Revenue surges 123.5% to RMB 1,408.2 mn at Boshiwa
Boshiwa International Holding Limited, a leading and fast-growing developer and retailer of children's product in China, announced its consolidated results for the year ended 31 December 2010.
During the year under review, the Group recorded revenue at approximately RMB1,408.2 million, which represents a 123.5% growth. Gross profit surged by 135.0% to approximately RMB625.7 million, with gross profit margin increased by 2.1 percentage points to 44.4%. (2009: 42.3%)
Profit before tax rose 115.4% to RMB367.8 million. Profit for the year attributable to owners of the Company increased by 106.9% to approximately RMB251 million from RMB121.3 million recorded in 2009; where there was a 75.3% increase upon basic earnings per share to RMB15.23 cents. (2009: RMB8.69 cents) The board of directors proposed a final dividend of RMB1.4 cents per share for the year ended 31 December 2010.
Mr. Zhong Zheng Yong, Chairman and Chief Executive Officer of Boshiwa International Holding Limited, said: "The tremendous growth in the children products' market has brought along to Boshiwa a huge opportunity. 2010, with huge support from investors, Boshiwa went listed on the Main Board of Hong Kong Stock Exchange on 29 September, which marked an important milestone to the Group. The proceed raised through listing not only supported the Group for further development, it also helped strengthen its leading position in children consumer products market."
During the year under review, the Group has developed its sales channel in a rapid pace, with retail outlets surged from 890 in 2009 to 1,555, representing a growth rate of 74.7%. Amongst all, department store concessions increased by 618 to 1,477; Boshiwa street shops added 17 shops to 29; Boshiwa 365 stores increased by 20 to 36; as well as flagship stores increased by 10 to 13.
Thus, the rapid expansion of sales network drove the Group's revenue to RMB1,408.2 million. The revenue was derived from sales of children's apparel, footwear and accessories which increased by 76.7% to RMB1,005.6 million, as well as sales of other children's products which surged by 558.9% to RMB402.6 million.
The Group's cost of sales increased from RMB363.8 million in 2009 to RMB782.5 million in 2010. The increase in cost of sales was less than the increase in sales revenue, mainly due to a significant increase in sales revenue of 2010 accompanied by an increase in purchases, and lower procurement costs obtained as a result of the increased bargaining power.
The Group had strong financial positions that set the stage for its future development. As at 31 December 2010, working capital amounted to RMB2,271.8 million and net cash reached RMB1,682.8 million (2009: net liabilities of RMB173 million). No gearing ratio was presented.
As at 31 December 2010, the Group has three proprietary brands, Boshiwa, Baby2 and Dr. Frog. Boshiwa targeting the middle class and relatively high income customers in China, offers a range of mid to high end children's apparel, footwear and accessories for children from newborn to 14 years of age.