股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 九興控股有限公司 呈交日期: 2025年8月6日 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01836 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 836,836,000 | | | | 836,836,000 | | 增加 / 減少 (-) | | | 180,000 | | | | | | 本月底結存 | | | 837,016,000 | | 0 | | 837,016,000 | 第 2 頁 共 10 頁 v 1.1.1 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | ...

Core Viewpoint - The company is experiencing short-term pressure on profitability due to slower employee efficiency improvements and the impact of tariffs, but maintains a strong order book and is expanding its customer base, leading to a strong medium to long-term outlook [1][2]. Financial Performance - In Q2 2025, the company's revenue increased by 2.9% to $444 million, with manufacturing revenue rising by 2.5% to $433 million, and shipment volume up by 4.1% to 15.4 million pairs. The average selling price decreased by 1.7% to $28.2 per pair [1]. - The company has adjusted its profit forecast, expecting net profits of $169 million, $183 million, and $201 million for 2025-2027, with year-on-year growth rates of -1%, 9%, and 10% respectively, corresponding to a PE of 9X for 2025 and 8X for 2026 [1][2]. Production Capacity and Challenges - Production ramp-up in Indonesia and the Philippines has been slower than expected due to insufficient employee efficiency, leading to some products being produced in Vietnam, which has increased production costs [2]. - The company is accelerating the construction of its factory in Indonesia, now expected to be completed in 2026, one year earlier than initially planned, and is expanding production around its existing factory in Vietnam [2]. Customer Orders and Market Position - The company has a strong order certainty for Q4 2025 and is planning to initiate 2026 order planning in Q3. It is also progressing with new customer collaborations, including two new sports clients and one luxury client expected to be developed in 2026 [1][2]. - The company is recognized as a leading manufacturer in the sports fashion footwear sector, with stable core customer orders and high product barriers, indicating strong medium to long-term certainty despite short-term challenges [2].

Investment Rating - The report maintains a strong buy rating for the company [1][4] Core Views - The company's manufacturing business revenue increased by 2.5% in Q2 2025, with a shipment volume increase of 4%, but the average selling price decreased by 2% [1] - Employee efficiency improvements are slower than expected, leading to capacity ramp-up challenges, which are expected to impact short-term profitability [1] - The company is expected to bear some tariff costs in the second half of 2025, particularly in Q4, but these impacts are anticipated to lessen in the following year [1] - The company has a strong order book for Q4 2025 and is actively expanding its customer base, with plans to onboard new clients in 2026 [1] Financial Data and Valuation - Total revenue for 2025 is projected at $1.614 billion, with a year-on-year growth rate of 4% [3] - Net profit for 2025 is expected to be $169 million, reflecting a slight decline of 1% year-on-year [3] - The company’s PE ratios are projected at 9X for 2025 and 8X for 2026, indicating a favorable valuation [1][3] - The company’s total assets are expected to reach $1.420 billion by 2025, with a total liability of $317 million [8] Performance Metrics - The company’s gross margin is projected to be 24.2% in 2025, with a net margin of 10.5% [9] - Return on equity (ROE) is expected to remain stable at 15.5% for 2025 [9] - The company’s debt-to-asset ratio is projected to be 22.3% in 2025, indicating a manageable level of debt [9]

Investment Rating - The investment rating for the company is "Buy" [6] Core Insights - The company is a leading high-end footwear manufacturer with a strong design and development capability, benefiting from scarce production capacity in Southeast Asia. It has established deep partnerships with renowned international brands such as Nike, Balenciaga, Prada, and UGG, covering a diverse range of athletic, luxury, fashion, and casual brands. The average selling price (ASP) for 2024 is projected to be $28.4, significantly above industry standards, with a diversified production layout that is rare in the market [1][4] - Despite external disruptions such as tariffs, the company has secured a robust order book for Q1-3, with expectations for improved order visibility in Q4 due to positive developments in US-China trade negotiations. The company anticipates maintaining mid-single-digit growth in shipment volume for the year, with ASP remaining stable [2][4] - The company is accelerating its capacity expansion, particularly in Indonesia and Bangladesh, with expectations of short-term fluctuations in profit margins due to new factory ramp-up and employee training. However, the long-term growth trend remains positive [3][4] Financial Summary - Revenue projections for 2024-2027 are as follows: $1.545 billion in 2024, $1.621 billion in 2025 (up 4.94%), $1.743 billion in 2026 (up 7.48%), and $1.867 billion in 2027 (up 7.12%). Net profit attributable to the parent company is expected to be $171.1 million in 2024, $165.1 million in 2025 (down 3.47%), $184.9 million in 2026 (up 11.98%), and $204.4 million in 2027 (up 10.56%) [5][11] - The company is expected to maintain a dividend payout ratio of 70% in 2025, with a commitment to a $60 million share buyback or special dividend, resulting in a dividend yield of 11% [4][11]

Financial Performance - The company's revenue for 2023 was $1,545,114 thousand, reflecting a 3.5% increase compared to 2022[15]. - Shareholders' profit attributable for 2023 was $171,049 thousand, representing a 21.2% increase from 2022[18]. - The compound annual growth rate (CAGR) from 2021 to 2024 is projected to be 21.5%[24]. - The operating profit margin for 2023 was 10.7%, with a forecasted increase to 11.9% in 2024[25]. - The company achieved an operating profit margin of 11.9% in 2024, up from 10.7% in 2023, exceeding the target of 10% set in the three-year plan (2023-2025) for the second consecutive year[34]. - Return on invested capital (ROIC) increased significantly to 21.6% in 2024, more than double the 10% recorded in 2019, reflecting the effectiveness of the long-term strategy implemented in 2023[35]. - Consolidated revenue increased by 3.5% to $1,545,100,000, with shipment volume rising by 8.2% to 53,000,000 pairs[49]. - Gross profit grew by 4.7% to $384,000,000, resulting in a gross profit margin of 24.9%[51]. - Operating profit rose by 15.7% to $184,500,000, benefiting from increased orders for athletic footwear and improved operational efficiency[52]. - Net profit for the year was $170,100,000, reflecting an increase from $140,300,000 in the previous year[53]. - The return on invested capital (ROIC) reached 21.6%, significantly up from approximately 10% in 2019[55]. - Net cash position improved by 45.3% to $417,600,000, compared to $287,400,000 at the end of 2023[56]. - The company aims to achieve a low double-digit percentage compound annual growth rate for after-tax profit in the upcoming years[37]. - The company has a history of strong financial performance, which supports its dividend distribution strategy[171]. Strategic Initiatives - The company has launched its first three-year strategic plan for 2023-2025[12]. - The company plans to further invest in design and development capabilities for leather products, including handbags and accessories[10]. - The company aims to become a preferred partner in the leather goods sector, enhancing its supply chain efficiency[5]. - The three-year plan includes expanding and diversifying production bases to stabilize cost structures and enhance operational efficiency[46]. - The company is expanding its production capabilities in Southeast Asia, including new factories in Indonesia and Vietnam[12]. - The company is focusing on strengthening partnerships with major sports brands and luxury fashion brands to support growth in the athletic and luxury footwear categories[46]. - The company anticipates moderate growth in overall shipments by 2025, despite macroeconomic challenges and geopolitical uncertainties, by increasing shipments to high-end fashion clients and new customers in the sports category[59]. - The company aims to enhance its handbag and accessories manufacturing business as a key growth pillar, considering the acquisition of a small handbag and accessories factory in Vietnam to leverage its expertise[60]. Corporate Governance - The board of directors is responsible for leading and overseeing the company’s affairs to promote success and ensure decisions align with the group’s best interests[80]. - The corporate governance committee focuses on compliance, risk management, investor relations, and corporate social responsibility, ensuring adherence to governance codes[81]. - The company has adopted stock option and share reward plans to recognize and reward employee contributions, aiming to retain talent and support ongoing operations[75]. - The board consists mainly of independent non-executive directors, ensuring strong independent elements for effective judgment and decision-making[86]. - The corporate governance practices reflect compliance with all governance code provisions throughout the year 2024[84]. - The corporate governance committee has conducted reviews of the annual governance report and related disclosures, ensuring transparency and accountability[85]. - The board has adopted a continuous evaluation process to assess its performance regularly[91]. - The company has established a board diversity policy, considering various factors such as gender, age, and professional experience in the nomination process[88]. - The gender ratio among employees is currently 4:1 in favor of males, with ongoing efforts to enhance gender diversity in recruitment[90]. - The nomination committee consists of four independent non-executive directors, with a focus on maintaining board diversity and independence[97]. - Independent non-executive directors are subject to a nine-year term limit, after which their reappointment requires an independence assessment[96]. - The company has implemented a formal and transparent procedure for appointing new directors, ensuring a structured succession plan[95]. - Directors receive ongoing training to stay updated on the company's operations and regulatory environment, with various training types categorized as legal, business, and financial[101]. - The board evaluation process includes feedback through questionnaires and interviews to improve efficiency and effectiveness[92]. - The company has established a system for regular review of business and financial performance, allowing for timely follow-up on unresolved issues[106]. Risk Management - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve strategic objectives, including significant risks related to environmental, social, and governance (ESG) factors[118]. - The internal control system is designed to manage risks within an acceptable risk profile rather than completely eliminate risks associated with achieving business objectives[118]. - The company conducts an annual review of its risk management and internal control systems to ensure they meet the requirements for financial reporting and listing rules[119]. - No significant internal control failures or weaknesses were identified during the year, indicating the effectiveness of the company's risk management and internal control systems[119]. - The internal audit team reports directly to the audit committee, chairman, and CEO, ensuring oversight of internal control matters[120]. - The company’s risk management and internal control systems have been comprehensively reviewed and positively assessed by third-party professional institutions[119]. Shareholder Returns - A final dividend of HKD 0.50 per share and a special dividend of HKD 0.56 per share were proposed, reflecting a commitment to return approximately 70% of adjusted net profit to shareholders[36]. - The board proposed a final dividend of HKD 0.50 per ordinary share and an interim dividend of HKD 0.65 per ordinary share, maintaining a payout ratio of approximately 70% based on adjusted net profit of USD 4,171,200,000[63]. - For the fiscal year ending December 31, 2024, the total dividend per ordinary share is projected to be HKD 1.71, subject to shareholder approval[64]. - The company plans to return up to $60,000,000 in additional cash to shareholders annually over the next three years as part of its excess cash return plan[49]. - The board aims to provide a cash return of 70% to shareholders through dividends and share buybacks, ensuring sufficient financial resources for business growth[170]. - The company has adopted a dividend policy to provide stable and sustainable dividends during profitable periods while maintaining financial resources for growth[170]. Employee Relations - The company emphasizes the importance of human resources as a key asset for development and expansion, actively seeking to attract, train, and retain motivated talent[75]. - The company is committed to a caring culture for employees, recognizing human resources as a vital asset for development and expansion, and aims to build management teams through effective training and development programs[191]. - As of December 31, 2024, the group has approximately 42,600 direct employees, an increase from about 39,900 on December 31, 2023, with a total workforce of around 63,200[75]. Market Position - The company has established a strong customer base, including leading global brands such as Nike and Coach[9]. - The company has been included in the Hang Seng Composite Index (HSCI), enhancing its market position and attractiveness to investors[35]. - The company was included in the Hang Seng Composite Index, enhancing global investor participation and liquidity[48]. - The company is focused on expanding its high-end fashion customer base and establishing a fashion sports footwear business, which is a key growth driver[157].

九兴控股 20250402 摘要 Q&A 九兴控股 2024 年的业绩表现如何？ 九兴控股在 2024 年实现了显著的业绩增长。集团收入同比增长 3.5%，主要由 出货量上升推动，出货量增长约 8%。尽管平均单价下滑了约 4%，但这主要是由 于运动板块的最大客户贡献了较大的增长，而运动板块的平均单价通常低于集 • 九兴控股 2024 年净利润同比增长 21.3%至 1.7 亿美元，现金储备达历史新 高 1.18 亿美元，同比增长 45%，支持高派息及额外现金回报计划。预计 2025 年通过新增产能带动出货量增长约 5%，收入预计增长中个位数。 • 公司战略重心转向产能扩张，目标 2025 年经营利润率提升 50 个基点至 12.4%，预计经营利润达 1.85 亿至 1.89 亿美元。新增产能主要来自凡甲和 印尼丘鲁市的新工厂，分别于 2025 年 1 月和第四季度投产，服务于安德玛 和利德曼等新客户。 • 公司通过优化板块占比提升经营利润率，目前已达稳定状态。越南工厂通 过提升效率增加产能，主要服务于时尚品牌。预计 2025 年耐克订单与 2024 年持平，工厂使用率维持在 80%左右，新款开发数量较去年翻倍 ...

摘要 Q&A 请简要回顾一下九星控股 2024 年的业绩表现。 2024 年，九星控股的收入达到 15.45 亿美元，同比增长约 3.5%。尽管平均单价 下调了约 4%，但出货量增长了 8.2%。毛利率提升了 30 个基点，达到 24.9%， 经营利润率则达到了 11.9%，增长了 1.2 个百分点。集团的经营利润总额为 1.85 亿美元，同比增长 16%。净利润增长 21%，达到 1.7 亿美元。净现金流约 为 1,180 万美元，同比增长 45%。 • 九星控股 2024 年经营利润率达 11.9%，同比增长 1.2 个百分点，经营利润 总额 1.85 亿美元，同比增长 16%，净利润增长 21%至 1.7 亿美元，净现金 流同比增长 45%至 1,180 万美元，显示出强劲的盈利能力。 • 公司计划将调整后净收益的 70%用于股东分红，并宣布 2024-2026 年每年 通过特别股息返还股东 6,000 万美元，预计 2025 年每股普通分红 115 港仙， 加上特别现金回报 56 港仙，总计 171 港仙，同比增长 66%。 • 九星控股通过优化产能配置和客户结构提高盈利能力，新增 ARM 等高端运 ...

Financial Performance - Shipment volume increased by 8.2%[2] - Operating profit rose by 15.7% to $184.5 million, with an operating margin increase from 10.7% to 11.9%[2] - Net profit increased by 21.2% to $170.1 million[2] - Revenue for the year reached $1,545.1 million, compared to $1,492.7 million in the previous year[5] - Gross profit increased to $384.0 million from $366.7 million, reflecting a growth in gross margin[5] - Basic earnings per share increased to HK$1.6490 from HK$1.3937, equivalent to $0.2113 from $0.1780[7] - The operating profit before fair value changes of financial instruments was $184,534 thousand, with a net profit before tax of $198,822 thousand, reflecting a solid financial performance[25][29] - The company reported a pre-tax profit of $198,822,000 for 2024, up from $161,336,000 in 2023, reflecting a growth of approximately 23%[52] - Net profit for the year was $170,100,000, reflecting an increase from $140,300,000 in 2023, with an adjusted net profit margin of 11.1%[95] Cash Flow and Financial Position - Strong net cash position of $417.6 million, up 45.3% from $287.4 million as of December 31, 2023[2] - Cash flow from operating activities amounted to $264.1 million, compared to $229.2 million in the previous year[12] - Cash and cash equivalents increased by $130,071 thousand in 2024, up from $81,792 thousand in 2023[14] - The ending cash and cash equivalents balance for 2024 was $423,547 thousand, an increase from $294,471 thousand in 2023[14] - The company maintained a net cash position of USD 417.6 million as of December 31, 2024, compared to USD 287.4 million as of December 31, 2023, with a net capital debt ratio of -37.4%[107] - The current ratio as of December 31, 2024, was 3.2, indicating strong liquidity and financial stability, compared to 3.1 as of December 31, 2023[105] Dividends and Shareholder Returns - Proposed final dividend of HK$0.50 per share and an additional special dividend of HK$0.56 per share, totaling HK$1.71 for the year 2024[2] - The proposed final dividend for 2024 is approximately $112,998,000, compared to $63,415,000 in 2023, indicating a commitment to returning value to shareholders[57] - The company achieved a cash return to shareholders with a proposed final dividend of HKD 0.50 per share and an interim dividend of HKD 0.65 per share, maintaining a payout ratio of approximately 70% based on adjusted net profit of USD 171.2 million[103] Investments and Capital Expenditures - Capital expenditures for the year were $66,980 thousand, indicating ongoing investment in property, plant, and equipment[27][31] - The company plans to gradually increase production capacity in new factories in Solo, Indonesia, and Bangladesh as part of its 2023-2025 strategy[81] - The company is considering acquiring a small handbag and accessories factory in Vietnam to enhance its production capabilities and accelerate growth in this segment[102] Market and Revenue Segmentation - North America accounted for the largest share of revenue at $732,874 thousand, followed by Europe at $361,676 thousand and China at $260,219 thousand[32] - The manufacturing segment generated external sales of $1,542,519 thousand, while the retail and wholesale segment contributed $2,595 thousand, indicating a strong reliance on manufacturing for revenue[25][37] - The average selling price of footwear decreased by 4.4% to $28.4 per pair due to a higher proportion of lower-priced athletic products[88] Employee and Operational Metrics - The total number of employees increased to approximately 63,200 as of December 31, 2024, from about 59,800 the previous year, reflecting the company's growth and expansion efforts[117] - The company’s total employee benefits expenses rose to $376,224,000 in 2024, up from $363,132,000 in 2023, reflecting increased workforce costs[44] Sustainability and Governance - The MSCI ESG rating improved from "B" to "A" in 2024, reflecting the company's commitment to sustainability goals[78] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange and has complied with all relevant provisions for the year ending December 31, 2024[121] Miscellaneous - The company did not recognize any impact from the revised Hong Kong Financial Reporting Standards on its financial position or performance for the year[19] - The company has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended December 31, 2024[112] - The board is not aware of any significant matters affecting the company or its subsidiaries since the end of the financial year[127]

Financial Performance - The company achieved an operating profit margin of 12.9% in the first half of 2024, up from 10.7% in 2023, exceeding initial targets[3]. - Revenue and shipment volume increased significantly in the first half of 2024, driven by early shipments to clients in anticipation of the summer travel season[3]. - The company's consolidated revenue for the six months ended June 30, 2024, increased by 7.5% to $770 million, compared to $716.1 million in the same period of 2023[10]. - The gross profit grew by 20.0% to $198.9 million, with a gross margin of 25.8%, up from 23.1% in the previous year[11]. - Operating profit surged by 52.9% to $99.1 million, with an operating profit margin of 12.9%, compared to 9.0% in the same period last year[12]. - Net profit reached $91.5 million, significantly higher than $55.2 million in the prior year, with adjusted net profit at $392.9 million, up from $60.3 million[13]. - The group reported a profit before tax of $572,005,000 for the six months ended June 30, 2024, up from $546,018,000 in the same period of 2023, indicating a growth of approximately 4.8%[41]. - Basic earnings per share for the six months ended June 30, 2024, were $0.114, compared to $0.070 for the same period in 2023, representing a significant increase of 62.9%[45]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.65 per share, consistent with a long-term payout ratio of 70%[3]. - The company plans to return up to USD 60 million to shareholders annually over the next three years through a combination of share buybacks and dividends[3]. - A mid-term dividend of HKD 0.65 per share was declared, maintaining a payout ratio of approximately 70% based on adjusted net profit[17]. - The group declared an interim dividend of 65 Hong Kong cents per share, amounting to approximately $67,857,000, compared to 45 Hong Kong cents per share in the previous year[44]. Production and Operational Efficiency - The company is focusing on expanding high-margin product capacity, starting with a new factory in Solo, Indonesia, to optimize production efficiency[3]. - The company aims to enhance production capacity in its new factory in Indonesia and continue expanding its manufacturing facilities in Bangladesh[16]. - The company is enhancing its production capabilities in Bangladesh and Indonesia to stabilize its cost base and improve operational efficiency[8]. - The company’s non-sport footwear production facilities have been operating near full capacity since last year, despite a slowdown in the global luxury market[3]. Cash Flow and Financial Position - The company maintained a strong net cash position of $326.1 million as of June 30, 2024, compared to $162.5 million a year earlier[14]. - As of June 30, 2024, the group's cash and cash equivalents amounted to approximately $334.6 million, an increase of 92.9% compared to $173.5 million on June 30, 2023[18]. - The net cash inflow from operating activities for the six months ended June 30, 2024, was $99.2 million, significantly higher than $28.2 million for the same period in 2023[18]. - The group’s current ratio as of June 30, 2024, was 3.2, indicating strong liquidity compared to 3.1 on December 31, 2023[18]. - The group reported a decrease in cash outflow for investing activities to $15.7 million, down 29.9% from $22.4 million for the same period in 2023[18]. Employee and Workforce Metrics - The total number of direct employees increased to approximately 42,100 as of June 30, 2024, compared to about 39,900 on December 31, 2023[21]. - The total remuneration paid to key management personnel was $871,000, down from $1,066,000 in the previous year, indicating a decrease of 18.3%[100]. Stock Options and Incentive Plans - The company’s long-term incentive plan allows for the issuance of stock options, with a total of 27,970,000 options granted under the plan[59]. - The company has a practice of not cash settling stock options, and all options are accounted for as equity-settled plans[64]. - The new share option plan ("2024 Plan") was approved by shareholders on May 9, 2024, and is effective for ten years from the adoption date[133]. - The purpose of the 2024 Plan is to reward qualified participants for their contributions to the group's growth, attract and retain talent, and align the interests of participants with those of shareholders[134]. - The total number of stock options granted across the three periods amounts to 34,000,000, with varying exercise prices and vesting schedules[126]. Sustainability and ESG Ratings - The company received an upgraded MSCI ESG rating to "A" as part of its commitment to sustainability and transparency[4]. Market and Revenue Breakdown - North America and Europe accounted for 46.8% and 24.6% of total revenue, respectively, while China, Asia (excluding China), and other regions contributed 16.7%, 9.0%, and 2.9%[10]. - Revenue from footwear and handbag sales in the manufacturing segment was $769,067 thousand, with significant contributions from various regions including North America at $360,241 thousand[39]. Governance and Compliance - The company has complied with all provisions of the corporate governance code during the six-month period ending June 30, 2024[118]. - The company emphasizes a governance model that combines corporate governance with business governance to create long-term value[119].

Financial Performance - Revenue grew by 7.5% to $770 million[2] - Adjusted net profit rose by 54.1% to $92.9 million[2] - Total comprehensive income for the period amounted to $91.9 million, compared to $55.7 million in the previous year[5] - Basic earnings per share increased to 11.5 cents from 7.0 cents year-on-year[5] - The group acquired property, plant, and equipment amounting to $27,434,000 for the six months ended June 30, 2024, up from $22,803,000 in the same period of 2023, an increase of 20.5%[30] - The operating profit before fair value changes of financial instruments was $99,052 thousand, with a net fair value loss of $1,369 thousand, resulting in an operating profit after fair value changes of $97,683 thousand[24] - The company reported a pre-tax profit of $105,393 thousand for the six months ended June 30, 2024[24] - The cost of goods sold for the six months ended June 30, 2024, was $572,005 thousand, compared to $546,018 thousand for the same period in 2023, indicating an increase of approximately 4.8%[24] - Operating profit surged by 52.9% to $99.1 million, resulting in an operating margin of 12.9%, compared to 9.0% in the same period last year[45] - Net profit reached $91.5 million, significantly higher than $55.2 million in the prior year, with adjusted net profit at $92.9 million, up from $60.3 million[46] Cash Flow and Liquidity - Strong net cash position of $326.1 million, compared to $162.5 million as of June 30, 2023[2] - Operating cash flow before tax profit increased to $105,393 thousand in the first half of 2024, up from $63,453 thousand in the same period of 2023, representing a growth of 66.4%[8] - Net cash flow from operating activities reached $99,178 thousand, significantly higher than $28,246 thousand in the previous year, indicating a year-over-year increase of 250.5%[8] - Cash and cash equivalents increased by $40,680 thousand, compared to a decrease of $38,520 thousand in the same period last year, showing a positive turnaround[9] - Total cash and cash equivalents at the end of the period stood at $334,585 thousand, up from $173,519 thousand in the previous year, reflecting a growth of 92.7%[9] - The company maintained a strong liquidity position with cash and bank balances (excluding time deposits) at $68,323 thousand, down from $75,526 thousand in the previous year[9] - The company's net cash position improved to $326.1 million as of June 30, 2024, compared to $162.5 million a year earlier, with $140 million reserved for new factory projects[47] Dividends and Shareholder Returns - Declared interim dividend of HK$0.65 per share, with a payout ratio of approximately 71.5% based on adjusted net profit[2] - The board approved a maximum return of $180 million to shareholders over the next three years through a combination of share buybacks and special dividends[2] - The company declared a final dividend of 61 HK cents per ordinary share, amounting to approximately $63,415 thousand, compared to 45 HK cents per share in the same period of 2023[27] - The board declared an interim dividend of HKD 0.65 per share, consistent with a long-term payout ratio of 70%[36] - The board declared an interim dividend of 65 cents per ordinary share for the six months ending June 30, 2024, expected to be paid on September 20, 2024[60] Operational Highlights - Shipment volume increased by 12.3%, primarily driven by athletic footwear products[2] - The company expects to maintain its growth trajectory with continued focus on market expansion and new product development[1] - North America and Europe remain the largest markets, accounting for 46.8% and 24.6% of total revenue, respectively[43] - The average selling price of footwear decreased by 4.4% to $28.3 per pair due to a higher proportion of lower-priced athletic products[43] - The company is focusing on expanding high-margin product capacity, starting with a new factory in Solo, Indonesia, to enhance production flexibility[35] - The company is enhancing production capacity in its new factory in Solo, Indonesia, and is also focused on increasing capacity in Bangladesh starting in 2023[39] - The company plans to optimize its product mix, with non-sport product factories operating near capacity in the second half of 2024[50] Employee and Governance - As of June 30, 2024, the company had approximately 42,100 direct employees, an increase from about 39,900 on December 31, 2023[58] - The total number of employees, including indirect hires, was approximately 63,510[58] - The company has implemented long-term incentive and share reward plans to recognize and retain employees[58] - The company emphasizes attracting, training, and retaining passionate talent as a key asset for its development and expansion[58] - The company adhered to the corporate governance code and complied with all provisions during the reporting period[61] - The governance model combines corporate governance with business governance to create long-term value for the group[62] Financial Position - Total assets for the manufacturing segment increased to $1,367,338 thousand as of June 30, 2024, from $1,315,496 thousand as of December 31, 2023[21] - The company’s total liabilities increased to $301,607 thousand as of June 30, 2024, from $292,237 thousand as of June 30, 2023[19] - The company reported a fair value loss of $1,364,000 on financial assets for the six months ended June 30, 2024, compared to a loss of $5,056,000 for the same period in 2023[34] - Interest income for the six months ended June 30, 2024, was $8,094 thousand, while interest expenses were $384 thousand[24] - The company has not reported any supplier financing arrangements, indicating no impact from recent accounting standard revisions on its financial position[13] Sustainability and ESG - The company's MSCI ESG rating was upgraded from "B" to "A", reflecting improved sustainability practices and transparency[48]