2021-07-21 08:30Financial Performance - For the fiscal year 2020/21, the company reported revenue of RMB 13,516.5 million, a 10.9% increase from RMB 12,190.5 million in the previous year[30]. - The gross profit for the same period was RMB 7,924.3 million, reflecting a gross margin of 58.6%, up from 55.0% in the prior year[30]. - Operating profit increased to RMB 2,224.6 million, representing an operating margin of 16.5%, compared to 13.1% in the previous year[30]. - The net profit attributable to equity shareholders was RMB 1,709.6 million, with a net profit margin of 12.6%, up from 9.9% in the previous year[30]. - The company achieved a current ratio of 2.4 and a debt ratio of 20.3%, indicating strong liquidity and financial stability[30]. - Operating cash flow for the fiscal year was RMB 3.13 billion, a significant increase of 155.8% compared to the previous year[37]. - The company maintained a dividend payout ratio of 70.8%, with a final dividend of HKD 0.10 per share and an interim dividend of HKD 0.035 per share[37]. - The company reported that the repurchase sales amount from members accounted for 26.9% of total offline sales[69]. - The group’s cash and cash equivalents totaled approximately RMB 1,771.3 million as of March 31, 2021, with a significant portion in RMB and USD[137]. - The group’s bank borrowings were approximately RMB 670.9 million, down from RMB 817.8 million the previous year, resulting in a debt-to-equity ratio of 20.3%[138]. Product Development and Innovation - The company holds a total of 231 patents, including 17 new patents filed during the fiscal year[4]. - The company emphasized product innovation, with the "Extreme Cold" series being one of its most recognized products, featuring high-quality down and various styles to meet consumer needs[74]. - The company applied for 17 patents in the 2020/21 fiscal year, bringing the total to 231 patents, with a significant reduction of over 80% in product odor complaints due to the development of odor-free down technology[70]. - The company continues to collaborate with international designers and well-known IPs to introduce new ideas and concepts for product development[72]. - The company is committed to product development centered around user value, integrating global resources to focus on innovation and fashion design[149]. Market Strategy and Expansion - The company aims to become a global leader in the down jacket market, with a strategic plan for the next three years focusing on customer value and digital management[45]. - The company has established a strategic focus on its core brand and product innovation, enhancing its market position as a leading down jacket expert[39]. - The company plans to enhance channel efficiency by targeting core cities and mainstream business districts, focusing on core stores to improve channel quality and efficiency[149]. - The company is considering strategic acquisitions to enhance its market position, with a budget of $50 million set aside for potential deals[184]. - The company has a strong emphasis on supply chain management, with a dedicated team responsible for strategic and operational aspects, including technology, quality, resources, procurement, production, and cost management[186]. Social Responsibility and Sustainability - The company received multiple awards, including the "2020 Annual Sustainable Fashion Practitioner" title, highlighting its commitment to social responsibility[27]. - The company has actively engaged in social responsibility initiatives, contributing RMB 300 million in high-quality down jackets to support frontline pandemic efforts[44]. - The management team emphasized the importance of sustainability in future operations, aiming for a 20% reduction in carbon footprint by 2025[183]. - The company has established and continuously optimized its environmental management system to enhance environmental protection efforts[192]. Retail and E-commerce - The company has entered key commercial hubs in major cities, enhancing its retail presence and optimizing consumer experience through new retail transformations[43]. - The company added over 9.3 million new friends on WeChat and accumulated over 6.7 million followers on its WeChat public account, with registered members on Tmall exceeding 4.76 million, a growth of over 160% year-on-year[69]. - Online retail sales for the Snow Flying brand increased by over 100% year-on-year, driven by innovative online distribution models[91]. - The company expanded its online sales channels through strategic partnerships with Alibaba, enhancing data support and marketing tools[130]. - The group aims to enhance retail operations through digital transformation and precision marketing, achieving breakthroughs in integrated operations[97]. Corporate Governance - The board of directors is composed of eight members, with five executive directors and three independent non-executive directors, ensuring accountability and transparency in governance[155]. - The company has adhered to corporate governance codes, emphasizing accountability and transparency to meet shareholder expectations[154]. - The audit committee is composed of three independent non-executive directors, ensuring independence and oversight of financial reporting[162]. - The company has confirmed the independence of its independent non-executive directors in accordance with listing rules[199]. - The company emphasizes strict compliance with listing rules, ensuring timely and accurate disclosure of information to shareholders[174]. Human Resources and Talent Management - The group has experienced significant organizational transformation in human resources, enhancing talent structure and incentive mechanisms to support brand and strategic upgrades[187]. - The group is committed to nurturing talent through both external recruitment and internal development of a skilled workforce[145]. - The average age of store managers has been gradually decreasing, indicating a focus on a younger and more dynamic retail team[146]. - The company has a structured management framework that mitigates reliance on specific employees for its success[193]. Financial Transparency and Risk Management - The financial performance and significant factors affecting the group's business are discussed in detail in the annual report, highlighting the importance of financial transparency[191]. - The group aims to mitigate business risks and uncertainties through comprehensive financial risk management policies outlined in the financial statements[191]. - The company has complied with all relevant laws and regulations in all material aspects during the fiscal year[193].