Revenue and Profit Growth - The group's revenue from continuing operations increased by 6.5% to RMB 13,577.2 million (2023: RMB 12,742.9 million), driven mainly by the stable performance of the Xtep brand and strong growth in the professional sports segment[3]. - Revenue from the Xtep brand rose by 3.2% to RMB 12,326.9 million (2023: RMB 11,947.4 million), while the professional sports segment saw a significant increase of 57.2% to RMB 1,250.3 million (2023: RMB 795.5 million)[3]. - Operating profit from continuing operations grew by 9.3% to RMB 1,965.5 million (2023: RMB 1,798.0 million), with the professional sports segment's operating profit surging by 829.5% to RMB 78.2 million (2023: RMB 8.4 million)[3]. - Profit attributable to ordinary shareholders reached a historic high of RMB 1,238.4 million (2023: RMB 1,030.0 million), marking a growth of 20.2%[3]. - Total revenue for 2024 reached RMB 13,577.2 million, an increase of 6.6% from RMB 12,742.9 million in 2023[38]. - Net profit attributable to ordinary shareholders was RMB 1,238.4 million, representing a net profit margin of 9.1%, up from 8.1% in 2023[38]. - Basic earnings per share for 2024 were RMB 48.67, an increase from RMB 40.76 in 2023[38]. Dividends and Payout Ratios - The proposed final dividend is HKD 0.095 per share (2023: HKD 0.080 per share), with a total annual dividend payout ratio of 138.2%[3][20]. - The annual dividend payout ratio, excluding the special dividend of HKD 0.447 per share, is 50.0%[21]. - The company declared a final dividend of HKD 0.095 per share, with a total annual dividend payout ratio of 50.0%[46]. - The special dividend for the year was HKD 0.447 per share, marking a 221.7% increase in total dividends compared to the previous year[46]. - The company maintained a high dividend payout ratio of 138.2%, with total dividends for 2024 amounting to 69.8 HKD cents per share[165]. - The group maintained a high dividend payout ratio of not less than 50% over the past five years, reflecting its commitment to delivering substantial returns to shareholders[176]. Strategic Focus and Brand Development - The company plans to enhance its direct-to-consumer (DTC) strategy, inspired by successful retail network management, to deepen customer interaction and improve brand loyalty[3]. - The company has strategically refocused on running after the completion of the divestment of K-Swiss and Palladium businesses in November last year[3]. - The company aims to enhance retail channel management and customer experience to expand its market presence in the running segment[49]. - The group aims to strengthen its direct-to-consumer (DTC) strategy, inspired by the success of Saucony in retail network management, to enhance customer interaction and brand loyalty[128]. - The company is focusing on maximizing the synergy between its main brand and the acquired Saucony and Merrell brands in product innovation and marketing[195]. Product Innovation and Market Presence - The launch of the "360X" carbon plate running shoes and the "160X" model, which helped set a national marathon record, highlights the company's commitment to innovation[30]. - The "160X 6.0 PRO" running shoes launched in August 2024 feature a 6.1% improvement in rebound performance and a 4% increase in running economy compared to the previous generation[71]. - The "260X 2.0" multi-scenario carbon plate running shoes were released in December 2024, enhancing running economy and rebound performance[72]. - The "360X" running shoes, launched in March 2024, became one of the best-selling models, leveraging advanced technologies for improved performance[75]. - The launch of new high-performance products includes "TRIUMPH 22," "ENDORPHIN PRO 4," "ENDORPHIN SPEED 4," and "HURRICANE 24," alongside a new apparel line to meet diverse consumer needs[109]. Market Engagement and Community Involvement - Xtep has sponsored a total of 44 top marathons and road running events across China in 2024, including the prestigious Xiamen Marathon, which has been sponsored for 16 consecutive years[81]. - The Xtep running community has over 2,200,000 members and more than 5,900 running teams, enhancing community engagement and brand loyalty[86]. - The "Run the Yellow River" event attracted over 60,000 participants, covering 5,500 kilometers across 8 provinces and 30 cities, marking a significant milestone in community engagement[85]. - The company donated over RMB 58 million in sports goods and cash in 2024, including RMB 10 million in winter supplies for earthquake relief in Tibet[115]. Financial Performance and Efficiency - Gross profit for 2024 was RMB 5,865.4 million, reflecting a gross margin of 43.2%, up from 41.8% in 2023[38]. - The overall gross margin improvement was supported by strong e-commerce performance and the integration of acquired businesses into the group's operations[148]. - Selling and distribution expenses rose to RMB 2,867.9 million, accounting for 21.1% of total revenue, up from RMB 2,654.9 million or 20.8% in 2023, driven by higher advertising and promotional costs[150]. - General and administrative expenses increased to RMB 1,427.6 million, representing 10.5% of total revenue, compared to RMB 1,302.1 million or 10.2% in 2023, mainly due to higher employee costs and related expenses[151]. - The company recorded a decrease in corporate segment losses to RMB 67.2 million from RMB 101.4 million in 2023, primarily due to lower share-based payment expenses[155]. Sustainability and Corporate Responsibility - The introduction of eco-friendly materials in product lines, such as recycled fibers, demonstrates Xtep's commitment to sustainability[95]. - Xtep International Holdings achieved an MSCI ESG rating upgrade to "A" in July 2024, reflecting significant progress in labor standards and corporate governance[112]. - Xtep's 2030 ESG strategy aims to reduce absolute greenhouse gas emissions by 42% by 2030 and achieve carbon neutrality by 2050[113]. - Xtep's self-operated factories increased renewable energy usage by 95%, promoting green transformation in production processes[118]. Operational Adjustments and Future Outlook - The company is strategically adjusting its borrowing structure, favoring RMB loans over HKD loans to leverage lower interest rates in mainland China[192]. - The company is actively communicating with investors to restore confidence amid macroeconomic uncertainties and weak retail sales[200]. - The company aims to streamline its business structure following the KP sale, concentrating resources on its profitable brands[196].
特步国际(01368) - 2024 - 年度业绩