Bosideng International Holdings Limited · HKEX:3998
Bosideng International — FY2022/23 Earnings Presentation
41 slides from Bosideng International's earnings presentation, Jun 29, 2023
Slide 1: 2022/23 Annual Results
2022/23 Annual Results June 29, 2023
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is intended solely for your personal reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning Bosideng International Holdings Limited (the “Comp
Slide 3: Financial Review, Business Review, Future Development Plan
Future Financial Business Development Review Review Plan 3
Slide 4: Financial Review
Financial Review
Slide 5: Financial Highlights
Financial Highlights For the year ended March 31 (RMB million) 2023 2022 Change Revenue 16,774.2 16,213.6 +3.5% Gross profit 9,975.9 9,737.2 +2.5% Profit from operations 2,826.4 2,568.8 +10.0% Profit attributable to equity 2,138.6 2,062.3 +3.7% holders of the Company Earnings per share (RMB cents) –
Slide 6: Financial Highlights (Cont')
Financial Highlights (Cont’) For the year ended March 31 2023 2022 Change Gross profit margin 59.5% 60.1% -0.6ppt. Operating profit margin 16.8% 15.8% +1.0ppt. Effective tax rate 25.3% 23.0% +2.3ppt. Net profit margin* 12.7% 12.7% - Dividend pay-out ratio 83.4% 80.2% +3.2ppt. * Net profit margin is
Slide 7: Revenue Breakdown
Revenue Breakdown RMB 16,213.6 million RMB 16,774.2 million (RMB million) (RMB million) 903.7 185.6 703.0 202.6 (5.6%) (1.1%) (4.2%)(1.2%) Revenue 2,294.1 1,901.3 increased by (13.7%) (11.7%) +3.5% FY21/22 FY22/23 13,223.0 13,574.5 (81.6%) Branded down apparels OEM management (80.9%) Ladieswear appa
Slide 8: Revenue Breakdown by Business
Revenue Breakdown by Business For the year ended March 31 (RMB million) 2023 2022 Change Branded down apparels 13,574.5 13,223.0 +2.7% OEM management 2,294.1 1,901.3 +20.7% Ladieswear apparels 703.0 903.7 -22.2% Diversified apparels 202.6 185.6 +9.2% Total 16,774.2 16,213.6 +3.5% 8
Slide 9: Revenue Breakdown - Branded Down Apparels Business
Revenue Breakdown - Branded Down Apparels Business For the year ended March 31 (RMB million) 2023 2022 Change % Change Bosideng 11,762.8 11,617.7 +145.1 +1.2% Snow Flying 1,221.5 974.2 +247.3 +25.4% Bengen 125.5 235.3 -109.8 -46.7% Other* 464.7 395.8 +68.9 +17.4% Total 13,574.5 13,223.0 +351.5 +2.7%
Slide 10: Revenue Breakdown - Ladieswear Apparels Business
Revenue Breakdown - Ladieswear Apparels Business For the year ended March 31 (RMB million) 2023 2022 Change % Change JESSIE 254.9 285.3 -30.4 -10.7% BUOU BUOU 167.7 253.5 -85.8 -33.8% KOREANO & KLOVA 280.4 364.9 -84.5 -23.2% Total 703.0 903.7 -200.7 -22.2% 10
Slide 11: Revenue Breakdown - Diversified Apparels Business
Revenue Breakdown - Diversified Apparels Business For the year ended March 31 (RMB million) 2023 2022 Change % Change Sameite school 186.1 160.6 +25.5 +15.9% uniform Others brands and 16.5 25.0 -8.5 -34.0% others* Total 202.6 185.6 +17.0 +9.2% * Represents children’s wear, menswear, etc. 11
Slide 12: Gross Margin
Gross Margin For the year ended March 31 Business 2023 2022 Change Branded down apparels 66.2% 65.7% +0.5ppt. OEM management 19.9% 18.6% +1.3ppt. Ladieswear apparels 68.6% 72.4% -3.8ppt. Diversified apparels 25.7% 25.7% - The Group 59.5% 60.1% -0.6ppt. 12
Slide 13: Gross Margin - Branded Down Apparels Business
Gross Margin - Branded Down Apparels Business For the year ended March 31 2023 2022 Change Bosideng 70.8% 69.4% +1.4ppt. Snow Flying 46.0% 47.3% -1.3ppt. Bengen 33.6% 24.8% +8.8ppt. Branded Down Apparels 66.2% 65.7% +0.5ppt. 13
Slide 14: Gross Margin - Ladieswear Apparels Business
Gross Margin - Ladieswear Apparels Business For the year ended March 31 2023 2022 Change JESSIE 66.6% 66.5% +0.1ppt. BUOU BUOU 64.0% 68.3% -4.3ppt. KOREANO & KLOVA 73.0% 80.0% -7.0ppt. Ladieswear Apparels 68.6% 72.4% -3.8ppt. 14
Slide 15: Operation Expenditure
Operation Expenditure (RMB million) Expense-to- Expense-to sales ratio -sales ratio • Distribution Expenses：The ratio of distribution 8,000 expenses to the total revenue of the Group 7,374.3 7,328.7 effectively decreased by 1.6 percentage points, mainly because the Group had effectively planned 1,20
Slide 16: Inventories
Inventories As at As at (RMB’000) Mar 31, 2023 Mar 31, 2022 Change Raw materials 878,207 891,118 -1.4% Work in progress 11,930 23,763 -49.8% Finished goods 1,799,146 1,773,305 +1.5% Total 2,689,283 2,688,186 0.0% 16
Slide 17: Working Capital Management
Working Capital Management – Inventories Turnover Days, Trade and Bills Receivables and Payables Turnover Days For the year ended March 31 2023 2022 Change Average inventory turnover days(1) 144 150 -6 days Average trade and bills receivable turnover days (2) 23 24 -1 day Average trade and bills pay
Slide 18: Total Cash and Net Cash
Total Cash and Net Cash As at As at (RMB million) Mar 31, 2023 Mar 31, 2022 Cash and cash equivalents 3,718.2 2,502.6 Time deposits with maturity over 3 months 1,646.2 324.3 Pledged bank deposits 1,028.2 952.1 Other financial assets 4,069.0 6,521.3 Total cash 10,461.6 10,300.3 Minus: Bank borrowings
Slide 19: Total Cash and Net Cash (Cont')
Total Cash and Net Cash (Cont’) As at As at (RMB million) Mar 31, 2023 Mar 31, 2022 Net cash inflow/(outflow) from operating activities 3,050.7 2,670.1 Net cash inflow/(outflow) from investment activities 616.6 (685.9) Net cash inflow/(outflow) from financing activities (2,493.0) (1,232.5) Net incre
Slide 20: Financial Performance Highlights
Financial Performance Highlights 1. Revenue and Profit recorded historical highs • Maintained a faster increasing rate for five years as compared with that of revenue Revenue Profit attributable to equity holders (RMB million) (RMB million) 20,000 2,400 16,000 1,800 12,000 1,200 8,000 600 4,000 0 FY
Slide 21: Financial Performance Highlights
Financial Performance Highlights 2. Stable and Healthy Operating Cash Flow Performance • Achieved strong and solid cash flow from operating activities during the outbreak of the pandemic, with net cash generated from operating activities increasing by 14.3% year-on-year (RMB million) Net cash genera
Slide 22: Financial Performance Highlights
Financial Performance Highlights 3. Enhanced Working Capital Management Capabilities • Steady Improvement in inventory, trade and bills receivables and payables turnover days Inventory Turnover days (Unit : Day) Trade and Bills Receivables (Unit : Day) Turnover Days 200 40 175 35 33 155 150 144 28 1
Slide 23: Financial Performance Highlights
Financial Performance Highlights 3. Enhanced Working Capital Management Capabilities (Cont’) Trade and Bills Payables Cash Conversion Cycle (CCC) * (Unit : Day) Turnover Days (Unit : Day) 200 110 171 96 162 160 90 87 140 120 70 63 101 50 80 66 30 40 12 10 0 FY -4 FY 18/19 19/20 20/21 21/22 22/23 18/
Slide 24: Financial Performance Highlights
Financial Performance Highlights 4. Steady Growth in Gross Profit Margin of Core Businesses • Achieved success in brand reshaping, innovative product upgrades and effective cost control Gross Profit Margin of Gross Profit Margin of Branded Down Apparels Business OEM management -1.0% +1.3% 19.9% +1.1
Slide 25: Financial Performance Highlights
Financial Performance Highlights 5. Enhanced Profitability and Quality of Earnings • Operating profit increased significantly despite the industry’s overall downtrend, operating profit reached new high Operating Profit +1.0% 16.8% (RMB million) +3.4% -0.7% 3,000 13.2% -0.1% 2,400 1,800 1,200 600 0 F
Slide 26: Business Review
Business Review
Slide 27: Branded Down Apparels Business
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business Branded Down Apparels Business RMB 13,223.0 million RMB 13,574.5 million (RMB million) (RMB million) 235.3 395.8 125.5 464.7 (1.8%) (3.0%) (0.9%) (3.4%) 974.2 (7.4%) 1,221.5
Slide 28: Revenue by Sales Category
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business Revenue by Sales Category (RMB million) For the year ended 20,000 Percentage By Sales Category (RMB March 31 million) 2023 2022 Change 15,000 3.0% 3.4% Self- 10,367.5 9,759.1
Slide 29: Brand Building
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business Brand Building • Adhered to the strategy of developing itself into the “world’s leading expert in • Received a number of recognitions: down apparel ➢ Bosideng improved its br
Slide 30: Product Innovation
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business Product Innovation • Extreme Cold Collection • Successfully launched a new Strictly selected 90% high velvet content, 700+ high-quality goose down, and fabrics generation of
Slide 31: Retail Network - Offline
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business Retail Network - Offline Total As at Mar 31, 2023 No. of No. of No. of No. of Change Change Change Change stores stores stores stores Specialty stores Operated by the Group 8
Slide 32: Retail Network - Offline (Cont')
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business Retail Network - Offline (Cont’) Further optimising sales channels structure and fine-tuning the retail stores management • Paid attention to the operational quality of exist
Slide 33: Retail Network - Online
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business Retail Network - Online • Key focus on vigorous development of online sales channels and continued to achieve steady and high- quality growth despite adverse market condition
Slide 34: Operation Management
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business Operation Management • The ability to efficiently provide high-quality • Continuously replenished • Maintained a shorter • The supply chains underwent goods is an important c
Slide 35: OEM Management Business
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business OEM Management Business • The OEM management business maintained stable and healthy (RMB million) Revenue development, mainly due to: 3,000 1. Steady order growth from the va
Slide 36: Ladieswear Apparels Business
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business Ladieswear Apparels Business • Won the favor of Chinese female consumers through the Revenue by Brand distinctive images of the Group’s (RMB million) rich, multi-tiered produ
Slide 37: Retail Network
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business Retail Network Total As at Mar 31, 2023 No. of No. of No. of No. of No. of Change Change Change Change Change stores stores stores stores stores Specialty stores Operated by
Slide 38: Diversified Apparels Business
1. Branded Down 2. OEM Management 3. Ladieswear Apparels 4. Diversified Apparels Apparels Business Business Business Business Diversified Apparels Business (RMB million) Revenue by Brand • During FY2022/23, revenue from the diversified apparels business (mainly 300 operated under the Sameite brand)
Slide 39: Future Development Plan
Future Development Plan
Slide 40: Future Development Plan
Future Development Plan Strive for sustainable Drive development Drive development and high- Customer-centric with branding with innovation quality development OEM Management Down Apparels Business Ladieswear Business Business • Aspire to become an expert • Focus its efforts on the main brand Boside
Slide 41: Roles |
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Bosideng International Holdings — FY2022/23 Earnings Presentation on 6ix