Financial Performance - Revenue decreased by 2.0% to $4,709.8 million from $4,807.1 million year-on-year[7] - Gross profit declined by 11.5% to $1,095.7 million, resulting in a gross margin of 23.3%, down from 25.8%[7] - EBITDA decreased by 15.1% to $461.9 million compared to $543.9 million in the previous year[7] - Profit attributable to equity holders increased by 2.8% to $175.0 million, with basic earnings per share rising to 10.87 cents from 10.57 cents[7] - The net profit for the six months ended June 30, 2022, was $176,474 thousand, a decline of 16.2% from $210,617 thousand in the prior year[13] - The group reported a net profit for the six months ended June 30, 2022, of $175,049,000, compared to $170,255,000 in the same period of 2021, reflecting a 2.2% increase[35] Shipments and Sales - Total footwear shipments increased by 5.6% to 144.1 million pairs compared to 136.4 million pairs in the same period last year[7] - Revenue from footwear activities increased by 16.0% to $2,905.9 million, with a 5.6% rise in footwear shipments to 144.1 million pairs and an average selling price increase of 9.7% to $20.16 per pair[58] - Revenue from sports/outdoor shoes increased to $2,465,170 thousand from $2,081,424 thousand, indicating strong demand in this segment[27] - The retail subsidiary, Bao Sheng, saw a revenue decline of 24.7% to $1,520.9 million, impacted by COVID-19 lockdowns and reduced foot traffic[58] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.40 per share, not applicable in the previous year[7] - The group emphasizes maintaining a stable dividend policy to ensure sustainable returns for shareholders[76] Liquidity and Financial Ratios - The current ratio improved to 1.9 from 1.8, reflecting better short-term liquidity[7] - The debt ratio increased to 41.1% from 37.3% year-on-year, indicating a rise in leverage[7] - The group's net debt was $1,131.4 million with a net debt-to-equity ratio of 24.3%, up from $879.1 million and 19.1% as of December 31, 2021[68] Operational Efficiency and Cost Management - Selling and distribution expenses decreased by 12.4% to $538.6 million, accounting for approximately 11.4% of total revenue[64] - The cost of goods sold for manufacturing was $2,632.1 million, a 15.5% increase from $2,278.0 million in the previous year, with major material costs rising by 19.2%[63] - The total employee costs for the period were $1,170,303,000, an increase from $1,117,413,000 in the previous year[33] Market Presence and Strategic Focus - The company is focused on expanding its market presence and enhancing product development strategies[11] - The group plans to diversify its manufacturing capacity in Southeast Asia, particularly in Indonesia, to support sustainable growth and address labor supply and infrastructure needs[74] - The group aims to enhance operational efficiency and productivity through digital transformation strategies, including the implementation of a new SAP ERP system and real-time data applications[74] Environmental Commitment - The group aims to achieve zero growth in greenhouse gas emissions by 2025 compared to the 2019 baseline, with a target of a 46.2% reduction by 2030[56] - The group was recognized as one of the "Climate Leaders" in the Asia-Pacific region, achieving a 6.3% annual compound reduction in greenhouse gas emissions intensity from 2015 to 2020[56] Corporate Governance - The company has maintained compliance with the corporate governance code as per the listing rules during the six months ending June 30, 2022[100] - The board of directors includes six executive directors and four independent non-executive directors as of the report date[101] - The company is committed to high levels of corporate governance through transparency and accountability[100]
裕元集团(00551) - 2022 - 中期财报