Star Shine Holdings Group (1440) H2 2024 earnings summary

Executive summary

• Revenue surged 84.2% year-over-year to RMB584.5 million, driven by strong growth in the footwear segment, which contributed 86.4% of total revenue.

• Gross profit increased 141.1% to RMB57.5 million, but net loss widened 26.4% to RMB12.8 million due to higher expenses.

• Lace and dyeing business continued to face headwinds from market competition and regulatory pressures, while footwear benefited from increased international orders.

Financial highlights

• Revenue: RMB584.5 million (up 84.2% year-over-year).

• Gross profit: RMB57.5 million (up 141.1% year-over-year).

• Net loss attributable to owners: RMB12.8 million (up 26.4% year-over-year).

• Basic and diluted loss per share: RMB1.01 cents (vs. RMB0.80 cents in FY2023).

• No dividend declared for the year.

Outlook and guidance

• Strategic focus shifting toward footwear, with resource reallocation away from lace and dyeing.

• Proactive measures to address US tariffs include developing Southeast Asia partnerships and expanding domestic IP-driven merchandising.

• Hosting of CR7® LIFE Museum Hong Kong in July 2025 expected to enhance brand and contribute to sports tourism.

• Continued emphasis on production efficiency, cost control, and compliance with environmental regulations.