Financial Performance - For the fiscal year 2023/24, the company's revenue was RMB 1,744 million, representing an increase of 3.9% compared to RMB 1,679 million in the previous fiscal year[38]. - The company reported a net loss attributable to shareholders of RMB 639 million for the fiscal year 2023/24, compared to a profit of RMB 115 million in the previous year[38]. - The gross profit margin improved to 68.3% in 2023/24, up from 63.4% in 2022/23[38]. - The group's overall sales increased by 3.9% to RMB 1,744 million compared to the previous period's RMB 1,679 million[172]. - Kappa brand sales grew by 6.2% to RMB 1,638 million from RMB 1,542 million in the previous period[177]. - The gross profit margin for the group improved to 68.3%, up 4.9 percentage points from 63.4% in the previous period[180]. - Kappa brand's gross profit margin increased to 69.4%, a rise of 2.1 percentage points compared to 67.3% in the previous period[182]. - The group's operating loss was RMB 778 million, compared to an operating profit of RMB 138 million in the previous period, resulting in an operating loss margin of 44.6%[164]. - Other income and losses resulted in a net loss of RMB 659 million, compared to a net income of RMB 157 million in the previous period[182]. - The company reported a loss attributable to shareholders of RMB 639 million, with a loss ratio of 36.6%, compared to a profit of RMB 115 million and a profit ratio of 6.8% in the previous period[193]. Asset Management - Non-current assets decreased to RMB 5,253 million from RMB 5,808 million, a decline of 9.5% year-on-year[17]. - Current assets decreased to RMB 4,488 million from RMB 4,769 million, a decline of 5.9% year-on-year[17]. - Total assets decreased to RMB 9,741 million from RMB 10,577 million, a decline of 7.9% year-on-year[17]. - Net assets attributable to equity holders decreased to RMB 9,075 million from RMB 9,665 million, a decline of 6.1% year-on-year[17]. - The company reported a net asset per share of RMB 154.74, down from RMB 164.80, reflecting a decrease of 6.5% year-on-year[17]. - The investment division's net assets as of March 31, 2024, were RMB 8,268 million, reflecting a year-on-year decrease of 5.4%[38]. - KAPPA's investment segment net assets amounted to RMB 8,268 million as of March 31, 2024, representing a year-on-year decrease of 5.4%[132]. Market Strategy and Brand Development - The company plans to enhance the market competitiveness of its core brand KAPPA through emotional marketing and cross-industry collaborations[28]. - KAPPA aims to deepen market engagement and optimize brand strategy by focusing on consumer interaction and co-creation[27]. - The company is actively seeking partnerships and sponsorships to increase brand exposure, as seen with its collaboration on the popular variety show "Unstoppable"[27]. - The company will continue to adapt its marketing strategies to align with the lifestyle and preferences of younger consumers[28]. - The KAPPA brand's offline business experienced a notable growth of 14% year-on-year, reflecting strong market performance[50]. - The group aims to enhance its market influence and lead the industry towards high-quality development[50]. - The group emphasizes Kappa's brand philosophy of "passion, sexiness, and avant-garde," enhancing brand exposure through sponsorship of popular variety shows[70]. - KAPPA became the clothing sponsor for the variety show "Unstoppable," achieving over 5 billion exposures online since its airing[125]. - KAPPA launched a special New Year clothing line with magnetic buttons, engaging younger consumers and increasing brand interaction[125]. Sustainability and ESG Commitment - The company is focusing on sustainable development and has integrated ESG strategies into its daily operations to create long-term value[38]. - The company aims to promote green development and is committed to building a green sports environment[38]. - The group emphasizes its commitment to ESG practices and social contributions to promote sustainable development in the sports industry[55]. - The company has established an Environmental, Social, and Governance (ESG) committee to oversee its sustainability commitments[140]. Operational Efficiency and Cost Management - Sales and advertising expenses decreased to RMB 386 million from RMB 458 million, a reduction of RMB 72 million[161]. - The logistics and warehouse operating expenses were RMB 34 million, down from RMB 39 million, reflecting improved operational efficiency[162]. - Employee compensation and benefits expenses increased to RMB 127 million, up RMB 36 million from RMB 91 million in the previous period[186]. - Outsourced labor costs decreased slightly to RMB 155 million from RMB 156 million in the previous period[187]. - The company optimized its internal organizational structure to enhance employee engagement during the reporting period[186]. Market Trends and Economic Outlook - The global economic growth forecast for 2024 is projected to slow to 2.4%, presenting challenges for the company[50]. - The global economy is experiencing a weak recovery post-pandemic, with the World Bank projecting a growth rate of 2.4% for 2024, marking a slowdown for three consecutive years[63]. - The International Monetary Fund (IMF) has revised the global growth estimate for this year to 3.2%, with inflation expected to decline from an average of 6.8% in 2023 to 5.9% in 2024[63]. - China's GDP growth target for 2024 is set at around 5%, supported by policies aimed at stabilizing economic development and enhancing market confidence[63]. - The first quarter of 2024 saw a 6.2% year-on-year increase in per capita disposable income for residents, indicating a positive economic trend[50]. - China's GDP for 2023 reached 5.2%, with the first quarter of 2024 showing a preliminary year-on-year growth of 5.3%, exceeding market expectations[87]. Product Innovation and Development - The company plans to continue its focus on innovation and sustainable development, aligning with consumer demand for green products[55]. - The group is committed to product innovation, enhancing market competitiveness through new designs, materials, and functionalities[95]. - KAPPA launched the K-TECH technology platform, integrating advanced technology into the KAPPA Gara series, enhancing product functionality and fashion appeal[128]. - The KAPPA 1916 series draws inspiration from the brand's century-long history, focusing on retro sports designs and targeting a new generation of consumers[128]. - KAPPA's product line includes innovative collaborations with international brands, enhancing its market presence and appeal to younger consumers[128]. Retail and Sales Channels - The total number of Kappa brand stores reached 1,012 as of March 31, 2024, compared to the previous year, reflecting a focus on expanding retail networks[75]. - The group has reduced the number of KAPPA brand stores to 1,012 as of March 31, 2024, a net decrease of 11 stores compared to the same period in 2023[102]. - The number of self-operated Kappa stores reached 557, with self-operated channel sales amounting to RMB 953 million, representing 58.2% of Kappa's total sales[151]. - The non-self-operated Kappa sales reached RMB 685 million, accounting for 41.8% of Kappa's total sales, an increase from 38.7% in the previous period[179]. - The accessories business has shown steady growth, with online sales significantly increasing and contributing to overall sales performance[102]. - The group is actively exploring new sales channels to expand its business boundaries and improve customer satisfaction and loyalty[102]. - The group will continue to improve its online and offline sales channels to enhance business capabilities and sales performance[106]. Strategic Partnerships and Collaborations - The company is actively expanding offline channels and has established deep cooperation with Changli Wanlong Ski Resort to enhance brand experience[38]. - PHENIX, the group's high-end ski brand, continues to strengthen its market leadership by collaborating with NIO Life to design exclusive ski apparel[77]. - The PHENIX brand has partnered with NIO to create co-branded ski wear, expanding into the crossover market of electric vehicles and skiing[99]. - The PHENIX brand aims to promote the ice and snow industry by establishing long-term cooperation with ski resorts and enhancing brand visibility[99].
中国动向(03818) - 2024 - 年度业绩