香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 POU SHENG INTERNATIONAL (HOLDINGS) LIMITED 寶勝國際（ 控 股 ）有 限公司 （於百慕達註冊成立之有限公司） （股份代號：3813） 二零二四年十二月之每月收益公告 本公司為聯交所主板上市公司裕元的子公司。按照國際財務報告準則，裕元被 視為臺灣證交所上市公司寶成工業之子公司。寶成工業根據臺灣證券交易所的 規例規定刊發每月收益公告。 由於裕元於今日公佈其若干綜合財務資料，故本公司根據上市規則第13.09(2)條 及證券及期貨條例第XIVA部刊發本公告，確保及時向投資者提供最新資料。 寶勝國際（控股）有限公司（「本公司」）為香港聯合交易所有限公司（「聯交所」）主 板上市公司裕元工業（集團）有限公司（「裕元」）的子公司。按照國際財務報告準則， 裕元被視為臺灣證券交易所股份有限公司（「臺灣證交所」）上市公司寶成工業股份 有限公司（「寶成工業」）之子公司。根據臺灣證券交易 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 POU SHENG INTERNATIONAL (HOLDINGS) LIMITED 寶勝國際（ 控 股 ）有 限公司 （於百慕達註冊成立之有限公司） （股份代號：3813） 百慕達主要股份過戶登記處之變更 Computershare Investor Services (Bermuda) Limited 5 Reid Street, PO Box HM 1475 Hamilton HM FX Bermuda 香港中央證券登記有限公司（地址為香港灣仔皇后大道東183號合和中心17樓 1712-1716號舖）將繼續作為本公司之香港股份過戶登記分處。 承董事會命 主席 余煥章 香港，二零二四年十二月二十日 於本公告日期，董事會成員包括： 執行董事 余煥章先生（主席）、胡嘉和先生及陳立傑先生（首席財務官） 寶勝國際（控股）有限公司（「本公司」）董事會（「董事會」）宣佈，自二零二四年 十二月二十日起，本公司於百 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 寶勝國際（控股）有限公司（「本公司」）為香港聯合交易所有限公司（「聯交所」）主 板上市公司裕元工業（集團）有限公司（「裕元」）的子公司。按照國際財務報告準則， 裕元被視為臺灣證券交易所股份有限公司（「臺灣證交所」）上市公司寶成工業股份 有限公司（「寶成工業」）之子公司。根據臺灣證券交易所股份有限公司對上巿公司 之資訊申報作業辦法（經不時修訂）（「臺灣證券交易所的規例」）規定，寶成工業刊 發包含綜合寶成工業及其子公司的綜合財務資料（包括裕元的若干綜合財務資料） 的每月收益公告。 由於裕元於今日公佈其若干綜合財務資料，故本公司根據聯交所證券上市規則（「上 市規則」）第13.09(2)條及證券及期貨條例（第571章）（「證券及期貨條例」）第XIVA 部刊發本公告，確保及時向投資者提供最新資料。以下項目摘錄自本公司及其子 公司之未經審核管理賬目。 1 POU SHENG INTERNATIONAL (HOLDI ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 寶勝國際（ 控 股 ）有 限公司 （於百慕達註冊成立之有限公司） （股份代號：3813） 二零二四年十月之每月收益公告 本公司為聯交所主板上市公司裕元的子公司。按照國際財務報告準則，裕元被 視為臺灣證交所上市公司寶成工業之子公司。寶成工業根據臺灣證券交易所的 規例規定刊發每月收益公告。 由於裕元於今日公佈其若干綜合財務資料，故本公司根據上市規則第13.09(2)條 及證券及期貨條例第XIVA部刊發本公告，確保及時向投資者提供最新資料。 寶勝國際（控股）有限公司（「本公司」）為香港聯合交易所有限公司（「聯交所」）主 板上市公司裕元工業（集團）有限公司（「裕元」）的子公司。按照國際財務報告準則， 裕元被視為臺灣證券交易所股份有限公司（「臺灣證交所」）上市公司寶成工業股份 有限公司（「寶成工業」）之子公司。根據臺灣證券交易所股份有限公司對上巿公司 之資訊申報作業辦法（經不時修訂）（「臺灣證券交易所的規例」）規 ...

Financial Performance - For the nine months ended September 30, 2024, the company reported unaudited consolidated profit attributable to owners of approximately RMB 343.0 million, an increase of 10.4% compared to RMB 310.6 million in the same period last year [2][5]. - The company's operating revenue for the same period was RMB 13,984.2 million, a decrease of 9.5% from RMB 15,443.7 million year-on-year [2][5]. - Operating profit for the nine months was RMB 513.6 million, a slight decrease of 0.4% from RMB 515.7 million in the previous year [2][5]. - Other comprehensive income for the period totaled RMB 3.85 million, compared to RMB 0.87 million in the previous year [3]. Profitability Metrics - The gross profit margin improved to 34.0%, up 0.9 percentage points from 33.1% in the previous year, primarily due to effective discount control and efficient inventory management [5]. - The net profit margin increased to 2.5%, up 0.4 percentage points from 2.1% in the previous year, reflecting improved cost management [5]. Financial Position - The company maintained a strong financial position with good net cash status as of September 30, 2024 [5]. Operational Strategy - The company continues to optimize store efficiency while enhancing the sales conversion rate of direct-operated physical stores amid challenging consumer traffic in mainland China [5]. - The company is advancing its digital transformation strategy, maintaining a relatively stable omnichannel sales performance [5]. Compliance and Reporting - The company has applied revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the current or prior periods' unaudited consolidated results [4].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 9,983,269 thousand, a decrease of 8.9% compared to RMB 10,960,001 thousand in 2023[4] - Gross profit for the same period was RMB 3,415,700 thousand, down 6.9% from RMB 3,670,684 thousand[4] - Operating profit increased by 2.1% to RMB 482,555 thousand, compared to RMB 472,818 thousand in the previous year[4] - Profit attributable to owners of the company rose by 9.9% to RMB 335,722 thousand, up from RMB 305,465 thousand[4] - The gross profit margin improved to 34.2%, an increase of 0.7 percentage points from 33.5%[4] - The operating profit margin also increased to 4.8%, up by 0.5 percentage points from 4.3%[4] - Basic earnings per share were RMB 6.48, reflecting a 9.8% increase from RMB 5.90[4] - Total comprehensive income for the period was RMB 342,575 thousand, compared to RMB 316,979 thousand in the previous year, reflecting an increase of 8.1%[12] - The net profit attributable to the owners of the company was RMB 335,722 thousand, up from RMB 305,465 thousand, representing an increase of 9.9%[11] - The net profit for the period was RMB 338.0 million, with a profit margin of 3.4%, an increase of 0.6 percentage points year-on-year[59] Cash Flow and Assets - For the six months ended June 30, 2024, the net cash generated from operating activities was RMB 873,308,000, a decrease from RMB 2,020,955,000 in the same period of 2023[19] - The net cash used in investing activities was RMB (754,500,000), compared to RMB (200,000,000) in the previous year[19] - The net cash used in financing activities totaled RMB (482,483,000), down from RMB (853,312,000) in the prior year[19] - Cash and cash equivalents decreased by 11.8% to RMB 1,611,830 thousand from RMB 1,827,563 thousand[5] - Non-current assets as of June 30, 2024, totaled RMB 3,843,575 thousand, up from RMB 3,774,628 thousand at the end of 2023[13] - Current assets decreased slightly to RMB 9,345,291 thousand from RMB 9,483,045 thousand, indicating a reduction of 1.5%[13] - The company's total assets as of June 30, 2024, were RMB 8,802,317,000, compared to RMB 8,894,587,000 at the end of the previous period[20] Dividends and Shareholder Information - The interim dividend declared was HKD 0.02, an increase of 8.1% from HKD 0.0185 in the previous year[4] - A special dividend of HKD 0.02 per share has also been declared, which was not paid in the previous period, bringing the total dividend to HKD 0.04 per share with a payout ratio of 60%[67] - The total number of issued shares as of June 30, 2024, is 5,326,179,615 shares[70] - The total number of shares held by the directors and key executives includes 19,523,000 shares by Cai Peijun, representing 0.37% of the issued shares[70] - The company will suspend the registration of shareholders from September 11, 2024, to September 13, 2024, for the purpose of dividend distribution[68] Operational Efficiency and Strategy - The company plans to continue its market expansion strategy, focusing on enhancing its product offerings and technological advancements[18] - The company has initiated a new strategy for mergers and acquisitions to strengthen its market position and diversify its portfolio[18] - The company's cash flow from operating activities indicates a need for improved operational efficiency to enhance profitability moving forward[19] - The group aims to enhance profitability through efficient measures, diversifying channel combinations, and rigorous cost control[43] - The company continues to invest in optimizing store layouts and enhancing digital transformation to improve customer experience and maintain a stable average transaction value[46] - The company upgraded its ERP system, implementing multiple SAP modules to integrate business and financial functions, enhancing operational efficiency[49] Market and Retail Environment - The retail environment in mainland China showed a 1.3% year-on-year increase in retail sales of clothing, footwear, and textiles, while total retail sales of consumer goods grew by 3.7%[43] - The group reported a 16.5% year-on-year increase in B2C public traffic channels, partially offsetting pressures faced in retail channels[43] - The sports industry in the Greater China region is projected to reach a market value of RMB 5 trillion by 2025, indicating significant growth potential despite short-term macroeconomic challenges[65] Share Incentive Plan - The company has a share incentive plan that was adopted on May 9, 2014, and has been extended for another ten years until May 8, 2034[76] - The total number of shares granted under the share incentive plan cannot exceed 4% of the total issued shares as of the grant date, which is 213,047,184 shares[78] - The total number of shares vested during the period is 3,507,400 shares[79] - The maximum number of shares that can be granted to each selected participant is limited to 1% of the issued shares, which is 53,261,796 shares[78] Compliance and Governance - The company has adhered to the principles of the Corporate Governance Code and complied with all applicable code provisions and recommended best practices during the reporting period[85] - The board has confirmed compliance with the standard code of conduct for securities trading throughout the six months ended June 30, 2024[86] - The audit committee has reviewed the unaudited condensed consolidated financial information for the six months ended June 30, 2024, discussing risk management, internal controls, and financial reporting matters[87] - The independent auditor has reviewed the group's unaudited financial information in accordance with the relevant standards[87]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 9,983,269, a decrease of 8.9% compared to RMB 10,960,001 for the same period in 2023[2] - Gross profit for the same period was RMB 3,415,700, down 6.9% from RMB 3,670,684 in 2023[2] - Operating profit increased by 2.1% to RMB 482,555 from RMB 472,818 year-on-year[2] - Profit attributable to owners of the company rose by 9.9% to RMB 335,722 compared to RMB 305,465 in the previous year[2] - Basic earnings per share increased to RMB 6.48, up 9.8% from RMB 5.90[2] - The total revenue for the group for the six months ended June 30, 2024, was RMB 9,983,269 thousand, down from RMB 10,960,001 thousand in the previous year, representing a decline of 8.88%[14] - The net profit attributable to the owners of the company for the six months ended June 30, 2024, was RMB 335,722 thousand, an increase of 9.88% compared to RMB 305,465 thousand for the same period in 2023[18] - Net profit attributable to the company's owners was RMB 335.7 million, with a net profit margin of 3.4%, up 0.6 percentage points year-on-year[37] Dividends - The company declared an interim dividend of HKD 0.02, an increase of 8.1% from HKD 0.0185 in 2023[2] - The company declared an interim dividend of HKD 0.02 per share for the six months ended June 30, 2024, compared to HKD 0.0185 per share for the same period in 2023[17] - The board has declared an interim dividend of HKD 0.02 per share, an increase from HKD 0.0185 per share in the previous period, along with a special dividend of HKD 0.02 per share[47] - The total dividend payout for the period amounts to HKD 0.04 per share, with a payout ratio of 60%[47] Assets and Liabilities - Inventory as of June 30, 2024, was RMB 4,649,992, a decrease of 1.2% from RMB 4,704,713 at the end of 2023[6] - Cash and cash equivalents decreased by 11.8% to RMB 1,611,830 from RMB 1,827,563[6] - Total assets as of June 30, 2024, were RMB 9,345,291, down from RMB 9,483,045 at the end of 2023[6] - Net assets attributable to owners of the company increased to RMB 8,802,317 from RMB 8,518,131 at the end of 2023[7] - The accounts receivable as of June 30, 2024, amounted to RMB 1,028,487 thousand, an increase from RMB 978,919 thousand as of December 31, 2023[22] - The accounts payable as of June 30, 2024, totaled RMB 1,089,804 thousand, a decrease from RMB 1,252,834 thousand as of December 31, 2023[23] Operational Efficiency - The total financing costs for the six months ended June 30, 2024, were RMB 35,380 thousand, a decrease of 28.54% from RMB 49,513 thousand in the same period of 2023[16] - The company reported a decrease in employee costs to RMB 1,092,906 thousand for the six months ended June 30, 2024, down from RMB 1,193,904 thousand in the previous year, reflecting a reduction of 8.45%[16] - The average inventory turnover period improved to 130 days, with inventory value decreasing from RMB 4,704.7 million to RMB 4,650.0 million[38] - The group aims to strengthen profit margins through operational excellence and digital transformation strategies[43] - The group is focusing on strategic partnerships and enhancing member integration plans to drive member growth and seasonal sales[30] - The group aims to streamline operations to improve labor efficiency, cost competitiveness, and shorten sales cycles, positioning itself for long-term growth opportunities[31] Market and Sales Performance - For the six months ended June 30, 2024, the revenue from sports apparel and footwear sales was RMB 9,924,029 thousand, a decrease of 8.93% compared to RMB 10,897,233 thousand for the same period in 2023[14] - For the six months ended June 30, 2024, the group's sales momentum slowed due to weak foot traffic in mainland China, with a year-on-year retail sales growth of only 1.3% in clothing, footwear, and textiles compared to a 3.7% increase in total retail sales[24] - The average selling price increased, partially offsetting the negative trend in same-store sales, while foot traffic in high-tier cities dropped by over 30% year-on-year[25] - The group's B2C public domain traffic channels saw a 16.5% year-on-year increase, helping to mitigate pressures faced by retail channels[24] - Online sales contributed approximately 26% to the total sales during the period, driven by public domain traffic channels[29] Store Operations - The number of directly operated stores decreased from 3,523 to 3,478, representing a net reduction of 45 stores during the period[27] - The number of stores with a sales area of 300 square meters or less accounted for 79.0% of total stores as of June 30, 2024, down from 80.3% the previous year[28] - The group continues to invest in optimizing store layouts and accelerating digital transformation to enhance consumer experience and maintain a stable average transaction value[28] - The group plans to open multiple new single-brand stores for Saucony, Hoka, Pony, and the Korean yoga brand XEXYMIX, which has an exclusive distribution agreement in mainland China[43] Technology and Innovation - The group has successfully implemented multiple SAP modules for its ERP system, enhancing operational efficiency and integrating business financial functions[31] - The group is expanding its SAP system for financial integration and optimization, enhancing operational efficiency through digital tools like an upgraded AI scheduling system[44] Employee and Governance - The group has approximately 20,700 employees as of June 30, 2024, offering competitive compensation packages and employee benefits[45] - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[54] - The company expresses gratitude to customers, suppliers, shareholders, and employees for their support and contributions during the reporting period[53] Future Outlook - The anticipated market value of the sports industry in the Greater China region is expected to reach RMB 5 trillion by 2025, highlighting growth potential[44] - The company will publish its mid-term report for 2024 according to the listing rules, which will be available on its website and the Hong Kong Stock Exchange website[53] - No purchases, sales, or redemptions of listed securities were made by the company or its subsidiaries during the six months ending June 30, 2024[49]

Financial Performance - For the three months ended March 31, 2024, the company reported unaudited consolidated revenue of approximately RMB 5,400.3 million, a decrease of 7.5% compared to RMB 5,837.6 million in the same period last year[3][8] - The profit attributable to the company's owners for the same period was approximately RMB 174.4 million, representing a decline of 20.7% from RMB 220.0 million year-on-year[3][8] - Operating profit for the quarter was RMB 277.3 million, down 16.6% from RMB 332.7 million in the previous year[3][8] - The total comprehensive income for the period was RMB 182.7 million, down from RMB 229.6 million in the previous year[5][4] Profitability Metrics - The company's operating profit margin decreased by 0.6 percentage points to 5.1% compared to 5.7% in the previous year[8] - Net profit margin also saw a decline of 0.5 percentage points, falling to 3.4% from 3.9% year-on-year[8] Market Challenges - The company attributed the sales decline to weak foot traffic in stores across mainland China and high base effects from last year's "revenge spending" post-market reopening[7] Strategic Focus - Despite the challenges, the company maintained healthy profit margins due to effective discount control and cost reduction measures[7] - The company continues to focus on digital transformation strategies and agile operations to ensure sustainable growth and profitability[7] Financial Strength - The company reported strong net cash levels, indicating robust financial strength despite short-term challenges[7]

Financial Performance - Revenue for 2023 increased by 7.7% to RMB 20,064.5 million compared to RMB 18,638.0 million in 2022[4] - Net profit attributable to the company's owners surged by 450.0% to RMB 490.4 million from RMB 89.2 million in 2022[4] - Gross profit margin decreased by 2.2 percentage points to 33.7% in 2023 from 35.9% in 2022[4] - Operating profit margin improved by 1.5 percentage points to 3.7% in 2023 from 2.2% in 2022[4] - Revenue for 2023 increased by 7.7% to RMB 20,064.5 million compared to 2022[21][22] - Gross profit for 2023 was RMB 6,756.0 million, with a gross margin of 33.7%, down 2.2 percentage points from 2022[23] - Net profit attributable to shareholders surged by 450.0% to RMB 490.4 million in 2023[21][26] - Operating profit increased by 77.5% to RMB 735.9 million, with an operating profit margin of 3.7%, up 1.5 percentage points[25] - Revenue increased to RMB 20,064,497 thousand in 2023, up from RMB 18,638,021 thousand in 2022, representing a growth of approximately 7.7%[170] - Gross profit rose to RMB 6,755,980 thousand in 2023, compared to RMB 6,688,046 thousand in 2022, a slight increase of 1.0%[170] - Operating profit significantly improved to RMB 735,861 thousand in 2023, up from RMB 414,530 thousand in 2022, marking a 77.5% increase[170] - Net profit attributable to the company's owners surged to RMB 490,425 thousand in 2023, compared to RMB 89,164 thousand in 2022, a substantial increase of 450%[171] - Basic earnings per share increased to RMB 9.47 cents in 2023, up from RMB 1.72 cents in 2022, reflecting a 450% growth[171] - Total comprehensive income for the year reached RMB 502,102 thousand in 2023, compared to RMB 97,293 thousand in 2022, a 416% increase[172] Inventory and Cash Management - Inventory decreased by 22.5% to RMB 4,704.7 million in 2023 from RMB 6,071.9 million in 2022[5] - Cash and cash equivalents increased by 53.6% to RMB 1,827.6 million in 2023 from RMB 1,190.1 million in 2022[5] - Inventory turnover days improved significantly to 148 days in 2023 from 208 days in 2022[27] - Bank balances and cash increased to RMB 2,874.2 million at the end of 2023, up from RMB 1,190.1 million in 2022[28] - Net cash position rose to RMB 2,835.0 million at the end of 2023, compared to RMB 734.0 million in 2022[28] - Year-end cash and cash equivalents rose to RMB 1,827,563 thousand in 2023, up from RMB 1,190,148 thousand in 2022, indicating stronger liquidity[179] Debt and Financial Position - Bank borrowings decreased significantly by 91.4% to RMB 39.2 million in 2023 from RMB 456.2 million in 2022[5] - The company's debt-to-equity ratio improved to 0.5% at the end of 2023, down from 5.6% in 2022[28] - Non-current liabilities decreased to RMB 1,175,372 thousand in 2023 from RMB 1,464,196 thousand in 2022, primarily due to a reduction in lease liabilities[174] - Net asset value increased to RMB 8,610,581 thousand in 2023, up from RMB 8,193,920 thousand in 2022, reflecting growth in reserves[174] - Equity attributable to the company's owners rose to RMB 8,518,131 thousand in 2023, compared to RMB 8,114,253 thousand in 2022[174] Omnichannel Strategy and Digital Transformation - The company achieved a 22% rapid growth in its omnichannel strategy, focusing on higher-margin private traffic channels[9] - The company implemented the SAP system in early 2024 to integrate business and financial operations, enhancing decision-making efficiency[9] - The company's omnichannel sales, including WeChat stores, Douyin live streaming, and mall membership platforms, grew by over 22% year-on-year[12] - The company's omnichannel sales contributed approximately 27% to total sales in 2023, up from 24% in 2022[17] - The company's private traffic channels, including the WeChat store ecosystem, recorded strong sales growth in 2023[17] - The company's Douyin live streaming operations were upgraded in 2023, integrating regional and store-level localized operations[17] - The company's membership integration plan with brand partners introduced more value-added services, diversified content, and exclusive member benefits[17] - The company successfully implemented SAP modules in January 2024, enhancing operational efficiency and data integration[20] Dividend and Shareholder Returns - The company declared its first interim dividend since 2016, with a full-year dividend payout ratio of 30%[10] - The company paid an interim cash dividend of HKD 0.0185 per share for the six months ended June 30, 2023, totaling approximately HKD 87.9 million[51] - The company proposed a final cash dividend of HKD 0.0120 per share for the year ended December 31, 2023, totaling approximately HKD 63.9 million, subject to shareholder approval at the 2024 Annual General Meeting[51] - The company's dividend policy allocates 20% to 30% of distributable profits as dividends each fiscal year[145] Market and Consumer Trends - The "post-90s" generation is the largest consumer group in the outdoor sports market, accounting for 36.1%, with females making up 59.9%[11] - The compound annual growth rate (CAGR) of the global sports industry from 2023 to 2027 is expected to be 7%, with the Asia-Pacific region reaching 10%[11] - In 2023, China's apparel, footwear, and textile retail sales grew by 12.9% year-on-year, outperforming the overall retail sales growth of 7.2%[12] - The company expects the sports industry in Greater China to reach RMB 5 trillion by 2025, driven by government initiatives and the Paris Olympics[33] Corporate Governance and Leadership - The company operates 3,523 directly managed stores in Greater China as of December 31, 2023, with 79% of stores having a sales area of 300 square meters or less[14][16] - The company had approximately 22,100 employees as of December 31, 2023[34] - The company provides competitive compensation packages, including stock rewards and employee benefits such as social insurance and training programs[34] - Cai Peijun, aged 44, has been a non-executive director since April 2008 and is responsible for strategic planning and corporate development at Yue Yuen Group[38] - Li Yinan, aged 82, has been a non-executive director since March 2013 and has extensive experience in the footwear industry[39] - Chen Huanzhong, aged 68, has been an independent non-executive director since April 2008 and is a certified public accountant in Taiwan[40] - Feng Leiming, aged 66, has been an independent non-executive director since September 2018 and has extensive experience in the Hong Kong securities industry[41] - Liu Shiliang, aged 59, has been an independent non-executive director since March 2022 and has a strong background in finance and corporate strategy[42] - Wang Jun, aged 55, is the current CEO and has extensive experience in corporate strategy, marketing, and large-scale retail operations[43] - Zhang Shuqing, aged 59, is the Deputy General Manager overseeing the omni-channel platform and has over 20 years of experience in financial planning[44] - Song Hua, aged 49, is the Deputy General Manager responsible for retail operations and has extensive experience in corporate strategy and marketing[45] - Tang Guoxing, aged 57, is the Deputy General Manager in charge of brand and channel development and has extensive experience in corporate strategy and marketing[46] - Ye Yongming, aged 37, is the Company Secretary and CFO with over 10 years of experience in accounting, auditing, and financial management[47] - The Chairman and CEO roles were separated to ensure a balance of power and authority, with Mr. Yu Huanzhang leading the Board and Mr. Wang Jun managing daily operations[125] - The company appointed Mr. Chen Lijie as an Executive Director effective September 4, 2023, and Mr. Liao Yuanhuang resigned as an Executive Director on the same date[124][129] - All Independent Non-Executive Directors (INEDs) confirmed their independence, with Mr. Chen Huanzhong serving over nine years while maintaining independent judgment[126] - The Board held 5 meetings in 2023, with all Directors achieving 100% attendance except for Mr. Chen Lijie, who attended 2 out of 2 meetings[123] - The company provided two training sessions for Directors, covering updates on listing rules and insider information disclosure[128] - The Disclosure Committee did not hold formal meetings in 2023, instead handling matters via email and phone calls[124] - The company maintained compliance with Listing Rules by having at least three INEDs, one with professional accounting expertise[126] - The Nomination Committee considers diversity factors such as gender, age, and professional background when evaluating Board candidates[127] - Mr. Liao Yuanhuang resigned as an executive director, effective from September 4, 2023[130] - The Audit Committee held four meetings during the year[132] - The Remuneration Committee held three meetings during the year[133] - The Nomination Committee held one meeting during the year[134] - As of December 31, 2023, one out of eight directors was female (approximately 13%)[135] - The Board's current composition includes 38% with academic backgrounds in economics/finance/accounting and 63% with professional accounting expertise[137] - The Board's diversity policy includes considerations of gender, age, cultural background, professional qualifications, and industry experience[137] - The Audit Committee reviewed and recommended the approval of the Group's quarterly results, interim and annual reports[132] - The Remuneration Committee reviewed and recommended the remuneration packages for executive directors, CFO, and CEO[133] - The Nomination Committee recommended the appointment of an executive director and reviewed the re-election of directors at the 2023 AGM[134] - The company's board of directors includes executive directors such as Yu Huanzhang (Chairman), Hu Jiahe, and Chen Lijie (CFO, appointed on September 4, 2023)[79] - The company has arranged appropriate directors' and officers' liability insurance for its directors and senior personnel[83] - No significant transactions, arrangements, or contracts involving the company's directors or controlling shareholders were reported during the year[84] - The company's shareholders eligible to attend and vote at the 2024 Annual General Meeting must complete registration by May 20, 2024[71] - Shareholders eligible for the proposed final dividend must complete registration by June 3, 2024, with the dividend to be paid on June 21, 2024[72] - The company's directors and senior management have disclosed their interests in shares, related shares, and bonds as of December 31, 2023[85] - The total number of issued shares of the company as of December 31, 2023, is 5,326,179,615 shares[86] - Cai Peijun holds 19,523,000 shares, representing 0.37% of the issued shares[86] - Yu Huanzhang holds 1,200,000 shares, representing 0.02% of the issued shares[86] - Wang Jun holds 3,748,040 shares, representing 0.07% of the issued shares[86] - The total number of issued shares of Yuen Industrial (Group) Limited as of December 31, 2023, is 1,612,183,986 shares[89] - Yu Huanzhang holds 120,000 shares of Yuen Industrial, representing 0.01% of the issued shares[89] - Hu Jiahe holds 380,000 shares of Yuen Industrial, representing 0.02% of the issued shares[89] - Yuen Industrial holds an indirect equity interest of approximately 62.55% in the company[91] - The company's share incentive plan involves existing shares and does not involve the issuance of new shares[93] - The share incentive plan is designed to reward and retain key personnel, with awards subject to performance and vesting conditions[93] - The total number of shares awarded under the Share Award Scheme is 111,721,810 shares, representing approximately 2.10% of the issued shares, with an additional 101,325,374 shares available for further awards, representing approximately 1.90% of the issued shares[94] - The maximum number of shares that can be awarded under the Share Award Scheme is 213,047,184 shares, which is 4% of the total issued shares (5,326,179,615 shares)[94] - The weighted average closing price of the shares immediately before the vesting date of the awarded shares during the year was HK$0.68 per share[95] - The total number of shares awarded to employees during the year was 6,579,000 shares, with 4,147,200 shares remaining unvested as of December 31, 2023[95] - The total number of shares awarded to the five highest-paid individuals during the year was 1,236,000 shares, with 772,500 shares remaining unvested as of December 31, 2023[95] - The largest shareholder, Li Shang Management Limited, holds 3,331,551,560 shares, representing 62.55% of the issued shares[100] - The total number of issued shares as of December 31, 2023, is 5,326,179,615 shares[100] - Yuen Holdings owns 3,331,551,560 shares through its wholly-owned subsidiary Li Shang[101] - Wealthplus and Win Fortune hold 47.95% and 3.16% of Yuen's voting shares respectively, both are wholly owned by Pou Chen[101] Risk Management and Internal Controls - The company has established a risk management framework with policies and procedures to identify, assess, manage, and minimize risks that could adversely affect the group's business objectives[151] - The audit committee reviews the group's financial controls, risk management, and internal control systems quarterly and reports significant findings to the board[150] - The internal risk management committee is responsible for establishing and continuously modifying the risk management system, identifying and estimating risks, and managing, monitoring, and controlling risks[152] - The risk management unit executes the risk management system, coordinates with the internal risk management committee, implements risk mitigation measures, and arranges risk management training[152] - Functional and operational units facilitate communication with the risk management unit, guide and coordinate risk management work, and identify, assess, and review risk mitigation measures[152] - The company's risk management and internal control systems were deemed effective and adequate as of December 31, 2023[155] - The company's risk assessment process includes four core stages: risk identification, risk assessment, risk response, and risk monitoring and reporting[153][154] - The company has established procedures to handle and disclose insider information in compliance with securities and futures regulations[156] - The audit committee oversees the effectiveness of the Whistleblowing Policy and monitors actions taken in response to reported concerns[157] - The company's internal audit department reviews the effectiveness of risk mitigation plans and risk management activities[154] - The company's anti-bribery policy, adopted in March 2022, promotes high standards of business ethics and compliance with anti-corruption laws[158] - No corruption-related lawsuits against the company or its employees were concluded during the year[158] - The company adopted a "Whistleblowing Policy" in March 2022 to encourage reporting of fraud, misconduct, or violations[157] - The company has a zero-tolerance policy towards bribery in any form across all jurisdictions where it operates[158] Sustainability and ESG - The company has established a sustainability team and an ESG task force to manage environmental risks, and has implemented measures to reduce carbon emissions, particularly in energy conservation[58] - The company has implemented a climate change policy to assess, identify, and manage climate-related risks and opportunities, aiming to reduce energy and resource consumption[64] - The company follows local environmental laws and adopts environmental policies of the brands it distributes, ensuring low emissions and optimized waste management across the value chain[64] - The company has established dedicated units, such as the Sustainability Team and ESG Task Force, to achieve better ESG ambitions and become a sustainable enterprise[64] - The company's total donations for the year amounted to approximately RMB 1.1 million (2022: RMB 0.5 million)[73] Operational Efficiency and Cost Management - Sales and distribution expenses decreased to 27.9% of revenue in 2023, down from 31.2% in 2022[24] - Capital expenditure increased to RMB 344.2 million in 2023, up from RMB 311.6 million in 2022[30] - Committed but not yet provided capital expenditure for property, machinery, and equipment was RMB 63.6 million as of December 31, 2023[30] - Future undiscounted cash flows for new leases with an average irrevocable period of 1 to 3 years amounted to RMB 5.7 million as of December 31, 2023[30] - The company has no significant contingent liabilities as of December 31, 2023[30] - The company does not use significant hedging financial instruments for foreign exchange risk[31] - The company aims to prioritize profit margins and pursue quality growth in 2024[32] - The company plans to enhance profitability through digital transformation, dynamic inventory control, and efficient working capital management[32] - The company has made significant investments in technology infrastructure, including the adoption of a new

Financial Performance - For the fiscal year ended December 31, 2023, the total revenue reached RMB 20,064,497 thousand, representing a 7.7% increase from RMB 18,638,021 thousand in 2022[2] - The operating profit surged by 77.5% to RMB 735,861 thousand, compared to RMB 414,530 thousand in the previous year[2] - The profit attributable to the owners of the company increased significantly by 450.0% to RMB 490,425 thousand, up from RMB 89,164 thousand in 2022[2] - The basic earnings per share rose to RMB 9.47, a remarkable increase of 450.6% from RMB 1.72 in the prior year[2] - Total comprehensive income for the year amounted to RMB 502,102 thousand, compared to RMB 97,293 thousand in 2022[5] - The company achieved a significant increase in net profit attributable to shareholders, rising 450.0% to RMB 490.4 million[36] - The gross profit for 2023 was RMB 6,756.0 million, with a gross margin of 33.7%, down 2.2 percentage points from 35.9% in 2022[39] - The operating profit increased by 77.5% to RMB 735.9 million, with an operating margin of 3.7%, up 1.5 percentage points year-on-year[41] - The company recorded a net profit of RMB 503.2 million in 2023, a significant increase of 402.0% compared to the fiscal year 2022[43] Cash and Assets - Cash and cash equivalents increased by 53.6% to RMB 1,827,563 thousand, compared to RMB 1,190,148 thousand in 2022[2] - The net asset value increased to RMB 8,610,581 thousand, up from RMB 8,193,920 thousand in the previous year[7] - As of December 31, 2023, the company's cash and bank balances reached RMB 2,874.2 million, up from RMB 1,190.1 million in 2022, while total bank borrowings decreased by 91.4% to RMB 39.2 million[45] - The net cash level increased significantly to RMB 2,835.0 million in 2023, compared to RMB 734.0 million in 2022[45] Dividends and Shareholder Information - The company proposed a final dividend of HKD 0.0120 per share, with an interim dividend of HKD 0.0185 per share declared earlier[2] - The company declared an interim dividend of HKD 0.0185 per share for 2023, compared to HKD 0.016 per share in 2022, reflecting an increase of about 9.38%[20] - The company proposed a final dividend of HKD 0.0120 per share for the year ending December 31, 2023, amounting to approximately HKD 63.9 million, pending approval at the 2024 Annual General Meeting[54] - A total of 5,227,200 shares remain subject to vesting conditions as of December 31, 2023[52] - The company will suspend shareholder registration from May 21, 2024, to May 24, 2024, to determine eligibility for attending the 2024 Annual General Meeting[55] - The company will also suspend shareholder registration from June 4, 2024, to June 7, 2024, to determine eligibility for the proposed final dividend[56] - The 2024 Annual General Meeting is scheduled for May 24, 2024[53] Operational Efficiency and Cost Management - The company continues to focus on enhancing operational efficiency and sustainable growth through rigorous cost control and inventory optimization strategies[27] - The total employee costs for the year amounted to RMB 2,279,994,000, down from RMB 2,425,598,000 in 2022, indicating a reduction of approximately 6%[1] - The company’s total sales and distribution expenses were RMB 5,588.2 million, accounting for 27.9% of total revenue, a decrease from 31.2% in 2022[40] - The average inventory turnover period improved to 148 days in 2023, down from 208 days in 2022, with inventory amount decreasing from RMB 6,071.9 million to RMB 4,704.7 million[44] Digital Transformation and Sales Growth - The company is focused on digital transformation, including the implementation of an upgraded ERP system to enhance operational efficiency[35] - The company continues to invest in optimizing store layouts and integrating digital services to enhance consumer experience and drive higher average transaction values[31] - Online sales contributed approximately 27% to total sales in 2023, up from 24% in 2022, indicating a strong trend in digital sales[32] - The company's sales through all channels, including online platforms, recorded an annual growth of over 22%, demonstrating the effectiveness of its digital transformation efforts[27] - The company’s private traffic channels recorded strong sales growth, contributing to offline direct retail sales[32] Market and Industry Insights - The sports industry in the Greater China region is expected to reach a market value of RMB 5 trillion by 2025, driven by government initiatives and upcoming events like the Paris Olympics[50] - The retail sales of clothing, footwear, and textiles in China grew by 12.9% year-on-year in 2023, outperforming the overall retail sales growth of 7.2%[27] Compliance and Governance - The company has complied with all applicable corporate governance codes and best practices throughout the year ending December 31, 2023[60] - The independent auditor, Deloitte, confirmed that the consolidated financial statements for the year ending December 31, 2023, align with the figures approved by the board on March 13, 2024[59] - The company has adopted the standard code for securities transactions by directors and confirmed compliance throughout the year ending December 31, 2023[61] Store Operations - The total number of direct-operated stores in Greater China decreased to 3,523 by December 31, 2023, from 4,093 at the beginning of the year, a net reduction of 570 stores[30] - The company continues to invest in optimizing store layouts and integrating digital services to enhance consumer experience and drive higher average transaction values[31]