EEKA Fashion Holdings (3709) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB6,588.54 million, down 4.68% year-over-year; gross profit was RMB5,035.55 million, down 3.26%.

• Net profit attributable to owners was RMB468.50 million, a 44.10% decrease from 2023; net profit margin fell to 7.20% from 12.05%.

• E-commerce revenue grew 16.57% to RMB1,129.32 million, while self-operated retail and distributor sales declined.

• The Board proposed a final dividend of HK38 cents per share, down from HK70 cents last year.

Financial highlights

• Gross profit margin increased to 76.43% from 75.30% year-over-year.

• Net cash inflow from operating activities was RMB996.24 million, down 36.51% from 2023.

• Basic earnings per share dropped to RMB68 cents from RMB124 cents.

• Current ratio improved to 1.90 from 1.78; gearing ratio rose slightly to 11.65%.

• No significant contingent liabilities or asset charges as of year-end.

Outlook and guidance

• 2025 expected to see improved consumer confidence and retail growth due to proactive fiscal and monetary policies.

• Focus on multi-brand synergy, differentiated pricing, and enhanced product quality.

• Continued investment in brand development, marketing, and expansion of flagship stores and e-commerce channels.