Casual Footwear Manufacturing Group, Nine Hing, Net Profit Plunged 20% Last Year

< p > StellaInternationalHoldingsLtd < a href= "http://www.91se91.com/news/index_c.asp" > nine Xing < /a > Holding Co., Ltd. in April 2nd, Hong Kong stocks released 2013 earnings report. In the 2013 fiscal year ending December 31, 2013, nine Hing net profits fell 20%, from 153 million 400 thousand US dollars in the same period last year to 122 million 700 thousand US dollars, and the earnings per share were 0.155 US dollars.

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< p > cost increase and manufacturing pfer lead to insufficient capacity. < a href= "http://www.91se91.com/news/index_c.asp" > gross profit margin < /a > net profit has declined considerably. Gross profit margin and net interest rate in fiscal year 2013 were 22.9% and 8% respectively, down 130 basis points and 190 basis points respectively.

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< p > nine Hing was pessimistic in the first half of the 2014 fiscal year. It said that orders in the first half of the year continued to be unstable, mainly because the customers would continue to adopt a conservative ordering strategy. In the northeastern part of the United States, the spring was extremely cold and the winter snowstorm occurred, while North American income accounted for nine Hing 49.5%. Besides, labor cost and supply were also the main challenges of nine Xing.

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< p > a number of investment banks and brokerages in the past saw a slight weakness in the nine market. Goldman Sachs lowered its target price from nine Hong Kong dollars to HK $19.5, maintaining a neutral rating, expecting nine weaker orders and a bumpy recovery prospect. Merrill Lynch raised nine target price to HK $17, but maintained a big loss rating. UBS raised the target price of nine to HK $21 to maintain a neutral rating.

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In the 2013 fiscal year of December 31, 2013 P, nine Xing recorded a revenue of 1 billion 541 million 500 thousand US dollars, down 0.6% from the US $1 billion 550 million in the 2012 fiscal year, and the shipments were maintained at 50 million 800 thousand pairs. The average price of each pair of a href= "http://www.91se91.com/news/index_c.asp" > footwear products < /a > price dropped 1% to 28.3 dollars, and the unit price fell as long as the manufacturing business moved to inland China and the cheaper Indonesian market resulted in lower cost.

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According to the market, North America is still the nine largest source of income, accounting for about 49.5% of the total revenue, followed by 25.6% of the European market, and only 17.2% of the Greater China region, accounting for 4.6% of the Asian region except for Greater China and 3.1% of the rest of the P.

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< p > by category, women's fashion shoes shared nine business share (37.5% share last year); men's and women's casual shoes business accounted for 20% (last year's share 23.3%) and 24.5% (last year's share 22.7%) 012 years: 37.8%); men's fashion shoes business accounted for 10.1% (last year share 8.2%).

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< p > fiscal year 2013, group self operated retail business revenue increased by 1.5% to 121 million 200 thousand US dollars, accounting for 7.9% of the group's total revenue, flat sales in the same store, and retail business gross profit increased by 0.6% to 81 million US dollars. During the period, nine Xingxing closed down 15 StellaLuna stores and 68 WhatFor stores.

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< p > so far this year, StellaInternationalHoldingsLtd. (HK:1836) nine Xing shares have fallen by nearly 5%, less than the Hang Seng Index 4%.

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