According to the Zhongtong Financial APP, Crystal International (02232) announced its mid-term performance for 2024, with revenue of $1.094 billion, an increase of 8.37% YoY; gross margin of approximately $0.213 billion, an increase of 10.79% YoY; net profit attributable to owners of the company of $84.012 million, an increase of 14.08% YoY; basic earnings per share is 2.94 cents.

The announcement stated that revenue growth was mainly due to the reduction in inventory levels of branded customers and an increase in the company's order demand.

In addition to the improvement in market conditions, cross-selling of products and co-creation models also promoted business growth.

Cross-selling of products among branded customers: The group has a comprehensive range of products and can provide a diversified product portfolio to meet the needs of branded customers in different clothing fields. For example, the group worked with its largest branded customer to achieve growth in sales of all five major product categories, and achieved sustained growth in sales of sweater products through orders from major sports brand customers.

Co-creation business model: Throughout the entire product development and production process, the group provides customers with product ideas, converts customer concepts into product design, develops and procures raw materials, and innovates processes to optimize production costs. For example, the group worked with its largest branded customer to use advanced knitwear technology to develop best-selling pants and collaborated with a leading sportswear brand to co-create a brand new pattern design, receiving encouraging market feedback. This model enhances the loyalty of branded customers and helps the group increase its market share.

The intimate wear and sportswear and outdoor wear divisions are the main drivers of the group's gross margin improvement. With more professional experience in sportswear manufacturing (including evolution from sewing to bonding) and providing high-quality seamless products, the gross margin of the sports and outdoor wear division achieved sustained and strong growth. The increase in the gross margin of the intimate wear division was due to the lower base in the same period last year.

The announcement stated that the group will continue to invest in vertical development, automation upgrades, and sustainable development. Digitization transformation is another main investment focus, aiming to streamline the group's cost structure through equipment upgrades and data analysis, relying on rapid response and customer relationship management to improve service quality and delivery capability, and using AI and accumulated production data to maximize operational potential.