Financial Performance - For the fiscal year 2021/2022, the company reported a revenue of RMB 1,916 million, a decrease of 2.7% compared to RMB 1,970 million in the previous year[25]. - The operating loss for the year was RMB 1,751 million, compared to an operating profit of RMB 2,070 million in the prior year[25]. - The gross profit margin decreased to 63.9% from 65.6% year-on-year[25]. - The net loss attributable to shareholders was RMB 1,747 million, compared to a profit of RMB 1,811 million in the previous year[25]. - Basic and diluted loss per share was RMB 29.79, down from earnings of RMB 30.88 per share in the previous year[25]. - The group recorded revenue of RMB 1,916 million for the fiscal year ending March 31, 2022, a decrease of 2.7% year-on-year[40]. - The net loss attributable to equity holders was RMB 1,747 million during the reporting period[40]. - The group's gross profit was RMB 1,225 million, a decrease of RMB 67 million from RMB 1,292 million in the previous period, with a gross margin of 63.9% (previous period: 65.6%)[111]. - The group reported a loss attributable to owners of RMB 1,747 million for the reporting period, compared to a profit of RMB 1,811 million in the previous year[99]. Assets and Liabilities - Total assets as of March 31, 2022, were RMB 10,485 million, a decrease from RMB 12,638 million in the previous year[27]. - The company's net current assets amounted to RMB 4,484 million, down from RMB 5,764 million in the previous year[27]. - The debt-to-equity ratio increased to 0.12 from 0.10 year-on-year[28]. - The group had a net asset value attributable to equity holders of RMB 9,351 million as of March 31, 2022, down from RMB 11,533 million as of March 31, 2021[1]. - The group's current ratio as of March 31, 2022, was 6.7 times, down from 9.0 times as of March 31, 2021[1]. Market and Industry Trends - In 2021, the sportswear industry in China reached a market size of 385.8 billion yuan, with expectations to exceed 400 billion yuan in 2022[65]. - The national sports industry is projected to reach a total scale of 5 trillion yuan by 2025, with a target of 38.5% of the population regularly participating in sports[65]. - Online retail sales of physical goods grew by 12.0% in 2021, accounting for 24.5% of total retail sales, which exceeded 40 trillion yuan, reflecting a 12.5% year-on-year increase[54]. - The sportswear industry is focusing on digital transformation and expanding online channels, with increasing revenue from platforms like Xiaohongshu and Douyin[65]. Strategic Initiatives - The company aims to become the most desirable sports lifestyle brand, focusing on talent and management excellence[7]. - Future strategies include market expansion and potential new product development to enhance brand presence[39]. - The group aims to deepen digital transformation and enhance omnichannel operations to capture opportunities in the sports industry[44]. - The group plans to focus on the rapidly growing snow sports industry, investing in Xinjiang to create a comprehensive system around skiing equipment and training[43]. - The group will continue to integrate online and offline channels to optimize sales strategies and expand customer reach[40]. - The group is actively collaborating with local designers and brands to launch co-branded products, enhancing brand image[40]. - The group is committed to providing high-quality products and services in the Chinese market, maintaining its long-term commitment[40]. Corporate Governance and Management - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules, with the exception of the chairman's absence at the annual general meeting due to important matters[176]. - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balanced composition with sufficient knowledge and experience[182]. - The company has established an Environmental, Social, and Governance (ESG) committee to oversee its commitment to sustainability[88]. - The company has implemented environmental, social, and governance (ESG) reporting guidelines, disclosing relevant information in its ESG report[178]. - The executive committee is authorized by the board to manage the company's daily operations, focusing on overall strategy, financial matters, and risk management[179]. Marketing and Brand Development - Kappa brand successfully held its first annual fashion show in China in May 2021, marking a significant milestone in its 20-year market presence[70]. - Kappa has sponsored multiple national teams and sports events, achieving high visibility and brand recognition, with Kappa apparel worn by many athletes during competitions[73]. - Kappa's marketing strategy during the Lunar New Year included a campaign featuring Olympic champion Sun Yiwen, enhancing brand visibility through social media[70]. - The group has seen challenges in the operating environment due to the COVID-19 pandemic and a warm winter, impacting product demand[68]. - Kappa's brand promotion efforts have significantly increased brand awareness and image through various marketing combinations during major sports events[68]. Operational Efficiency - The group aims to strengthen its market position by optimizing online and offline sales channels and enhancing overall operational efficiency[68]. - The group aims to enhance operational efficiency by closing underperforming stores while expanding its e-commerce presence[80]. - The company is optimizing its offline store operations and enhancing digital management for better efficiency[65]. - The group has expanded its online store count to 764, facilitating flexible inventory management[78]. Future Outlook - The management has provided guidance for the next fiscal year, projecting a revenue growth of 10% to 12%[166]. - The company maintains an optimistic outlook on the sports apparel industry, anticipating growth opportunities as the pandemic situation improves[80]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share over the next two years[161].
中国动向(03818) - 2022 - 年度财报