Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 10,960,001 thousand, representing an increase of 11.1% compared to RMB 9,864,815 thousand for the same period in 2022[2]. - Gross profit for the same period was RMB 3,670,684 thousand, up 5.0% from RMB 3,495,946 thousand year-on-year[2]. - Operating profit surged to RMB 472,818 thousand, a significant increase of 127.0% from RMB 208,329 thousand in the previous year[2]. - Profit attributable to owners of the company reached RMB 305,465 thousand, marking a remarkable increase of 1,654.2% compared to RMB 17,413 thousand in the prior period[2]. - Basic earnings per share for the period was RMB 5.90, a substantial rise of 1,635.3% from RMB 0.34 in the same period last year[2]. - Total comprehensive income for the period was RMB 316,979 thousand, compared to RMB 22,305 thousand in the same period last year[5]. - The company's net profit for the six months ended June 30, 2023, was RMB 305,465,000, a significant increase from RMB 17,413,000 in the same period of 2022, reflecting a substantial recovery in performance[24]. - Net profit for the period was RMB 319.0 million, a significant increase of 1,218.8% compared to the same period last year[43]. Cash and Liquidity - Cash and cash equivalents increased by 70.1% to RMB 2,024,918 thousand from RMB 1,190,148 thousand as of December 31, 2022[2]. - As of June 30, 2023, the group recorded a strong bank balance and cash amounting to RMB 2,224.9 million, up from RMB 1,190.1 million as of December 31, 2022, while net cash level increased to RMB 2,132.9 million from RMB 734.0 million[45]. - Bank borrowings were significantly reduced by 79.8% to RMB 91,991 thousand from RMB 456,162 thousand as of December 31, 2022[2]. - The interest expenses for bank borrowings were RMB 5,250,000 for the first half of 2023, a decrease from RMB 33,733,000 in the same period of 2022, indicating improved financing costs[20]. Inventory and Asset Management - Inventory decreased by 23.1% to RMB 4,672,120 thousand from RMB 6,071,858 thousand at the end of the previous year[2]. - The average inventory turnover period improved significantly to 133 days in H1 2023, down from 202 days in H1 2022, with inventory value decreasing from RMB 6,071.9 million as of December 31, 2022, to RMB 4,672.1 million as of June 30, 2023[44]. - The depreciation of right-of-use assets was RMB 452,947,000 for the first half of 2023, down from RMB 568,551,000 in the same period of 2022, reflecting better asset management[21]. Sales and Revenue Sources - Sales of sports apparel and footwear contributed RMB 10,897,233 thousand to revenue, up from RMB 9,807,723 thousand, reflecting a growth of 11.1%[17]. - The company earned RMB 62,768 thousand from franchise sales commissions, compared to RMB 57,092 thousand in the previous year, marking an increase of 10.8%[17]. - The company's online sales accounted for approximately 25% of total sales, up from 21% in the same period last year[34]. - The company recorded a strong sales growth in its private traffic channels, particularly through the Panwei Store ecosystem, which improved sales conversion rates and reduced sales cycles[34]. Expenses and Cost Management - Total employee costs amounted to RMB 1,193,904,000 for the first half of 2023, compared to RMB 1,258,961,000 in the same period of 2022, indicating a decrease of approximately 5.2%[21]. - Sales and distribution expenses decreased by 4.1% to RMB 2,913.6 million, representing 26.6% of total revenue, down from 31.2% in the previous year[41]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.0185 per share, which was not applicable in the previous year[2]. - The interim dividend declared is HKD 0.0185 per share for the six months ending June 30, 2023, compared to no dividend for the same period last year[54]. - The record date for the interim dividend is September 14, 2023, with the payment scheduled for October 6, 2023[54]. Corporate Governance and Compliance - The independent auditor has reviewed the unaudited condensed consolidated financial information for the six months ending June 30, 2023, in accordance with the relevant standards[57]. - The company has adhered to the principles of the Corporate Governance Code and complied with all applicable code provisions during the six months ending June 30, 2023[58]. Strategic Initiatives and Future Outlook - The group maintains a reasonable optimistic outlook for H2 2023, supported by improved consumer sentiment and a relatively low base effect from the previous year[49]. - The group aims to accelerate digital transformation to drive profit growth and improve profit margins, particularly through a robust omnichannel performance[49]. - The group plans to enhance its ERP and business intelligence systems, investing in digital tools to optimize inventory management and operational efficiency[50]. - The company continues to invest in digital transformation, enhancing its ERP system and other digital tools to improve operational efficiency[36]. - The company is focusing on optimizing its store layout and integrating digital services with physical stores to enhance customer experience[32]. - The company is strengthening strategic alliances with brand partners to enhance customer engagement and drive sales growth through integrated membership programs[35]. Employee and Share Incentive Plans - As of June 30, 2023, the group employed approximately 23,700 staff, a decrease of 17.1% year-on-year, while offering competitive compensation packages and employee benefits[51]. - The share incentive plan allows for a maximum of 213,047,184 shares to be awarded, representing 4% of the total shares issued as of the grant date[52]. - As of March 15, 2023, a total of 111,721,810 shares have been granted under the share incentive plan, accounting for approximately 2.10% of the issued shares[53]. - The total number of shares that can be further granted under the share incentive plan is 101,325,374, representing about 1.90% of the issued shares[53]. - For the six months ending June 30, 2023, no incentive shares were granted, while 126,400 incentive shares were forfeited or cancelled, and 377,400 incentive shares vested[53].
宝胜国际(03813) - 2023 - 中期业绩