Financial Performance - The company's revenue for the six months ended June 30, 2023, was $4,154,968 thousand, a decrease of 11.78% compared to $4,709,792 thousand in the same period of 2022[2] - The profit attributable to the company's owners for the six months ended June 30, 2023, was $83,601 thousand, down 52.24% from $175,049 thousand in the previous year[2] - Basic earnings per share for the period were 5.19 cents, a decrease of 52.25% compared to 10.87 cents in the same period last year[2] - Total comprehensive income for the period was $29,330 thousand, significantly lower than $92,656 thousand in the same period of 2022[6] - The company's profit for the six months ended June 30, 2023, was $83,601,000, a decrease from $175,049,000 in the same period of 2022[24] - Profit attributable to the company's owners was $83.6 million, down 52.2% from $175.0 million in the previous year[32] Dividends - The interim dividend declared was HK$0.20, which is 50.00% lower than the HK$0.40 declared in the previous year[2] - The company declared an interim dividend of HK$0.20 per share for the six months ended June 30, 2023, compared to HK$0.40 per share in 2022[23] - The board declared an interim dividend of HK$0.20 per share, compared to HK$0.40 per share in 2022[51] Revenue Breakdown - Manufacturing business revenue was $2,573,895 thousand, down 19.3% from $3,188,899 thousand year-on-year[19] - Retail business revenue increased to $1,581,073 thousand, up 3.9% from $1,520,893 thousand in the previous year[19] - The total revenue from manufacturing activities, including sports/outdoor shoes, casual shoes, and sports sandals, decreased by 18.1% to $2,379.0 million, with footwear shipments down 23.8% to 109.8 million pairs[33] - BaoSheng's revenue rose by 4.0% to $1,581.1 million, attributed to improved consumer sentiment and retail foot traffic in mainland China[34] Assets and Liabilities - Non-current assets as of June 30, 2023, amounted to $3,581,612 thousand, down from $3,791,896 thousand as of December 31, 2022[7] - Current assets decreased to $3,751,090 thousand from $4,143,525 thousand at the end of 2022[8] - Current liabilities were $1,629,133 thousand, a decrease from $2,003,292 thousand in the previous year[8] - The company's net asset value as of June 30, 2023, was $4,529,538 thousand, down from $4,642,325 thousand at the end of 2022[8] - Accounts receivable amounted to $952,926,000 as of June 30, 2023, compared to $934,027,000 at the end of 2022[26] - The aging analysis of accounts payable showed a total of $397,568,000 as of June 30, 2023, compared to $426,930,000 at the end of 2022[28] Operational Efficiency - The company continues to implement strict cost control measures and enhance operational efficiency to strengthen its manufacturing business amid a challenging macroeconomic environment[31] - The group plans to continue monitoring market developments and will flexibly allocate production capacity to balance demand, order scheduling, and labor supply, focusing on cost control and cash flow management to ensure financial stability[53] - The group aims to diversify its manufacturing capacity in regions like Indonesia and India, targeting sustainable growth opportunities while enhancing its product mix through high-value orders[53] Employee and Workforce - As of June 30, 2023, the group employed approximately 276,800 employees, a decrease of 14.2% from 322,500 employees a year earlier[52] - The group maintains a competitive compensation plan and comprehensive employee benefits, including year-end bonuses based on annual profit performance[52] Market Conditions - The overall footwear industry is experiencing a destocking cycle, impacting the company's short-term operational performance and profitability[32] - The retail business is expected to show a cautious recovery trend in the second half of 2023, supported by improved foot traffic and consumer spending in mainland China[54] Financial Management - The company recorded a net cash inflow from operating activities of $363.6 million, compared to a net inflow of $8.7 million in the same period of 2022[43] - The company's bank balance and cash amounted to $959.8 million as of June 30, 2023, down from $1,018.3 million at the end of 2022[44] - The net leverage ratio (net bank borrowings to total equity) was 5.3% as of June 30, 2023, down from 9.0% at the end of 2022[44] Capital Expenditure - The group recorded a total capital expenditure of $82.6 million in the first half of 2023, down from $111.4 million in the same period of 2022[46] - Capital expenditure for the manufacturing business was $59.9 million, compared to $89.2 million in the first half of 2022[46] - The retail business's capital expenditure increased to $22.7 million, slightly up from $22.2 million in the first half of 2022[46] Corporate Governance - The company has adopted the corporate governance code principles and complied with all applicable code provisions during the reporting period[57] - The external auditor has issued a review report without reservation on the interim financial information for the period[59] - The interim results announcement and report will be published on the company's website and the Hong Kong Stock Exchange website[61]
裕元集团(00551) - 2023 - 年度业绩