STELLA HOLDINGS-九兴控股(01836) - 2023 - 中期财报

Financial Performance - Total revenue for the six months ended June 30, 2023, decreased by 13.4% to $716.1 million, down from$ 827.2 million in the same period last year[10]. - Gross profit increased by 1.2% to $165.8 million, with a gross margin of 23.1%, compared to 19.8% in the previous year[10]. - Operating profit decreased by 5.5% to$ 64.8 million, impacted by a provision for uncollectible receivables of $216 million related to The Rockport Company[10]. - Net profit for the period was$ 55.2 million, down from $60.2 million year-on-year, with adjusted net profit at$ 360.3 million, compared to $60.2 million in the previous year[10]. - Profit before tax for the period was$ 63,453 thousand, compared to $68,440 thousand in the previous year, representing a decline of 7.2%[22]. - Basic earnings per share for the six months ended June 30, 2023, were$ 0.0703, down from $0.0763 for the same period in 2022[45][46]. Dividends and Payouts - The company announced an interim dividend of HKD 0.42 per share, maintaining a long-term payout ratio of 70%[3]. - The board declared an interim dividend of HKD 0.42 per share, maintaining a payout ratio of approximately 70% based on adjusted net profit of USD 360.3 million, excluding a fair value loss of USD 5.1 million related to the Lanvin Group investment[13]. Market and Product Strategy - The three-year plan (2023-2025) focuses on strengthening customer categories, particularly with luxury and high-end fashion brands, to enhance product offerings[5]. - The demand for high-quality and complex products from luxury and high-end fashion brands has outperformed the general footwear market[3]. - The company is leveraging its product development capabilities to support major sports brands in expanding their athletic and luxury-priced footwear categories[5]. Operational Efficiency and Capacity Expansion - The company is enhancing operational efficiency through organizational restructuring and improved customer management[6]. - The company is expanding production capacity in Solo, Indonesia, and plans to enhance capacity in Bangladesh starting in 2023[6]. - The company is focusing on long-term capacity expansion and diversification, with a new factory in Solo, Indonesia, while delaying some planned capacity expansion projects due to weak macroeconomic conditions[11]. Cash Flow and Financial Position - The net cash position as of June 30, 2023, was$ 162.5 million, significantly up from $69 million a year earlier, with a net capital debt ratio of -15.9%[11]. - As of June 30, 2023, the group's cash and cash equivalents were approximately USD 173.5 million, an increase of 127% compared to USD 76.4 million on June 30, 2022[14]. - The net cash inflow from operating activities for the six months ended June 30, 2023, was USD 28.2 million, down from USD 33.5 million in the same period of 2022[14]. - The net cash outflow for investing activities was USD 22.4 million, a decrease of 29.1% from USD 31.6 million for the same period in 2022[14]. Employee and Management Information - The group employed approximately 39,200 employees as of June 30, 2023, down from approximately 42,500 employees at the end of 2022[18]. - The total remuneration paid to key management personnel was$ 1,066,000 for the six months ended June 30, 2023, compared to $1,217,000 in the same period of 2022[94]. Stock Options and Incentive Plans - The company has a total of 70,173,000 unexercised stock options under the 2017 plan, representing approximately 8.79% of the company's issued shares[90]. - The total number of options available for exercise at the end of the reporting period is 8,967,750 shares, with a weighted average exercise price of HKD 11.48 per share[67]. - The company recognized stock option expenses of$ 221,000 for the six months ended June 30, 2023, compared to $549,000 for the same period in 2022[75]. Corporate Governance and Compliance - The company has adhered to the corporate governance code and principles as outlined in the listing rules, ensuring high standards of transparency and accountability[111]. - The governance model combines corporate governance with business governance to enhance accountability and shareholder assurance[112]. Future Outlook - The company aims for a low double-digit percentage annualized growth rate in post-tax profit[6]. - The company anticipates maintaining strong gross and operating margins, supported by orders from new luxury and high-end fashion clients[12].