Revenue Growth - Revenue increased by 17.3% to RMB 6.96 billion[24] - Children's business revenue grew by 30.3% to RMB 1.44 billion[24] - E-commerce business revenue rose by 37.3% to RMB 1.69 billion[24] - The company's revenue for the year reached RMB 6.96 billion, representing a year-on-year growth of 17.3%[35] - Profit attributable to equity holders was RMB 750 million, an increase of 24.2% compared to the previous year[35] - The group's revenue increased by 17.3% year-on-year to RMB 6,960.8 million, with the core brand contributing 77.6% of total revenue[78] - The children's business revenue grew by 30.3% year-on-year to RMB 1,442.2 million, accounting for 20.7% of total revenue[79] - E-commerce sales revenue rose by 37.3% year-on-year to RMB 1,685.4 million, representing 24.2% of total revenue[79] Profitability and Margins - Profit attributable to equity holders increased by 24.2% to RMB 747.1 million, with basic earnings per share rising to RMB 36.1 cents[29] - Gross profit margin for 2022 was 40.5%, compared to 41.7% in 2021[29] - Operating profit margin decreased to 15.4% from 18.3% in the previous year[29] - Gross profit recorded at RMB 2,820.6 million, with a gross margin decline of 1.2 percentage points to 40.5%[84] - The gross margin for footwear decreased from 43.1% to 41.2%, primarily due to increased production costs from outsourcing more orders to OEMs[84] - The gross margin for accessories decreased by 2.4 percentage points to 36.0% due to changes in product mix and increased production costs[86] - The gross margin for 361º children's business decreased by 0.3 percentage points to 40.9%[86] Store and Outlet Expansion - The number of retail stores in mainland China reached 5,480[24] - The total number of international sales outlets is 1,192[27] - As of December 31, 2022, the total number of 361º brand stores reached 5,480, representing a net increase of 210 stores compared to the previous year[53] - Approximately 76.3% of the stores are located in third-tier and below cities in China, while 4.6% and 19.1% are in first-tier and second-tier cities, respectively[53] - The ninth-generation image stores increased to 2,664, accounting for 48.6% of total stores, with a year-on-year growth of 20.4%[53] - As of December 31, 2022, there were 2,288 sales outlets for 361º Children's products, a net increase of 392 outlets compared to the previous year[64] - The number of fourth-generation image stores for 361º Children increased to 1,642, accounting for 71.8% of total stores, representing a growth of 26.4% year-on-year[64] Inventory and Supply Chain Management - The inventory turnover days decreased to 91 days from 111 days, indicating improved inventory management[31] - The company has implemented a systematic order management model to ensure smooth supply, transparent inventory, and stable retail prices[52] - The company is actively optimizing its supply chain and logistics costs to enhance operational efficiency in the post-pandemic era[52] - The average inventory turnover period increased to 91 days from 87 days in 2021, with 89.9% of inventory being finished goods, primarily for winter 2022 and spring 2023 products[97] - The proportion of internally produced footwear and apparel decreased to 33.0% from 44.2%, while outsourced products increased to 67.0% from 55.8%[82] Marketing and Brand Strategy - The company is focusing on enhancing brand value through digital transformation and optimizing customer experience across online and offline channels[36] - The company has established a strong partnership with the Asian Games, enhancing its brand visibility and international influence[37] - The company is deepening its dual-driven strategy of "professional sports + sports fashion," focusing on core product categories like running and basketball[38] - The brand's marketing strategy includes leveraging the influence of global ambassadors to engage younger demographics and expand its market presence[39] - The company allocates 9% to 11% of annual revenue for brand promotion and marketing, focusing on sponsorship of major international sports events[56] Research and Development - The introduction of innovative products, such as the "CQT Carbon Critical Technology" and new shoe models, reflects the company's commitment to research and development, enhancing its long-term value[43] - R&D expenditure accounted for 3.8% of total revenue for the year[74] - The company launched the "Fei Biao" racing shoes in March 2022, featuring the largest carbon plate structure among competitors, enhancing stability and propulsion[74] - The "CQT Carbon Critical Technology" allows for a propulsion rate exceeding 75% and an energy return rate of over 88%[76] - The company has established a dedicated research department for jump rope sports, focusing on advanced technologies like infrared tracking and high-speed imaging[67] Corporate Social Responsibility - The company donated over RMB 20 million in cash and supplies to support pandemic relief efforts, demonstrating its commitment to social responsibility[43] - Charitable donations made by the group during the year amounted to RMB 14,261,000, up from RMB 13,666,000 in 2021[120] - The company has complied with all relevant environmental laws and regulations, ensuring no significant waste or pollution was produced during the production process[110] - The company has taken measures to ensure effective resource utilization, energy saving, and waste reduction in its operations[110] Financial Health and Cash Flow - The total current assets amounted to RMB 11.28 billion, up from RMB 10.08 billion in the previous year[31] - The current ratio improved to 3.9, compared to 3.8 in the previous year, indicating better short-term financial health[31] - Net cash inflow from operating activities was RMB 380.3 million, with cash and cash equivalents totaling RMB 3,860.4 million as of December 31, 2022[93] - The company's asset-liability ratio as of December 31, 2022, was 2.4%, compared to 1.8% in the previous year[96] - The group continued to invest significantly in R&D, maintaining R&D expenses between 3% and 4% of total revenue[90] Future Outlook - The future outlook emphasizes the importance of the sports industry in economic growth, with a focus on professionalization, youth engagement, and internationalization of the brand[44] - The company anticipates that the sports industry will enter a golden period of high-quality development, driven by economic recovery and major international sports events in 2023[101] - The company plans to enhance its omnichannel sales strategy by improving online and offline collaboration, aiming to boost overall sales efficiency[101] - E-commerce is expected to be a major growth driver, with the company exploring new retail channels and leveraging WeChat mini-programs for online and offline synergy[101] Governance and Compliance - The company has adopted high standards of corporate governance, focusing on board quality, effective internal controls, and accountability to shareholders[146] - The company has complied with the corporate governance code and principles, emphasizing risk management and timely communication with shareholders[147] - The audit committee's responsibilities include reviewing the effectiveness of the external auditor and monitoring the integrity of financial reports[163] - The company has implemented a whistleblowing and anti-corruption policy to ensure compliance and ethical conduct[164] Employee Engagement and Culture - The company conducted 6 cultural training sessions for new employees in 2022, achieving a 100% pass rate in cultural competency tests[151] - The company has implemented a corporate culture manual and conducted a knowledge competition with 4,558 valid responses, indicating strong employee engagement[151] - The total employee compensation for the year ended December 31, 2022, was RMB 681.2 million, accounting for 9.8% of the company's revenue[100] - The company has a total of 7,441 full-time employees in China as of December 31, 2022[100]
361度(01361) - 2022 - 年度财报