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Listed Company: Bosiden Disclosed Its 22/23 Financial Report, And Its Operating Profit Increased In Double Digits

2023/7/3 13:57:00 69

Bosiden Holding Group Co., Ltd. officially released its annual report for fiscal year 2022/23. The financial report shows that the revenue and net profit of Bosiden Group have reached a record high for five consecutive years, of which the operating profit has achieved double-digit growth. The gross profit margin of Bosiden brand has also been steadily increased for six consecutive years.

In the past year, in the face of the external environment full of complexity and uncertainty, Bosiden handed over a brilliant "report card".

01 Continuous growth of revenue and net profit

In fiscal year 22/23, the revenue of Bosiden Group rose steadily to about 16.77 billion yuan, achieving a five-year compound annual growth rate of 13.6%; The Group's net profit steadily increased to about 2.14 billion yuan, achieving a five-year compound annual growth rate of 28.3%, and hitting a record high. Among them, the Group's operating profit increased by 10.0% year on year.

▲ Continuous and steady growth, Bosiden shows high-quality growth trend

In the complex and changeable external environment of the past year, Bosiden has continued to focus on the strategic direction of "focusing on the main channel, focusing on the main brand" and the development model of "brand leadership", and achieved high-quality growth in revenue and net profit.

This is the fifth consecutive year that Bosideng has achieved a faster growth in group profits than in revenue growth, which shows that while the group's operating ability has improved, its operating efficiency is also improving actively. Such sound financial performance has also been recognized by international authoritative rating agencies. In the 21/22 fiscal year, Moody's and S&P respectively granted long-term credit ratings of "Baa3 (stable outlook)" and "BBB - (stable outlook)". The Group continued to be rated as "double investment grade" in the 22/23 fiscal year, which not only reflects the recognition of the capital market for the Group's prudent financial policies and sound financial performance, It also reflects the stable development resilience of the Group in the business cycle.

02 Excellent performance of core business segments

In fiscal year 22/23, Bosiden's core business continued to perform well, helping the group's overall performance grow rapidly.

In terms of brand down jacket business, despite the influence of multiple external uncertainties, Bosiden brand adheres to the down jacket expert position, and drives the product volume and price to rise together by redefining lightweight down jacket, upgrading product technology, steadily upgrading channels, and refined store operations. In fiscal year 22/23, Bosiden's brand revenue steadily increased to about 11.76 billion yuan, achieving a five-year compound annual growth rate of 18.9%, a record high.

▲ Lead the industry development with the unique advantages of core product strength

In addition, the Xuezhongfei brand continued to improve the upgrade of Pratt&Whitney brand by continuously promoting online business, further deepening the "Internet+" operation mode, and achieved revenue of about 1.22 billion yuan in fiscal year 22/23, up 25.4% year on year.

With the successful brand remodeling and upgrading and the launch of innovative lightweight down jacket, the Group's down jacket products have been comprehensively upgraded, helping the gross margin of the Bosiden brand to continue to increase, and driving the overall gross margin of the down jacket sector to increase. In the 22/23 fiscal year, the gross profit rate of the brand down jacket business increased by 0.5 percentage points year-on-year, reaching 66.2%. Among them, the gross profit rate of Bosiden brand has steadily increased for six consecutive years, reaching 70.8% in fiscal year 22/23, up 1.4 percentage points year on year.

In terms of OEM management business, despite the downturn in the global consumer market and the test of multiple uncertainties, the business still maintained a stable and healthy development. The revenue in fiscal year 22/23 increased by 20.7% compared with the same period last year, reaching 2.29 billion yuan, achieving a five-year compound annual growth rate of 19.6%, a record high; The gross profit margin rose steadily by 1.3 percentage points year-on-year, reaching 19.9%.

The gross profit rate of the two core business segments continued to increase, indicating that Bosiden achieved remarkable results in its strategic transformation. As the retail downturn has passed, the consumption environment has continued to improve, the Group's product strength has continued to upgrade, and the momentum of product support brand has not decreased. With the support of high-quality fast reaction and omni channel retail operation integration, the Group's businesses are expected to accelerate development.

03 High quality development of offline and online channels

In fiscal year 22/23, Bosiden continued to optimize and upgrade its operation at the channel level, achieving high-quality development of offline and online channels.

In terms of offline channel construction, Bosiden continued to optimize the channel structure and improve the channel quality, and upgraded the "solid single store operation" to the level of strategic change of the group. With stores as the core, Bosiden relied on large commodities and improved the efficiency of large retail operations, so as to achieve high-quality operation of stores.

At the same time, the Group continues to focus on the structural layout of channels, especially the core cities and core business districts; In addition to focusing on the first tier and new first tier cities, we also focus on the layout of multi-level markets, and open up sales in the local market through the planned differentiated layout of self operated stores or dealer stores.

In addition, the Group decomposes retail stores according to different store types, realizes the refined management of branch operation, and constantly improves the operation capability and efficiency of terminal stores.

The online sales channel has always been the channel that Bosiden focuses on and vigorously develops. In the 22/23 fiscal year, the online sales channel still achieved steady and high-quality growth in the adverse market, including the online growth of brand down jacket business of 23.1% year on year, which has driven more new generation consumers to improve their awareness of the brand and gradually become a different field in the world The preferred brand of down jacket for consumers with different needs.

Under the online omni channel expansion and membership management, Bosiden's online sales performance is quite remarkable: women's clothing is the first, men's clothing is the second, women's clothing and men's clothing are the first on the Double 11 Tmall platform, women's clothing and men's clothing on the Double 12 Tmall platform respectively, and the three major promotions of JD and Vipshop women's clothing are ranked first. For three consecutive years, the official flagship store of Douyin has become the first single store in the platform down jacket category.

The results of various innovative attempts are remarkable. In fiscal year 22/23, the number of fans of Bosiden brand on Tmall, JD and Tiaoyin platforms grew rapidly. As of March 31, 2023, the number of new fans on Tmall platform was 13.99 million, with a total of 34.55 million fans; The JD platform added 3.57 million members, totaling 13.63 million; The total number of fans on the dithering platform is 7.82 million. The proportion of young consumers under the age of 30 on the above platforms has increased significantly compared with the same period last year, and the proportion of mainstream consumers has steadily increased.

With the rapid development of science and technology, Bosiden strives to be at the forefront of digital transformation, and has made remarkable achievements in digital practice in intelligent manufacturing, intelligent logistics, intelligent commodity operation and other fields, gradually establishing the focus on users, retail, and commodities as the driving force for future digital transformation.

04 The ability to manage current assets was further strengthened

In the 22/23 fiscal year, in the face of the complex and changing macro environment, Bosiden's management ability of accounts receivable was improved, the number of days of inventory turnover was steadily decreased, and the management ability of operating assets was further strengthened.

In terms of turnover of accounts receivable, as of March 31, 2023, the number of days of turnover of accounts receivable of the Group is 23, which is one day lower than that of March 31, 2022.

In terms of inventory, as of March 31, 2023, the Group's inventory turnover days were 144 days, down 6 days from March 31, 2022. This is mainly due to the fact that since the 21/22 fiscal year, while maintaining a low proportion of first orders, the Group has continued to adhere to the pull replenishment adjustment mechanism to effectively promote the integrated operation and management of omni channel commodities; At the same time, the above replenishment mechanism, inventory management methods and commodity operation system were firmly implemented in the 22/23 fiscal year, achieving faster turnover cycle and efficiency, and comprehensively achieving high-quality and fast turnaround.

Bosiden has significantly optimized the inventory level and further effectively reduced the number of days of inventory turnover, which not only demonstrates the strong business resilience of the Group in the face of uncertain risk factors, but also lays a sound foundation for the channel inventory level and space for healthy development for the return to the normal business model in the 23/24 fiscal year.

In terms of cash flow, Bosiden, through supply chain management, inventory control, collection cycle optimization and other measures, generated net cash from operating activities of 3.05 billion yuan, up 14.3% year on year, which fully reflected the Group's business resilience and laid a solid foundation for ensuring the stability and predictability of subsequent cash flow.

05 Outstanding advantages of innovation and subdivision categories

With the continuous upgrading of consumption, consumers have higher and higher requirements for quality, which has brought many opportunities and challenges to the clothing industry. However, through its own financial report and the rating of authoritative rating agencies, we can see that Bosiden's answer at this stage is gratifying. In the final analysis, the Group has continuously devoted its energy to improving the competitiveness of its products, which has been recognized by consumers.

Bosiden has focused on down jacket for 47 years, and the genes of professionalism, ingenuity and innovation are deeply engraved in the brand genes. The Group continued to deepen product research and development, innovated and upgraded in professional quality, design, scientific and technological functions and other dimensions, led the industry development with the unique advantages of core product strength, and met the increasingly high-end consumer demand.

▲ The new generation of lightweight down jacket realizes the freedom of cross season and multi scene fashion

In 2022, Bosiden launched a new generation of lightweight down jacket redefined, which adopts "three innovative designs+five light and warm technologies". Its warmth retention is about 70% higher than that of traditional lightweight down jacket, maintaining professional warmth retention performance, and won the "Gold Award for Global Top Ten Design Innovations" - French NDA Design Award. This series has successfully created a more diversified, more fashionable and warmer category innovation of light and thin down in spring, autumn and winter, realized the extensive marketing of "temperature marketability+regional marketability+new generation population marketability", and extended the sales cycle of down jacket business.

Bosiden also launched the comfortable outdoor series of down jackets, and pioneered four comfort technologies - the first lightweight down core technology, the independent research and development of Bo tech fabrics, the global limited selection of Haldoji white goose down, and the three in one combination design. While satisfying the high-performance outdoor experience, the soft breathability is upgraded again, completely breaking people's rigid attitude towards outdoor down jackets Uncomfortable stereotypes. This series of down jackets has won five major international awards, including the German Red Dot Award, the American Muse Design Award, the American Industrial Design Excellence Award (IDEA Design Award), the Italian A Award and the ISPO Global Design Award, as well as many other awards, including two of the world's three top design awards.

In addition, Bosiden has innovated Tri Tech+original yarn sunscreen fabric in the selection of sunscreen fabric, and has obtained professional certification from Hainstein and SGS. On the basis of this, the sun series sun protection clothing, which adopts customized yarn and unique knitting technology, has realized the functions of waterproof washing, anti aging, cool feeling and anti stuffy sweating. The application of innovative technology has made Bosiden products exclusive and unique in the market.

From continuously upgraded products to continuous breakthrough research spirit, Bosiden has made multi-dimensional progress on the way of "climbing", bringing new changes to the clothing industry. In recent years, consumers have increasingly recognized the brand power, product fashion and functional premium of down jackets, and the ceiling of pricing has been constantly opened. In the future, with the "two wheel drive" of product upgrading and increasing wear popularity, the industry will show a trend of both volume and price rise, and Bosiden is expected to fully benefit from the expansion of the industry.

▲ Cross border integration and innovation, Bosiden and Maserati release high-end outdoor WIFI series

In addition, Bosiden also co named Maserati, Chen Yingjie, a well-known artist, launched the first global experience store and official brand spokesperson, and carried out a series of brand events. With the support of multiple measures, the Bosiden brand will gradually improve, more consumers begin to have a new understanding of Bosiden, and the Bosiden brand has gained many honors and recognition.

According to the "2022 Top 50 Most Valuable Clothing Brands in the World" released by Brand Finance, one of the five international brand value assessment authorities, Bosiden brand was re selected and upgraded to No. 48 in the clothing brand list, becoming a model for high-quality development of China's clothing industry.

▲ Bosiden's ESG rating jumped to "A" level, leading the textile and clothing industry in China

In February 2023, Morgan Stanley released the ESG rating report, and Bosden's MSCI ESG rating further jumped from BBB to A. So far, Bosiden's ESG rating has been steadily improved for three consecutive years, and it is at a leading level in China's textile and clothing industry, which further confirms Bosiden's strategy of "high-quality sustainable development".

Through product R&D and category innovation, as well as multi-dimensional efforts in channels, brand strength building, social responsibility, etc., Bosiden has achieved continuous growth in performance scale, promoted the continuous upward trend of brand sales, and provided a reference direction for the high-quality development of China's down jacket industry and even the clothing market. Bosiden, who has gone step by step from a national brand to the world, and has emerged on the world stage with the formation of "the world's leading down jacket scale", is more worthy of expectation for its future performance.