Boston'S Net Profit Increased By 112.5% In The First 3 Months Of This Year.

In the evening of June 29th,

(03998.HK) issue annual performance bulletins ending March 31, 2016.

During the reporting period, we benefited from great efforts to control overall expenditure, actively clean up inventory and optimize the retail network. Bosideng net profit increased by 112.5%, and operating profit and cash flow were also improved compared with last year.

In recent years, China's overall economic growth rate has slowed down, resulting in domestic domestic demand growth is weak.

The industry is facing overcapacity.

The decline in competitiveness and the increasing expansion of overseas brands in the Chinese market have made the domestic garment industry face a serious situation.

The report shows that as of March 31, 2016, Bosideng achieved revenue of about 5 billion 787 million yuan, down 8% compared to the same period last year, of which the income of the brand down clothing business decreased by 2.5%, and the non feather down business decreased by 18.3%.

The main reason lies in the impact of the domestic macroeconomic environment. Bosideng continues to uphold the business strategy of the previous year to further optimize the retail network and clean up inventory, and implement more stringent production and product planning to reduce inventory backlog risks in retail channels.

According to the report, Bosideng has achieved remarkable results in inventory, and the total inventory and finished goods inventories have declined in double figures, 14.7% and 17.9% respectively.

Bosideng said that Chiba Jito continued the strategy of last year, cleaning up inventory in all business areas and optimizing the retail network.

For businesses with poor management and low efficiency, close down and improve self operated and high quality retail channels, the average inventory and receivable turnover days of retail channels fell to 204 days and 67 days respectively, which greatly increased the reflux rate and inflow of cash flow.

With the gradual success of inventory clearance, the group is confident that important indicators related to business will also return to a more healthy level.

The effectiveness of this strategy is also reflected in other important financial indicators of the year.

Data show that as of March 31, 2016, Bosideng business profit increased by 69.8% to 338 million yuan, and net profit of the company reached 281 million yuan, up 112.5% over the same period last year.

The cash flow of operating activities increased from 390 million yuan in the same period last year to 710 million yuan in the year. At this point, the board of directors will send a share of 2.6 cents per share, and the annual dividend ratio is 62.1%.

Bosideng, in line with the brand pformation strategy, continues to shut down less competitive sales outlets, and optimizes and optimizes the high quality and efficient sales network.

Although the number of traditional sales channels has decreased, the group has adopted innovative sales and promotion methods in conjunction with consumption patterns.

The report shows that during the year, Bosideng brand first took the guerrilla store (Pop up Store, also known as mobile concept store or short-term concept store), from September to December in the selling season to take turns in six gold shopping locations in six key markets in China to promote the group's new down clothing products, attracting consumers' eyeballs and people's flow with innovative display design, and enhancing interaction with consumers through various on-site activities, performances, games and so on, so as to enhance brand awareness.

The guerrilla store's market reaction was ideal, not only in the local manufacturing topic, but also in extensive media coverage, and also successfully led Bosideng local sales.

Market competition has entered a new era, and consumer led new market consumption trend.

Clothing enterprises should take a pragmatic and rational view of the changes in the consumer market and focus on commodity research, design innovation, shop vision and so on to provide consumers with an experience of value.

Referring to the future direction of brand development, Bosideng said that the future is the new stage of Bosteng brand remolding. In order to enhance product differentiation and conform to the market consumption trend, the company will continue to study the consumption characteristics of the consumer market. Through in-depth analysis of the retail data, more precise arrangements will be made for the production of all kinds of products, including trial marketing of some main products and styles in the shop before making the production plan, so as to test and understand the market reaction and formulate corresponding production and sales programs.

For the main down garment business, to avoid brand overlap, the group will launch a brand pformation strategy that is more in line with the needs of the market, relocate and deploy the brand, and make its brand portfolio more in line with the market trend.

The original Bosideng brand will continue to be positioned in the high-end fashion design, and the icy business focus will gradually shift to online sales.

Considering the increasing demand of the market for the down garment design, the group decided to let the design style bias the traditional KangBo brand to withdraw from the down garment market, so that the group can concentrate its resources on other brands.

In addition, taking into account the increasing number of consumers taking part in outdoor activities in recent years, the snow sports brand, which is focused on the sense of motion, will be built into an all-around outdoor clothing brand. Therefore, the group will gradually add more outdoor clothing products on the basis of the original snow flying feather clothing, so as to enrich the product mix of snow flying brand and provide consumers with more high-performance and cost-effective products choices.

As for the diversified development of Bosideng, the company also indicated that it will actively utilize the existing resources and operational experience of strategic investors, and explore more potential new clothing businesses and brands, so as to further enhance the strength of Bosideng in various garment sectors and to develop into the goal of multi brand integrated apparel operators.