Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was RMB 18,453,923, a decrease of 8.0% compared to RMB 20,064,497 in 2023[3] - Gross profit for the same period was RMB 6,308,950, down 6.6% from RMB 6,755,980 in the previous year[3] - Operating profit decreased by 3.6% to RMB 709,226 from RMB 735,861 year-on-year[3] - The profit attributable to the company's owners was RMB 491,497, a slight increase of 0.2% from RMB 490,425 in 2023[3] - Total comprehensive income for the year was RMB 502,318, slightly up from RMB 502,102 in 2023[6] - The company's total revenue for 2024 was RMB 18,453,923,000, a decrease of 8.1% from RMB 20,064,497,000 in 2023[15] - Revenue from sports apparel and footwear sales was RMB 18,342,410,000, down 7.9% from RMB 19,946,875,000 in the previous year[15] - The company reported a net profit of RMB 491,497,000 for 2024, slightly up from RMB 490,425,000 in 2023[25] - The group's operating profit for 2024 decreased by 3.6% to RMB 709.2 million, with a slight increase in operating profit margin by 0.1 percentage points to 3.8%[48] - Financial income for 2024 was RMB 50.0 million, while financing costs decreased by 26.6% to RMB 67.8 million, benefiting from reduced interest expenses on lease liabilities[49] - The net profit for the year was RMB 497.8 million, with profit attributable to the company's owners at RMB 491.5 million, representing a profit margin of 2.7%, an increase of 0.3 percentage points year-on-year[50] Dividends - The company declared an interim dividend of HKD 0.02, an increase of 8.1% from HKD 0.0185 in 2023, while the proposed final dividend decreased by 16.7% to HKD 0.01 from HKD 0.0120[3] - The company declared a total dividend of RMB 243,624,000 for 2024, compared to RMB 87,883,000 in 2023[21] - The company declared an interim dividend of HKD 0.02 per share and a special dividend of HKD 0.02 per share, totaling approximately HKD 213.0 million for the six months ending June 30, 2024, compared to HKD 98.5 million for the same period in 2023[69] - The proposed final dividend for the fiscal year ending December 31, 2024, is HKD 0.01 per share and a special dividend of HKD 0.01 per share, totaling approximately HKD 106.5 million, subject to shareholder approval[69] - The total dividend for the year 2024 will be HKD 0.06 per share, with a payout ratio of 60%, compared to HKD 0.0305 per share and a payout ratio of 30% in 2023[69] Assets and Liabilities - Cash and cash equivalents decreased by 22.4% to RMB 1,419,052 from RMB 1,827,563 in 2023[3] - Inventory increased by 5.1% to RMB 4,946,314 compared to RMB 4,704,713 in the previous year[3] - The company's total assets decreased to RMB 9,407,623 from RMB 9,483,045 in the previous year[7] - The company's accounts receivable (net of provisions) stood at RMB 973,701,000, a slight decrease from RMB 978,919,000 in 2023[27] - Accounts payable decreased to RMB 971,990,000 from RMB 1,252,834,000 in the previous year, reflecting improved cash flow management[28] Market Environment and Strategy - The retail environment in China showed weak foot traffic, with a 0.3% year-on-year growth in retail sales for clothing and footwear, compared to a 3.5% overall retail growth[30] - The company continues to enhance its omnichannel capabilities, with significant growth in B2C public and private traffic channels, particularly a doubling in sales through Douyin live streaming[30] - The company plans to maintain its refined retail strategy and optimize store performance despite the challenging market conditions[30] - Online sales contributed approximately 28% to total sales in 2024, helping to offset the decline in foot traffic in physical stores[37] - The company achieved over 100% year-on-year growth in live-streaming sales, driven by enhanced operations and partnerships with brand partners[37] - The company continues to optimize its store layout and enhance digital capabilities to improve customer experience and operational efficiency[35] - The group plans to enhance its retail strategy by expanding its multi-brand outlet "Victory Warehouse" and improving customer experience through digital initiatives[59] - The group aims to expand its product categories and market segments, including opening new single-brand stores for Crocs and Saucony, and enhancing online and offline operations for the Korean yoga brand XEXYMIX[61] - The group anticipates the sports industry in the Greater China region to reach a market value of RMB 5 trillion by 2025, driven by government support and upcoming major sporting events[62] Employee and Governance - As of December 31, 2024, the group has approximately 20,000 employees, offering competitive compensation packages based on current market levels and individual performance[64] - The total number of shares granted under the share incentive plan is 133,721,810 shares, accounting for approximately 2.51% of the issued shares, with an additional 79,325,374 shares available for further grants, representing about 1.49% of the issued shares[65] - For the fiscal year ending December 31, 2024, a total of 22,000,000 incentive shares were granted, with 435,800 shares having lapsed or been canceled, and 4,711,400 shares having vested[66] - The board has applied the principles of the Corporate Governance Code and complied with all applicable code provisions and recommended best practices throughout the fiscal year[76] - The independent auditor, Deloitte, has reviewed the consolidated financial statements for the year ending December 31, 2024, confirming alignment with the figures approved by the board[75] - The board of directors includes executive directors Yu Huan Zhang (Chairman), Hu Jia He, and Chen Li Jie (CFO)[82] Operational Improvements - The implementation of a new SAP ERP system has strengthened the company's operational management and data analysis capabilities[41] - The company is focusing on strategic partnerships and digital member integration to enhance customer engagement and drive sales growth[38] - Capital expenditures increased to RMB 371.4 million in 2024 from RMB 344.2 million in 2023, focusing on new store openings and digital transformation strategies[55]
宝胜国际(03813) - 2024 - 年度业绩