BOSIDENG(HK:03998)2023-07-26 13:48Financial Performance - The total revenue for the fiscal year 2022/23 reached RMB 16,774.22 million, representing an increase of 3.5% compared to RMB 16,213.61 million in 2021/22[20] - Gross profit for the same period was RMB 9,975.88 million, with a gross margin of 59.5%, slightly down from 60.1% in the previous year[20] - Operating profit increased to RMB 2,826.37 million, reflecting an operating margin of 16.8%, up from 15.8% in 2021/22[20] - Net profit attributable to equity shareholders was RMB 2,138.57 million, a rise from RMB 2,062.32 million in the prior year, maintaining a net profit margin of 12.7%[20] - The company reported a net cash flow from operating activities of RMB 3.05 billion, a year-on-year increase of 14.3%[29] - The company's revenue for the fiscal year 2022/23 reached RMB 16.77 billion, representing a year-on-year growth of 3.5%[26] - Profit attributable to equity shareholders increased to RMB 2.14 billion, a year-on-year growth of 3.7%[26] Dividend and Shareholder Returns - The company declared a total dividend of 18.0 HKD cents per share, unchanged from the previous year, with a mid-term dividend of 4.5 HKD cents and a final dividend of 13.5 HKD cents[20] - The board proposed a final dividend of HKD 0.135 per share, equivalent to approximately RMB 0.124 per share, subject to shareholder approval[152] Assets and Liabilities - The company’s total assets amounted to RMB 20,942.68 million, with total liabilities of RMB 8,338.31 million, resulting in a debt ratio of 18.9%[20] - The group's debt ratio was 18.9% as of March 31, 2023, down from 20.8% the previous year[156] Brand and Market Position - The brand was ranked 48th in the Brand Finance "Global 50 Most Valuable Apparel Brands" list for 2022[19] - In the fiscal year 2022/23, Bosideng was recognized as the "global leader in down jacket sales" and "number one in sales revenue globally" by Euromonitor[50] - Bosideng was ranked 48th in the Brand Finance Apparel 50 list, reflecting its growing brand value in the global apparel market[48] Business Strategy and Focus - The company plans to continue focusing on its core down apparel business while enhancing brand development and product upgrades[9] - The company aims to become the most respected fashion functional apparel group globally, with a mission to "warm the world" through its products[14] - The company aims to solidify its position as a "global leader in down jackets," enhancing brand recognition and expanding market share through a brand matrix strategy[180] Operational Efficiency - The current ratio improved to 2.4 times, indicating strong liquidity compared to 2.2 times in the previous year[20] - The company's inventory turnover days decreased to 144 days, indicating improved operational efficiency[29] - The inventory turnover days as of March 31, 2023, were 144 days, a decrease of 6 days compared to the same period in 2022, indicating improved operational efficiency[59] Digital Transformation and Innovation - The company is committed to digital transformation, integrating big data into key operational processes to enhance efficiency and decision-making accuracy[33] - The company has established a digital operation platform focusing on user, retail, and product, with initial versions launched between May and September 2022, aiming for mobile office, online business, digital operations, and intelligent decision-making[70] - The company has implemented a digital quality control system to ensure real-time monitoring and traceability of product quality, enhancing user experience and brand perception[64] Product Development and Innovation - The company launched a new generation of lightweight down jackets, enhancing sales cycles and expanding product categories[30] - The company successfully redefined lightweight down jackets, broadening market appeal and extending sales seasons across different regions[52] - The product development process includes customer research, market analysis, and feedback loops to ensure continuous improvement and innovation[77] Sustainability and ESG Initiatives - The company received an ESG rating upgrade to "A" from MSCI, indicating industry-leading performance in environmental, social, and governance practices[34] - The company is committed to sustainable high-quality development, aligning with national "dual carbon" strategies and enhancing its ESG capabilities[39] - The MSCI ESG rating was upgraded to A, reflecting improvements in labor management and product carbon footprint[160] Retail and Sales Channels - The online retail segment saw significant growth, with the company achieving the top ranking in women's clothing on Tmall during the Double Eleven shopping festival[32] - The online sales revenue for all brands reached approximately RMB 4,929.3 million, showing a robust year-on-year increase of 22.5%[139] - The company is actively expanding its online business and enhancing its new retail platform presence to improve overall sales performance[113] Challenges and Market Conditions - The women's apparel segment faced significant challenges due to the pandemic, impacting logistics and offline customer traffic, leading to a soft performance across all brands[113] - The Ice Cleansing brand's revenue fell to RMB 125.5 million, a decline of 46.7% year-on-year, due to economic slowdown and intensified competition in the mid-to-low-end apparel market[95] Governance and Management - The board consists of eight directors, with five being executive directors and three independent non-executive directors, ensuring compliance with listing rules[192] - The company emphasizes accountability and transparency in corporate governance, aligning with shareholder expectations and maintaining high governance standards[186] - The chairman and CEO roles are held by the same individual, Gao Dekang, which the board believes is essential for strong market leadership[200]