Financial Performance - Revenue for 2023 reached RMB 14,345.5 million, a 10.9% increase from RMB 12,930.4 million in 2022[5] - Gross profit for 2023 was RMB 6,049.7 million, with a gross margin of 42.2%, up from 40.9% in 2022[5] - Operating profit for 2023 was RMB 1,579.9 million, representing an operating profit margin of 11.0%[5] - Net profit attributable to ordinary shareholders for 2023 was RMB 1,030.0 million, with a net profit margin of 7.2%[5] - Basic earnings per share for 2023 were RMB 40.76 cents, up from RMB 36.61 cents in 2022[5] - Group revenue reached a record high of RMB 14,345.5 million, a 10.9% increase year-over-year (2022: RMB 12,930.4 million)[10] - Gross margin improved to 42.2% (2022: 40.9%)[10] - Net profit attributable to ordinary shareholders increased by 11.8% to RMB 1,030.0 million (2022: RMB 921.7 million)[10] - Revenue increased to RMB 14,345,508 thousand in 2023, up from RMB 12,930,385 thousand in 2022, representing an 11% growth[191] - Gross profit rose to RMB 6,049,675 thousand in 2023, compared to RMB 5,291,709 thousand in 2022, a 14% increase[191] - Operating profit reached RMB 1,579,902 thousand in 2023, up from RMB 1,464,284 thousand in 2022, a 8% growth[191] - Net profit attributable to equity holders of the company was RMB 1,030,009 thousand in 2023, compared to RMB 921,694 thousand in 2022, a 12% increase[191] - Basic earnings per share increased to RMB 40.76 cents in 2023, up from RMB 36.61 cents in 2022, a 11% growth[191] - Other comprehensive income for the year was RMB 8,096 thousand in 2023, compared to a loss of RMB 110,615 thousand in 2022[192] - Total comprehensive income for the year was RMB 1,041,145 thousand in 2023, up from RMB 801,662 thousand in 2022, a 30% increase[192] Operational Highlights - The company operates over 8,500 stores globally across Asia-Pacific, North America, Europe, the Middle East, and Africa[2] - Inventory turnover days remained stable at 90 days in both 2023 and 2022[6] - The company's debt ratio increased slightly to 20.3% in 2023 from 19.6% in 2022[6] - The main brand, Xtep, achieved a 7.4% revenue growth to RMB 11,947.3 million (2022: RMB 11,127.9 million)[10] - Saucony became the first new brand in the group's portfolio to achieve profitability in 2023[12] - The group acquired 40% of Saucony's intellectual property in China in December 2023 and fully acquired the remaining equity of the joint venture with Wolverine in January 2024[12] - Xtep's "160X" running shoes have helped 83 athletes win 370 championships and set multiple records[11] - In 2023, China hosted 580 road running events with a total of 5.5 million participants, indicating a strong recovery in marathon events[13] - Domestic brands accounted for over 50% of the wearing rate in key marathon events in China, surpassing international brands in some cases[13] - Xtep running shoes achieved a wearing rate of 41.8% among all runners and 43.8% among sub-three-hour runners at the 2024 Xiamen Marathon[15] - Xtep maintained the top wearing rate among all and sub-three-hour runners in key Chinese marathons in 2023, with rates of 31% in Xiamen, 28% in Beijing, and 36% in Shanghai[16] - The "160X" series running shoes helped 83 Chinese athletes win 370 championships by the end of 2023[17] - Xtep launched the "260X" carbon plate running shoe in December 2023, featuring a 14.5% increase in propulsion compared to the "260 2.0" model[19] - The "360X" carbon plate running shoe, launched in March 2024, improved stability by 4.2% compared to the "360" series[20] - Xtep sponsored 24 marathon events in 2023, including the Xiamen Marathon for the 16th consecutive year[21] - As of December 31, 2023, Xtep had 65 running clubs in mainland China with over 2 million members[22] - The company launched new basketball series in 2023, including "逆天一代," "凌刃1.0," "遊雲8 PRO," and "御風2.0," with endorsements from professional basketball player Malik Beasley[25] - The company launched the "New D Ball" eco-friendly series and "Half Sugar" women's series, incorporating recycled coffee grounds into products, resonating strongly with young consumers[26] - As of December 31, 2023, the company had 6,571 adult brand stores in mainland China and overseas, an increase from 6,313 stores in the previous year[27] - The company's children's brand, Xtep Kids, expanded to 1,703 stores in mainland China as of December 31, 2023, up from 1,520 stores in the previous year[28] - The upgraded "Xtep 100 2.0 PRO" flagship running shoe, featuring "XTEP ACE" cushioning technology, was recognized by top universities and contributed to a championship win in a major race[29] - The company sponsored the 2023 China Athletics Mass Standard Campus Series, supporting 1,500 finalists and promoting youth sports participation across 24 provinces and 72 cities[30] - The professional sports division, led by Saucony, saw a 98.9% increase in revenue to RMB 795.5 million, accounting for 5.5% of the group's total revenue[31] - Saucony expanded its retail network in China, with 110 stores as of December 31, 2023, and launched new products like the "ENDORPHIN ELITE" and "KINVARA PRO"[32] - Merrell, another brand under the company, collaborated with JEEP to launch the "Merrell X JEEP MOAB 3" and introduced new winter products featuring eco-friendly materials[33] - Saucony's product line includes competition racing and training shoes priced at RMB 2,099 and RMB 1,699 respectively, with other series like commuting, leisure, and retro styles ranging from RMB 599 to RMB 1,699[34] - In 2023, the fashion sports segment revenue increased by 14.3% to RMB 1,602.6 million, accounting for 11.2% of the group's revenue, with domestic revenue surging 224.3%[35] - K-Swiss achieved annual store efficiency exceeding RMB 10 million in one of its trial stores in Changchun, and expanded to 101 brand stores in the Asia-Pacific region, including mainland China, by the end of 2023[36] - Palladium expanded its presence in high-tier cities in mainland China, opening its first store in South China at Shenzhen MixC, totaling 94 brand stores in the Asia-Pacific region by the end of 2023[36] - K-Swiss sponsored major tennis events, including the 2023 Zhuhai Tennis Championship and the 2024 Hong Kong Tennis Open, enhancing its brand influence in professional tennis[37] - Palladium collaborated with KARL LAGERFELD and Hello Kitty, launching co-branded series that blend retro sportswear with contemporary fashion trends[37] - The company's total revenue for 2023 increased to RMB 14.345 billion, up 10.9% from RMB 12.930 billion in 2022, driven by strong demand for sports products and growth in the children's business[48][50] - Footwear revenue accounted for 57.0% of total revenue in 2023, reaching RMB 8.172 billion, a 5.3% increase from 2022[48] - Apparel revenue grew significantly by 20.6% to RMB 5.904 billion in 2023, representing 41.1% of total revenue[48] - The professional sports segment saw the highest revenue growth at 98.9%, reaching RMB 795.5 million in 2023[49] - Gross margin improved to 42.2% in 2023, up 1.3 percentage points from 40.9% in 2022, with apparel gross margin increasing by 1.6 percentage points to 42.9%[51] - The company's production facility in Fujian Province is undergoing second-phase construction, with 35,000 square meters expected to be completed by August 2024[45] - The company's logistics park in Fujian Province, with a total planned construction area of 240,000 square meters, is currently under construction[45] - As of December 31, 2023, the company had approximately 9,100 employees, with production employees accounting for 56.8% of the workforce[46] - The company's talent center provided over 430,000 hours of online and offline training to employees in 2023[46] - The company launched its first low-carbon running club in Shanghai in November 2023, using innovative materials to achieve zero carbon emissions[43] - Gross profit margin increased by 1.3 percentage points to 42.2% (2022: 40.9%), driven by higher-margin functional products and significant improvement in the fashion sports segment[52] - Other income and net gains increased mainly due to higher government subsidies, reaching RMB 284.2 million (2022: RMB 178.2 million)[53] - Sales and distribution expenses rose to RMB 3,369.0 million (2022: RMB 2,690.2 million), accounting for 23.5% of total revenue (2022: 20.8%), primarily due to increased advertising and promotion costs[54] - R&D expenses increased to RMB 398.0 million (2022: RMB 299.0 million), representing 2.8% of total revenue (2022: 2.3%), mainly for new product development and production technology[55] - Net finance costs increased to RMB 145.5 million (2022: RMB 91.2 million), driven by higher bank loan interest expenses[56] - Operating profit margin remained stable at 11.0%, with the professional sports segment showing a significant turnaround[57] - Net profit attributable to ordinary shareholders increased by 11.8% to RMB 1,030.0 million (2022: RMB 921.7 million), with a net profit margin of 7.2% (2022: 7.1%)[60] - Total dividend for 2023 was 21.7 HK cents per share (2022: 20.1 HK cents), maintaining a payout ratio of 50.0%[61] - Operating cash cycle increased to 83 days (2022: 67 days), mainly due to an 8-day increase in trade receivables turnover days[62] - Notes receivable increased to RMB 457.0 million (2022: RMB 403.2 million), with a turnover period of 11 days (2022: 11 days)[63] - Cash and cash equivalents decreased to RMB 3,294.6 million as of December 31, 2023, compared to RMB 3,414.2 million in 2022, primarily due to net cash outflows from investing and financing activities[64] - Net cash and cash equivalents (including pledged bank deposits and time deposits, minus bank borrowings and convertible bonds) stood at RMB 932.1 million as of December 31, 2023, down from RMB 1,225.7 million in 2022[64][65] - The company's total assets increased to RMB 17,325.4 million as of December 31, 2023, up from RMB 16,493.5 million in 2022, with net asset value rising by 7.4% to RMB 8,923.3 million[66] - The company's debt ratio increased to 20.3% as of December 31, 2023, compared to 19.6% in 2022[65] - The company recorded a trade receivables impairment of RMB 22.2 million for the year ended December 31, 2023, up from RMB 19.5 million in 2022[67] - The company completed the acquisition of a 40% ownership interest in Saucony Asia IP Holdco and established a new joint venture, XMS Sports Co. Limited, to further develop the Saucony and Merrell brands in Mainland China, Hong Kong, and Macau[70] - The company's total number of employees decreased to approximately 9,100 as of December 31, 2023, from 9,800 in 2022, with 56.8% being production employees[72] - The company's professional sports segment reported revenue of RMB 795.5 million for the year ended December 31, 2023, with a gross margin of 40.0% under reported figures and 55.6% under non-GAAP measures[74] - Revenue for the year reached 400.0 million, with a gross profit of 171.0 million, resulting in a gross margin of 42.7%[75] - Operating loss for the year was 67.2 million, with an operating loss margin of -16.8%[75] - The company held less than 50% equity in certain entities within its professional sports division, accounting for them as associates under HKFRS[75] - The company organized 29 reverse roadshows to deepen analysts' and investors' understanding of its operations, including the first running research laboratory in mainland China[81] - The company participated in numerous investor strategy meetings and non-deal roadshows across North America, Europe, and Asia-Pacific, including key markets like China, Hong Kong, Japan, and Singapore[78] - The company received multiple awards, including being named the Most Honored Company (Overall) and Best CEO (Sell Side) by Institutional Investor[82] - The company was recognized for its investor relations efforts, winning Best Investor Relations Company (Mid-Cap) and Best Investor Relations Team (Mid-Cap) at the Hong Kong Investor Relations Association Awards[82] - The company held a 15th-anniversary celebration event in June 2023, sharing future development strategies with investors and partners[76] - The company resumed offline press conferences and analyst briefings in August 2023, following the release of its interim results[76] - Basic earnings per share for 2023: Interim RMB 26.36 cents, Final RMB 40.76 cents[84] - Total annual dividend for 2023: 21.7 HK cents (Interim: 13.7 HK cents, Final: 8.0 HK cents)[84] - Market capitalization as of December 31, 2023: HKD 11,648,826,283[83] - Number of issued shares as of December 31, 2023: 2,641,457,207[83] - Key investor dates: Annual results announcement on March 18, 2024, and Annual General Meeting on May 3, 2024[85] - Proposed final dividend for 2023 to be distributed on June 28, 2024[85] - Founder and CEO Ding Shuibo has over 30 years of experience in the sports goods industry[86] - Ding Shuibo has completed multiple executive education programs, including at Harvard University and Tsinghua University[86] - Ding Shuibo has received numerous awards, including the 2023 Influential Business Leader award[87] - Ding Shuibo holds several public positions, including Vice Chairman of the China Athletics Association[88] - Chen Weicheng, aged 68, serves as the non-executive director and chairman of the audit and sustainability committees, with over 40 years of experience in financial management, corporate finance, mergers and acquisitions, and strategic development[91] - Bao Mingxiao, aged 62, is an independent non-executive director with over 36 years of experience in sports education and has held significant roles in national sports research and policy[92] - Hu Jiacheng, aged 55, is an independent non-executive director and chairman of the remuneration committee, with extensive experience in accounting, economics, and finance, and has served on the boards of several listed companies[92] - Chen Qihua, aged 58, is an independent non-executive director and chairman of the audit committee, with over 26 years of financial and management experience and holds multiple senior memberships in professional accounting and governance bodies[94] - Yang Lubin, aged 46, serves as the company secretary and authorized representative, also holding the position of CFO and group vice president, with over 20 years of experience in audit, corporate finance, and financial management[95] - The company is committed to establishing good corporate governance practices and procedures, emphasizing internal control, fair disclosure, and accountability to all shareholders[96] - The company adheres to all provisions of the Corporate Governance Code except for provision C.2.1, which requires the separation of Chairman and CEO roles. Currently, Mr. Ding Shuibo serves as both Chairman and CEO, leveraging his extensive experience in the sports goods industry to oversee the company's overall strategy and business management[97] - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors' securities transactions. All directors confirmed compliance with the standard code during the year ended December 31, 2023[98] - The company's core values of perseverance, innovation, integrity, and win-win have been instrumental in its success and reputation as a premium sports brand. It operates a vast global distribution network across Asia-Pacific, North America, Europe, the Middle East, and Africa (EMEA)[99] - The Board of Directors consists of three executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2023[100] - All directors attended 7 out of 7 board meetings and 1 out of 1 shareholders' meeting during the year ended December 31, 2023[104] - The Board of Directors is responsible for the overall management and strategic development of the company, decision-making on business and investment plans,
特步国际(01368) - 2023 - 年度业绩