The contribution of online private domain sales to total sales doubled year-on-year, effectively compensating for the decline in offline foot traffic due to the pandemic[16] - The company continues to enhance its digital tools for better consumer interaction and operational efficiency, adapting to changing retail environments[12] Store Operations - The number of direct-operated stores decreased by 767 compared to February 28, 2022, totaling 6,928 stores as of August 31, 2022, with a gross sales area reduction of 5.1%[12] - The proportion of large stores (over 300 square meters) increased to 14.9% as of August 31, 2022, up 2.0 percentage points from February 28, 2022[13] Membership and Community Engagement - Cumulative registered members reached 60.2 million as of August 31, 2022, representing a 28% year-on-year increase, while community friends exceeded 9 million, nearly doubling year-on-year[15] - Cumulative registered members increased from 50.9 million in November 2021 to 60.2 million by August 31, 2022, with member sales contributing 93.6% of total in-store retail sales[17] Dividend and Shareholder Returns - The interim dividend declared for the fiscal year ending February 28, 2023, is RMB 0.13 per share, with a payout ratio of 70.4%[11] - The company declared an interim dividend of RMB 0.13 per share, totaling RMB 806.2 million, to be paid around December 15, 2022[41] Financial Position - Total assets as of August 31, 2022, amounted to RMB 17,688.9 million, a slight decrease from RMB 17,796.3 million as of February 28, 2022[51] - Total liabilities increased to RMB 7,793.3 million from RMB 7,214.8 million, with current liabilities rising significantly due to short-term borrowings of RMB 2,028.0 million[51] - Net assets decreased to RMB 9,895.6 million from RMB 10,581.5 million, reflecting a decline in retained earnings[53] - Cash and cash equivalents at the end of the period stood at RMB 1,676.6 million, a decrease from RMB 1,752.6 million at the beginning of the period[58] Employee and Operational Costs - The group employed a total of 32,745 employees as of August 31, 2022, down from 40,913 employees as of February 28, 2022[38] - Total employee costs for the six months ended August 31, 2022, amounted to RMB 1,488.0 million, representing 11.3% of the group's revenue, compared to 10.4% for the same period in 2021[38] Risk Management and Governance - The group has not reported any significant changes in its risk management policies since February 28, 2022[64] - The company has adopted the corporate governance code as its own governance code and has complied with all applicable provisions[109] - The audit committee consists of three independent non-executive directors and has reviewed the financial information for the six months ended August 31, 2022[111]

Financial Performance - Total revenue for the fiscal year ending February 28, 2022, was RMB 31,876.5 million, a decrease of 8.5% from RMB 36,009.0 million in the previous year[6]. - Gross profit for the same period was RMB 13,824.4 million, down from RMB 14,681.1 million, resulting in a gross margin of 43.4%, up from 40.8%[6]. - Operating profit decreased to RMB 3,430.1 million, compared to RMB 3,989.4 million in the previous year, with an operating profit margin of 10.8%[6]. - Profit attributable to equity holders was RMB 2,446.5 million, slightly down from RMB 2,770.1 million, maintaining a profit margin of 7.7%[6]. - Total revenue for the fiscal year ended February 28, 2022, decreased by 11.5% to RMB 31,876.5 million[11]. - Operating profit declined by 14.0% to RMB 3,430.1 million for the same period[11]. - Profit attributable to equity holders decreased by 11.7% to RMB 2,446.5 million, with basic earnings per share dropping to RMB 0.3945[11]. - The gross profit margin increased to 43.4% for the fiscal year ending February 28, 2022, up from 40.8% in the previous year, attributed to strict discount management and improved wholesale discounts[30]. - Retail business revenue was RMB 26,354.3 million, accounting for 82.7% of total revenue, while wholesale business revenue increased by 5.4% to RMB 5,220.2 million, representing 16.4% of total revenue[27]. - The main brand revenue was RMB 27,569.3 million, which constituted 86.5% of total revenue, while other brands generated RMB 4,005.2 million, accounting for 12.6%[25]. - The esports revenue was RMB 66.0 million, a decline of 19.0% compared to RMB 81.5 million in the previous year[25]. Store Operations - The total number of direct-operated stores decreased by 311 year-on-year, while total sales area increased by 5.4%[7]. - The total number of stores at the end of 2022 was 7,695, a decrease of 311 stores compared to the previous year[15]. - The number of directly operated stores decreased by 311 to 7,695, while the gross sales area increased by 5.4%[13]. - The number of stores smaller than 150 square meters decreased to 4,624, representing 60.1% of total stores in 2022[16]. - The proportion of large stores (over 300 square meters) increased by 3.5 percentage points to 12.9%[14]. - The total number of stores opened in 2022 was 906, while 1,217 stores were closed, resulting in a net decrease of 311 stores[15]. Membership and Customer Engagement - The total membership reached 55.5 million, indicating a strong customer base despite the reduction in store count[7]. - Cumulative registered members reached 55.5 million by February 28, 2022, with member contributions to in-store retail sales (including VAT) maintaining a high level of 96.4%[20]. - The contribution of private traffic sales from mini-program stores reached 10-20% of total direct retail sales[14]. - The company’s app surpassed 4.1 million users by February 28, 2022, facilitating community engagement and user growth[19]. - The company conducted various member activities to enhance engagement, including mid-year benefits and year-end events, contributing to increased member loyalty[19]. Digital Transformation and Strategy - The company plans to enhance its digital capabilities and operational efficiency to adapt to changing consumer behaviors and market conditions[7]. - The company invested in digital transformation, focusing on enhancing operational efficiency and consumer connection through data-driven strategies[17]. - The company launched a new integrated platform for member data management, enabling over 100 user tags for precise consumer behavior analysis[17]. - The company is focusing on optimizing its retail network and enhancing digital capabilities to adapt to changing consumer demands[12]. - The company aims to deepen its market penetration and explore new opportunities in the sports goods sector[8]. Financial Health and Capital Management - The current ratio improved to 2.3 from 1.9, indicating better short-term financial health[6]. - Operating cash flow increased by RMB 936.8 million to RMB 6,592.3 million for the year ending February 28, 2022, compared to RMB 5,655.5 million in 2021[35]. - The company reported a net cash position of RMB 1,234.4 million as of February 28, 2022, compared to a net debt position of RMB 108.4 million in the previous year[35][36]. - Total capital expenditures for the year were RMB 716.4 million, primarily for the purchase of property, plant, and equipment, as well as intangible assets[32]. - The company's financing costs decreased to RMB 217.8 million from RMB 279.3 million in the previous year, attributed to lower average short-term borrowings and interest rates[31]. Corporate Governance - The board consists of two executive directors, four non-executive directors, and three independent non-executive directors as of February 28, 2022[78]. - The company has adopted the corporate governance code as its own governance framework, ensuring compliance with the updated regulations effective from January 1, 2022[76]. - The board is committed to providing effective and responsible leadership, acting in the best interests of the company and its shareholders[78]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee, to oversee various aspects of its operations[78]. - The company provides ongoing professional development training for all directors to ensure they are updated on the latest developments in listing rules and applicable laws[85]. Environmental, Social, and Governance (ESG) Initiatives - The group is committed to reducing the environmental impact of its business activities, as detailed in the Environmental, Social, and Governance report[106]. - The company aims to create a consumer-centric sports retail platform, leveraging technology to enhance customer experience and promote sustainable development[116]. - The board of directors oversees the ESG management strategy, ensuring effective risk management and resource allocation[118]. - The company engages with stakeholders to understand their expectations and adjust operational strategies accordingly to improve ESG management[120]. - The company has focused on sustainable practices, including waste management and green operations in stores[125]. Employee Management and Development - The total number of employees increased to 40,913 from 40,348 in the previous year, with total employee costs amounting to RMB 3,463.7 million, representing 10.9% of total revenue[37]. - The company has developed a training system that includes over 160 training programs and 883 courses available on its online platform, supporting employee learning anytime and anywhere[142]. - The company has established a fair and transparent compensation system, providing various benefits and incentives to motivate employees[136]. - The company emphasizes a diverse and inclusive work environment, ensuring equal employment opportunities regardless of ethnicity, nationality, gender, or age[133]. - The employee turnover rate for males is 59.92%, while for females it is 44.50%[188]. Community Engagement and Social Responsibility - The company actively participated in community disaster relief efforts during the severe rainstorm in Zhengzhou, showcasing its commitment to social responsibility[184]. - The company donated 100 boxes of supplies to the community workers in Xuhui District, Shanghai, in January 2022, to support local efforts during the pandemic[182]. - The company is dedicated to being a responsible corporate citizen, providing quality products and services while contributing to the community[105]. - The company is actively engaging in community participation and fulfilling social responsibilities through public welfare activities[121].

Financial Performance - Total revenue for the six months ended August 31, 2021, was RMB 15,573.4 million, a decrease of 1.2% year-on-year [20]. - Operating profit increased by 7.9% year-on-year to RMB 2,059.7 million, with a corresponding operating profit margin of 13.2% [16]. - Profit attributable to equity holders of the company rose by 9.3% year-on-year to RMB 1,430.8 million, resulting in earnings per share of RMB 23.07, an increase of 9.3% [20]. - Gross profit margin improved to 44.5%, up from 41.6% in the previous year [16]. - Revenue for the six months ended August 31, 2021, was RMB 15,573.4 million, a slight decrease of 1.2% compared to RMB 15,769.5 million for the same period in 2020 [33][34]. - Operating profit increased by 7.9% to RMB 2,059.7 million for the six months ended August 31, 2021 [38]. - Profit attributable to equity holders rose by 9.3% to RMB 1,430.8 million for the same period [38]. - Gross profit increased by 5.5% to RMB 6,923.5 million, with a gross margin of 44.5%, up from 41.6% in the previous year [39]. - Basic earnings per share increased by 9.3% to RMB 23.07, up from RMB 21.11 in the prior year [44]. - The company reported a net profit of RMB 1,430.8 million for the six months ended August 31, 2021, compared to RMB 1,309.1 million for the same period in 2020, representing a growth of approximately 9.2% [67]. Operational Efficiency - The average inventory turnover period increased to 147.8 days, compared to 132.4 days in the previous year [16]. - The liquidity position improved with a current ratio of 2.2, up from 1.9 in the previous period [17]. - The company experienced significant challenges in revenue and inventory due to market fluctuations, particularly in July and August due to pandemic impacts [21]. - The company continues to optimize its retail network structure and enhance digital transformation efforts to improve consumer engagement and operational efficiency [21]. - The company is actively closing low-performing and loss-making stores while upgrading higher-potential locations to improve consumer interaction experiences [22]. - Sales and distribution expenses amounted to RMB 4,542.5 million, representing 29.2% of the group's revenue, an increase from 26.7% for the same period in 2020 [40]. - General and administrative expenses for the same period were RMB 634.6 million, accounting for 4.1% of revenue, up from 3.8% in the previous year [40]. Digital Transformation and Consumer Engagement - The company has built a user data dashboard system that summarizes and categorizes over 100 user labels, enabling cross-brand purchasing behavior analysis [26]. - Approximately 17 million members were reached through automated marketing activities during the reporting period [26]. - The cumulative registered member count reached 47.2 million as of August 31, 2021, with members contributing 95.6% of total in-store retail sales (including VAT) in the latest quarter [28]. - The company’s app, which integrates content marketing, online shopping, and member services, surpassed 3.5 million users by August 31, 2021 [28]. - The company initiated a nationwide annual member event called "Member Carnival Week," combining online and offline activities to enhance member engagement [28]. - The company is focusing on digital transformation to optimize business operations and enhance consumer insights through data-driven strategies [26]. - The digital procurement and merchandise management system has been fully implemented across all brands, enabling automated order procurement capabilities at the store level [155]. - The company’s public WeChat account has over 25 million followers, with more than 50% of published articles receiving over 100,000 views, indicating strong content engagement [160]. Store Operations and Market Presence - As of August 31, 2021, the company operated 7,785 directly-operated stores, covering over 360 cities across 1st to 7th tier cities in China, with a net decrease of 221 stores compared to February 28, 2021 [22]. - The total retail sales area increased by 0.8% compared to February 28, 2021, and by 4.9% year-on-year compared to August 31, 2020 [22]. - The proportion of stores larger than 300 square meters increased to 10.8%, up 1.4 percentage points from February 28, 2021, and up 2.8 percentage points from August 31, 2020 [22]. - The company plans to expand store coverage and enhance global retail through a "selected + optimized" strategy [32]. - The company is focused on expanding its store coverage and enhancing product offerings to adapt to changing consumer demands [19]. Financial Position and Cash Flow - The group maintained a net cash position of RMB 284.2 million after deducting short-term borrowings [46]. - Cash generated from operating activities was RMB 3,325.4 million, up from RMB 2,673.8 million in the previous year, indicating a year-over-year increase of about 24.4% [68]. - The total capital expenditure for the same period was RMB 261.1 million, compared to RMB 175.5 million in the previous year [42]. - The company reported a net cash outflow from investing activities of RMB 297.1 million for the six months ended August 31, 2021, compared to a cash inflow of RMB 393.5 million in the same period of 2020 [197]. - The cash and cash equivalents at the end of the period were RMB 1,068.0 million, down from RMB 1,228.8 million at the beginning of the period, showing a decrease of about 13.0% [68]. Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring oversight of the financial reporting process [125]. - The remuneration committee is responsible for recommending the remuneration policies for directors and senior management, ensuring transparency [125]. - The company has adopted the corporate governance code as its own governance practices, ensuring compliance with applicable standards [120]. - The board of directors confirmed compliance with the corporate governance code, except for one specific provision [121].

Financial Performance - Revenue for the year ended February 28, 2021, was RMB 36,009.0 million, an increase of 6.9% from RMB 33,690.2 million for the year ended February 29, 2020[8]. - Gross profit for the same period was RMB 14,681.1 million, representing a gross margin of 40.8%, down from 42.1% in the previous year[8]. - Operating profit increased to RMB 3,989.4 million, with an operating margin of 11.1%, up from 9.8% in the prior year[8]. - Profit attributable to equity holders of the company was RMB 2,770.1 million, a 20.2% increase from RMB 2,303.4 million in the previous year[8]. - Adjusted operating profit was RMB 3,992.3 million, compared to RMB 3,390.3 million in the previous year, reflecting a growth of 17.8%[9]. - Basic and diluted earnings per share were RMB 44.67, up from RMB 40.88 in the previous year[8]. - The gross profit margin for the year was 40.8%, down from 42.1% in the previous year, primarily due to increased sales discounts[30]. - Retail business revenue accounted for 85.3% of total revenue, amounting to RMB 30,733.3 million, with a growth of 5.4% from the previous year[27]. - Wholesale business revenue grew by 17.3% to RMB 4,954.0 million, representing 13.8% of total revenue[27]. - E-sports revenue surged by 168.1% to RMB 81.5 million, compared to RMB 30.4 million in the previous year[27]. Dividends and Shareholder Returns - The company declared a special dividend of RMB 40.00 per share, which was not applicable in the previous year[8]. - The company plans to distribute a total dividend of RMB 0.64 per share for the fiscal year, significantly up from RMB 0.19 per share in the previous year[14]. - The board declared an interim dividend of RMB 0.12 per share, totaling RMB 744.1 million, and a special dividend of RMB 0.40 per share, totaling RMB 2,480.5 million for the year ended February 28, 2021[46]. - The company paid dividends totaling RMB 3,658.7 million, compared to RMB 744.1 million in the previous year, indicating a substantial increase in shareholder returns[198]. Store Operations and Membership - Total number of direct-operated stores decreased to 8,006, but total sales area achieved growth[13]. - Membership count reached 40.9 million, indicating strong consumer engagement[14]. - The total sales area increased by 4.1% year-on-year, with stores larger than 300 square meters accounting for 9.4% of the total, up 2.1 percentage points from the previous year[16]. - The number of new stores opened in the fiscal year was 713, while 1,102 stores were closed, resulting in a net decrease of 389 stores[17]. - Cumulative registered members reached 40.9 million by February 28, 2021, with member contributions to in-store retail sales (including VAT) maintaining a high level of 95.3%[20]. Digital Transformation and Innovation - Digital transformation efforts are ongoing, focusing on enhancing business operations and consumer experience[13]. - The company plans to accelerate its digital transformation focusing on precision and efficiency, and enhance seamless interaction with consumers across various scenarios[22]. - The app "TaoBo Sports" reached a cumulative user base of 2.7 million by February 28, 2021, integrating content marketing, online shopping, and member services[19]. - The digital transformation efforts have improved operational efficiency, with nearly all directly operated stores covered by mobile tools for real-time adjustments and decision-making by the end of April 2021[21]. Financial Position and Cash Flow - The company maintained a current ratio of 1.9, indicating strong liquidity[7]. - The net cash generated from operations decreased from RMB 6,975.6 million for the year ended February 29, 2020, to RMB 5,655.5 million for the year ended February 28, 2021, a decline of RMB 1,320.1 million[39]. - The net cash used in investing activities was RMB 2,097.7 million for the year ended February 28, 2021, compared to a net cash used of RMB 4,296.8 million in 2020[39]. - The net cash used in financing activities was RMB 8,398.3 million for the year ended February 28, 2021, significantly higher than the net cash generated of RMB 275.8 million in 2020[39]. - As of February 28, 2021, the company held total bank deposits and cash of RMB 1,228.8 million, resulting in a net debt position of RMB 108.4 million after deducting short-term borrowings of RMB 1,337.2 million[39]. Employee and Corporate Governance - The company employed a total of 40,348 employees as of February 28, 2021, an increase from 35,773 employees in 2020[42]. - Total employee costs for the year ended February 28, 2021, were RMB 3,172.9 million, accounting for 8.8% of the company's revenue, down from 9.8% in 2020[42]. - The company has a strong management team with over 25 years of experience in the footwear industry, including key executives responsible for single-brand and multi-brand operations[82]. - The board held a total of six meetings during the fiscal year ending February 28, 2021[88]. - The attendance rate for the board meetings was 100% for all members, with the CEO attending all six meetings[87]. Environmental and Social Responsibility - The company is committed to reducing the environmental impact of its business activities and has complied with relevant laws and regulations[115]. - The group actively fulfills its environmental responsibilities, adhering to the Environmental Protection Law of the People's Republic of China[162]. - The group has not reported any environmental protection-related violations during the year[162]. - The group raised a total of 22,473 yuan through employee donations for building smart activity rooms in rural schools, benefiting local children[171]. - The group implemented a centralized vehicle maintenance and management system to reduce fuel consumption and improve operational efficiency[170]. Risk Management and Internal Controls - The company has established a robust risk management and internal control system to achieve strategic goals and protect shareholder investments[103]. - The board has conducted a comprehensive review of the risk management and internal control systems for the fiscal year ending February 28, 2021, covering all significant aspects including financial and operational controls[106]. - The internal audit department operates independently and identifies weaknesses in internal controls, providing recommendations for improvement[105].

Financial Performance - Revenue for the six months ended August 31, 2020, was RMB 15,769.5 million, a decrease of 7.0% from RMB 16,957.6 million in the same period of 2019[6]. - Gross profit for the same period was RMB 6,565.5 million, down 11.4% from RMB 7,409.7 million year-on-year[6]. - Adjusted operating profit was RMB 1,911.7 million, a decline of 11.5% compared to RMB 2,160.7 million in the previous year[6]. - Profit attributable to equity holders of the company was RMB 1,309.1 million, down 11.0% from RMB 1,470.9 million in the prior year[6]. - Gross margin decreased to 41.6% from 43.7% year-on-year[6]. - Basic and diluted earnings per share were RMB 21.11, down from RMB 27.91 in the same period last year[6]. - For the six months ended February 28, 2021, total revenue decreased by 7.0% to RMB 15,769.5 million, and operating profit fell by 8.8% to RMB 1,908.8 million[13]. - The profit attributable to equity holders decreased by 11.0% to RMB 1,309.1 million, with adjusted profit down by 14.6%[13]. - The adjusted profit attributable to equity holders for the six months was RMB 1,311.3 million, down 14.6% year-on-year[27]. - The total comprehensive income attributable to equity holders was RMB 1,343.9 million, slightly down from RMB 1,473.2 million in the previous year[58]. Liquidity and Financial Position - The current ratio increased to 2.0 from 1.7, indicating improved liquidity[7]. - Net cash generated from operating activities increased by RMB 183.0 million to RMB 2,673.8 million for the six months ended August 31, 2020, compared to RMB 2,490.8 million in 2019[42]. - Cash used in financing activities was RMB 2,932.9 million, slightly down from RMB 3,056.0 million in the same period last year[44]. - As of August 31, 2020, the company held cash and bank deposits totaling RMB 2,265.8 million, resulting in a net debt position of RMB 194.2 million after deducting short-term borrowings[44]. - The company's total liabilities as of August 31, 2020, were RMB 9,134.7 million, down from RMB 11,492.2 million as of February 29, 2020, indicating a reduction of approximately 20.6%[59]. - The company's equity attributable to shareholders increased to RMB 11,452.8 million as of August 31, 2020, from RMB 10,543.0 million as of February 29, 2020, marking an increase of approximately 8.6%[60]. Operational Efficiency - The average trade receivables turnover period improved to 18.4 days from 25.1 days[6]. - Selling and distribution expenses were RMB 4,207.4 million, representing 26.7% of total revenue, down from 27.9% in the previous year[34]. - General and administrative expenses decreased to RMB 606.1 million, accounting for 3.8% of total revenue, down from 4.3% in the prior year[34]. - Other income increased to RMB 181.1 million, primarily from government subsidies, compared to RMB 131.8 million in the previous year[35]. - Capital expenditures for the six months ended August 31, 2020, were RMB 175.5 million, down from RMB 261.6 million in the same period of 2019[35]. Market Strategy and Consumer Engagement - The company is focusing on expanding its market presence and enhancing product offerings through new technology development[8]. - The company aims to enhance consumer experience by optimizing and upgrading stores with higher sales potential[16]. - The retail network strategy focuses on "selection and optimization," which has led to steady growth in membership numbers despite the pandemic[14]. - The company is committed to building a multi-scenario consumer experience, integrating physical and virtual retail spaces[14]. - The company launched the Tabo Sports App on February 14, 2020, which has surpassed 1.1 million users by August 31, 2020[20]. - The company initiated a nationwide annual member benefit event called "Member Carnival Week" to enhance brand recognition and member engagement[21]. - Cumulative registered members reached 33.1 million as of August 31, 2020, with in-store retail contribution from members increasing to 97.3% in the quarter ending August 31, 2020[19]. Impact of COVID-19 - The group’s operations were inevitably affected by the ongoing COVID-19 pandemic during the first six months of the fiscal year[66]. - The overall retail environment is adapting to changes in consumer behavior due to the pandemic, emphasizing the need for flexible operational strategies[11]. - The group recognized a total of RMB 102.9 million in rent concessions related to COVID-19, recorded as variable lease payments in the income statement for the six months ended August 31, 2020[68]. - The group has not identified any significant adverse effects on its performance and financial position due to COVID-19, aside from the disclosed matters[66]. - The company remains confident in the long-term development of the sports market in China, leveraging its understanding of consumer insights[11]. Governance and Compliance - The board of directors underwent changes, with new appointments effective from October 27, 2020, enhancing governance structure[51]. - The company adopted the corporate governance code as its own governance code for the six months ended August 31, 2020[113]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[118]. - The remuneration committee evaluates the compensation policies for directors and senior management, comprising three members, two of whom are independent non-executive directors[119]. - The nomination committee is responsible for identifying and recommending suitable candidates for the board, consisting of three members, two of whom are independent non-executive directors[121].

Financial Performance - Revenue for the fiscal year ending February 29, 2020, was RMB 33,690.2 million, an increase of 3.5% from RMB 32,564.4 million in the previous year[6]. - Gross profit reached RMB 14,187.5 million, reflecting a gross margin of 42.1%, up from 41.8% in the prior year[6]. - Operating profit was RMB 3,302.9 million, with an operating margin of 9.8%, slightly down from 9.9%[6]. - Profit attributable to equity holders was RMB 2,303.4 million, maintaining a profit margin of 6.8%[6]. - For the fiscal year ending February 29, 2020, total revenue increased by 3.5% to RMB 33,690.2 million, while adjusted operating profit rose by 3.3%[13]. - The profit attributable to equity holders increased by 4.7% to RMB 2,303.4 million, with adjusted profit up by 6.5%[13]. - The operating profit for the same period was RMB 3,302.9 million, an increase of 2.0% year-over-year[25]. - The adjusted operating profit was RMB 3,390.3 million, with an adjusted operating profit margin of 10.1%[6]. - The company recorded an adjusted operating profit of RMB 3,390.3 million for the fiscal year, a growth of 3.3% year-over-year[25]. Store Operations - The company operated 8,395 directly managed stores, with a net increase of 52 stores during the fiscal year[8]. - The number of directly operated stores increased by 52, with a total of 8,395 stores covering nearly 300 cities as of February 29, 2020[15]. - The gross sales area of the stores grew by 10.6% during the fiscal year[15]. Cash Flow and Financial Management - The average trade receivables turnover period improved to 21.8 days from 28.9 days year-on-year[6]. - The average inventory turnover period increased to 120.0 days, compared to 103.5 days in the previous year[6]. - The company emphasized the importance of cash flow management and strict expenditure control in response to the COVID-19 pandemic[12]. - The effective tax rate decreased from 27.8% to 25.4%, resulting in a tax expense of RMB 782.7 million[33]. - Net cash generated from operating activities increased to RMB 6,975.6 million, up from RMB 4,091.7 million in the previous year, marking a growth of 70.5%[40]. - Cash used in investing activities was RMB 4,296.8 million, significantly higher than RMB 982.5 million in the previous year, indicating increased investment activity[40]. - The group held cash and bank deposits totaling RMB 2,823.9 million as of February 29, 2020, resulting in a net cash position of RMB 423.9 million after deducting short-term bank borrowings[40]. Market and Consumer Engagement - The sports consumption market in China is projected to reach RMB 1.5 trillion in 2020, indicating a growing consumer spending trend[12]. - The company aims to enhance consumer engagement through a localized community network and a scaled membership system[12]. - The contribution of registered members to in-store retail sales (including VAT) was 91.0% for the quarter ending February 29, 2020, up from 86.2% in the previous quarter[18]. - Cumulative registered members reached 27.2 million by February 29, 2020, up from 24.7 million in November 2019[19]. Corporate Governance - The board of directors consists of one executive director, five non-executive directors, and three independent non-executive directors as of February 29, 2020[86]. - The board held a total of three meetings during the fiscal year ending February 29, 2020, with a 100% attendance rate from all directors[90]. - The company has adopted the corporate governance code as its own governance framework since its listing on October 10, 2019[83]. - The board plans to hold at least four meetings annually, in line with corporate governance code requirements, to enhance oversight and decision-making[90]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee, each with clear written terms of reference[86]. Risk Management and Compliance - The company has established a robust risk management and internal control system to protect shareholder investments and assets[105]. - A comprehensive review of the risk management and internal control system was conducted for the fiscal year ending February 29, 2020, covering all significant aspects[108]. - The board has confirmed that the risk management and internal control systems are effective and sufficient[108]. - The company has implemented procedures to handle and disclose inside information in compliance with securities regulations[109]. Social Responsibility and Sustainability - The company emphasizes its commitment to corporate social responsibility, aiming to provide quality products and services while contributing to the community[115]. - The company actively engages with stakeholders to understand their expectations and plan for sustainable development[124]. - The group emphasizes customer information protection, adhering to the Cybersecurity Law of the People's Republic of China, and has implemented strict information protection management policies[134]. - The group has not reported any employment-related legal violations during the reporting period, reflecting its commitment to labor law compliance[137]. - The group has established a unified supplier management system to ensure the rationality, accuracy, and timeliness of supplier management, aiming for sustainable supply chain development[146]. COVID-19 Response - The company implemented strict health measures during the COVID-19 pandemic, including frequent disinfection of stores and health checks for employees, ensuring a safe shopping environment[165]. - The company developed an internal reporting system to monitor store and employee conditions nationwide in response to the pandemic[165]. - The management's assessment of the net realizable value of inventory involved significant judgment, supported by detailed analysis of inventory aging and current market conditions[169]. - The group has implemented several cost control measures, including renegotiating rents and reducing discretionary spending, to safeguard its assets[188]. Financial Reporting and Audit - The audit opinion confirmed that the consolidated financial statements fairly present the group's financial position as of February 29, 2020, in accordance with International Financial Reporting Standards[167]. - The audit committee, composed of three independent non-executive directors, reviewed the group's financial reporting procedures and internal control systems, meeting at least twice a year[97]. - The company incurred professional service fees of RMB 13.2 million related to its initial public offering[112].

Financial Performance - Revenue for the six months ended August 31, 2019, was RMB 16,957.6 million, an increase of 12.4% from RMB 15,092.8 million in 2018[7]. - Gross profit for the same period was RMB 7,409.7 million, representing a gross margin of 43.7%, up from 42.8% in the previous year[7]. - Operating profit increased to RMB 2,092.2 million, with an operating margin of 12.3%, compared to 11.8% in 2018[7]. - Profit attributable to equity holders was RMB 1,470.9 million, reflecting a profit margin of 8.7%, up from 8.0% in the prior year[7]. - Adjusted operating profit was RMB 2,160.7 million, with an adjusted operating margin of 12.7%, compared to 11.9% in 2018[7]. - Basic and diluted earnings per share were RMB 27.91, an increase from RMB 23.03 in the previous year[7]. - Operating profit rose by 17.7% year-on-year to RMB 2,092.2 million, with adjusted operating profit increasing by 20.3%[12]. - Profit attributable to equity holders increased by 21.2% year-on-year to RMB 1,470.9 million, with adjusted profit up by 25.1%[12]. - Adjusted profit attributable to equity holders rose to RMB 1,535.0 million, up from RMB 1,227.5 million, representing a growth of 25.1%[38]. - Basic and diluted earnings per share increased by 21.2% to RMB 27.91 from RMB 23.03 in the same period last year[40]. Cash Flow and Investments - Net cash generated from operating activities increased by RMB 666.4 million to RMB 2,490.8 million compared to RMB 1,824.4 million for the six months ended August 31, 2018[42]. - Net cash used in investing activities was RMB 256.4 million, a decrease from RMB 750.2 million in the prior year[42]. - Net cash used in financing activities surged to RMB 3,056.0 million from RMB 594.1 million year-over-year, primarily due to repayment of borrowings and dividend payments[42]. - The company's cash and cash equivalents decreased by RMB 651.0 million as of August 31, 2019, compared to a decrease of RMB 182.1 million in the previous year, indicating a worsening cash flow situation[68]. - The net cash generated from operating activities after tax payments was RMB 2,210.9 million in 2019, compared to RMB 1,098.6 million in 2018, indicating a significant increase of about 101.0%[191]. Operational Metrics - The company reported an average trade receivables turnover period of 25.1 days, improved from 29.3 days in 2018[7]. - The average inventory turnover period was 122.7 days, compared to 112.1 days in the previous year[7]. - Cumulative registered members reached 21.2 million, with active shopping members increasing to 5.9 million by August 31, 2019[18]. - The retail network saw a net increase of 22 stores compared to February 28, 2019, with a gross sales area growth of 5.2%[15]. - The retail business revenue accounted for 86.6% of total revenue, amounting to RMB 14,684.5 million, with a growth rate of 11.7%[28]. Financial Position - Total assets as of August 31, 2019, amounted to RMB 16,452.4 million, up from RMB 16,216.4 million as of February 28, 2019[62]. - Total liabilities decreased to RMB 13,029.4 million from RMB 14,267.6 million, improving the company's financial position[62]. - The company's total equity attributable to the equity holders as of August 31, 2019, is RMB 3,423.0 million, an increase from RMB 1,948.8 million as of February 28, 2019, representing a growth of approximately 75.7%[64]. - The company's leverage ratio increased to 28.3% from 25.0% as short-term bank borrowings rose by 52.5% to RMB 1,982.5 million[45]. - The company has a current liability exceeding its current assets by RMB 261.4 million, which includes a dividend payable of RMB 1,902.0 million, raising concerns about liquidity[70]. Strategic Initiatives - The company aims to enhance consumer engagement and strengthen partnerships with brand partners to deliver better products and services[10]. - The company is focused on accelerating digital transformation and enhancing the integration of digital and physical consumer interactions[21]. - The company plans to expand and continuously upgrade its store network while deepening partnerships with brand suppliers[21]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[53]. - The company is committed to enhancing its membership program to better serve consumers and understand their needs[141]. Dividends and Shareholder Returns - The board declared an interim dividend of RMB 0.12 per ordinary share for the fiscal year ending February 29, 2020[12]. - The board declared an interim dividend of RMB 0.12 per share, totaling RMB 744.1 million, to be paid on or around December 10, 2019[51]. - The company reported a total of RMB 1,598.0 million in dividends paid, which was not present in the previous year's report, indicating a new strategy in shareholder returns[68]. Risks and Governance - The company is exposed to various financial risks, including foreign exchange risk and liquidity risk, and has a risk management plan in place[196]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[119]. - The remuneration committee evaluates the compensation policies for directors and senior management, comprising three members, two of whom are independent non-executive directors[120]. - The nomination committee is responsible for identifying and recommending suitable candidates for the board, also consisting of three members, two of whom are independent non-executive directors[122].