Financial Performance - Total revenue for the six months ended June 30, 2023, was RMB 6,522.4 million, representing a 14.8% increase compared to RMB 5,683.6 million in the same period of 2022[8]. - Gross profit for the same period was RMB 2,797.1 million, with a gross margin of 42.9%, up from 42.0% in 2022[16]. - Profit attributable to equity holders was RMB 665.4 million, a 12.7% increase from RMB 590.4 million in the previous year[9]. - Basic earnings per share increased to RMB 26.36, compared to RMB 23.47 in 2022[16]. - Operating profit rose by 7.0% to RMB 986.6 million, compared to RMB 921.7 million in the same period last year[23]. - The group achieved a gross profit margin of 42.9%, slightly up from 42.0% in the first half of 2022[23]. - The group reported a net cash flow from operating activities of RMB 265.3 million, a significant improvement from a cash outflow of RMB 268.5 million in 2022[82]. - The company reported a profit of RMB 671,197,000 for the six months ended June 30, 2023, an increase of 14% compared to RMB 589,063,000 in the same period of 2022[120]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.137 per share, with a payout ratio of 50%[11]. - The board proposed an interim dividend of HKD 0.137 per share, an increase from HKD 0.130 per share in 2022[76]. - The interim dividend declared was HKD 0.137 per share, totaling approximately RMB 332,736,000, compared to RMB 297,110,000 for the same period last year, an increase of 12%[157]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 16,623.2 million, with non-current assets at RMB 4,648.8 million[17]. - Current liabilities increased to RMB 5,832.5 million from RMB 4,916.5 million in 2022, resulting in a debt ratio of 19.7%[17]. - The group's total liabilities decreased to RMB 7,825.7 million as of June 30, 2023, down from RMB 8,186.8 million as of December 31, 2022, a reduction of 4.4%[84]. - The net asset value of the group increased by 5.9% to RMB 8,797.5 million as of June 30, 2023, compared to RMB 8,306.7 million as of December 31, 2022[84]. - The company's total liabilities decreased from RMB 6,644,784,000 at the end of 2022 to RMB 5,832,513,000 as of June 30, 2023, a reduction of about 12%[124]. Inventory and Receivables - The company reported an average inventory turnover period of 115 days, compared to 106 days in 2022[17]. - The average trade receivables turnover period was 106 days, slightly up from 102 days in the previous year[17]. - The rolling overall working capital turnover days increased to 88 days, up from 68 days in 2022, with inventory turnover days rising to 107 days[77]. - As of June 30, 2023, accounts receivable amounted to RMB 427.4 million, with a turnover period of 12 days, down from 14 days in 2022[78]. Market and Strategic Initiatives - The company remains optimistic about the medium to long-term prospects of the sports goods industry in mainland China[22]. - The company aims to leverage the growing running culture and favorable national policies to drive future business growth[28]. - The company plans to accelerate store openings in high-tier cities and adjust product structures according to brand characteristics to enhance market presence[61]. - The collaboration between the main brand and Saucony is expected to drive growth through product innovation and retail network synergies[61]. Product Development and Innovation - The new "160X 5.0 PRO" running shoes feature a 20% improvement in propulsion compared to the previous model, "160X 3.0 PRO"[32]. - The "减震旋" and "騛速" series introduced in 2023 utilize advanced shock-absorbing technology for enhanced performance[36]. - The new basketball shoe "JLIN 3" features over 80% rebound capability and superior propulsion, utilizing "X-TEP BOOOM" technology[41]. - The company launched the flagship marathon carbon plate shoe "Endorphin Elite" and other models in the first half of 2023, catering to elite runners' needs[56]. Employee and Operational Insights - The company has approximately 9,300 employees as of June 30, 2023, a decrease from 9,800 employees at the end of 2022, with production staff making up 58.2% of the workforce[60]. - The group’s employee costs decreased slightly to RMB 652,769,000 in the first half of 2023 from RMB 677,646,000 in 2022, a decline of 4%[151]. Research and Development - Research and development costs increased to RMB 175.2 million, up from RMB 107.4 million in 2022, accounting for 2.7% of total revenue compared to 1.9% in 2022[70]. - Research and development costs rose to RMB 175,210,000 in the first half of 2023, compared to RMB 107,364,000 in 2022, marking an increase of 63%[151]. Environmental and Social Responsibility - The MSCI ESG rating was upgraded to "BBB," reflecting the company's commitment to sustainable practices and governance[26]. - The carbon footprint of the new PLA T-shirt series is reported to be 7.85 kg CO2 eq per piece, reducing emissions by approximately 47.7% compared to regular cotton T-shirts[50]. - The company announced a strategic cooperation agreement with the China Next Generation Education Foundation to donate RMB 100 million worth of sports goods over the next four years[51]. Share Capital and Ownership - The company has a total of 2,636,716,923 shares issued as of June 30, 2023[100]. - Mr. Ding Shui Bo holds 1,294,741,000 shares, representing approximately 49.10% of the company's issued share capital[100]. - The company has adopted a share incentive plan effective from August 1, 2014, which will expire on August 1, 2024[107].
特步国际(01368) - 2023 - 中期财报