Financials
Quarterly Report For The Financial Period Ended 31 December 2024
Financials Archive
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Condensed Consolidated Statement Of Comprehensive Income (Unaudited)
Condensed Consolidated Statement Of Financial Position (Unaudited)
Analysis of Performance
Our Group's total revenue stood at RMB175.1 million and RMB819.5 million for the current quarter and financial period under review respectively, derived from sales of footwear in relation to the ODM business segment.
Our Group's gross profit stood at RMB29.6 million and RMB120.7 million for the current quarter and financial period under review respectively, derived from sales of footwear in relation to the ODM business segment.
Our Group recorded a loss before tax of RMB12.0 million and RMB46.5 million for the current quarter and financial period under review respectively, mainly due to administrative and other expenses incurred, primarily resulting from:
additional expenses incurred for the research on suitable new raw materials (as part of our Group's strategy to keep abreast of the industry development and to sustain our competitiveness); and
compensation/rebate to customer for late delivery of sales.
Outlook and Prospects
Looking ahead to 2025, the increasing unpredictability of global economic conditions, coupled with geopolitical tensions, may continue to pose challenges. Consumers worldwide are expected to remain cautious in their spending, while competition within the industry continues to intensify. Despite these uncertainties, the sportswear market is showing signs of recovery, though subject to evolving market dynamics.
Our Group remains vigilant in managing operational costs while proactively exploring expansion opportunities, both within China and internationally. Overseas expansion offers strategic advantages, including diversification of revenue streams, access to new markets, and enhanced resilience against domestic market fluctuations. In the postpandemic era, we are committed to prudent operational strategies, continuously optimizing management efficiencies while actively seeking avenues for sustainable growth. Through disciplined cost control and well-calibrated expansion measures, we aim to strengthen our competitive position and establish a robust foundation for longterm stability and development.
As part of our international expansion efforts, the Company has identified Indonesia as a promising market and is currently evaluating a potential joint venture in the country. Following extensive market surveys and discussions initiated in late 2023, the Company, together with its prospective partner, Mr. Xia ZiXuan, has taken preliminary steps towards establishing a shoe manufacturing presence in Indonesia. To facilitate initial groundwork, PT NBF Shoes and Clothing was incorporated on 1 November 2023, with the Company's Director of Business Development and Foreign Investment, Mr. Ding WeiBin, serving as its legal representative.
At present, the investment in Indonesia remains under review, with key partnership terms and operational strategies still under discussion. The total investment commitment, funding structure, and governance framework have yet to be finalised. A detailed announcement will be made once the Company reaches a conclusive decision on the investment and its execution.
The Company remains committed to transparency and will provide further updates on this initiative as and when appropriate.