Financial Performance - Revenue for the first half of 2023 was $4,155.0 million, a decline of 11.8% compared to $4,709.8 million in 2022[13] - Gross profit decreased to $977.7 million, down 10.8% from $1,095.7 million year-on-year[13] - Profit attributable to owners of the company was $83.6 million, a significant drop of 52.2% from $175.0 million in the previous year[13] - Basic earnings per share fell to 5.19 cents, down 52.3% from 10.87 cents in the same period last year[13] - The interim dividend was reduced to HK$0.20 per share, a decrease of 50.0% compared to HK$0.40 in the previous year[13] - The operating profit margin decreased to 3.7%, down from 4.5% in the previous year[13] - Return on equity was 4.1%, down from 8.4% year-on-year[13] - Net profit for the six months ended June 30, 2023, was $105,011 thousand, a decline of 40.5% compared to $176,474 thousand in the prior year[19] - The group reported a net profit of $38,216 thousand for the six months ended June 30, 2023, down from $47,474 thousand in the same period of 2022, representing a decrease of 19.5%[41] Revenue Breakdown - Total footwear shipments decreased to 109.8 million pairs, down 23.8% from 144.1 million pairs in the previous year[13] - Revenue from the manufacturing business, including footwear, soles, and accessories, was $2,573.9 million, a decrease of 19.3% year-on-year[66] - Revenue from retail business increased to $1,581,073 thousand for the six months ended June 30, 2023, compared to $1,520,893 thousand in the same period of 2022, reflecting a growth of 3.9%[36] - Revenue from the United States decreased to $707,210 thousand in 2023 from $1,119,946 thousand in 2022, a decline of 36.8%[38] - Revenue from Europe also decreased to $696,045 thousand in 2023 from $856,220 thousand in 2022, a decline of 18.7%[38] Cost and Expenses - Gross profit for the same period was $977,710 thousand, down 10.8% from $1,095,738 thousand year-on-year[18] - Total sales and distribution expenses fell by 12.1% to $473.4 million, maintaining a ratio of approximately 11.4% of revenue[73] - The manufacturing cost of goods sold was $2,125.7 million, a decrease of 19.2% compared to $2,632.1 million in the previous year[72] - The total employee costs for the six months ended June 30, 2023, were $1,066,381 thousand, a decrease of 8.9% from $1,170,303 thousand in the same period of 2022[42] Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2023, was $363.589 million, a significant increase from $8.759 million in the same period last year[25] - Total cash inflow from operating activities reached $363.6 million, a substantial increase from $8.7 million in the same period last year, with free cash flow turning positive at $281.0 million compared to a negative $102.7 million previously[76] - Cash and cash equivalents at the end of the period were $907,244 thousand, up from $784,351 thousand at the end of the same period in 2022[26] - The current ratio improved to 2.3 times, compared to 2.1 times in the previous year[13] - Net leverage ratio decreased to 5.3%, down from 9.0% in the previous year[13] Investments and Future Plans - The company plans to focus on new product development and market expansion strategies to enhance future performance[19] - The company plans to invest approximately ₹23 billion (approximately $276 million) in a production base in an economic zone in India, as per the memorandum of understanding signed with the Tamil Nadu government[57] - The group is actively seeking potential opportunities and investment projects to support sustainable growth, with plans for future significant investments[81] Corporate Governance and Compliance - The company has adopted accounting principles and practices reviewed by the audit committee and management, ensuring compliance with financial reporting standards[116] - Deloitte has issued a review report on the interim financial data for the period without any reservations, confirming the accuracy of the financial statements[117] - The company maintains high standards of corporate governance, adhering to the principles outlined in the corporate governance code[117] - All directors have confirmed compliance with the established code of conduct for securities trading during the reporting period[117] Employee and Shareholder Information - As of June 30, 2023, the company employed approximately 276,800 employees, a reduction of 14.2% from about 322,500 employees on June 30, 2022[85] - Major shareholders include Baocheng with 824,143,835 shares (51.11%), Wealthplus Holdings Limited with 773,156,303 shares (47.95%), and Merrill Lynch & Co. Inc. with 99,315,703 shares (6.16%) as of June 30, 2023[107] - The total number of issued shares for the company was 5,326,179,615 shares[95] Sustainability and Social Responsibility - The company has received recognition for its sustainability efforts, ranking among the top three in the "Best Environmental, Social, and Corporate Governance" category by Institutional Investor and achieving a CDP climate change rating upgrade to "B"[64] - The company emphasizes a people-centric approach, focusing on employee health, safety, and well-being as part of its long-term sustainability strategy[64] - The company has received certification from the Fair Labor Association (FLA), becoming the first and only certified footwear supplier globally[86]

Financial Performance - The company's revenue for the six months ended June 30, 2023, was $4,154,968 thousand, a decrease of 11.78% compared to $4,709,792 thousand in the same period of 2022[2] - The profit attributable to the company's owners for the six months ended June 30, 2023, was $83,601 thousand, down 52.24% from $175,049 thousand in the previous year[2] - Basic earnings per share for the period were 5.19 cents, a decrease of 52.25% compared to 10.87 cents in the same period last year[2] - Total comprehensive income for the period was $29,330 thousand, significantly lower than $92,656 thousand in the same period of 2022[6] - The company's profit for the six months ended June 30, 2023, was $83,601,000, a decrease from $175,049,000 in the same period of 2022[24] - Profit attributable to the company's owners was $83.6 million, down 52.2% from $175.0 million in the previous year[32] Dividends - The interim dividend declared was HK$0.20, which is 50.00% lower than the HK$0.40 declared in the previous year[2] - The company declared an interim dividend of HK$0.20 per share for the six months ended June 30, 2023, compared to HK$0.40 per share in 2022[23] - The board declared an interim dividend of HK$0.20 per share, compared to HK$0.40 per share in 2022[51] Revenue Breakdown - Manufacturing business revenue was $2,573,895 thousand, down 19.3% from $3,188,899 thousand year-on-year[19] - Retail business revenue increased to $1,581,073 thousand, up 3.9% from $1,520,893 thousand in the previous year[19] - The total revenue from manufacturing activities, including sports/outdoor shoes, casual shoes, and sports sandals, decreased by 18.1% to $2,379.0 million, with footwear shipments down 23.8% to 109.8 million pairs[33] - BaoSheng's revenue rose by 4.0% to $1,581.1 million, attributed to improved consumer sentiment and retail foot traffic in mainland China[34] Assets and Liabilities - Non-current assets as of June 30, 2023, amounted to $3,581,612 thousand, down from $3,791,896 thousand as of December 31, 2022[7] - Current assets decreased to $3,751,090 thousand from $4,143,525 thousand at the end of 2022[8] - Current liabilities were $1,629,133 thousand, a decrease from $2,003,292 thousand in the previous year[8] - The company's net asset value as of June 30, 2023, was $4,529,538 thousand, down from $4,642,325 thousand at the end of 2022[8] - Accounts receivable amounted to $952,926,000 as of June 30, 2023, compared to $934,027,000 at the end of 2022[26] - The aging analysis of accounts payable showed a total of $397,568,000 as of June 30, 2023, compared to $426,930,000 at the end of 2022[28] Operational Efficiency - The company continues to implement strict cost control measures and enhance operational efficiency to strengthen its manufacturing business amid a challenging macroeconomic environment[31] - The group plans to continue monitoring market developments and will flexibly allocate production capacity to balance demand, order scheduling, and labor supply, focusing on cost control and cash flow management to ensure financial stability[53] - The group aims to diversify its manufacturing capacity in regions like Indonesia and India, targeting sustainable growth opportunities while enhancing its product mix through high-value orders[53] Employee and Workforce - As of June 30, 2023, the group employed approximately 276,800 employees, a decrease of 14.2% from 322,500 employees a year earlier[52] - The group maintains a competitive compensation plan and comprehensive employee benefits, including year-end bonuses based on annual profit performance[52] Market Conditions - The overall footwear industry is experiencing a destocking cycle, impacting the company's short-term operational performance and profitability[32] - The retail business is expected to show a cautious recovery trend in the second half of 2023, supported by improved foot traffic and consumer spending in mainland China[54] Financial Management - The company recorded a net cash inflow from operating activities of $363.6 million, compared to a net inflow of $8.7 million in the same period of 2022[43] - The company's bank balance and cash amounted to $959.8 million as of June 30, 2023, down from $1,018.3 million at the end of 2022[44] - The net leverage ratio (net bank borrowings to total equity) was 5.3% as of June 30, 2023, down from 9.0% at the end of 2022[44] Capital Expenditure - The group recorded a total capital expenditure of $82.6 million in the first half of 2023, down from $111.4 million in the same period of 2022[46] - Capital expenditure for the manufacturing business was $59.9 million, compared to $89.2 million in the first half of 2022[46] - The retail business's capital expenditure increased to $22.7 million, slightly up from $22.2 million in the first half of 2022[46] Corporate Governance - The company has adopted the corporate governance code principles and complied with all applicable code provisions during the reporting period[57] - The external auditor has issued a review report without reservation on the interim financial information for the period[59] - The interim results announcement and report will be published on the company's website and the Hong Kong Stock Exchange website[61]

Financial Performance - For the three months ended March 31, 2023, the company reported an unaudited consolidated profit attributable to owners of approximately $50.8 million[2]. - The total revenue for the same period was $2,107.4 million, a decrease of 12.0% compared to $2,394.4 million in the same period last year[8]. - The gross profit for the three months was $497.6 million, down from $568.3 million year-on-year[3]. - The total comprehensive income for the period was $74.4 million, down from $97.1 million in the previous year[5]. - The revenue attributable to the company was $852.4 million, a slight decline of 1.2% from $862.5 million in the same period last year, but an increase of 6.5% in RMB terms[10]. - The company reported a profit attributable to shareholders of $50.8 million, a decrease of 42.6% from $88.6 million in the same period last year[14]. Revenue Breakdown - The company experienced a 16.8% decrease in revenue from footwear activities, totaling $1,159.7 million, with a 24.0% reduction in the number of pairs shipped to 53.9 million[8]. - The total revenue for the manufacturing business, including footwear, soles, and accessories, was $1,255.0 million, a decrease of 18.1% compared to the same period last year[9]. - Gross profit decreased by 12.4% to $497.6 million, with the manufacturing segment's gross profit down 19.4% to $211.4 million[11]. - The gross margin for the manufacturing business was 16.8%, a slight decrease of 0.3 percentage points compared to the same period last year[11]. Operating Costs and Expenses - The company's financing costs increased to $22.7 million from $12.1 million year-on-year[3]. - Selling and distribution expenses totaled $241.6 million, accounting for approximately 11.5% of revenue, down from 12.1% in the previous year[12]. Strategic Initiatives - The company continues to optimize production scheduling and flexibly allocate resources to balance capacity and demand amid short-term challenges[7]. - The retail subsidiary, Pou Chen, is advancing its digital transformation and enhancing omni-channel integration to improve consumer experience[7]. - The company remains optimistic about the long-term prospects of its manufacturing business despite current macroeconomic challenges and high inventory levels affecting order visibility[15]. - The company will continue to focus on cost control and cash flow management to ensure liquidity and financial stability[15]. - The company is committed to diversifying its manufacturing capacity in regions like Indonesia and India to support sustainable growth[16]. - The company aims to leverage trends in "athleisure" and premiumization to seek higher value-added orders and improve its product mix[16]. Product Pricing - The average selling price of footwear increased by 9.6% to $21.53 per pair[8]. - The company's operating income from sports/outdoor footwear accounted for 87.6% of footwear manufacturing revenue, while casual and sports sandals made up 12.4%[8].

Financial Performance - Total footwear shipments reached 272.7 million pairs, an increase of 14.4% compared to 238.3 million pairs in the previous year[5]. - Revenue for the year was $8,970.2 million, reflecting a growth of 5.1% from $8,533.3 million in the prior year[5]. - Profit attributable to shareholders surged to $296.3 million, a significant increase of 157.5% from $115.1 million in the previous year[5]. - Free cash flow increased to $703.6 million, up 297.3% from $177.1 million in the previous year[5]. - The overall revenue for the fiscal year ending December 31, 2022, increased by 5.1% to $9 billion, up from $8.5 billion in 2021[17]. - The manufacturing segment's revenue from footwear activities rose by 28.2% to $5,706.6 million, with footwear shipment volume growing by 14.4% to 272.7 million pairs[17]. - The average selling price of footwear increased by 12.0% to $20.93 per pair, reaching a historical high[18]. - The net profit attributable to shareholders surged by 157.5% to $296.3 million, reflecting improved financial conditions[18]. - The company reported a revenue of $8,970.2 million for the year ended December 31, 2022, representing a 5.1% increase compared to the previous year[28]. - Profit attributable to the owners of the company increased by 157.5% to $296.3 million, with manufacturing business profit growing by 257.0% to $288.1 million[28]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.70 per share, a 250.0% increase from HKD 0.20 per share in the previous year[5]. - The board declared a final dividend of HK$0.70 per share for 2022, up from HK$0.20 per share in 2021[48]. - The company reported a mid-term dividend of HKD 0.40 per share for the six months ending June 30, 2022, and proposed a final dividend of HKD 0.70 per share, totaling approximately HKD 1,127,043,000[63]. Operational Efficiency and Cost Management - Selling and distribution expenses decreased to $988.5 million, representing 11.0% of revenue, down from 13.9% in 2021[37]. - The total cost of sales for the manufacturing business was $5,058.8 million, a 21.8% increase from $4,152.2 million in 2021[36]. - The company achieved significant improvements in manufacturing profitability due to economies of scale and stringent cost control measures[26]. - The company maintained a flexible capacity strategy, prioritizing quality growth and higher value-added orders amid a volatile industry environment[26]. - The company is enhancing its footwear manufacturing competitiveness by continuously reviewing brand customer order statuses and exploring new business models to mitigate operational risks[141]. Sustainability and Environmental Initiatives - The company aims to reduce greenhouse gas emissions by 46.2% by 2030 compared to the 2019 baseline[21]. - The company is actively pursuing a vision of "zero waste" and "low carbon emissions" as part of its environmental sustainability efforts[119]. - The board adopted a "Climate Change Policy" in 2021 to enhance the company's resilience to climate change risks[120]. - The company is expanding its use of renewable energy sources, including solar power and green energy procurement[120]. - The company is committed to responsible sourcing and supply chain management, ensuring compliance with international standards and promoting sustainable materials[121]. - In 2022, the company completed social responsibility assessments for 32 wholly-owned shoe factories, achieving a compliance rate of 91%[124]. Digital Transformation and Technological Advancements - The company is advancing its digital transformation strategy in both manufacturing and retail to enhance operational efficiency[19][20]. - The introduction of a new wave of SAP ERP and real-time data applications is part of the group's long-term digital transformation strategy aimed at achieving operational excellence[50]. - The company is accelerating its digital transformation and increasing investment in automated production R&D to mitigate disruptions caused by public health crises like COVID-19[143]. Market and Economic Outlook - The global economic outlook remains bleak, but there are signs of recovery in the Chinese market, which may boost consumer confidence and sales[22]. - The company continues to focus on high-value orders and agile management to navigate market challenges[18]. - Retail sales in the Greater China region contributed significantly to revenue, with a focus on stabilizing production capacity and supply amid market uncertainties[32]. Corporate Governance and Management - The company emphasizes the importance of corporate governance, with independent non-executive directors like Mr. Wang Ke-Qin and Mr. He Li-Kang bringing over 30 years of experience in auditing and banking[58]. - The company has a strong management team with extensive experience in finance and accounting, including Mr. Jan Lu-Ming, who has 42 years of experience in financial accounting[55]. - The company has established a comprehensive framework of policies and procedures to maintain high standards of corporate governance[182]. - The board consists of ten directors, with four being independent non-executive directors, meeting the requirement of at least three independent directors[198]. Employee Engagement and Talent Development - The company emphasizes talent development and retention, implementing systematic training and career development programs to ensure sustainable leadership[135]. - The company has a robust employee retention system and training programs to ensure leadership continuity and skill development[146]. - The company faces challenges in recruiting and retaining new management talent due to high turnover rates and the competitive job market[135]. Community Engagement and Social Responsibility - The company invested approximately $81,000 in community engagement activities in 2022, focusing on education, healthcare, and local relations[126]. - The company recognizes the importance of community relations and actively participates in local activities to enhance social living standards and foster harmonious relationships[126]. Risk Management and Compliance - The company has implemented a foreign exchange hedging policy to mitigate risks associated with currency fluctuations affecting production costs and operating performance[145]. - The company is committed to compliance with evolving regulations and has established governance policies to ensure ethical conduct[177]. - The company has maintained compliance with all relevant laws and regulations in key operating regions, including China, Vietnam, Indonesia, Cambodia, Bangladesh, and Myanmar, as of December 31, 2022[127].

Financial Performance - Revenue for the year ended December 31, 2022, was $8,970,228 thousand, representing a 5.12% increase from $8,533,337 thousand in 2021[2] - The recurring profit attributable to shareholders was $291,874 thousand, a significant increase of 363.13% compared to $63,022 thousand in the previous year[2] - The total profit attributable to shareholders reached $296,347 thousand, up 157.53% from $115,072 thousand in 2021[2] - Basic earnings per share increased to 18.41 cents, a rise of 157.48% from 7.15 cents in the prior year[2] - Total comprehensive income for the year was $169,665 thousand, down from $239,783 thousand in 2021[5] - The company reported a total of $106,297 thousand in income tax expenses for the year, compared to $63,159 thousand in 2021[18] - The company recorded a significant increase in recurring profit attributable to shareholders, rising 363.1% to $291.9 million[42] - Profit attributable to the owners of the company increased by 157.5% to $296.3 million, with manufacturing business profit growing by 257.0% to $288.1 million[32] Revenue Breakdown - Revenue from manufacturing business was $6,203,137 thousand, up 26.2% from $4,914,043 thousand in the previous year[13] - Retail business revenue decreased to $2,767,091 thousand, down 23.6% from $3,619,294 thousand in 2021[13] - Revenue from sports/outdoor shoes was $4,890,553 thousand, a 30.0% increase from $3,762,196 thousand in 2021[14] - Revenue from the United States was $2,043,360 thousand, an increase of 20.8% from $1,691,480 thousand in 2021[16] - Revenue from China decreased to $3,646,284 thousand, down 18.1% from $4,452,730 thousand in the previous year[16] - Major customer A contributed $2,202,664 thousand in revenue, up 25.4% from $1,755,185 thousand in 2021[18] Assets and Liabilities - Non-current assets totaled $3,791,896 thousand, a decrease from $4,118,673 thousand in the previous year[6] - Current assets decreased to $4,143,525 thousand from $4,519,411 thousand in 2021[7] - Total liabilities decreased to $3,289,096 thousand from $3,933,633 thousand in the previous year[7] - The net asset value attributable to shareholders increased to $4,189,711 thousand from $4,098,458 thousand in 2021[7] - Non-current assets in China decreased to $1,092,324 thousand from $1,301,736 thousand in the previous year[17] Dividends - The proposed final dividend was increased to HKD 0.70, a 250.00% increase from HKD 0.20 in the previous year[2] - The company declared a final dividend of HKD 0.70 per share for the year ended December 31, 2022, up from HKD 0.20 per share in 2021, totaling approximately HKD 1,127,043,000[21] - The board declared a final dividend of HK$0.70 per share for 2022, up from HK$0.20 per share in 2021[52] Expenses and Costs - Employee benefits expenses increased to $2,262,412,000 in 2022 from $2,136,352,000 in 2021, reflecting a rise of approximately 5.9%[19] - The total research and development expenses for 2022 were $189,742,000, slightly up from $185,430,000 in 2021[19] - The inventory provision change for 2022 was $11,286,000, compared to $5,031,000 in 2021, indicating an increase in inventory-related costs[20] - Accounts payable and other payables decreased to $426,930,000 in 2022 from $648,527,000 in 2021, showing a reduction of approximately 34%[25] - The main material costs totaled $2,368.2 million, representing 46.8% of total sales costs, which increased by 21.8% year-over-year[40] Cash Flow and Capital Expenditure - Cash generated from operating activities was $907.9 million, significantly up from $463.1 million in the previous year, with free cash flow reaching $703.6 million[44] - The group's total capital expenditure for 2022 was $204.3 million, a decrease from $286.0 million in 2021, with manufacturing capital expenditure at $158.0 million[47] - The capital expenditure for the retail business dropped to $46.3 million in 2022 from $70.1 million in 2021, aligning with the channel optimization strategy[47] Strategic Initiatives - The group maintains an optimistic long-term outlook for its manufacturing business despite challenges such as inflation and rising interest rates impacting global demand visibility[56] - The group plans to actively manage its supply chain and production capacity to balance demand and labor supply amid uncertain short-term demand for footwear[56] - The group aims to diversify its manufacturing capacity in regions like Indonesia to support sustainable growth when demand recovers[56] - The implementation of a new SAP ERP system and real-time data applications is part of the group's long-term digital transformation strategy to achieve operational excellence[57] - The group is focused on enhancing its growth strategy and digital transformation to strengthen its omnichannel presence and upgrade physical stores[57] Employee and Governance - The group employed approximately 310,000 employees as of December 31, 2022, a decrease of 2.3% from about 317,200 employees a year earlier[53] - The company has adopted the principles of the corporate governance code and complied with all applicable provisions during the fiscal year ending December 31, 2022[59] - The company will hold its annual general meeting on May 25, 2023, to discuss various corporate matters, including the re-election of directors[64]

Financial Performance - For the nine months ended September 30, 2022, the unaudited consolidated profit attributable to owners of the company was approximately $270.1 million[2]. - Revenue for the nine months ended September 30, 2022, was $6,971.8 million, an increase from $6,441.2 million in the same period of 2021, representing a growth of 8.2%[3]. - Gross profit for the nine months ended September 30, 2022, was $1,657.9 million, compared to $1,560.3 million in 2021, reflecting a gross margin improvement[3]. - The company reported a pre-tax profit of $353.4 million for the nine months ended September 30, 2022, compared to $175.8 million in the same period of 2021, indicating a significant increase[3]. - The company’s attributable profit for the nine months ended September 30, 2022, was $270.1 million, a 171.2% increase from $99.6 million in the same period last year[14]. - The total comprehensive income for the nine months ended September 30, 2022, was $88.7 million, a decrease from $176.9 million in the same period of 2021[5]. Revenue and Sales - Revenue from footwear activities increased by 33.0% to $4,389.1 million, driven by strong global demand and a significant increase in shipment volume by 19.0% to 213.0 million pairs[8]. - The company’s total revenue from manufacturing operations, including footwear and accessories, was $4,793.4 million, an increase of 31.1% year-on-year[8]. - The average selling price of footwear increased by 11.8% to $20.61 per pair, reflecting a focus on high-value orders and product mix optimization[8]. - The company’s sales and distribution expenses totaled $773.0 million, accounting for approximately 11.1% of revenue, down from 13.7% in the previous year[12]. Operational Insights - The retail subsidiary, Pou Chen Corporation, experienced a gradual improvement in foot traffic, although the retail market atmosphere remained volatile due to stricter COVID-19 control measures[7]. - The company continues to optimize its online channels to mitigate the impact of weak physical sales and enhance interaction with consumers and business partners[7]. - The company emphasized a focus on quality growth and higher value-added orders, leveraging ongoing trends in "athleisure" and premiumization[7]. Costs and Expenses - The company’s financing costs increased to $45.8 million for the nine months ended September 30, 2022, compared to $39.0 million in the previous year[3]. - Other income for the nine months ended September 30, 2022, was $89.4 million, slightly down from $97.0 million in the same period of 2021[3]. Future Outlook - The company remains cautiously optimistic about the long-term development of its manufacturing business despite global economic uncertainties and inflation risks[16]. - The company plans to diversify its manufacturing capacity in Southeast Asia, particularly in Indonesia, to support sustainable growth[16]. - The company recorded a significant increase in profit from associates and joint ventures, reaching $54.2 million, nearly doubling from $27.4 million in the previous year[13].

Financial Performance - Revenue decreased by 2.0% to $4,709.8 million from $4,807.1 million year-on-year[7] - Gross profit declined by 11.5% to $1,095.7 million, resulting in a gross margin of 23.3%, down from 25.8%[7] - EBITDA decreased by 15.1% to $461.9 million compared to $543.9 million in the previous year[7] - Profit attributable to equity holders increased by 2.8% to $175.0 million, with basic earnings per share rising to 10.87 cents from 10.57 cents[7] - The net profit for the six months ended June 30, 2022, was $176,474 thousand, a decline of 16.2% from $210,617 thousand in the prior year[13] - The group reported a net profit for the six months ended June 30, 2022, of $175,049,000, compared to $170,255,000 in the same period of 2021, reflecting a 2.2% increase[35] Shipments and Sales - Total footwear shipments increased by 5.6% to 144.1 million pairs compared to 136.4 million pairs in the same period last year[7] - Revenue from footwear activities increased by 16.0% to $2,905.9 million, with a 5.6% rise in footwear shipments to 144.1 million pairs and an average selling price increase of 9.7% to $20.16 per pair[58] - Revenue from sports/outdoor shoes increased to $2,465,170 thousand from $2,081,424 thousand, indicating strong demand in this segment[27] - The retail subsidiary, Bao Sheng, saw a revenue decline of 24.7% to $1,520.9 million, impacted by COVID-19 lockdowns and reduced foot traffic[58] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.40 per share, not applicable in the previous year[7] - The group emphasizes maintaining a stable dividend policy to ensure sustainable returns for shareholders[76] Liquidity and Financial Ratios - The current ratio improved to 1.9 from 1.8, reflecting better short-term liquidity[7] - The debt ratio increased to 41.1% from 37.3% year-on-year, indicating a rise in leverage[7] - The group's net debt was $1,131.4 million with a net debt-to-equity ratio of 24.3%, up from $879.1 million and 19.1% as of December 31, 2021[68] Operational Efficiency and Cost Management - Selling and distribution expenses decreased by 12.4% to $538.6 million, accounting for approximately 11.4% of total revenue[64] - The cost of goods sold for manufacturing was $2,632.1 million, a 15.5% increase from $2,278.0 million in the previous year, with major material costs rising by 19.2%[63] - The total employee costs for the period were $1,170,303,000, an increase from $1,117,413,000 in the previous year[33] Market Presence and Strategic Focus - The company is focused on expanding its market presence and enhancing product development strategies[11] - The group plans to diversify its manufacturing capacity in Southeast Asia, particularly in Indonesia, to support sustainable growth and address labor supply and infrastructure needs[74] - The group aims to enhance operational efficiency and productivity through digital transformation strategies, including the implementation of a new SAP ERP system and real-time data applications[74] Environmental Commitment - The group aims to achieve zero growth in greenhouse gas emissions by 2025 compared to the 2019 baseline, with a target of a 46.2% reduction by 2030[56] - The group was recognized as one of the "Climate Leaders" in the Asia-Pacific region, achieving a 6.3% annual compound reduction in greenhouse gas emissions intensity from 2015 to 2020[56] Corporate Governance - The company has maintained compliance with the corporate governance code as per the listing rules during the six months ending June 30, 2022[100] - The board of directors includes six executive directors and four independent non-executive directors as of the report date[101] - The company is committed to high levels of corporate governance through transparency and accountability[100]

Financial Performance - For the three months ended March 31, 2022, the company reported an unaudited consolidated profit attributable to owners of approximately $88.6 million[2]. - The company's revenue for the same period was $2,394.4 million, a decrease of 4.0% compared to $2,493.3 million in the same period last year[8]. - Gross profit for the three months was $568.3 million, with a gross margin of approximately 23.7%[3]. - The company reported a total comprehensive income of $97.1 million for the period, compared to $91.96 million in the previous year[5]. - The company reported a profit attributable to shareholders of $88.6 million, an increase of 3.7% from $85.4 million in the same period last year[13]. Revenue Breakdown - The company achieved a 14.8% increase in revenue from footwear activities, totaling $1,394.2 million, driven by strong global demand[8]. - In the first three months of 2022, the group's sports/outdoor footwear accounted for 85.0% of footwear manufacturing revenue, while casual shoes and sports sandals accounted for 15.0%[9]. - The total revenue from the group's manufacturing business was $1,531.9 million, representing a 12.2% increase compared to the same period last year[9]. - The group's total revenue for the first three months of 2022 was $2,394.4 million, a decrease of 4.0% from $2,493.3 million in the same period last year[10]. Gross Profit and Margins - Gross profit decreased by 10.5% to $568.3 million, with a gross profit margin of 17.1%, down 1.1 percentage points year-on-year[11]. - The gross profit margin for the group’s subsidiary, BaoSheng, improved by 1.2 percentage points to 35.5% due to better channel mix and cautious discounting in a volatile retail environment[12]. Operating Expenses - The company's operating expenses decreased, with selling and distribution expenses at $290.2 million, down from $319.9 million year-on-year[3]. - Selling and distribution expenses totaled $290.2 million, accounting for approximately 12.1% of revenue, down from 12.8% in the previous year[12]. Strategic Focus - The company continues to prioritize quality growth and higher-value orders, leveraging trends in "athleisure" and premiumization[7]. - The company is advancing its digital transformation strategy to enhance online engagement and operational efficiency in response to retail challenges[7]. - The company maintains a cautiously optimistic outlook for continued growth in its manufacturing business, despite short-term risks from COVID-19 in mainland China and labor supply issues in Southeast Asia[15]. - The company will continue to monitor future order conditions and adapt to uncertainties in the global market, focusing on operational efficiency and productivity[16]. - The group aims to strengthen its sustainable growth and profitability through excellence in manufacturing and digital transformation strategies[16]. Challenges - The retail subsidiary, Pou Chen Corporation, faced challenges due to COVID-19 resurgence in mainland China, impacting store operations and customer traffic[7]. - The company continues to monitor future order conditions and adapt to uncertainties in the global market, focusing on operational efficiency and productivity[16].

Financial Performance - Revenue for the year was $8,533.3 million, representing a 1.0% increase from $8,444.9 million in 2020[6]. - Profit attributable to owners of the company was $115.1 million, a significant recovery from a loss of $90.8 million in 2020[6]. - EBITDA rose by 37.9% to $727.4 million from $527.5 million in 2020[6]. - The overall consolidated revenue for the fiscal year ended December 31, 2021, increased by 1.0% to $8.5 billion, compared to $8.4 billion in 2020[19]. - The group recorded a revenue of $8,533.3 million for the year ended December 31, 2021, representing a 1.0% increase compared to the previous year[26]. - The average selling price of footwear increased by 4.4% to $18.68 per pair, despite a 2.5% decrease in the number of pairs shipped, totaling 238.3 million pairs[28]. - Revenue from footwear manufacturing activities increased by 1.8% to $4,450.5 million, with sports/outdoor shoes accounting for 84.5% of footwear manufacturing revenue[28]. - Gross profit increased by 11.9% to $2,048.2 million, with an overall gross margin rising by 2.3 percentage points to 24.0%[33]. - Net profit margin rose to 1.7% in FY2021 compared to (0.9)% in FY2020, indicating a recovery in profitability[110]. Cash Flow and Capital Expenditure - Free cash flow decreased by 69.4% to $177.1 million from $578.9 million in the previous year[6]. - Capital expenditure increased by 12.0% to $286.0 million compared to $255.3 million in 2020[6]. - Cash flow from operating activities was $463.1 million, down from $834.2 million in 2020, with free cash flow at $177.1 million[39]. - The group's total capital expenditure for 2021 reached $286.0 million, an increase from $255.3 million in 2020, with manufacturing capital expenditure at $215.9 million, up from $170.6 million in 2020[43]. Debt and Equity - The total equity increased by 5.3% to $4,604.5 million from $4,374.1 million in 2020[6]. - The debt ratio improved to 37.3%, down from 42.7% in the previous year, reflecting a 12.6% decrease[6]. - The debt-to-equity ratio improved to 37.3% from 42.7% in the previous year[40]. - The net debt to equity ratio improved to 19.1% in FY2021 from 22.2% in FY2020, indicating a stronger balance sheet[110]. Sustainability and Environmental Goals - The company aims to reduce greenhouse gas emissions by 46.2% by 2030 compared to the 2019 baseline as part of its commitment to sustainability[21]. - The company is committed to achieving net-zero emissions by mid-century, aligning with the goals set at the UNFCCC COP26 and the Paris Agreement[116]. - The company has implemented a series of management policies to enhance resource efficiency and reduce environmental impact in its footwear business[112]. - The company is focusing on local suppliers to minimize supply chain disruptions and reduce carbon emissions from transportation[113]. Digital Transformation and Innovation - The company plans to enhance its digital transformation strategy, focusing on innovation, digitalization, and automation to strengthen its core competitiveness[20]. - The company is focused on digital transformation, including the implementation of a third-phase SAP ERP system to drive operational excellence[49]. - Investments in business intelligence systems and digital tools are expected to support operations and improve customer experience[50]. Market and Sales Strategy - The global sports goods industry is expected to grow at a compound annual growth rate (CAGR) of 8% to 10% until 2025, with the Chinese market projected to grow at a CAGR of 13.7% during the same period[19]. - In 2021, the contribution of omnichannel sales to the company's overall revenue reached 21%, with 4,631 directly operated retail stores and 3,786 franchised stores in Greater China by year-end[20]. - The company aims to prioritize value growth over pure sales growth, seeking high-value orders to improve product mix[49]. Employee and Management - The company continues to prioritize employee health, safety, and well-being while gradually increasing production capacity in a safe and orderly manner[19]. - As of December 31, 2021, the group employed approximately 317,200 employees, a 6.3% increase from about 298,500 employees at the end of 2020[48]. - The company has a strong management team with extensive experience in finance and accounting, including members with over 20 years of experience in the field[58]. Governance and Compliance - The company adopted the principles of the original Corporate Governance Code and complied with all applicable code provisions for the year ended December 31, 2021[163]. - The board held a total of seven meetings and one annual general meeting during the year ended December 31, 2021[166]. - The company has established appropriate insurance arrangements for directors against liabilities arising from corporate affairs, with no claims made against directors during the year[171]. Risk Management - The company is actively monitoring macroeconomic conditions and potential risks, particularly related to COVID-19 and labor supply in Southeast Asia[49]. - The company has established a sustainable development department to manage environmental risks and ensure operational continuity during severe weather events[142]. - Currency fluctuations pose a risk to the company's costs and operating performance, leading to the implementation of currency hedging strategies[144]. Community Engagement and Social Responsibility - The company actively participates in community development initiatives, focusing on quality education, health, and poverty alleviation[129]. - The group made charitable donations totaling approximately USD 5.2 million for the year ended December 31, 2021[63].

Financial Performance - Revenue for the six months ended June 30, 2021, was $4,807,087 thousand, representing a 17.66% increase from $4,085,633 thousand in the same period of 2020[9]. - The profit attributable to owners of the company for the same period was $170,255 thousand, compared to a loss of $136,758 thousand in 2020, indicating a significant turnaround[9]. - Basic earnings per share for the period was 10.57 cents, compared to a loss of 8.49 cents per share in the previous year[9]. - Gross profit for the six months was $1,238,414 thousand, up from $833,081 thousand in the prior year, reflecting improved operational efficiency[14]. - Other income increased to $64,670 thousand from $46,839 thousand, contributing positively to overall financial performance[14]. - Financing costs decreased to $27,312 thousand from $37,866 thousand, indicating better management of financial expenses[14]. - The company reported a pre-tax profit of $272,057 thousand, a significant recovery from a pre-tax loss of $137,128 thousand in the previous year[14]. - Non-controlling interests contributed $40,362 thousand to the profit, compared to $11 thousand in the same period last year, showing growth in subsidiary performance[14]. - The company reported a profit of $210,617 thousand for the six months ended June 30, 2021, compared to a loss of $136,747 thousand in the same period of 2020, representing a significant turnaround[15]. - Total comprehensive income for the period amounted to $233,413 thousand, compared to a loss of $173,559 thousand in the previous year, indicating a strong recovery[15]. Assets and Liabilities - Non-current assets totaled $4,204,126 thousand as of June 30, 2021, slightly down from $4,286,969 thousand at the end of 2020[16]. - Current assets increased to $4,405,352 thousand from $4,213,750 thousand, reflecting improved liquidity[16]. - Current liabilities decreased to $2,216,230 thousand from $2,337,869 thousand, indicating better management of short-term obligations[17]. - The company's net asset value rose to $4,603,098 thousand from $4,374,142 thousand, showcasing growth in shareholder equity[17]. - Inventory levels increased to $1,623,307 thousand from $1,584,934 thousand, suggesting a strategic buildup in stock[16]. - The company’s cash and cash equivalents stood at $926,855 thousand, up from $896,977 thousand, enhancing its cash position[16]. - The equity attributable to owners of the company increased to $4,084,393 thousand from $3,895,854 thousand, indicating a solid growth in equity base[17]. - The total equity as of June 30, 2021, was $4,603,098,000, reflecting an increase from $4,374,142,000 as of January 1, 2021[18]. Cash Flow and Investments - For the six months ended June 30, 2021, the net cash generated from operating activities was $225,950,000, a decrease of 19.5% compared to $280,769,000 for the same period in 2020[20]. - The net cash used in investing activities was $(109,454,000), down from $(132,621,000) in the previous year, indicating a reduction in investment outflows[21]. - The net cash generated from financing activities was $(88,464,000), compared to $(16,992,000) in the prior year, reflecting increased financing costs[22]. - The total cash and cash equivalents at the end of the period were $926,855,000, down from $1,107,385,000 at the end of the previous year[22]. Revenue Breakdown - Revenue from the manufacturing business was $2,786,584 thousand, up 15.2% from $2,418,465 thousand in 2020, while retail business revenue increased by 21.2% to $2,020,503 thousand from $1,667,168 thousand[30]. - Revenue from the US market was $969,793 thousand, a significant increase of 42.7% from $679,269 thousand in 2020, while revenue from China rose to $2,483,138 thousand, up 18.4% from $2,098,407 thousand[33]. - Revenue from footwear activities increased by 11.8% to $2,505.5 million, driven by a recovery in demand and an increase in shipment volume by 5.0% to 136.4 million pairs[65]. Operational Efficiency and Future Plans - The company plans to continue expanding its market presence and investing in new product development to sustain growth momentum[13]. - Future guidance indicates a focus on enhancing operational efficiencies and exploring strategic acquisitions to bolster market position[13]. - The company plans to continue evaluating the potential impacts of accounting policy changes related to inventory sales costs, which may affect future financial statements[27]. - The company is implementing the third phase of the SAP ERP system as part of its digital transformation strategy to enhance manufacturing excellence[85]. - The company aims to optimize its manufacturing capacity and production capabilities to adapt to rapidly changing market demands, including shorter production lead times and improved order fulfillment capabilities[85]. Employee and Cost Management - The total employee costs for the first half of 2021 were $1,117,413 thousand, a slight decrease from $1,167,005 thousand in 2020[36]. - The group employed approximately 303,800 employees as of June 30, 2021, a decrease of 4.7% from about 318,800 employees a year earlier[82]. - The manufacturing cost of goods sold increased to $2,278.0 million, up from $2,085.2 million in the previous year, reflecting higher material and labor costs[70]. Shareholder and Governance - The company did not declare an interim dividend for the first half of 2021, consistent with the decision made in 2020[37]. - The company has adopted a share option plan effective from May 31, 2019, allowing the board to grant options to eligible participants, with a total of 161,449,998 shares available for issuance under this plan, representing approximately 10.01% of the issued shares[92]. - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[113]. - Deloitte has issued a review report without reservation for the interim financial information for the six months ended June 30, 2021[111]. Market Outlook - The company maintains a cautious optimism regarding the recovery of demand for its manufacturing business, despite operational risks due to COVID-19 in Southeast Asia[84]. - The retail business is cautiously optimistic about long-term growth prospects driven by digital transformation and multi-channel integration, despite short-term market volatility[85].