Cost Increase BELLE Shoes Products Slowly Increase

This year, mainland enterprises are faced with cost pressures and have to increase their prices. Women's shoes and shoes BELLE International (1880) has increased its price in the first half of this year, and BELLE's chief executive, Sheng Bai Jiao, said that labor costs in the mainland and Leather material The price increase and the continued inflation in the second half of the year will lead to a moderate increase in the price of leather goods. The stock fell 1.541% yesterday, closing at 12.78 yuan.

The mainland has a strong consumer climate. BELLE Sales in the same store in the first half of this year exceeded expectations. The annual sales volume of the group increased by 20% to 11 billion 152 million yuan (RMB) the same year, and the gross profit margin was 68.4%. shoes Business growth was faster than the gross profit margin of 36.1% of the sports products business, the former recorded an increase of 26.5%, the latter increased by 10.9%, so the year-on-year net profit growth is faster than sales growth, rising by 37% to 1 billion 556 million yuan.

According to Sheng Bai Jiao, in the first half of the year, the price of the products has been raised in the first half of the year when labor costs rise. In the second half of the year, the increase in raw material prices will account for three percentage points of the total cost.

Sheng Bai Jiao believes that the growth of the same store sales of footwear business in the second half of this year will be over 15%, while that of the first half will reach 18%, while that of sports products will be 4% in the first half of the year, and the same in the second half.
　　
He expects that because the production cost will be delayed by the rising price of leather materials in the first half of the year and the pressure of labor costs continues to rise, there will be no room for further increase in gross profit margin in the second half of this year.

BELLE will be formally incorporated into the Hang Seng Index constituent stocks since September 6th. It has become the first Hong Kong invested enterprise to dye blue in the past four years, and the share will be 0.99%. In order to celebrate the ideal of performance and become a blue chip investor, the board of directors of the Group intends to issue an interim dividend of 5 points, with a special dividend of 10 points.