Kappa No Longer Left Behind In The Trend And Investment Operation.

Haven't you heard of China's trend? It operates in China and Japan.

Phenix, etc.

You must have heard something about it.

In August 16th, the low profile China trend released its mid term earnings this year. As its profit grew by 12% and announced that special dividend payments were announced, China's trend rose by 14% to HK $1.77 in the afternoon, a record high of more than a year and a half.

The trend of China's sports industry is to start with the trend of investment and investment.

Kappa is the classic "back to back" still in your memory?

According to the world clothing shoes and hats net,

Compared with domestic rivals such as Lining, 31st degree, and noble bird, China's trend is very low-key. Its Kappa brand has not publicizing the mass media, nor has it invited celebrities and big coffee stations to help them. Its brand portraits appear more frequently in young magazines.

At the same time, China's stock market is also volatile, with a rare high rise.

In the face of fierce market competition, China's trend is calm, because Kappa already has super liquidity, or there are other reasons. Its mid August 16th earnings report disclosed a central committee.

In August 16th, when domestic sporting goods listed companies announced their mid term earnings, China's Kappa and Phenix brand in China and Japan also released interim results in 3818.HK.

Compared with domestic counterparts, China's trend in operation and product strategy is a very personal style road, that is, "fashion trend + capital investment" as the main revenue mix.

China's trend is also pleased to call it the "new business approach".

Kappa brand has excellent domestic performance.

Dragged down by the sluggish Japanese market, China's revenue fell 3.7% to 626 million yuan over the same period, but net profit rose 11.9% to 536 million yuan, and the basic earnings per share increased 12% to 9.72 points over the same period.

With a substantial profit and a 10th anniversary festival of group listing, China will allocate a special dividend of about HK $1 billion 500 million in the medium and medium term.

As a result of the announcement of interim results and dividend messages, the company's share price rose, rising linearly to HK $14% to HK $1.77, a record high in more than a year.

In China's 600 million revenue, 500 million of the Kappa and children's brands from the Chinese market have contributed.

The Kappa and Phenix brands in the Japanese market both fell by more than 20% over the same period last year.

Picture collation from China trend 2017 semi annual report

In China, Kappa has earned 328 million of its revenue from "rebellious and publicizing", occupying a considerable proportion in China's whole revenue system.

According to China's interim earnings report, compared with a slight decline in distribution business, the group's revenue growth in retail is obvious.

At present, China's Kappa self operated stores account for 1/3 of the total number of stores, reaching 548.

The group's brand agency mode is gradually infiltrating itself, which is also in line with the current trend of sports apparel industry in China.

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During the reporting period, there were 1639 Kappa brand shops, including 328 children's shops.

At the end of last year, there were 66 children's shops in 76 shops.

During the period, children's clothing business accounted for 8.1% of the group's total revenue, which was 42 million yuan.

The group's electricity supplier income also maintained a positive growth.

Financial investment: small profits and small partners

The investment income of the group was 552 million yuan, including 436 million yuan for the sale of financial assets, 46 million yuan for interest on foreign loans, and 71 million yuan for investment in financial assets.

The net cash flow generated by the group's investment activities amounted to 650 million yuan, compared with 474 million yuan at the end of last year.

As stated in its interim earnings report, "while ensuring the healthy development of our main business, the Group continues to develop new businesses and practice new business practices.

The "two wheel drive" development pattern is more mature with the sportswear and the investment business as the subsidiary.

It can be seen that the income of the group is more dependent on the investment portion, and the proportion of investment income to net profit is maintained at a high level.

Where does China get the proceeds from financial investment?

In addition to holding the "golden rice bowl" of Alibaba's original stock, there are ten investment entities in the non-listed company equity investment with a return of more than 100 million.

These small partners in China are all in the top. Among them, Yunfeng fund was founded by Ma Yun, Yu Feng and other industry leaders, and has invested in many top-level targets.

Pan Xin, pan Mao and CITIC two level market funds have the background of CITIC industry investment.

Hangzhou Yuan Xin Dong's equity investment partnership is one of the largest shareholders of CIC group.

Tibet ruixintong venture capital center is a lucrative real estate trust loan business.

Yunfeng fund founder and investment enterprise (including but not limited) chart from Yunfeng fund official website

With these tall partners to make investments, Chen Yihong and Chen Chen, who are the real controllers of China, naturally do not have to shoulder the pressure of China's sporting goods manufacturing industry.

At present, Chen Yihong, Chen Chen and daughter together hold 42.74% of China's trend.

In April 25th of this year, China announced a related paction announcement on Huayi sports. Through the wholly-owned Affiliated Companies, Huayi sports was subscribed for about 1.82% of its shares by 20 million yuan. In a notice, it said that "this will enable the group to participate in the related business of sports industry development and provide economic benefits and business opportunities for future development".

Actively investing and starting to enter the sports industry in China, looking forward to usher in better business opportunities.

In August 9th of this year, Guotai Junan first gave the country a "buy" rating, and it also showed the industry's optimistic attitude towards it.

In the August 16th earnings report, the Chinese trend also indicated that it will take the 2022 China Winter Olympic Games as an opportunity to further promote its Phenix brand in the mainland through cooperation with high-end ski resorts, so as to nurture the Japanese market.

At the end of the year, China's news report reached 1.67 Hong Kong dollars, with a total market value of 9 billion 246 million.

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