Earnings release
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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. BUSINESS UPDATE OF THE GROUP FOR THE FIRST QUARTER OF 2025 The board (the “Board ”) of directors (the “Directors ”) of Stella International Holdings Limited (the “Company ”) would like to provide the shareholders of the Company (the “Shareholders ”) and potential investors with an update on the business development of the Company and its subsidiaries (collectively, the “Group”) for the first quarter of 2025 on a voluntary basis. TOTAL CONSOLIDATED REVENUE For the three months ended 31 March 2025, the Group ’s unaudited consolidated revenue 1 decreased by approximately 2.2% to US$331.0 million, compared to the unaudited consolidated revenue of approximately US$338.4 million for the corresponding period of last year, due to a high base effect. * For identification purpose only 1 Including the Group ’s manufacturing business, branding business and other businesses not covered herein, and after the elimination of inter-segment sales.
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2 MANUFACTURING BUSINESS An analysis of the revenue, shipment volume and average selling price ( “ASP”) in relation to the manufacturing business of the Group for the three months ended 31 March 2025 is shown in the table below: For the three months ended 31 March Change (Unaudited) 2025 2024 (%) Revenue (US$ million) 320.5 326.3 -1.8 Shipment V olume (million pairs) 12.1 11.7 +3.4 Average Selling Price (US$/pair) 26.4 27.8 -5.0 Shipment volumes in the three months ended 31 March 2025 increased by approximately 3.4%, driven by the Sports segment. ASP decreased due to the higher proportion of Sports products orders which have a lower ASP. GROUP PERFORMANCE Having achieved an operating profit margin of approximately 11.9% in 2024, the Group is ahead of schedule in meeting the targets of its Three-Year Plan (2023-2025), which are to achieve an operating margin of 10% and a low-teens compound annualised growth rate on profit after tax by the end of 2025. Having recommended payment of additional cash of US$60 million as a special dividend in 2024, the Group also remains committed to returning additional cash up to US$60 million per year to shareholders in 2025 and 2026, through a combination of share repurchases and special dividends, on top of paying regular dividends with a payout ratio of approximately 70% (comprising final dividends and interim dividends). By order of the Board Stella International Holdings Limited Chen Li-Ming, Lawrence Chairman Hong Kong, 17 April 2025 As at the date of this announcement, the executive Directors are Mr. Chen Li-Ming, Lawrence, Mr. Chi Lo-Jen, Mr. Gillman Charles Christopher and Mr. Chiang Yi-Min, Harvey; and the independent non-executive Directors are Mr. Bolliger Peter, Mr. Chan Fu Keung, William, BBS, Mr. Yue Chao-Tang, Thomas and Ms. Wan Sin Yee, Sindy.