Is Goldlion'S Performance "Turning Around"?

Mid and high-end retail sector in the first half of 2017

With the revival of the middle and high-end men's wear industry, the data of the high-end men's wear industry has improved. One of the world's international enterprises from the single hand necktie handicraft workshop is Goldlion's performance.

Declining performance for many years

On 04 2017, 13,

00533.HK released its 2016 results announcement, which showed that the annual operating income in 2016 was HK $1 billion 472 million, down 2.48% compared to the same period last year. Net profit was HK $389 million, down 3.24% compared with the same period last year; gross domestic product sales of apparel and apparel sales were about 51.8%, down about 2.8 percentage points.

According to its announcement, the decrease in turnover is mainly related to the reduction of the RMB exchange rate during the year, and if it is calculated in Renminbi, its turnover will increase by about 5% compared with that of the previous year.

Business, another reason for the decline in operating revenue, Goldlion group said publicly because Singapore's clothing and apparel sales performance was poor.

Goldlion group's total revenue and net profit trend over the years

According to the world clothing shoes and hats net, Goldlion group began to carry out the apparel business in Malaysia market in 2001, and in 2015 and 2016, its Malaysia market was flat.

In 2016, the store reduced about 70, and its operating income declined for three consecutive years. Its revenue profit declined in the 2015 fiscal year. As its most important business in the mainland, mainland apparel business revenue fell by nearly 2% year on year, and the performance of Singapore clothing business was poor, resulting in a year-on-year decline of 2% to 15.1 Hong Kong dollars, and a year-on-year decline of 4.55% to 402 million Hong Kong dollars.

In 2015, Goldlion group's clothing business in mainland China's agents was also weak, and its self retailing business performance was not as good as expected. However, the electricity business, which was dominated by the over season inventory, became the highlight of its mainland business, and its sales grew by nearly 86%.

According to the world clothing and shoe net, Goldlion group's performance began to decline since 2013.

Wholesale business and self retailing are going downhill.

As for the sluggish sales in wholesale business, Goldlion group said that the main reason was that the overall retail sales of men's clothing in 2016 was low, and the operation of each agent was difficult. The agents ordered the goods in 2016 to be more conservative, and in addition, from 2016 to the beginning of autumn and winter, the order replacement rate was raised. In the case of RMB, the sales volume of its agents fell by about 11%.

Self retailing business is also disappointing. Why? Goldlion group said that in May 2015, a total of 15 retail outlets in Chongqing were converted into their own businesses. In the middle of 2015, Shanghai began to turn off 6 retail stores. In August 2016, 4 retail outlets in the outer area of the province were pferred to local agents.

In 2016, the turnover of self operated retail stores (excluding outlets) calculated in RMB in 2016 was down by about 3% compared with 2015. For comparable sales points, the sales situation in Guangzhou was not much different from that in 2015, while Shanghai's sales volume increased by about 6% due to the adjustment of the store mix, while in the south it dropped by about 3%.

Those years of work and fame

According to the world clothing shoes and hat net, Goldlion brand originated in Hongkong, founded by Dr. Ceng Xianzi, a famous patriotic and charitable ambassador. Goldlion (China) Co., Ltd. was founded in 1990, and was listed on the Hongkong stock exchange in September 18, 1992. Its business mainly includes clothing, apparel production, retail and property investment. Its products include two major brands: Goldlion formal dress, business leisure and Goldlion fashion leisure. Its production and franchise products cover four categories: Men's clothing, clothing, underwear, leather shoes (Chartered), leather goods (Chartered), etc.

1968: Dr. Ceng Xianzi, chairman of Goldlion group, founded the Goldlion business of producing neckties in a family workshop. In 1971, Goldlion trademark was registered in Hongkong.

In the same year, Goldlion (Far East) Co., Ltd. was established. With the unique design and excellent quality of its products, and through strong advertising, Goldlion products were quickly welcomed by consumers.

1997: the world economic forum has been selected as the most dynamic growth enterprise in the world (Southeast Asia).

2010: Goldlion suits shirts have been ranked the ten best selling brands of similar products in the country for 10 years in a row.

2011: Goldlion suits and shirts have been ranked the ten best selling brands of similar products for 11 years in a row.

2013: the Chinese brand research center of the Ministry of industry awarded Goldlion tie and men's leather shoes to be the first brand in China.

E-commerce channel clear inventory, and become the overall sales initiative.

According to the world clothing and shoe net, in 2016, Goldlion group's domestic clothing sales continued the main mode of selling wholesale business to many provinces and cities in the past, with self retailing stores (including Oteri J stores) and e-commerce channels located in Guangzhou, Shanghai, Beijing and Chongqing as sales channels.

Benefiting from the rapid development of domestic electricity supplier sales and the strong marketability of special goods, the sales growth of related businesses in Renminbi in 2016 amounted to 111%, while the sales of e-commerce business accounted for about 19% of Goldlion group's domestic clothing sales.

In 2016, the business of Goldlion group became the main driving force for its sales growth. The business used to focus on the sale of off season stocks, but after several years of sales, the number of marketable stocks has dropped.

We need to expand the customized business of uniformed uniforms.

Although the global economy is likely to remain unstable in 2017, the overall domestic business environment will continue to be full of difficulties and challenges. But Goldlion believes that the worst time is probably over. And that in 2017, the wholesale business of domestic agents will remain stable, and it will show that the products will be more cost-effective and fast selling, so as to ensure the healthy development of their business.

In addition, in 2107, we will continue to review the operation of various agents and provide appropriate assistance. If individual agents fail to perform well, we may not exclude the possibility of recovering their business.

It is understood that Goldlion's 2017 autumn and winter booking meeting was held in early March this year. Preliminary data show that the order volume increased from the same quarter last year.

In view of the fact that consumers still have a certain enthusiasm for online shopping, Goldlion Group expects that the sales of e-commerce channels will increase significantly in 2017. It is believed that this year, the domestic group uniforms market is huge, and strengthening the development of this sector will achieve the overall sales growth of the group.

Goldlion group is famous in the industry when it is brilliant, but now it is also experiencing performance pressure.

The so-called "thirty years of Hedong, thirty years of Hexi", so that enterprises can only maintain a continuous innovation ability, in order to gorgeous new students.

More interesting reports, please pay attention to the world clothing shoes and hats net.