Financial Performance - For the nine months ended September 30, 2023, the company reported unaudited consolidated profit attributable to owners of approximately RMB 310.6 million, an increase of 214.8% compared to RMB 98.6 million in the same period last year [3][8]. - Revenue for the same period was approximately RMB 15,443.7 million, representing a year-on-year increase of 7.3% from RMB 14,393.6 million [7][8]. - Operating profit increased by 50.5% to RMB 515.7 million, up from RMB 342.6 million in the previous year [8]. - The operating profit margin improved to 3.3%, an increase of 0.9 percentage points from 2.4% in the prior year [8]. - Net profit margin rose to 2.1%, up 1.3 percentage points from 0.8% in the previous year [8]. - Other comprehensive income for the period totaled RMB 866, compared to a loss of RMB 2,574 in the previous year [5]. - Total comprehensive income for the period was RMB 328.4 million, significantly higher than RMB 108.1 million in the same period last year [5]. Business Environment and Strategy - The company benefited from a recovery in sales environment and increased foot traffic in retail stores across mainland China, contributing to improved sales trends [7]. - The strong performance of the omnichannel retail ecosystem supported the company's refined retail strategy and digital transformation efforts [7]. - The company implemented cost control measures that enhanced profitability during the reporting period [7].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 10,960,001 thousand, an increase of 11.1% compared to RMB 9,864,815 thousand in 2022[4] - Gross profit for the same period was RMB 3,670,684 thousand, reflecting a growth of 5.0% from RMB 3,495,946 thousand[4] - Operating profit surged to RMB 472,818 thousand, marking a significant increase of 127.0% from RMB 208,329 thousand in the previous year[4] - Profit attributable to owners of the company reached RMB 305,465 thousand, a remarkable increase of 1,654.2% compared to RMB 17,413 thousand in 2022[4] - Basic earnings per share for the period was RMB 5.90, up 1,635.3% from RMB 0.34 in the same period last year[4] - The company's profit for the six months ended June 30, 2023, was RMB 318,967,000, a significant increase from RMB 24,187,000 in the same period of 2022, representing a growth of 1,320%[13] - Total comprehensive income for the same period was RMB 316,979,000, compared to RMB 22,305,000 in 2022, marking an increase of 1,320%[13] - The company's net profit for the period was RMB 319.0 million, a significant increase of 1,218.8% compared to the same period last year[66] Cash Flow and Liquidity - Cash and cash equivalents increased by 70.1% to RMB 2,024,918 thousand from RMB 1,190,148 thousand[5] - The company's cash and cash equivalents as of June 30, 2023, amounted to RMB 2,024,918,000, up from RMB 1,190,148,000 at the end of 2022, reflecting a growth of 70%[14] - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 2,020,955 thousand, a significant increase from RMB 324,083 thousand in the same period of 2022[19] - The total cash and cash equivalents at the end of the period were RMB 2,024,918 thousand, up from RMB 1,236,716 thousand a year earlier[20] - The company reported a significant increase in cash flow from operating activities, indicating improved operational efficiency[19] - The company’s cash flow management strategies appear to be effective, as evidenced by the substantial increase in cash and cash equivalents[20] Inventory and Assets - Inventory decreased by 23.1% to RMB 4,672,120 thousand from RMB 6,071,858 thousand[5] - Non-current assets decreased from RMB 4,183,153,000 at the end of 2022 to RMB 3,790,219,000 as of June 30, 2023, a decline of approximately 9.4%[14] - The company's inventory decreased from RMB 6,071,858,000 at the end of 2022 to RMB 4,672,120,000, a decline of about 22.9%[14] - The average inventory turnover period improved significantly to 133 days in H1 2023, down from 202 days in H1 2022, with inventory value decreasing from RMB 6,071.9 million to RMB 4,672.1 million[67] Debt and Liabilities - Bank borrowings significantly reduced by 79.8% to RMB 91,991 thousand from RMB 456,162 thousand[5] - Current liabilities decreased from RMB 3,940,745,000 at the end of 2022 to RMB 3,384,711,000, a reduction of about 14.1%[15] - The net asset value of the company increased from RMB 8,193,920,000 at the end of 2022 to RMB 8,512,357,000, an increase of approximately 3.9%[15] - The company's equity attributable to owners increased from RMB 8,114,253,000 at the end of 2022 to RMB 8,419,188,000, reflecting a growth of approximately 3.8%[15] - The group's debt-to-equity ratio was 1.1% as of June 30, 2023, down from 5.6% as of December 31, 2022, indicating improved financial stability[68] Dividends - The company declared an interim dividend of HKD 0.0185 per share, not applicable in the previous year[4] - The interim dividend declared for the six months ended June 30, 2023, is HKD 0.0185 per share, totaling HKD 98,534,000, compared to no dividend in the same period of 2022[34] - The board declared an interim dividend of HKD 0.0185 per share for the six months ended June 30, 2023, compared to no dividend in the same period last year[74] Operational Efficiency - The company aims to enhance operational efficiency and customer interaction while focusing on sales conversion rates and seasonal full-price sales[50] - The company continues to optimize its physical store network while strengthening online traffic channels to improve cash turnover efficiency[50] - The company has continued to invest in optimizing its store layout and integrating digital services to enhance consumer experience and increase average transaction value[54] - The company is focusing on enhancing its digital operations and has invested in upgrading its ERP and business intelligence systems to drive operational excellence[58] - The private traffic channel recorded strong sales growth, contributing to improved sales conversion rates and shorter sales cycles[55] Market Performance - Revenue from sports apparel and footwear sales reached RMB 10,897,233,000 for the six months ended June 30, 2023, a 10.1% increase from RMB 9,807,723,000 in the same period of 2022[30] - Retail sales in the apparel, footwear, and textile categories in China grew by 12.8% year-on-year in the first half of 2023, outperforming the overall retail sales growth of 8.2%[50] - Online sales contributed approximately 25% to total sales, up from 21% in the same period last year, indicating a strong recovery in online sales channels[55] Employee and Governance - The group has approximately 23,700 employees as of June 30, 2023, representing a year-on-year decrease of 17.1%[73] - The company has complied with all applicable code provisions and recommended best practices in the Corporate Governance Code during the reporting period[92] - The company has adopted the standard code of conduct for securities transactions by directors and confirmed compliance during the reporting period[93] Accounting and Reporting - The application of revised Hong Kong Financial Reporting Standards did not have a significant impact on the financial position or performance of the group during the interim period[24] - The group’s financial statements are prepared in accordance with the Hong Kong Accounting Standards and the relevant disclosure requirements of the Hong Kong Stock Exchange[21] - The independent auditor, Deloitte, reviewed the unaudited consolidated financial information for the six months ending June 30, 2023[94]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 10,960,001 thousand, representing an increase of 11.1% compared to RMB 9,864,815 thousand for the same period in 2022[2]. - Gross profit for the same period was RMB 3,670,684 thousand, up 5.0% from RMB 3,495,946 thousand year-on-year[2]. - Operating profit surged to RMB 472,818 thousand, a significant increase of 127.0% from RMB 208,329 thousand in the previous year[2]. - Profit attributable to owners of the company reached RMB 305,465 thousand, marking a remarkable increase of 1,654.2% compared to RMB 17,413 thousand in the prior period[2]. - Basic earnings per share for the period was RMB 5.90, a substantial rise of 1,635.3% from RMB 0.34 in the same period last year[2]. - Total comprehensive income for the period was RMB 316,979 thousand, compared to RMB 22,305 thousand in the same period last year[5]. - The company's net profit for the six months ended June 30, 2023, was RMB 305,465,000, a significant increase from RMB 17,413,000 in the same period of 2022, reflecting a substantial recovery in performance[24]. - Net profit for the period was RMB 319.0 million, a significant increase of 1,218.8% compared to the same period last year[43]. Cash and Liquidity - Cash and cash equivalents increased by 70.1% to RMB 2,024,918 thousand from RMB 1,190,148 thousand as of December 31, 2022[2]. - As of June 30, 2023, the group recorded a strong bank balance and cash amounting to RMB 2,224.9 million, up from RMB 1,190.1 million as of December 31, 2022, while net cash level increased to RMB 2,132.9 million from RMB 734.0 million[45]. - Bank borrowings were significantly reduced by 79.8% to RMB 91,991 thousand from RMB 456,162 thousand as of December 31, 2022[2]. - The interest expenses for bank borrowings were RMB 5,250,000 for the first half of 2023, a decrease from RMB 33,733,000 in the same period of 2022, indicating improved financing costs[20]. Inventory and Asset Management - Inventory decreased by 23.1% to RMB 4,672,120 thousand from RMB 6,071,858 thousand at the end of the previous year[2]. - The average inventory turnover period improved significantly to 133 days in H1 2023, down from 202 days in H1 2022, with inventory value decreasing from RMB 6,071.9 million as of December 31, 2022, to RMB 4,672.1 million as of June 30, 2023[44]. - The depreciation of right-of-use assets was RMB 452,947,000 for the first half of 2023, down from RMB 568,551,000 in the same period of 2022, reflecting better asset management[21]. Sales and Revenue Sources - Sales of sports apparel and footwear contributed RMB 10,897,233 thousand to revenue, up from RMB 9,807,723 thousand, reflecting a growth of 11.1%[17]. - The company earned RMB 62,768 thousand from franchise sales commissions, compared to RMB 57,092 thousand in the previous year, marking an increase of 10.8%[17]. - The company's online sales accounted for approximately 25% of total sales, up from 21% in the same period last year[34]. - The company recorded a strong sales growth in its private traffic channels, particularly through the Panwei Store ecosystem, which improved sales conversion rates and reduced sales cycles[34]. Expenses and Cost Management - Total employee costs amounted to RMB 1,193,904,000 for the first half of 2023, compared to RMB 1,258,961,000 in the same period of 2022, indicating a decrease of approximately 5.2%[21]. - Sales and distribution expenses decreased by 4.1% to RMB 2,913.6 million, representing 26.6% of total revenue, down from 31.2% in the previous year[41]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.0185 per share, which was not applicable in the previous year[2]. - The interim dividend declared is HKD 0.0185 per share for the six months ending June 30, 2023, compared to no dividend for the same period last year[54]. - The record date for the interim dividend is September 14, 2023, with the payment scheduled for October 6, 2023[54]. Corporate Governance and Compliance - The independent auditor has reviewed the unaudited condensed consolidated financial information for the six months ending June 30, 2023, in accordance with the relevant standards[57]. - The company has adhered to the principles of the Corporate Governance Code and complied with all applicable code provisions during the six months ending June 30, 2023[58]. Strategic Initiatives and Future Outlook - The group maintains a reasonable optimistic outlook for H2 2023, supported by improved consumer sentiment and a relatively low base effect from the previous year[49]. - The group aims to accelerate digital transformation to drive profit growth and improve profit margins, particularly through a robust omnichannel performance[49]. - The group plans to enhance its ERP and business intelligence systems, investing in digital tools to optimize inventory management and operational efficiency[50]. - The company continues to invest in digital transformation, enhancing its ERP system and other digital tools to improve operational efficiency[36]. - The company is focusing on optimizing its store layout and integrating digital services with physical stores to enhance customer experience[32]. - The company is strengthening strategic alliances with brand partners to enhance customer engagement and drive sales growth through integrated membership programs[35]. Employee and Share Incentive Plans - As of June 30, 2023, the group employed approximately 23,700 staff, a decrease of 17.1% year-on-year, while offering competitive compensation packages and employee benefits[51]. - The share incentive plan allows for a maximum of 213,047,184 shares to be awarded, representing 4% of the total shares issued as of the grant date[52]. - As of March 15, 2023, a total of 111,721,810 shares have been granted under the share incentive plan, accounting for approximately 2.10% of the issued shares[53]. - The total number of shares that can be further granted under the share incentive plan is 101,325,374, representing about 1.90% of the issued shares[53]. - For the six months ending June 30, 2023, no incentive shares were granted, while 126,400 incentive shares were forfeited or cancelled, and 377,400 incentive shares vested[53].

Financial Performance - For the three months ended March 31, 2023, the company reported unaudited consolidated revenue of RMB 5,837.6 million, an increase of 6.5% compared to RMB 5,480.6 million in the same period last year[6]. - The operating profit for the same period was RMB 332.7 million, representing a significant increase of 71.0% from RMB 194.5 million year-on-year[7]. - The net profit attributable to the company's owners was RMB 220.0 million, up 115.6% from RMB 102.0 million in the previous year[7]. - The gross profit margin improved to 33.5%, compared to 35.4% in the previous year, reflecting operational leverage and cost control measures[6]. - The company achieved a net profit margin of 3.9%, an increase of 1.9 percentage points from 2.0% in the prior year[7]. - The total comprehensive income for the period was RMB 229.6 million, compared to RMB 107.9 million in the same period last year[4]. Strategic Initiatives - The company attributed its performance improvement to the easing of COVID-19 restrictions in mainland China, leading to increased foot traffic and consumer spending[6]. - The company is focusing on refining its retail strategy and accelerating digital transformation to enhance operational efficiency[6]. - The board of directors remains committed to maintaining growth and improving profitability through strategic initiatives and cost management[7]. Accounting Standards - The company has implemented new accounting standards that did not significantly impact its financial performance for the current or prior periods[5].

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

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

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

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

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