Mr.
"In 2023,
For the year ended
Gross profit margin was 48.2%, an increase of 2.2 percentage points year-on-year. This was attributable to the significant growth in sales of the self-operated smart casual business during the year, and an increase in the proportion of high-end products in total sales as a result of the strategy of maintaining high quality and value. Net profit climbed by 18.4% year-on-year to
During the year, the Group maintained a healthy financial position and sufficient cash flow. The Board of Directors has recommended the payment of a final dividend of HK13 cents per share and a special final dividend of HK5 cents per share. Together with the interim dividend already paid, total dividend for the year amounted to HK36 cents per share, representing an increase of 12.5% from last year, and maintaining a stable dividend payout ratio.
The Group continued to promote its new retail business by vigorously developing interactive and entertaining live-streaming sales models to enhance consumer's online shopping experience and stimulate their desire to buy. Leveraging the complementary advantages of direct-to-retail online stores and
The Group has been actively reforming its sales channels. After three years of hard work, the Group has established four sales channels: the distribution and consignment models of the core collection, the direct-to-retail stores of the smart casual collection and the direct-to-retail stores under the e-commerce sales model. This has allowed the Group to closely match its products and services with the purchasing patterns of Chinese menswear consumers and drive sales growth. During the year, each of the sales channel has recorded profit and sales per store increased significantly, further reflecting the effectiveness of the sales channel reform. As of the end of 2023, the Group had a total of 2,695 stores, including 302 smart casual collection stores and a total of 2,393 core collection stores, representing a net year-on-year increase of 51 stores.
With respect to inventory management, 22 more outlet stores were opened and sold seasonal products that were not sold in other stores. The sold-out rate of core collection and smart casual stores has increased. The new logistics center became operational, together with its intelligent logistics system has accelerated the delivery speed of goods to stores, while improving inventory control and achieving cost reduction. As at the end of 2023, the Group's average inventory turnover days decreased by 25 days from the end of 2022 to 170 days, reflecting a more efficient level of inventory management.
In terms of brand promotion, the Group sells menswear products comprising two collections - the core collection and the smart casual collection. It continues to provide consumers with high-quality simple menswear and new wearing experiences for fashionable items, enhancing the brand's appeal through the concept of "Simplified Design Excellent Quality". During the year, the Group launched a re-designed logo. Based on the original logo, the visual proportion and graphic design have been optimized to enhance the brand's vitality and sense of fashion. In addition, store spaces use immersive technology installations that create a chic environment suitable for young people.
Looking at 2024, faced with an ever-changing international environment and domestic economic challenges, the Central Government has designated 2024 as the "Year of Consumption Promotion" to boost market confidence and stimulate the vitality of the retail sector.
The Group plans to achieve a net increase of 100-200 stores, particularly in upscale shopping malls and outlet malls in provincial capitals and prefecture-level cities. It will also vigorously develop a new retail business, offering personalized shopping experiences via live-streaming on
In terms of product positioning, the Group will continue its strategy of providing products that represent "high quality and value" and will continuously introduce innovative and differentiated new products to meet consumers' desire for personalized clothing. With the successful inventory clearance and further reduction of off-season inventory, the Group will intensify the launch of new products to increase the proportion of higher-priced new items, thereby improving the average selling price and the overall profitability of the products.
To enrich the product portfolio of
Mr.
"In the long run,
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