Financial Performance - The Group's consolidated revenue for the year ended December 31, 2024, was HK$10,427.1 million, a decrease of 7.1% compared to HK$11,219.4 million in 2023[45]. - Clarks contributed 86.3% of the overall revenue, with a revenue decrease of 6.6% to HK$9,007.6 million from HK$9,646.5 million in 2023, attributed to weak consumer spending due to high inflation and interest rates[46]. - Bossini accounted for 4.4% of the overall revenue, with a significant revenue drop of 25.3% to HK$455.6 million from HK$609.5 million in 2023, due to product and channel repositioning and store closures in Mainland China[47]. - The Group's gross profit for the year ended December 31, 2024, was HK$4,764.5 million, a decrease of HK$365.8 million or 7.1% compared to HK$5,130.3 million in 2023[51][52]. - Clarks business's gross profit margin increased by 0.6 percentage points to 47.9% in 2024, attributed to effective control over product and logistic costs[54][58]. - Bossini's gross profit margin decreased by 1.7 percentage points to 49.2% due to increased discounts in retail stores in Mainland China[55][59]. - The Group recorded a net loss attributable to equity holders of HK$70.4 million for the year, a reduction of HK$48.6 million from a net loss of HK$119.0 million in 2023[77]. - Adjusted EBITDA decreased by HK$30.7 million or 3.3% to HK$908.4 million for the year ended December 31, 2024, primarily due to a decrease in share of profits less losses of associates and joint ventures[84]. Market Trends and Consumer Behavior - In 2024, the Group experienced a decline in consumption frequency in major markets, but maintained stable cash flow and reduced losses, laying a solid foundation for sustainable development[14]. - The global inflation rate trended downward in 2024, but uncertainties remain, affecting consumer behavior and emphasizing product value[14]. - The consumer confidence index in the US remained stable throughout 2024, but showed a widening decline at the end of the year[26]. - The Group expects global consumer spending to increase by US$3.2 trillion in 2025, a nearly 6% increase compared to 2024, with over 131 million new consumers entering the market[37]. Brand Strategy and Development - Clarks, the Group's primary revenue source, focused on cost reduction and efficiency improvement to stabilize market share amid sluggish consumption in Europe and the US[17]. - The Group is actively repositioning its brands to better serve target customer groups and increase market share[15]. - The "China for China" product design strategy attracted young consumers in the Greater China market, enhancing brand image through new concept stores[17]. - The Group is focusing on the transformation and repositioning of existing brands to promote the development and expansion of its international consumer brand portfolio[39]. - The Group's strategy emphasizes "single brand, multiple categories, and multiple channels" to enhance operational efficiency and sustainable profitability[76]. Operational Efficiency and Cost Management - The Group optimized its organizational structure and rationally allocated resources to improve operational efficiency[15]. - The Group focused on cost control and resource allocation to improve operational efficiency and maintain stable cash flow during a challenging economic environment[30]. - Selling and distribution expenses decreased by HK$770.1 million or 16.8% to HK$3,815.1 million, driven by better cost control and closure of inefficient retail stores[57][60]. - Administrative and other operating expenses decreased by HK$77.7 million or 4.9% to HK$1,523.7 million, mainly due to reduced staff costs from organizational restructuring[61][66]. Joint Ventures and Partnerships - The Group established a joint venture with LionRock Capital to promote the Nordic outdoor brand Haglöfs in Greater China, enriching its brand portfolio[19]. - The Group formed a joint venture with LionRock Capital to operate Haglöfs in Greater China, expanding its consumer brand portfolio[90]. - A joint venture was established in July 2024 between Affluent Team Global Limited and LionRock Capital to market "Haglöfs" branded products in the Greater China region[122]. Leadership and Governance - The Chairman and CEO of the Company, Mr. Li Ning, has been in his position since June 2010 and oversees the overall management and strategic development of the Group[137]. - Mr. Li has been the chairman and CEO of Li Ning Company since June 2010, overseeing overall management and business strategy development[141]. - The company has a strong leadership team with over 30 years of experience in finance and administration, as exemplified by Mr. Ma Wing Man, who has been a non-executive director since 2010[159]. - The independent non-executive directors are responsible for providing independent judgment on the Group's strategies and performance, ensuring accountability and transparency[174][176]. Future Outlook and Strategic Initiatives - The Group plans to launch new products that integrate cycling and urban sports styles in the second half of 2024, while reducing the number of stores from nearly 100 to over 60[34]. - The Group continues to implement the "China for China" strategy for Clarks in the Greater China region, focusing on products tailored for Chinese consumers[86]. - The Group's multi-brand apparel and footwear business aims to diversify product categories to meet the needs of various consumer segments[85].
非凡领越(00933) - 2024 - 年度财报