李宁(02331) - 2023 - 年度财报

Financial Performance - Revenue for 2023 reached 27,598,491 thousand RMB, a 6.95% increase from 25,803,383 thousand RMB in 2022[7] - Operating profit for 2023 was 3,559,087 thousand RMB, a 27.17% decrease from 4,886,758 thousand RMB in 2022[7] - Net profit attributable to equity holders for 2023 was 3,186,910 thousand RMB, a 21.58% decrease from 4,063,834 thousand RMB in 2022[7] - Gross profit margin remained stable at 48.4% in 2023, consistent with 2022[7] - Total assets for 2023 increased to 34,207,803 thousand RMB, up 1.67% from 33,646,519 thousand RMB in 2022[7] - Return on equity for 2023 was 13.1%, down from 17.9% in 2022[7] - Earnings per share (basic) for 2023 were 123.21 RMB cents, a 20.71% decrease from 155.38 RMB cents in 2022[7] - Dividend per share for 2023 was 54.74 RMB cents, an 18.31% increase from 46.27 RMB cents in 2022[7] - Revenue increased by 7.0% to RMB 27.598 billion in 2023, with gross profit rising 6.9% to RMB 13.352 billion and a gross margin of 48.4%[11] - Net profit attributable to equity holders was RMB 3.187 billion, with a net profit margin of 11.5%[11] - Operating cash inflow reached RMB 4.688 billion, and the total cash and cash equivalents, restricted bank deposits, and short and long-term bank deposits amounted to RMB 17.976 billion as of December 31, 2023[11] - The company proposed a final dividend of RMB 0.1854 per share, bringing the total annual dividend to RMB 0.5474 per share with a payout ratio of 45%[11] - Revenue for 2023 reached RMB 27,598,491,000, a 7.0% increase compared to 2022[19][22] - Gross profit for 2023 was RMB 13,352,055,000, up 6.9% from 2022[19] - Operating profit for 2023 decreased by 27.2% to RMB 3,559,087,000[19] - Net profit attributable to equity holders dropped 21.6% to RMB 3,186,910,000 in 2023[19] - Directly operated stores revenue grew by 29.6% in 2023[22] - E-commerce revenue increased slightly by 0.9% in 2023[22] - Footwear revenue decreased by 0.7% to RMB 13,389,080,000 in 2023[23] - Apparel revenue rose 15.9% to RMB 12,410,785,000 in 2023[23] - Northern China revenue increased by 8.5% to RMB 13,007,856,000 in 2023[25] - Southern China revenue grew by 5.2% to RMB 14,059,033,000 in 2023[25] - Total sales cost for 2023 was RMB 14,246,436,000, with a gross margin of 48.4%, unchanged from 2022[27] - Sales and distribution expenses increased by 24.1% to RMB 9,080,121,000, accounting for 32.9% of total revenue, up 4.6 percentage points year-on-year[28] - Administrative expenses rose to RMB 1,256,152,000, representing 4.6% of total revenue, up 0.3 percentage points from 2022[29] - Share of profit from equity-accounted investments was RMB 377,972,000, including a one-time gain of RMB 140,457,000 from the disposal of land[30] - EBITDA decreased by 5.9% to RMB 6,157,208,000, and after excluding one-time gains, it fell by 8.0% to RMB 6,016,751,000[31] - Net financing income was RMB 319,110,000, down from RMB 327,187,000 in 2022[33] - Income tax expense was RMB 1,069,207,000, with an effective tax rate of 25.1%, slightly up from 25.0% in 2022[34] - Profit attributable to equity holders dropped by 21.6% to RMB 3,186,910,000, with a profit margin of 11.5%, down from 15.7% in 2022[35] - Inventory provision increased to RMB 134,727,000, up from RMB 120,531,000 in 2022[36] - Expected credit loss provision decreased significantly to RMB 45,738,000, down from RMB 159,200,000 in 2022[37] - Operating activities generated a net cash inflow of 4,687,936 thousand RMB, while financing activities used a net cash outflow of 4,216,951 thousand RMB, leading to a net decrease in cash balance of 1,074,126 thousand RMB[39] - The company completed a share placement and subscription in 2021, raising a net amount of 8,571,787,000 RMB, of which 2,828,015,000 RMB was used by the end of 2023, leaving 3,595,564,000 RMB unused[40][41] - 40% of the net proceeds from the share placement were allocated for investment in new product categories and international business expansion, with 1,421,939 thousand RMB remaining unused as of December 31, 2023[42] - The company acquired Vansittart Investment Limited for a total consideration of 2.208 billion HKD (approximately 2.013 billion RMB) to expand its international business in Hong Kong[45] - The company plans to invest up to 3.3 billion RMB in a high-end smart manufacturing and flexible supply chain base in Guangxi, China, with part of the funding coming from the unused proceeds of the share placement[46] Product and Technology Innovation - Li-Ning introduced new technologies such as COMFOAM and the Carbon Core Drive System to enhance product performance and comfort[12] - The "COOL SHELL" cooling technology significantly improved quick-drying performance, surpassing national standards and reaching industry-leading levels[55] - The "Thunder 100" badminton racket introduced the industry's thinnest 6.0mm shaft, enhancing the company's technological competitiveness[54] - The upgraded full-length GCU ground control system increased wear resistance by 70%, with dry and wet slip resistance improving by 8% and 30%, respectively[57] - The "Comfoam Plus" and "Comfoam Lite" formulas significantly reduced shoe weight and improved comfort[57] - The "Wind, Forest, Fire, Mountain" color scheme for professional badminton shoes highlighted the brand's unique attributes in the market[54] - The "AIRSHELL" and "DYNAMIC SHELL" technologies were refined to meet diverse functional needs in fitness apparel[55] - The "Pan Gu FLOW" shoe, inspired by the metaverse, showcased innovative design exploration under the "China Li-Ning" brand[56] - The "Cool Shell" technology featured cross-shaped 3D yarns, significantly enhancing quick-drying performance[55] Retail and Sales Performance - Li-NING 1990 expanded to 36 stores in 23 key cities, focusing on high-end sportswear and launching a new golf product line[14] - The company expanded its core business districts, opening over 1,660 large stores, with a core business district store occupancy rate of nearly 90%[15] - The total number of sales points nationwide reached 7,668, with 6,012 franchised dealers and 1,656 direct retailers as of December 31, 2023[18] - The company's total sales points increased to 7,668 as of December 31, 2023, up by 0.9% from 7,603 in the previous year[62] - Directly operated retail sales points grew by 4.8% to 1,498, while Li-Ning YOUNG sales points increased by 9.2% to 1,428[62] - The number of franchise dealers decreased by 2.5% to 4,742[62] - In the northern region, the total sales points increased by 1.0% to 4,008, with Li-Ning YOUNG sales points rising to 845[63] - In the southern region, the total sales points increased by 0.7% to 3,660, with Li-Ning YOUNG sales points rising to 583[63] - Li Ning's total retail sales for Q4 2023 increased by 20%-30% in the low range year-over-year, with offline channels growing by 20%-30% in the high range and e-commerce growing by mid-single digits[49] - The number of Li Ning sales points (excluding Li Ning YOUNG) in China decreased by 55 to 6,240 by the end of 2023, while Li Ning YOUNG sales points increased by 120 to 1,428[49] - Li Ning's same-store sales for Q4 2023 grew by 10%-20% in the low range year-over-year, with retail channels growing by 30%-40% in the high range[49] - The running category achieved a 40% increase in retail sales in 2023, with total sales of running shoes exceeding 9 million pairs, a 62% year-over-year growth[51] - The basketball category saw the "Wade Way" series achieve an 88% sell-through rate, while the "All City" series sold over 1 million pairs in 2023[52] - Li Ning's five core categories (running, basketball, badminton, fitness, and sports lifestyle) recorded a 12% increase in total retail sales in 2023[50] - The "Feidian 3 Challenger" running shoe sold over 1.3 million pairs in 2023, becoming a standout product in the carbon plate running shoe market[51] - Li Ning's basketball products, such as the "YuShuai ULTRA," improved athletes' performance with a 12% increase in continuous vertical jump speed and a 4.1% increase in running vertical jump height[52] - The "BADFIVE" street basketball series successfully upgraded its product performance and market positioning, collaborating with artist Mister Cartoon to launch themed collections in 2023[53] - The "SOFT GO" series achieved annual sales exceeding 15 million pairs, becoming a core growth driver for the lifestyle category in the next two to three years[56] - The "LI-NING 1990" brand launched a new golf product line, expanding its premium fashion sports portfolio[56] Corporate Governance and Board Activities - The board consists of 7 directors, including 3 executive directors and 4 independent non-executive directors[75] - The board's diversity composition includes 5 males and 2 females, with age groups ranging from 30 to over 61 years old[77] - The board's service tenure includes 2 directors with 1-5 years, 1 with 6-10 years, and 4 with over 10 years of service[77] - The company's employee gender ratio is approximately 1:1, achieving gender diversity[77] - The board's main responsibilities include setting long-term goals, approving financial plans, and monitoring operational performance[81] - The company provides comprehensive induction and continuous professional development for all directors[82] - The company has appointed four independent non-executive directors, accounting for more than one-third of the board members, with one possessing appropriate accounting qualifications or financial management expertise[84] - Each executive and independent non-executive director has signed a three-year service contract with the company[85] - The company has arranged appropriate insurance for its directors and senior executives to cover potential legal actions, with annual reviews of the insurance coverage[86] - The Nomination Committee is responsible for formulating and implementing nomination policies for board members and senior management, and evaluating the board's structure, size, and composition[87] - The Nomination Committee is chaired by Mr. Li Ning and includes Ms. Wang Yafei and Dr. Chan Chun Bun as members[88] - In 2023, the Nomination Committee nominated Mr. Song Chuntao as Chief Human Resources Officer and Mr. Wang Yi as Chief Marketing Officer[89] - The Remuneration Committee is responsible for formulating remuneration policies and structures for directors and senior management to attract, retain, and motivate talent essential for the company's long-term success[90] - The Remuneration Committee reviewed and approved the 2023 bonus plan and salary adjustment scheme[91] - The Remuneration Committee reviewed and approved the 2023 Employee Stock Ownership Plan (ESOP) and the 2016 Restricted Share Award Plan[91] - The Audit Committee held three meetings with the external auditor in 2023 to discuss necessary matters[92] - The Audit Committee reviewed the annual and interim financial statements for compliance with accounting standards and regulations[95] - The Audit Committee established an Anti-Corruption and Anti-Bribery System to enhance internal governance and compliance management[95] - The Board of Directors held at least four regular meetings annually, with agendas and documents sent to directors in advance[96] - The Board reviewed the implementation and effectiveness of the independent opinion mechanism and found it to be effective[96] - The attendance rate for Board, Nomination Committee, Remuneration Committee, and Audit Committee meetings was 100% for all directors[97] - The company's external auditor, PricewaterhouseCoopers, received a total fee of RMB 9,355,000 for audit and non-audit services in 2023, compared to RMB 7,565,000 in 2022[101] - The audit fee for the group in 2023 was RMB 6,680,000, an increase from RMB 6,220,000 in 2022[101] - The fee for tax compliance and other consulting services in 2023 was RMB 2,675,000, up from RMB 1,345,000 in 2022[101] - The company has established a comprehensive risk management and internal control system based on the COSO framework[103] - The internal control system aims to achieve operational efficiency, improve financial reporting reliability, and ensure compliance with laws and regulations[103] - The company has a three-tier internal control organizational structure: ultimate responsibility (Board of Directors), supervision (Audit Committee), and execution (various departments)[104] - The company regularly updates the staffing and training of the Internal Audit Department and Internal Control Group to adapt to organizational changes[104] - The company has implemented the "Li-Ning Internal Control Manual" to strengthen internal control systems, covering various business processes[104] - An annual self-assessment mechanism has been established under the internal control framework to evaluate and improve control effectiveness[105] - The company's risk management and internal control systems were confirmed to be adequate and effective, with no significant deficiencies identified as of December 31, 2023[106] - The internal audit department conducted audits on various systems including sales, product, retail subsidiaries, supply chain, and non-core business systems in 2023[108] - The company optimized internal controls across multiple modules such as sales management, supply chain management, and IT management in 2023[109] - The company has established strict procedures for handling and disclosing insider information, ensuring confidentiality before public release[110] - The company implemented rules and procedures to regulate all employee external media communications, with designated authorized spokespersons[111] - All directors confirmed compliance with the standard code of conduct for securities transactions during the year ended December 31, 2023[112] - The company secretary ensured compliance with board policies, procedures, and applicable laws and regulations throughout 2023[113] - The company has established formal communication channels including interim and annual reports, announcements, circulars, and other corporate communications on its website and the Hong Kong Stock Exchange website[114] - Shareholders holding at least one-tenth of the company's paid-up share capital can request the board to convene an extraordinary general meeting, which must be held within two months of the request[115] - The company adopted revised and restated memorandum and articles of association on June 14, 2023, as approved at the annual general meeting[117] - The company provides over 20 full business days' notice for annual general meetings and 10 full business days' notice for extraordinary general meetings, along with circulars containing necessary information[118] - All directors attended the 2023 annual general meeting and extraordinary general meeting held on June 14, 2023, with a Q&A session for shareholders[118] - The next annual general meeting is scheduled for June 13, 2024, with details and agenda items to be included in the circular sent to shareholders[118] - The board will continuously review and improve corporate governance to maintain high levels of transparency, accountability, and responsibility[120] ESG and Sustainability - The company's board oversees ESG matters, with the ESG Management Committee and execution team responsible for specific deployment and execution[123] - In 2023, the board reviewed and approved updates to the sustainable development vision, strategy, goals, and environmental targets, as well as climate change risk and opportunity assessments[123] - The company is committed to advancing ESG work, integrating sustainable development into its operations and strategic planning, and regularly reviewing progress[123] - The company has established an ESG governance framework with a management committee chaired by the executive director and co-CEO, overseeing ESG strategy and execution[126] - The ESG execution team consists of 4 members, including 1 leader and 3 professionals in social responsibility, environment, and carbon management[126] - The company actively responds to China's "30·60" carbon peak and neutrality strategy, promoting green and low-carbon operations[128] - The company integrates ESG indicators into executive performance evaluations to enhance sustainability management effectiveness[128] - The company emphasizes strict compliance with environmental laws and regulations, focusing on climate change and energy efficiency improvements[130] - The company optimizes talent development mechanisms and conducts diversified training activities to empower employee growth[131] - The company strengthens supplier management, promotes green supply chains, and encourages environmental certifications[132] - The company upgrades information security protection technologies and improves management mechanisms to prevent data leaks[133] - The company improves anti-corruption reporting channels and conducts training activities to enhance integrity awareness[134] - The company actively fulfills corporate social responsibility, supports charitable causes, and promotes sports culture[135] - The company implemented