In The First Half Of The Year, Retail Sales And Wholesale Footwear Business Fell By About 11% Compared With The Same Period Last Year.

Integrating O2O business strategy to build seamless online and offline sales system

Grasp the opportunity of the two child policy and open China's first Hamleys flagship store in October

International Holdings Limited announced today's interim results for the 6 months ended June 30, 2016.

In the first half of 2016, the economic environment is still full of difficulties and challenges. However, it is still firmly committed to becoming world famous.

On the way forward, and in the overall retail market downturn, surrendered to sound performance.

During the period of review, the group's total revenue increased by 6.1% to RMB 1 billion 502 million 900 thousand yuan; gross profit increased 2.2% to RMB 908 million 500 thousand compared with the same period last year; gross margin and net profit margin were 60.4% and 6%, respectively, and the basic earnings per share were RMB 4.38.

Excluding the Hamleys loss factor of RMB 20 million 300 thousand yuan, the company's equity holders should account for a profit of 110 million 700 thousand yuan, a slight decrease compared with the same period last year. Compared with the weak market conditions, the group's performance is gratifying, confirming that the group's pre ball global brand strategy has gradually achieved results, and the main profit contribution of Hamleys business is concentrated in the second half of the year.

President Chen Yixi said: "in the first half of 2016, despite the global economic and retail downturn, it benefited from a series of measures and policies of the Chinese government, such as"

China's gross domestic product (GDP) is still growing by 6.7%, "deepening reform" and "Internet +".

Among them, the launch of the "one belt and one way" policy has encouraged Chinese enterprises to invest overseas to broaden their business areas and provide them with new growth opportunities.

In order to win the opportunity, we bought Hamleys, one of the world-famous toy retailers last year, and actively prepared for it. We plan to open the first flagship store of Hamleys in China in Nanjing in October this year.

We expect that Hamleys will continue to enhance its brand value, image and exposure. "

During the review period, the revenue of retail and wholesale footwear business was 1 billion 150 million 500 thousand yuan, down by about 11% compared with the same period last year, mainly due to the same store year-on-year sales decline and the closure of inefficient shops. The revenue from the production of footwear business was 111 million 400 thousand yuan, down 10.1% from the same period last year, mainly due to the restructuring of the group's OEM production line.

The retail toy business receipts amounted to 241 million yuan, accounting for 16% of the group's total revenue.

During the review period, the group totally reduced 21 self operated retail outlets and 11 third party retail outlets.

As of June 30, 2016, the group managed 1711 self operated retail stores and 456 third party retail stores in China and continued to take root in over 31 provinces, municipalities and autonomous regions in China.

In the increasingly severe market environment, shoe sales in the first half of 2016 were down 12.4% compared with the same period last year.

To cope with the changing consumer habits and personalized shopping needs of consumers, and in the face of fierce competition, the group concentrates on providing style positioning, unique products and innovative services, including the provision of 3D foot scan high-end customized services in some offline stores.

At the same time, the Group actively innovates in the sales mode, sets up online and offline seamless sales system, and successfully builds a new factory store mode online.

On the other hand, the group further strengthens the o2o strategy to better market and brand promotion, and provides diversified online products, through interactive marketing strategies such as WeChat, Tmall and Jingdong, to expand customer base.

In addition, brand strategy has always been a key factor in the promotion of the company's business. The group will launch a new high-end brand Badgley Mischka this year to optimize its brand portfolio and focus on improving product quality and product design to better meet the needs of consumers.

While the footwear market continues to build competitive advantages, the group will also seize the huge growth potential of the toy market.

Hamleys launched its business in 22 countries around the world. Its international business recorded a year-on-year growth of 14% in the first half of 2016.

During the review period, Hamleys continued to expand globally, including 11 shops in India, South Africa, Egypt, Czech and Jordan, and plans to open 29 shops in the second half of the year.

Because most of the shops are operated by international partners, the expansion of the retail network greatly reduces capital expenditure.

In addition, the group has established Hamleys's Chinese professional team to develop and operate China's business in order to grasp the good opportunity of China's two child policy. It is now planned to open Hamleys shopping center in Beijing, Shanghai and Xuzhou next year. It can be seen that the growth value of Hamleys's international and Chinese business will be expected.

Chairman Chen concluded: "looking forward to the future, China's structural adjustment will push the economy towards the" consumption driven "direction. Under the background of the growth of per capita disposable income, continuous urbanization and consumer confidence, the consumption growth of footwear industry is expected to show positive signs and bring favorable effects to the group.

Our goal is to increase the growth of single store sales in offline stores and actively promote online sales.

In order to maintain growth momentum in a challenging business environment, we will make full use of the retail experience in China and long-term cooperation with retail pipelines, and rapidly expand Hamleys's business in China through a shared service platform.