2019-12-19 08:30Revenue and Profitability - Revenue increased by 28.8% to approximately RMB 4,436.3 million[13] - Profit attributable to equity shareholders rose by 36.4% to approximately RMB 342.7 million[13] - Gross profit margin improved by 1.2 percentage points to 43.5%[13] - Operating profit rose by 34.6% to approximately RMB 477.7 million, with an operating profit margin of 10.8%, an increase of 0.5 percentage points year-on-year[82] - Net profit for the period was RMB 360,469 thousand, a 39.5% increase from RMB 258,434 thousand in the previous year[107] - Basic earnings per share rose to RMB 3.23, compared to RMB 2.38 for the same period last year, reflecting a growth of 35.7%[107] Business Segments Performance - Brand down jacket business accounted for 57.1% of total revenue, with revenue of approximately RMB 2,533.0 million, up 42.9% year-on-year[17] - OEM management business generated revenue of approximately RMB 1,348.8 million, representing 30.4% of total revenue, up 21.9% year-on-year[17] - Women's wear business recorded revenue of approximately RMB 505.9 million, down 6.1% year-on-year, accounting for 11.4% of total revenue[17] - The wholesale segment accounted for 80.0% of total down jacket sales, generating RMB 2,027.0 million, reflecting a 44.4% increase from RMB 1,404.2 million in the previous year[40] Brand and Market Strategy - The company emphasized brand building and product innovation as key strategies for future growth[20] - The company aims to become the most respected functional apparel group globally, focusing on brand development and product upgrades[5] - The brand's participation in Milan Fashion Week has significantly increased consumer engagement and brand visibility, receiving positive feedback from industry influencers[29] - The company continues to develop its multi-brand strategy, focusing on mid-range market segments while leveraging its strengths in down jacket procurement and design[34] Operational Efficiency - The company has established nine regional warehouses to optimize inventory management and ensure timely distribution, minimizing stock risks[25] - Bosideng's Central Distribution Center (CDC) supports all online and offline operations, enhancing responsiveness to consumer demand through effective resource allocation[26] - The company has conducted nearly 600 training sessions over the past six months, reaching 22,000 participants, focusing on enhancing brand alignment among store managers[33] - The company is actively optimizing its channel structure by closing underperforming stores and enhancing the image of existing stores[60] Financial Position and Cash Flow - As of September 30, 2019, the net cash used in operating activities was approximately RMB 2,857.1 million, with cash and cash equivalents amounting to RMB 1,391.2 million[89] - The company reported a total comprehensive income of RMB 280,406 thousand for the period, compared to RMB 132,126 thousand in the previous year, reflecting a growth of 112.5%[107] - The company’s total liabilities and equity reached RMB 9,672,399 thousand, indicating a stable financial position[112] - The company reported a net cash outflow from financing activities of RMB 129,067 thousand for the six months ended September 30, 2019, compared to an outflow of RMB (484,956) thousand in 2018, showing a significant improvement[114] Employee and Operational Costs - Employee costs for the six months ended September 30, 2019, amounted to approximately RMB 512.0 million, compared to RMB 374.0 million for the same period in 2018, reflecting a year-on-year increase of 37%[97] - Distribution expenses increased by 41.6% to approximately RMB 1,119.0 million, accounting for 25.2% of total revenue, up 2.3 percentage points from the previous year[83] - The group’s administrative expenses were approximately RMB 335.8 million, a slight increase of 0.6% year-on-year, accounting for 7.6% of total revenue[84] Inventory and Receivables - Inventory increased significantly to RMB 2,773,375 thousand from RMB 1,931,130 thousand, indicating a rise of 43.8%[109] - Trade receivables rose to RMB 3,127,201 thousand, up from RMB 1,035,042 thousand, marking a substantial increase of 201.5%[109] - The aging analysis of trade receivables shows that the amount overdue for more than three months but less than six months increased to RMB 75,753,000 from RMB 15,791,000[163] Investments and Financial Instruments - The company recognized a loss of RMB 29,932 thousand in fair value changes of debt instruments, impacting other comprehensive income[112] - The group recognized a loss of RMB 61,463,000 in fair value changes for its investment in Jin Hong Group during the period[167] - The total realized loss from investments held by Bosideng Fund amounted to RMB 57,471,000, including a fair value change of RMB 46,139,000[168] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.03 per share[13] - The company declared dividends amounting to RMB 559,759 thousand, reflecting a commitment to return value to shareholders[112] - The interim dividend proposed is HKD 0.03 per share, equivalent to approximately RMB 0.027 per share, to be paid on or around January 14, 2020[89]