Baozi Brand Restores Results In Sales Growth In The First Half Of 2016

Through a series of successful marketing activities, reshape brand image and enhance brand awareness in fashion consumer groups.

In the first half of this year, the parent company Bao Guo International Holdings Limited increased its sales momentum, compared with the 12.1% decline in sales in the first half of last year. In the first half of this year, the international growth of 5.3% was recorded at RMB 8.927 billion.

However, the company's profits and revenues are still facing serious challenges, with a drop of 72.4% to 4 million 500 thousand yuan.

It is noteworthy that by the end of June this year, the company's PORTS 1961 series has established 97 retail outlets in 30 countries worldwide, and the sales network has entered almost all the important fashion cities in the world.

In the second half of the year, the company will launch the brand PORTS PortsPURE, the second line brand of the company. Its first store is expected to open in Harbour City, Hongkong in the third quarter of this year. In addition, the company believes that the market in Taiwan, Korea and the Middle East has great market potential and is optimistic about the long-term revenue growth of the new business.

Thanks to the good performance of its brand Ports1961, which has brought positive results to the company's business, the company said earlier that although China's economy is still weak,

The trend has been positively improved at the end of 2015. The group began to grow against the trend in early 2016, and the growth of store sales in January and February was 6.9% compared with the same period last year.

Among them, the company's retail sales revenue increased from 778 million 500 thousand yuan in the same period of 2015 to 813 million yuan, an increase of 4.4%.

As of June 30th, the company operates 318 retail outlets in mainland China, Hongkong, the United States and Canada.

The widespread downturn in the luxury retail market has led to a decline in the main store rents of some core locations. The company said that the early rental of suitable brand positioning will occupy a favorable position.

PORTS 1961 young sub line brand PortsPURE first store is expected to open in Harbour City, Hongkong in the third quarter.

With the rapid growth of wholesale business revenue, the turnover of other branches of the company increased by 15% to 79 million 700 thousand yuan from RMB 69 million 300 thousand yuan in the first half of 2015.

The company means that the original equipment manufacturing business is still the source of stable revenue for the company, and the new partnership between the company and other Asian countries such as Japan has offset the negative impact of the decline in the turnover of the eyewear business.

Last year there were rumors that Bao International would sell for 600 million yuan.

And clothing business, and because of the bad performance, as early as January 2015, Baozi large shareholder proposed privatization.

However, in October last year, Pao international and East Fuhai signed a cancellation agreement and returned 180 million yuan to reclaim Ports HK 6% stake to prove the company's future prospects.

Since the change of the name of the company to Bao Guo International Holdings Limited, management has indicated that it will take a diversified investment strategy. As the global ball economy is unstable, the currencies of all countries are weak, and the market is expected to be relatively low after the referendum in the UK, there will be more attractive investment projects, but no further disclosure is made.

On Friday, shares of 0589.HK rose 0.74% to HK $2.70 per share, and its stock price rose 13% in the past three months, with a market value of about 1 billion 508 million.