Financials
Quarterly Report For The Financial Period Ended 30 September 2024
Financials Archive
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Condensed Consolidated Statement Of Comprehensive Income (Unaudited)
Condensed Consolidated Statement Of Financial Position (Unaudited)
Analysis of Performance
Revenue
Our Group recorded total revenue of approximately RMB115.84 million and RMB454.26 million respectively during the current quarter and financial year under review, decreased by 6.6% and 16.3% respectively as compared to prior year.
The moderation in sales performance during the current quarter and financial year under review was primarily due to softer demand for own-branding sports shoes, with lower sales volume as illustrated below:
Own-Branding Division
The moderation was, however, partially mitigated by the increase in sales volume from the ODM Production Division, as illustrated below:
Own-Branding Division
ODM Production Division
The moderation was, however, partially mitigated by the increase in sales volume from the ODM Production Division, as illustrated below:
Profitability
Our Group's gross profit stood at RMB24.27 million for the current quarter under review, improved by approximately 16.2% as compared to the preceding year corresponding quarter; mainly due to increase in average unit selling prices.
Our Group's gross profit stood at RMB86.81 million for the financial year under review, lower by approximately 6.6% as compared to prior year; in line with the moderation of sales performance.
Our Group's profit after tax stood at RMB4.46 million for the current quarter under review, improved by approximately 58.3% as compared to the preceding year corresponding quarter; mainly attributable to increase in gross profit during the current quarter under review
Our Group's profit after tax stood at RM20.80 million for the financial year under review, improved by approximately 25.4% as compared to prior year. This was mainly attributable to active monitoring of administrative costs by our Group. In particular, our Group has realigned the marketing strategy and revised downward the advertisement costs in view of the uncertainties within the operating environment, which has resulted in cost-saving of approximately RMB17.84 million for the financial year under review
This was, however, partially offset by the one-off employees' benefit expenses of RMB2.04 million charged to profit or loss in respect of ESOS granted to eligible employees of the Group during the financial year under review.
Outlook and Prospects
Demands for sportswear within the domestic China market and the global markets are expected to be gradual growth momentum, backed by the following catalysts:
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Active measures and initiatives by the China Government to promote the development of the domestic sports industry and boost domestic consumption. These measures and initiatives are expected to contribute positively to the sports industry growth in the medium and long term;
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Huge and rising population within China, particularly with the implementation of two-child policy;
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Rising disposable income per capita for China citizen; and
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Increasing awareness on healthy lifestyle and growing popularity of sports
Notwithstanding that the industry outlook for the near term is anticipated to experience certain degree of volatility due to the economic uncertainties, our Group is cautiously optimistic that the prospects of the sportswear industry for the medium and long term remain promising.
Barring any unforeseen circumstances, our Group expects the financial performance for the financial year ending 31 December 2019 to remain positive.