Revenues surge 34.2% at Bosideng International
Bosideng International Holdings Limited, the largest down apparel company in the PRC, announces its annual results for the year ended March 31, 2010.
For the year ended March 31, 2010, the Group recorded revenue of approximately RMB5,738.1 million (2009: approximately RMB4,275.1 million), representing an increase of 34.2% as compared with the corresponding period last year. This was mainly due to the strong demand of down apparel in long winter, the Group's strategy of products differentiation and the revenue of approximately RMB402.4 million contributed by the menswear apparel business since May 2009.
Cost of sales for the year amounted to approximately RMB2,851.5 million, as a percentage of revenue, it decreased from 54.5% in last year to 49.7%. Gross profit margin increased by 4.8 percentage points to 50.3%. This was mainly attributable to stringent cost control measures and the Group's strategy of maintaining profitability. Net profit attributable to equity holders of the Company increased by 44.2% to RMB1,078.6 million.
Mr. Gao Dekang, Chairman and CEO of Bosideng, said, “After the economic woes resulted from the global financial crisis and cyclical downturn of the domestic economy, the general economic condition of the PRC has been recovering recently and various economic indicators have bottomed out with steady growth. The overall performance of the PRC apparel industry has shown signs of improvement. The winter of 2009 set in earlier than usual, the cold weather boosted the overall sales performance of the down apparel industry. In addition, unit prices and quality of products keeps improving and the product designs are more fashionable and diversified. Emerging and old brands of the down apparel coexist in the market with more detailed segmentation. However, famous brands remain as the leaders in industrial development, which fully reflect consumers' trust and recognition to brand value.”
During the year, the Group's brands recorded satisfactory growth. "Bosideng" remained as the key income source for the Group, with revenue grew by 26.1% from last year to approximately RMB 2,900.3 million, accounting for about 61.9% of total sales of the Group's branded down apparel. "Snow Flying", "Bingjie" and "Kangbo" also recorded revenue growth of 3.7%, 81.2% and 11.2% respectively. During the year, “Bosideng Menswear” accounted for approximately 7.0% of the Group's total revenue.
To facilitate business development, the Group continued to optimize the retail network of down apparel business. While eliminating and replacing substandard distributors and retail shops with unsatisfactory performance, the Group was committed to formulating a reasonable overall planning and optimizing each retail shops; whereas “Bosideng Menswear” focuses on market expansion. As at March 31, 2010, the Group has 5,620 retail outlets for down apparel in more than 65 cities across the nation, comprising 995 outlets operated by the Group and 4,625 outlets operated/ supervised by third party distributors. As for “Bosideng Menswear”, the Group has 4,625 retail outlets, comprising 73 outlets operated by the Group and 686 outlets operated according to franchise agreement/ by third party distributors. During the period, the Group opened a number of flagship stores in the central business districts of major cities in China and provided customers with a more comfortable shopping environment, which enhanced the brand image of the Group.