2020-07-23 08:30Financial Performance - For the fiscal year 2019/20, Bosideng reported a revenue of RMB 12.19 billion, representing a year-on-year growth of 17.4%[25] - The net profit attributable to shareholders was approximately RMB 1.20 billion, an increase of 22.6% compared to the previous year[25] - The gross profit margin improved to 55.0%, up from 53.1% in the previous year[20] - Operating profit for the year reached RMB 1.60 billion, with an operating profit margin of 13.1%[20] - Bosideng's total assets increased to RMB 17.38 billion, up from RMB 15.08 billion in the previous year[20] - For the fiscal year 2019/20, the company's revenue reached RMB 12,190.5 million, an increase of approximately 17.4% year-on-year, setting a new historical high[35] - The total revenue for the down jacket business was RMB 9,512.7 million, a 24.2% increase from RMB 7,657.5 million in the previous year[66] - The group reported a significant increase in revenue, achieving a total of 1.2 billion in the last fiscal year, representing a year-over-year growth of 15%[168] Business Segments - The main business achieved a stable growth with revenue reaching approximately RMB 9.51 billion, a year-on-year increase of 24.2%[27] - The OEM processing management business recorded revenue of RMB 1.61 billion, up 17.8% year-on-year, demonstrating resilience amid export challenges[27] - The brand down jacket business generated revenue of approximately RMB 9,512.7 million, accounting for 78.0% of total revenue, with a year-on-year increase of 24.2%[35] - The OEM management business recorded revenue of approximately RMB 1,611.3 million, representing 13.2% of total revenue, with a year-on-year increase of 17.8%[35] - The women's wear business generated revenue of approximately RMB 982.7 million, accounting for 8.1% of total revenue, showing a year-on-year decline of 18.2%[35] - The diversified clothing business recorded revenue of approximately RMB 83.8 million, representing 0.7% of total revenue, with a year-on-year decline of 46.2%[35] Brand Strategy and Recognition - Bosideng's brand strategy focuses on core down apparel, aiming to enhance product quality and expand market presence[24] - Brand recognition reached 97% among consumers, establishing the company as the leading down jacket brand in China[28] - The net promoter score (NPS) for the Bosideng brand reached 52, indicating strong consumer recommendation and brand reputation[39] - Bosideng's brand recognition and first mention rate are leading in the Chinese apparel industry, with a brand favorability score of 8.84[39] - The company has engaged in high-profile brand activities, including participation in Milan and London Fashion Weeks, enhancing brand visibility and consumer engagement[38] Corporate Governance - The board of directors consists of eight members, with five executive directors and three independent non-executive directors, ensuring compliance with listing rules[134] - The board held five meetings during the year to discuss corporate governance policies, training for directors, and compliance with legal and regulatory requirements[135] - All independent non-executive directors confirmed their independence in accordance with listing rules, contributing diverse experience and expertise to the company[137] - The company is committed to maintaining high standards of corporate governance and will continue to review its practices to align with regulations[141] Operational Efficiency and Strategy - The company is focused on digital transformation and enhancing supply chain capabilities through the upgrade of smart manufacturing bases[30] - The company aims to enhance market quality and efficiency, positioning 2020 as an "efficiency year" to better meet consumer demand[32] - The company implemented a direct-to-store distribution model through its intelligent central distribution center (CDC), achieving nearly 80% of orders delivered the next day during peak sales[49] - The average replenishment cycle for orders during the winter season was approximately 7-12 days, with the company completing six replenishment orders during the peak season[46] Social Responsibility - The company donated over 151,000 high-quality down jackets valued at over RMB 300 million to support frontline pandemic efforts[30] - The group’s charitable donations for the year amounted to approximately RMB 69.215 million, compared to RMB 21.635 million in the previous year[175] Future Outlook and Growth Plans - The company has set a future revenue target of $1 billion for the next fiscal year, representing a 20% increase from the current year[164] - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative designs and sustainable materials[165] - The company plans to expand its market presence in Europe and North America, targeting a 30% increase in market share over the next three years[162] - Ongoing research and development efforts are aimed at enhancing product technology, with a budget allocation of $50 million for the upcoming year[163] Financial Position - The company maintained a strong liquidity position with a current ratio of 2.7, compared to 2.3 in the previous year[20] - As of March 31, 2020, the group had cash and cash equivalents of approximately RMB 4,206.6 million[121] - The group’s bank borrowings amounted to approximately RMB 817.8 million, down from RMB 1,627.7 million a year earlier, with a debt-to-equity ratio of 24.0%[126] Marketing and Sales Strategy - The company implemented various marketing strategies, including live streaming and short videos, to increase product exposure and attract new customers during the COVID-19 pandemic[90] - The online sales proportion for the BUOU BUOU brand increased from 9.3% to 15.7% due to enhanced interaction between online and offline sales[90] - The group has focused on developing online platforms, particularly through collaboration with the Japanese brand Petit main, which has gained significant industry attention since its launch on Tmall[107] Employee and Management Information - The total number of full-time employees increased to 7,801 as of March 31, 2020, up from 6,409 as of March 31, 2019, reflecting a year-on-year growth of 1,392 employees[128] - The management team has extensive industry experience, with key executives holding over 20 years of expertise in the apparel sector[163]