Financial Performance - Revenue for the year was $8,533.3 million, representing a 1.0% increase from $8,444.9 million in 2020[6]. - Profit attributable to owners of the company was $115.1 million, a significant recovery from a loss of $90.8 million in 2020[6]. - EBITDA rose by 37.9% to $727.4 million from $527.5 million in 2020[6]. - The overall consolidated revenue for the fiscal year ended December 31, 2021, increased by 1.0% to $8.5 billion, compared to $8.4 billion in 2020[19]. - The group recorded a revenue of $8,533.3 million for the year ended December 31, 2021, representing a 1.0% increase compared to the previous year[26]. - The average selling price of footwear increased by 4.4% to $18.68 per pair, despite a 2.5% decrease in the number of pairs shipped, totaling 238.3 million pairs[28]. - Revenue from footwear manufacturing activities increased by 1.8% to $4,450.5 million, with sports/outdoor shoes accounting for 84.5% of footwear manufacturing revenue[28]. - Gross profit increased by 11.9% to $2,048.2 million, with an overall gross margin rising by 2.3 percentage points to 24.0%[33]. - Net profit margin rose to 1.7% in FY2021 compared to (0.9)% in FY2020, indicating a recovery in profitability[110]. Cash Flow and Capital Expenditure - Free cash flow decreased by 69.4% to $177.1 million from $578.9 million in the previous year[6]. - Capital expenditure increased by 12.0% to $286.0 million compared to $255.3 million in 2020[6]. - Cash flow from operating activities was $463.1 million, down from $834.2 million in 2020, with free cash flow at $177.1 million[39]. - The group's total capital expenditure for 2021 reached $286.0 million, an increase from $255.3 million in 2020, with manufacturing capital expenditure at $215.9 million, up from $170.6 million in 2020[43]. Debt and Equity - The total equity increased by 5.3% to $4,604.5 million from $4,374.1 million in 2020[6]. - The debt ratio improved to 37.3%, down from 42.7% in the previous year, reflecting a 12.6% decrease[6]. - The debt-to-equity ratio improved to 37.3% from 42.7% in the previous year[40]. - The net debt to equity ratio improved to 19.1% in FY2021 from 22.2% in FY2020, indicating a stronger balance sheet[110]. Sustainability and Environmental Goals - The company aims to reduce greenhouse gas emissions by 46.2% by 2030 compared to the 2019 baseline as part of its commitment to sustainability[21]. - The company is committed to achieving net-zero emissions by mid-century, aligning with the goals set at the UNFCCC COP26 and the Paris Agreement[116]. - The company has implemented a series of management policies to enhance resource efficiency and reduce environmental impact in its footwear business[112]. - The company is focusing on local suppliers to minimize supply chain disruptions and reduce carbon emissions from transportation[113]. Digital Transformation and Innovation - The company plans to enhance its digital transformation strategy, focusing on innovation, digitalization, and automation to strengthen its core competitiveness[20]. - The company is focused on digital transformation, including the implementation of a third-phase SAP ERP system to drive operational excellence[49]. - Investments in business intelligence systems and digital tools are expected to support operations and improve customer experience[50]. Market and Sales Strategy - The global sports goods industry is expected to grow at a compound annual growth rate (CAGR) of 8% to 10% until 2025, with the Chinese market projected to grow at a CAGR of 13.7% during the same period[19]. - In 2021, the contribution of omnichannel sales to the company's overall revenue reached 21%, with 4,631 directly operated retail stores and 3,786 franchised stores in Greater China by year-end[20]. - The company aims to prioritize value growth over pure sales growth, seeking high-value orders to improve product mix[49]. Employee and Management - The company continues to prioritize employee health, safety, and well-being while gradually increasing production capacity in a safe and orderly manner[19]. - As of December 31, 2021, the group employed approximately 317,200 employees, a 6.3% increase from about 298,500 employees at the end of 2020[48]. - The company has a strong management team with extensive experience in finance and accounting, including members with over 20 years of experience in the field[58]. Governance and Compliance - The company adopted the principles of the original Corporate Governance Code and complied with all applicable code provisions for the year ended December 31, 2021[163]. - The board held a total of seven meetings and one annual general meeting during the year ended December 31, 2021[166]. - The company has established appropriate insurance arrangements for directors against liabilities arising from corporate affairs, with no claims made against directors during the year[171]. Risk Management - The company is actively monitoring macroeconomic conditions and potential risks, particularly related to COVID-19 and labor supply in Southeast Asia[49]. - The company has established a sustainable development department to manage environmental risks and ensure operational continuity during severe weather events[142]. - Currency fluctuations pose a risk to the company's costs and operating performance, leading to the implementation of currency hedging strategies[144]. Community Engagement and Social Responsibility - The company actively participates in community development initiatives, focusing on quality education, health, and poverty alleviation[129]. - The group made charitable donations totaling approximately USD 5.2 million for the year ended December 31, 2021[63].
裕元集团(00551) - 2021 - 年度财报