On April 25, Hongxing Shares released its annual report. In 2023, the company achieved revenue of 1.597 billion yuan, a year-on-year increase of 20.22%; net profit was 87.1443 million yuan, a year-on-year increase of 681.54%.
The company launched a dividend plan of 1 yuan (including tax, the same below) for every 10 shares.
The recovery of the consumer market has led to the recovery of the intimate apparel industry.
The 2023 annual report of Hongxing Co., Ltd. shows that it has achieved relatively high growth in all categories of intimate apparel.
Among them, home clothes accounted for 61.35% of the company\’s revenue, and the revenue of the underwear and underwear category increased by 48.36% year-on-year to 489 million yuan, accounting for 30.61% of the company\’s revenue from 24.8% in 2022.
Regarding the overall development strategy, Hongxing Co., Ltd. said that in order to further meet market demand and maximize brand potential, the company will achieve \”one strong and multiple specializations\” in the two dimensions of category and brand, forming the first and largest company in the home furnishing subdivision industry. All categories of underwear are developing in an all-round way; the Fenton brand is the core business structure with rapid development of multiple brands.
It is expected that through operations in the next three years or so, while occupying and maintaining the top position in the homewear industry and in the minds of consumers, the company will expand its leading position to the entire underwear industry and gradually expand the scope of bras, thermal insulation, underwear, and socks. Categories such as these are respected by peers and recognized and favored by consumers.
It is worth noting that Hongxing shares attaches great importance to investor returns.
In the year of listing in 2021, the company\’s equity distribution plan is to convert 4 shares for every 10 shares; in 2022, the company will pay 4 yuan in cash for every 10 shares; the proposed distribution plan in 2023 is to pay 1 yuan in cash for every 10 shares.
Statistics show that, excluding this proposed distribution plan, the company\’s cumulative dividends since its listing have reached 99.5815 million yuan.
In addition, on February 7, 2024, the company issued a repurchase announcement and planned to use its own funds to repurchase the company\’s shares in a centralized bidding transaction. The total repurchase funds shall not be less than 40 million yuan and not exceed 70 million yuan.
As of April 9, the company has repurchased a total of 2.757 million shares of the company, accounting for 2.0962% of the company\’s current total share capital, with a total repurchase of 39.4717 million yuan.
(Li Zijian)
