2025-03-28 02:00Financial Performance - The company's revenue increased by 3.9% year on year, reaching 28.68 billion RMB, with a gross profit margin up by one percentage point to 49.4% [3][35] - Net profit was 3.13 billion RMB, with a net profit margin of 10.5%, reflecting a decrease of 0.5 percentage points compared to the previous year [3][15] - Operating cash flow rose by 12.4% to 5.27 billion RMB, with a healthy operating cash over revenue ratio of 7.4% [4][19] Business Line Performance - Footwear accounted for 50% of total revenue, growing by 7% year on year, which was a key driver of overall business growth [6] - The online business environment improved, leading to a 2 percentage point increase in revenue share from e-commerce to 31% [6] - Direct retail revenue decreased by 1% year on year, primarily due to the optimization of store structure [10][11] Market Performance - Offline retail sales declined by a low single digit, while online sales grew by 10% to 20% [9] - The number of points of sale (POS) decreased by 83 to a total of 7,585, with a notable reduction in direct retail stores [7][8] - The company maintained a healthy inventory turnover of four months, with inventory aging structure stabilizing at 80% for new products [15][16] Strategic Direction and Industry Competition - The company aims to enhance brand value through sports marketing and product innovation, focusing on core categories such as running, basketball, and fitness [24][25] - The strategy includes a single brand with multiple categories and channels to improve market competitiveness [24] - The company is committed to innovation in new sports segments and enhancing its professional product matrix [25][30] Management Commentary on Operating Environment and Future Outlook - The management expressed confidence in the medium to long-term growth of China's athletic footwear and apparel industry, despite current challenges [21][20] - For 2025, the company expects flat revenue growth and plans to increase investment in brand building and core categories [21] - The management highlighted the importance of maintaining operational efficiency and adapting to market changes [39][42] Other Important Information - The company recommended a final dividend of 20.73 cents per share, increasing the total dividend payout from 45% to 50% [4] - The company has been recognized as the official apparel partner of the Chinese Olympic Committee for the period of 2025 to 2028 [33] Q&A Session Summary Question: What are the expectations for revenue growth in 2025? - The company expects full-year revenue to remain flat year on year, focusing on sustainable growth in core categories [21] Question: How is the company addressing challenges in offline retail? - The company is optimizing channel structures and enhancing operational efficiency to adapt to declining customer traffic [39] Question: What is the strategy for e-commerce growth? - The company is investing in differentiated strategies for various e-commerce platforms to improve customer traffic and sales conversion rates [42]