Profit Margin Brand Profit Fell 94.9%

As of the first half of September 30, 2016, Global Brands Group Holding Ltd.

Brand limited company (hereinafter referred to as the profit mark)

On Thursday, after the mid term results were released, the company's profits plummeted from 94.9% to 777 thousand dollars, or 0.01 cents cents, compared with 15 million 278 thousand U.S. dollars in the same period last year, about 0.18 cents (1.43 Hong Kong cents).

The profit of the brand 2016/2017 in the mid fiscal year of fiscal year 1 billion 844 million was 15%, which was increased by 1 billion 604 million compared with the same period of last year. The growth rate was mainly driven by the growth of the existing and newly introduced franchise business. The gross profit margin increased from 140 to 19.9% in the gross profit period. The gross margin improvement was mainly due to the improvement of the business mix and the tendency of higher gross margin business. Meanwhile, the procurement was optimized. The introduction of the new authorized brand increased the operating expenses to 578 million dollars, increasing by 12.6%. During the period, the group's core earnings recorded an increase of 129.9% to 78 million dollars, and the EBITDA growth rate was 78 million to $100 billion.

According to the Department, the income of children's clothing business, which accounted for 44% of the turnover during the period, increased by 10.3% to 813 million US dollars. The gross profit margin of the division was 36.3%, and its operating profit margin was 6.1%, which was significantly improved by 150 340 basis points. It included Spyder, Juicy Couture, Jones New York, Joe 's Jeans, Buffalo Jeans and Beckham, David Benham.

In the first half of the fiscal year, the brand and Frye, Aquatalia and Fiorelli and other private brand shoes and accessories business recorded a revenue of $595 million, a 3.4% increase over the previous half year. The gross profit margin has been improved by 80 basis points. The division is still in a state of loss. With the international entertainment and sports agency giant, the brand management joint venture company, the brand management department of the company under the jurisdiction of the international entertainment and sports agency, has been earning $66 million in the first half of the fiscal year, an increase of 52.8% over the previous year. Business income surged from 48.9% to 371 million dollars, and the gross profit margin and operating profit margin of the division were 41.7% and 8.6% respectively, with an increase of 180 basis points, including Calvin Klein, Cole Haan and Kate Spade.

Bruce Rockowitz, Le Yumin, chief executive officer of Li Biao brand, said that benefiting from the second child policy in mainland China, we believe that the growth of the Asian market mainly comes from children's clothing.

However, he said Hongkong's local market will continue to be under pressure.

He also pointed out that at present, the electricity supplier accounts for about 15% of the total revenue of the group. In the future, it will continue to expand the business of electronic business, expecting sales to grow continuously, but has not set a growth target.