China Trend Released 2018 Results Kappa China'S Rebound

According to the world clothing shoes and hats net, in mid February 27th, China's trend released 2018 results.

As of December 31, 2018, the group's revenue reached RMB 1 billion 706 million, an increase of 17.3% over the same period last year.

But net profit fell 60.9% to 315 million yuan, and gross profit margin fell 3.2 percentage points to 56%.

According to the financial report, net profit decline was due to unfavorable factors such as trade, and the world's major stocks in the second half of 2018.

The index continued to decline, resulting in a decline in stock prices such as Alibaba held by the group.

As the stock market improves, losses on the stock market as of this announcement date have all been recovered.

However, by the sharp decline in net profit, Hong Kong stocks opened in the afternoon, and China's stock price plummeted, down 6.61% at a time, with a total market value of about HK $6 billion 650 million.

In October 2007, China listed in Hongkong, becoming Lining.

After that, third mainland sporting goods enterprises listed on Hong Kong stocks.

As of December 31, 2017, Chen Yihong's Poseidon Sports Limited actually owns 39.64% of China's trend and is the largest shareholder of the company.

Sports brand

It is the main business in China.

At present, China has all the rights and interests of Kappa in the mainland, China, Macao and Japan, and acquired the Japanese outdoor ice and snow brand Phenix in 2008.

In the 2017 fiscal year, Kappa's performance in the Chinese market was not ideal, with sales falling by 12.02% compared with the same period last year, of which clothing revenue fell 10.6%.

The brand immediately appointed Zhang Zhiyong as executive director and CEO, who served in Lining and has senior experience in the Chinese sporting goods industry.

Now, the latest financial report shows that Kappa's performance has been warmer. In 2018, the sales volume of China's branch was 1 billion 175 million yuan, up 18.4% over the same period last year.

Among them, clothing sales amounted to 915 million yuan, an increase of 24.7%, clothing occupies the bulk of the total.

Footwear sales were 239 million yuan, basically unchanged from the year before last.

As of the end of December 2018, the total number of Kappa brand shops was 1496 (including children's wear), a net increase of 9 compared with the end of last year.

In 2018, China's Kappa self operated channel business reached 747 million yuan, an increase of 138 million yuan compared with 2017, and self operated business accounted for 63.6% of Kappa's sales in China.

The sales volume of non self operated channels was 428 million yuan, an increase of 45 million yuan compared with the same period last year.

Chen Yihong, chairman of the board, said that in the past year, the company has deepened the channel reform. In addition to the rectification and closing of inefficient shops, it has also optimized the existing shop network and actively set up head shop, shopping center store and OLE store. The proportion of shopping center shops has increased by 9 percentage points over the same period, and the number of Kappa stores is growing steadily.

It is worth noting that Kappa China's gross profit margin dropped by 5.4 percentage points to 60.4%.

Among them, the gross profit margin of clothing dropped from 71% to 64.4%, and footwear decreased from 61.1% to 55.2%.

In this regard, China's trend indicates that the decline in gross margins is mainly influenced by many factors, such as one-time clearance of old goods, large cargo returns and terminal retail discounts.

In addition, the Japanese segment involving Phenix and Kappa's two largest brands grew by 6.3% to 336 million yuan over the same period.

In addition to running Kappa brand, China's trend is also engaged in some investment businesses.

In 2018, China's investment net assets amounted to 9 billion 231 million yuan, an increase of 6.8% over the same period last year, resulting in a net investment income of 424 million yuan.

"Although the shareholding value of Alibaba and other two tier markets held by the group has been somewhat affected by market fluctuations, so far, it has basically revert to the price level at the beginning of the year," Chen Yihong said.

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