Glonghui, March 21 | Jiuxing Holdings (01836.HK) announced that in 2023, the Group recorded a net profit of US$140 million (2022: US$117 million), which already includes a net fair value loss of US$7.3 million in financial instruments relating to LanvinGroup investments listed on the New York Stock Exchange (2022: net fair value loss of US$2.3 million in market value). Excluding changes in the net fair value of the Group's investments in Lanvin Group, the Group recorded an adjusted net profit of US$148 million (2022: US$120 million).
In 2023, the average selling price of footwear products rose 4.2% to $29.7 per pair, partially offsetting the impact of a 12.5% drop in shipments to 49 million pairs. The increase in average sales prices is mainly due to the decline in the share of lower average selling styles in the casual category, and the outstanding contribution of customers in the sports, luxury and high-end fashion categories to launch new high-end products.
The Group's consolidated revenue for the year under review decreased by 8.5% to US$1,493 million. In terms of product categories, the company's sneaker sales fell 8.0%, accounting for 43.2% of total manufacturing revenue, as some sneaker customers removed inventory to manage their inventory problems. Revenue belonging to the company's luxury and fashion categories respectively increased by 4.1% and decreased by 6.2% year-on-year, in line with the Group's expectations, accounting for 9.5% and 26.1% of the total revenue from the manufacturing business. In line with the strategy of the three-year plan, the Group allocated production capacity to develop other product categories, so revenue from the leisure category fell by 18.0%, accounting for 21.2% of the total revenue from the manufacturing business.
In terms of geography, North America and Europe remained the Group's two largest markets in the year under review, accounting for 45.6% and 24.9% of the Group's total revenue, followed by the People's Republic of China (“China”) (including Hong Kong), Asia (excluding China) and other regions, which accounted for 17.3%, 8.8% and 3.4% of the Group's total revenue, respectively. Revenue from the Group's brand business (including the retail business of the Group's own retail footwear brand Stella Luna in Europe and its overall wholesale business) fell 57% to US$4,600,000 during the year, due to the Group's reduction in the Group's brand business. As of December 31, 2023, all retail stores and wholesale distribution points in Europe were closed. In China, the Group overhauled the operations of its associated companies and drastically reduced their retail layout.