Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 9,983,269, a decrease of 8.9% compared to RMB 10,960,001 for the same period in 2023[2] - Gross profit for the same period was RMB 3,415,700, down 6.9% from RMB 3,670,684 in 2023[2] - Operating profit increased by 2.1% to RMB 482,555 from RMB 472,818 year-on-year[2] - Profit attributable to owners of the company rose by 9.9% to RMB 335,722 compared to RMB 305,465 in the previous year[2] - Basic earnings per share increased to RMB 6.48, up 9.8% from RMB 5.90[2] - The total revenue for the group for the six months ended June 30, 2024, was RMB 9,983,269 thousand, down from RMB 10,960,001 thousand in the previous year, representing a decline of 8.88%[14] - The net profit attributable to the owners of the company for the six months ended June 30, 2024, was RMB 335,722 thousand, an increase of 9.88% compared to RMB 305,465 thousand for the same period in 2023[18] - Net profit attributable to the company's owners was RMB 335.7 million, with a net profit margin of 3.4%, up 0.6 percentage points year-on-year[37] Dividends - The company declared an interim dividend of HKD 0.02, an increase of 8.1% from HKD 0.0185 in 2023[2] - The company declared an interim dividend of HKD 0.02 per share for the six months ended June 30, 2024, compared to HKD 0.0185 per share for the same period in 2023[17] - The board has declared an interim dividend of HKD 0.02 per share, an increase from HKD 0.0185 per share in the previous period, along with a special dividend of HKD 0.02 per share[47] - The total dividend payout for the period amounts to HKD 0.04 per share, with a payout ratio of 60%[47] Assets and Liabilities - Inventory as of June 30, 2024, was RMB 4,649,992, a decrease of 1.2% from RMB 4,704,713 at the end of 2023[6] - Cash and cash equivalents decreased by 11.8% to RMB 1,611,830 from RMB 1,827,563[6] - Total assets as of June 30, 2024, were RMB 9,345,291, down from RMB 9,483,045 at the end of 2023[6] - Net assets attributable to owners of the company increased to RMB 8,802,317 from RMB 8,518,131 at the end of 2023[7] - The accounts receivable as of June 30, 2024, amounted to RMB 1,028,487 thousand, an increase from RMB 978,919 thousand as of December 31, 2023[22] - The accounts payable as of June 30, 2024, totaled RMB 1,089,804 thousand, a decrease from RMB 1,252,834 thousand as of December 31, 2023[23] Operational Efficiency - The total financing costs for the six months ended June 30, 2024, were RMB 35,380 thousand, a decrease of 28.54% from RMB 49,513 thousand in the same period of 2023[16] - The company reported a decrease in employee costs to RMB 1,092,906 thousand for the six months ended June 30, 2024, down from RMB 1,193,904 thousand in the previous year, reflecting a reduction of 8.45%[16] - The average inventory turnover period improved to 130 days, with inventory value decreasing from RMB 4,704.7 million to RMB 4,650.0 million[38] - The group aims to strengthen profit margins through operational excellence and digital transformation strategies[43] - The group is focusing on strategic partnerships and enhancing member integration plans to drive member growth and seasonal sales[30] - The group aims to streamline operations to improve labor efficiency, cost competitiveness, and shorten sales cycles, positioning itself for long-term growth opportunities[31] Market and Sales Performance - For the six months ended June 30, 2024, the revenue from sports apparel and footwear sales was RMB 9,924,029 thousand, a decrease of 8.93% compared to RMB 10,897,233 thousand for the same period in 2023[14] - For the six months ended June 30, 2024, the group's sales momentum slowed due to weak foot traffic in mainland China, with a year-on-year retail sales growth of only 1.3% in clothing, footwear, and textiles compared to a 3.7% increase in total retail sales[24] - The average selling price increased, partially offsetting the negative trend in same-store sales, while foot traffic in high-tier cities dropped by over 30% year-on-year[25] - The group's B2C public domain traffic channels saw a 16.5% year-on-year increase, helping to mitigate pressures faced by retail channels[24] - Online sales contributed approximately 26% to the total sales during the period, driven by public domain traffic channels[29] Store Operations - The number of directly operated stores decreased from 3,523 to 3,478, representing a net reduction of 45 stores during the period[27] - The number of stores with a sales area of 300 square meters or less accounted for 79.0% of total stores as of June 30, 2024, down from 80.3% the previous year[28] - The group continues to invest in optimizing store layouts and accelerating digital transformation to enhance consumer experience and maintain a stable average transaction value[28] - The group plans to open multiple new single-brand stores for Saucony, Hoka, Pony, and the Korean yoga brand XEXYMIX, which has an exclusive distribution agreement in mainland China[43] Technology and Innovation - The group has successfully implemented multiple SAP modules for its ERP system, enhancing operational efficiency and integrating business financial functions[31] - The group is expanding its SAP system for financial integration and optimization, enhancing operational efficiency through digital tools like an upgraded AI scheduling system[44] Employee and Governance - The group has approximately 20,700 employees as of June 30, 2024, offering competitive compensation packages and employee benefits[45] - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[54] - The company expresses gratitude to customers, suppliers, shareholders, and employees for their support and contributions during the reporting period[53] Future Outlook - The anticipated market value of the sports industry in the Greater China region is expected to reach RMB 5 trillion by 2025, highlighting growth potential[44] - The company will publish its mid-term report for 2024 according to the listing rules, which will be available on its website and the Hong Kong Stock Exchange website[53] - No purchases, sales, or redemptions of listed securities were made by the company or its subsidiaries during the six months ending June 30, 2024[49]
宝胜国际(03813) - 2024 - 中期业绩