Revenue and Profit Attributable to Shareholders up 54% and 83% respectively

Proactive in Seeking Change and Capturing Growth Opportunities to Achieve Long-term Sustainable Development

(RMB' million)	Six months ended 30 June
	2024	2023	Change (%)
Revenue	168.8	109.3	+54%
Gross profit	85.8	56.6	+52%
Operating profit	56.7	33.9	+67%
Profit attributable to shareholders	56.1	30.7	+83%
Basic earnings per share (RMB)	0.028	0.017	+65%

HONG KONG SAR - Media OutReach Newswire - 21 August 2024 - A renowned ladies' footwear brand group in China – Daphne International Holdings Limited ("Daphne" or the "Group", stock code: 210), today announced its unaudited consolidated interim results for the six months ended 30 June 2024 (the "Period"). In the first half of 2024, the Group has achieved substantial revenue and operating profit growth through the collective efforts, consistently beating the general market and demonstrating the Group's effective strategies and ability to maintain sustained and healthy growth in operations. For the Period, the Group's total revenue surged 54% year-on-year, amounting to approximately RMB168.8 million. Gross profit up by 52% to approximately RMB85.8 million. Operating profit rose 67% to approximately RMB56.7 million and profit attributable to shareholders significantly increased by 83% to approximately RMB56.1 million. Basic earnings per share was RMB0.028. Driven by this continued outperformance, the Group is poised to emerge as an even stronger industry leader with sharper competitive edge and greater operational efficiency, positioning it for sustainable growth. Commenting on the interim results, Mr. Chang Chih-Chiao, Daphne's Chief Executive Officer, said, "Recognising the highly competitive women's footwear market in the first half of 2024, the Group steadfastly reinforced its core brand, 'DAPHNE', created the youthful brand 'DAPHNE.LAB' and enhanced its operational efficiency. Undaunted by the sluggish consumer market recovery, the Group allocated resources in bolstering the brand's industry-leading position, while integrating the management team to optimise operations. Complementing its seasoned management team, the Group introduced young talents to bring fresh perspectives and innovative ideas, enabling it to persistently fine-tune its operating model. The Group worked cohesively to optimise the brand licensing business, streamline the supply chain system, and strengthen the management of franchisees. By staying attuned to the market dynamics, the Group prudently but nimbly adapted its development plans for the online licensing network and physical retail network operated by franchisees. These ongoing efforts, coupled with the Group's long-term brand-building efforts and high-quality products, enabled it to overcome market challenges and achieved impressive growth." Brand Licensing and Distribution Business In the first half of 2024, the Group's unwavering strategic focus enabled it to maintain a robust and resilient growth. Given the proven track record of the online licensing business as a growth driver, the Group consistently amplified its investments and initiatives in this segment, further leveraging on its long-established reputation and valuable brand resources. The Group further bolstered its footprint on interest-based e-commerce platforms by forging more collaboration with leading and popular platforms, such as "Douyin" (抖音) and "Pinduoduo" (拼多多). As interest-based e-commerce platforms prioritise enhancing user experience and reinforcing their pricing and service advantages, the Group saw sustained robust growth in sales and market penetration across these platforms. Furthermore, the Group continued exploring more social media-based emerging sales channels, such as "RED" (小紅書) and "POIZON" (得物), to engage with the younger demographic and amplify its brand's reach. Coupled with the consumer-friendly pricing of its footwear products, the Group doubled down on its digital marketing efforts, thereby fostering deeper interactions with its target audience and consolidating a strong brand presence across various high-traffic online platforms. These strategic initiatives once again demonstrated their efficacy, fuelling its online licensing business to achieve sales growth that outshines the industry average. Meanwhile, the Group was mindful of the ongoing consumer confidence challenges and strategically adjusted its online licensing and offline distribution networks to streamline store operations and improve profitability, while adapting to the evolving macroeconomic environment and retail market landscape. For the period under review, the Group's online licensing fee income grew 49% year-on-year to approximately RMB68.6 million,...