Bosideng International (3998) H2 23/24 earnings summary

Executive summary

• Revenue grew 38.4% year-over-year to RMB 23,214.0 million, with all business units achieving stable, high-quality growth.

• Operating profit rose 55.6% to RMB 4,397.6 million, and net profit attributable to equity holders increased 43.7% to RMB 3,074.1 million.

• Operating profit margin reached 18.9%, up 2.1 ppt year-over-year, and inventory turnover days improved by 29 days.

• Gross profit margin was 59.6%, up 0.1 ppt year-over-year.

• Board proposed a final dividend of HKD 20.0 cents per share.

Financial highlights

• Gross profit reached RMB 13,833.5 million, up 38.7% year-over-year.

• Net cash position improved to RMB 12,047.2 million, with a 2.4x net cash inflow from operating activities to net profit ratio.

• Basic EPS increased 43.5% to RMB 28.34 cents; full-year dividend per share rose 38.9% to HKD 25.0 cents.

• Distribution and administrative expense ratios decreased by 1.8 ppt and 0.7 ppt, respectively.

• Gearing ratio improved to 18.0% from 18.9% a year earlier.

Outlook and guidance

• Plans to strengthen brand leadership, optimize brand management, and expand product innovation in fashion and functional apparel.

• Channel upgrades and refined operations to drive quality and efficiency; focus on user-value-driven growth.

• OEM business to deepen partnerships, enhance ODM capabilities, and pursue technological innovation.

• Focus remains on innovation, supply chain agility, and sustainable, high-quality growth.

• Ladieswear segment to pursue differentiated development and sustainable growth with higher management efficiency.