Frequent pandemic outbreaks and global supply chain disruption, sales dropped by 12%
For the financial year ended 28 February 2022, Topsports recorded revenue of
RMB31,876.5mn (2021: RMB36,009.0mn), a decrease of 11.5% YoY, below our estimates of
RMB4,104mn. operating profit of RMB3,430.1mn, a decrease of 14.0% YoY. The profit
attributable to the shareholders during the year amounted to RMB2,446.5mn, a decrease of
11.7%, also below consensus. Final dividend for the FY2022 of RMB7.00 cents per ordinary
share and a special dividend of RMB23.00 cents per ordinary share, full year dividend of
$0.43, equivalent to a payout ratio of 109% (2021: 143%).
The decline of revenue was mainly due to the impact of frequent pandemic outbreaks and
global supply chain disruption, since late July and the second half of the financial year
respectively. When broken down by brand categories, revenue from the Principal brands
(including Nike and Adidas) was RMB27,569.3mn, down 12.3% YoY, and represents 86.5% of
total revenue. Other brands (including Puma, Converse, VF Corporation’s brands: i.e. VANS,
The North Face and Timberland, ASICS, Onitsuka Tiger, Skechers and LI-NING) generated
revenue of RMB4,005.2mn, down 6.1% YoY, and accounted for 12.6% of total revenue.
Revenue from e-Sports income was RMB66.0mn, down 19.0% YoY and accounted for 0.2%
of total revenue. When broken down by sales channel, retail operations decreased by 14.2%
to RMB26,354.3mn, while Wholesales operations increased by 5.4% to RMB5,202.2mn and
Concessionaire fee income decreased by 1.7% to RMB236.0mn