Factory Operations and Expansion - The new factory in Indonesia began production in the first half of the year, with progress aligning with expectations [2] - New factories typically take 1.5 to 2 years to reach full production capacity [2] - The company plans to build several new factories in Indonesia and Vietnam over the next 3-5 years [3] - Capital expenditure has been around 1.1-1.7 billion RMB annually for the past three years, and is expected to remain stable in the coming years [3] Financial Performance and Costs - The profit margin of the Indonesian factory is expected to be similar to that of the Vietnamese factory [2] - New factories have a temporary negative impact on gross margin, but this is offset by improvements in older factories [2] - Labor costs in Vietnam are rising annually, but the company maintains competitiveness through efficiency improvements and scale expansion [2][3] - Most Vietnamese subsidiaries no longer qualify for corporate income tax incentives, but this has minimal impact on the company's financial statements [3] Labor and Market Strategy - The company faces increasing competition for labor in Vietnam due to more businesses investing in the region [2] - The company employs a competitive salary strategy to attract and retain workers [3] - Factory locations are chosen based on factors such as labor resources, logistics convenience, and international trade environment [3] Product Pricing and Client Mix - Average product pricing is influenced by changes in client and product mix [3] - The company serves brands with significant price differences, and fluctuations in brand revenue will affect average pricing [3]

Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 80.4 CNY per share, compared to the current price of 65.10 CNY [1]. Core Views - The company's profitability continues to improve, and there is optimism regarding its medium to long-term growth potential [1]. - The company reported a revenue of 11.47 billion CNY for the first half of 2024, representing a year-on-year increase of 24.5%, with a net profit attributable to the parent company of 1.88 billion CNY, up 29.0% year-on-year [1]. - The report highlights a significant recovery in orders from U.S. clients, contributing to both volume and price increases [1]. Financial Performance Summary - **Revenue Growth**: The company achieved a revenue of 67.1 billion CNY in Q2 2024, a year-on-year increase of 20.8% [1]. - **Profit Margins**: The gross profit margin for H1 2024 was 28.2%, up 3.6 percentage points year-on-year, while the net profit margin was 16.4%, an increase of 0.6 percentage points [1]. - **Cash Flow**: The operating cash flow for H1 2024 was 1.72 billion CNY, a 24.1% increase year-on-year, indicating healthy cash flow management [1]. Sales and Market Dynamics - **Sales Volume**: The total sales volume for H1 2024 reached 108 million pairs, a rise of 18.6% year-on-year, with an average selling price (ASP) increase of 4.9% [1]. - **Regional Performance**: Revenue from the U.S. and Europe for H1 2024 was 9.93 billion CNY and 1.27 billion CNY, reflecting a year-on-year growth of 30.8% and a decline of 9.5%, respectively [1]. - **Product Segmentation**: Revenue from sports and leisure shoes, outdoor boots, and other categories showed year-on-year increases of 24.0%, 27.2%, and 31.2%, respectively [1]. Future Projections - The report forecasts net profits for the company to reach 3.854 billion CNY, 4.482 billion CNY, and 5.114 billion CNY for the years 2024, 2025, and 2026, respectively [2]. - The projected price-to-earnings (P/E) ratios for the upcoming years are 20, 17, and 15 times [2].

中山华利实业集团股份有限公司 关于部分闲置募集资金现金管理到期赎回并继续进行 现金管理的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 为提高资金使用效率、增加股东回报，在保证日常经营运作资金需求、有效 控制投资风险的情况下，中山华利实业集团股份有限公司（以下简称"公司""华 利集团"）于2023年10月26日召开了第二届董事会第五次会议，审议通过了《关 于2024年度委托理财及现金管理额度预计的议案》，同意公司（含子公司）使用 自有资金、闲置募集资金进行委托理财及现金管理，预计交易金额合计不超过人 民币45亿元，其中使用闲置募集资金仅用于现金管理且交易金额不超过人民币23 亿元。上述交易额度在2024年度内有效，在上述期限内，额度可循环滚动使用， 但在期限内任一时点的交易金额（含前述投资的收益进行再投资的相关金额）不 应超过交易额度。在额度有效期和额度范围内，授权公司管理层行使相关投资决 策权并签署相关文件，具体由公司总财务部负责组织实施和管理。公司独立董事、 监事会、保荐机构均发表了明确同意的意见。具体内容详见公司分别于2023年10 月27日、20 ...

Group 1: Company Performance and Client Structure - The company has a diverse client structure, with revenue growth varying significantly among different clients [1] - New customer acquisition and deepening cooperation with existing clients are crucial for stable performance growth [1] - The company expresses confidence in its performance for the second half of 2024 [1] Group 2: New Factory Operations - The new factory in Indonesia began production in the first half of 2024, with progress aligning with expectations [2] - Profit margins from the Indonesian factory are expected to be similar to those from the Vietnam factory [2] - New factories typically take 1.5 to 2 years to reach full production capacity, initially having a minimal impact on overall gross margin [2] Group 3: Labor Costs and Market Strategy - Rising labor costs in Vietnam are acknowledged, but the investment environment remains attractive for the footwear industry [2] - The company plans to adjust sales prices in response to labor cost increases while diversifying risk by establishing a factory in Indonesia [2] Group 4: External Factors and Risk Management - The company’s production facilities are primarily in Vietnam, and import tariffs are borne by customers based on trade policies [2] - Recent flooding in Vietnam has not caused significant damage, as the company has implemented preventive measures [2] Group 5: Future Plans and Collaborations - The company is focused on expanding its customer base, including ongoing collaboration with Anta [3] - There are currently no plans to diversify into other business areas, with a continued focus on the sports shoe manufacturing sector [3]

Group 1: Future Orders and Revenue Growth - The company expects stable revenue growth over the next two years, supported by a diverse customer base and the acquisition of new clients [1] - The company has a strong competitive position in the supply chains of clients with slower revenue growth, ensuring order share [1] Group 2: New Factory Performance - The new factory in Indonesia began production in the first half of 2024, with progress aligning with expectations [1] - Profit margins from the Indonesian factory are expected to be similar to those of the Vietnamese factory, based on local cost efficiencies [1] Group 3: Gross and Net Profit Margins - The company's gross margin is projected to remain stable as long as there are no significant fluctuations in orders [2] - The net profit margin has been stable between 15%-16% since 2021, reflecting effective cost and expense management [2] Group 4: Tax and Pricing Trends - The income tax rate for the first half of 2024 was 23.24%, an increase of 3.26% from the previous year, primarily due to increased dividends from overseas subsidiaries [2] - Average selling prices are influenced by customer and product mix, with minimal impact on revenue growth and gross margin [2] Group 5: Capital Expenditure and Dividends - The company plans to maintain active capacity expansion in Indonesia and Vietnam, with historical capital expenditures ranging from 1.1 to 1.7 billion RMB annually [3] - Cash dividends accounted for approximately 89% of net profit in 2021, 43% in 2022, and 44% in 2023, with expectations for increased dividends as capital expenditure ratios decrease [3] Group 6: Shareholder Confidence - Major shareholders express confidence in the company's long-term value and have no current plans to reduce their holdings [3]

Group 1: Event Details - The company will participate in the "2024 Guangdong Listed Companies Investor Online Reception Day" organized by Guangdong Securities Regulatory Commission and Guangdong Listed Companies Association [1] - The event will be held online via the "Panjing Roadshow" platform on September 12, 2024, from 15:30 to 16:30 [1] Group 2: Company Representatives - The event will feature communication from key company representatives including Chairman Zhang Congyuan, General Manager Liu Shujuan, CFO Wu Xinyan, and Vice General Manager and Board Secretary Fang Lingling [1] Group 3: Discussion Topics - The representatives will address investor concerns regarding the company's 2024 semi-annual performance, corporate governance, development strategy, operational status, and sustainable development [1] Group 4: Investor Engagement - The company encourages active participation from investors in the online event [1]

Group 1: Financial Performance and Projections - The company's gross profit margin for the first half of 2024 was 28.23%, an increase of 3.63% year-on-year, attributed to enhanced customer expansion and operational improvements [1] - The company is confident in its performance over the next two years, supported by a diverse customer base and ongoing efforts to acquire new clients [1] - The capital expenditure over the past three years has been approximately 11-17 million RMB annually, expected to remain stable in the coming years [3] Group 2: Customer and Market Strategy - The company employs a multi-customer strategy, focusing on quality clients without limiting the number of brands it collaborates with [3] - The pricing model for different brands is similar, based on a cost-plus approach, although net profit margins may vary slightly [1] - The company plans to establish several new factories in Indonesia and Vietnam, considering factors like labor resources and logistics [2] Group 3: Tax and Regulatory Environment - Vietnam's new tax regulations, effective January 1, 2024, may impact multinational companies with significant revenues, but the company's exposure is limited as most of its Vietnamese subsidiaries do not benefit from tax incentives [3] - The company currently has four factories in Vietnam that enjoy tax benefits, but the overall impact of potential tax increases on financial statements is expected to be minimal [3] Group 4: Shareholder Returns - The company has prioritized shareholder returns, with cash dividends accounting for approximately 89% of net profit in 2021, 43% in 2022, and around 44% in 2023 [3] - Future dividend policies will balance shareholder interests with the company's growth needs, with expectations of increasing dividends as capital expenditures stabilize [3] Group 5: Operational Efficiency - The efficiency of production varies by brand and order type, affecting the gross and net profit margins [2] - The company has mechanisms in place to monitor the performance of new factories, ensuring timely problem identification and resolution [2]

Group 1: Financial Performance - The company's gross profit margin for the first half of 2024 was 28.23%, an increase of 3.63% year-on-year, attributed to improved customer expansion and operational efficiency [2] - The net profit margin has remained stable between 15% and 16% throughout the year, reflecting effective cost and expense management amid industry fluctuations [2] - Cash dividends accounted for approximately 89% of the total net profit in 2021, 43% in 2022, and around 44% in 2023, indicating a strong commitment to shareholder returns [4] Group 2: Operational Insights - The company maintains a consistent order visibility, with clients placing formal orders once or twice a month, and regular capacity planning meetings held to discuss medium to long-term production needs [3] - Future capital expenditures are expected to remain stable, with annual spending in the range of 1.1 to 1.7 billion RMB over the past three years, as the company plans to expand production capacity in Indonesia and Vietnam [3] - The company’s pricing model for different brands is similar, based on a cost-plus approach, although net profit margins may vary slightly due to operational efficiencies [2] Group 3: Strategic Outlook - The company has established mature contingency plans to ensure order stability through various economic cycles, aiming to maintain a stable gross profit margin as long as there are no significant fluctuations in orders [2] - The management team is experienced in ramping up production capacity, with new factories typically taking 1.5 to 2 years to reach full capacity [3] - The company plans to balance capital expenditures with shareholder returns, indicating a gradual reduction in the proportion of capital expenditures relative to net profit as the company scales [4]

中山华利实业集团股份有限公司 关于部分闲置募集资金现金管理到期赎回并继续进行 现金管理的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 为提高资金使用效率、增加股东回报，在保证日常经营运作资金需求、有效 控制投资风险的情况下，中山华利实业集团股份有限公司（以下简称"公司""华 利集团"）于2023年10月26日召开了第二届董事会第五次会议，审议通过了《关 于2024年度委托理财及现金管理额度预计的议案》，同意公司（含子公司）使用 自有资金、闲置募集资金进行委托理财及现金管理，预计交易金额合计不超过人 民币45亿元，其中使用闲置募集资金仅用于现金管理且交易金额不超过人民币23 亿元。上述交易额度在2024年度内有效，在上述期限内，额度可循环滚动使用， 但在期限内任一时点的交易金额（含前述投资的收益进行再投资的相关金额）不 应超过交易额度。在额度有效期和额度范围内，授权公司管理层行使相关投资决 策权并签署相关文件，具体由公司总财务部负责组织实施和管理。公司独立董事、 监事会、保荐机构均发表了明确同意的意见。具体内容详见公司分别于2023年10 月27日、20 ...

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of 5% to 15% relative to the industry index over the next six months [1]. Core Insights - The company achieved rapid growth in H1 2024, with revenue reaching 11.472 billion yuan, a year-on-year increase of 24.54%, and net profit attributable to shareholders of 1.878 billion yuan, up 29.04% year-on-year [1][2]. - The gross margin improved to 28.23%, an increase of 3.63 percentage points year-on-year, while the net margin rose to 16.37%, up 0.57 percentage points year-on-year [2]. - The company continues to optimize processes and enhance operational capabilities, leading to improved profitability metrics [2]. Financial Performance Summary - Revenue (in million yuan): - 2022A: 20,569 - 2023A: 20,114 - 2024E: 23,683 - 2025E: 27,483 - 2026E: 31,205 - Year-on-year growth rates: - 2022: 17.7% - 2023: -2.2% - 2024E: 17.7% - 2025E: 16.0% - 2026E: 13.5% [1][6]. - Net profit (in million yuan): - 2022A: 3,228 - 2023A: 3,200 - 2024E: 3,873 - 2025E: 4,495 - 2026E: 5,138 [1][6]. - EPS (latest diluted): - 2022A: 2.77 - 2023A: 2.74 - 2024E: 3.32 - 2025E: 3.85 - 2026E: 4.40 [1][6]. Product and Market Performance - The company reported significant growth across various product lines, with revenue from sports casual shoes, outdoor boots, and sandals increasing by 24.00%, 27.16%, and 31.21% respectively [2]. - The U.S. market showed remarkable growth, achieving revenue of 9.930 billion yuan, a year-on-year increase of 30.79% [2]. - The company anticipates continued revenue growth across all product categories due to a stable consumer market for sports shoes and improved inventory levels among sports brands [2]. Future Outlook - The company is positioned as a leading global manufacturer of sports shoes, with expectations for further expansion and cost reduction through increased production capacity and growing customer orders [2]. - EPS forecasts for 2024-2026 are 3.32 yuan, 3.85 yuan, and 4.40 yuan respectively, with corresponding P/E ratios of 19.4X, 16.8X, and 14.7X [2].