An Li Fang Holdings In 2018 Net Profit Decreased 69.48% Net Reduced By 88 Retail Outlets.

In March 21st, an Li Fang holdings announced its 2018 results.

In the year of 2018, the profits of an Li Fang holdings realized HK $2 billion 452 million, an increase of 4.80% over the same period last year, a gross profit of HK $1 billion 960 million, an increase of 7.37% over the same period last year, and a net profit of HK $151 million for the company owners, a decrease of 69.48% over the same period last year, and a HK $3 billion 579 million basic earnings per share, with a final dividend of 7 cents per share.

Source: 2018 annual results announcement

Excluding the income from the relocation arrangements and related income tax in the previous year, the net profit decreased from HK $158 million to HK $151 million in HK $158 million.

Net interest rate fell from 6.75% to 6.17%.

The decline was mainly due to the increase in advertising and cabinet decoration expenses.

The announcement said that the growth of turnover was mainly due to the group's full channel coverage and multi brand strategy.

The turnover from retail sales amounted to HK $2 billion 58 million, accounting for 83.95% of the total revenue of the group, up 0.90% from the previous year.

The turnover of online and wholesale businesses increased by 32.68% to HK $389 million, or 15.85% of total revenue.

The mainland market is the main source of income for the group.

The turnover from mainland China is HK $2 billion 375 million 600 thousand this year, accounting for 96.89% of the group's total revenue.

Lingerie has always been the core product line of the group.

In the year, underwear sales were HK $2 billion 139 million, an increase of 4.52% over the previous year, accounting for 87.24% of the group's profits, and 17.17% of the pajamas sales, with a turnover of about 165 million Hong Kong dollars, accounting for 6.74% of the group's revenue.

Swimsuit sales increased by 2.44% to HK $123 million, accounting for 5.03% of group profits.

In December 31, 2018, the group operated a total of 1837 retail outlets, with 1557 and 280 sales counters and specialized stores respectively.

In 2018, the number of retail outlets decreased to 88.

The group's products are also sold on different online platforms to cater for consumers' changes in their shopping habits.

At present, the Group operates seven brands - An Li Fang, Feng Di Shi, COMFIT, E-BRA, an duo, IVU and LIZACHENG.

The flagship brand, an Li Fang, is the most important source of income for the group, accounting for 45.42% of the total revenue.

The turnover of an Li Fang is HK $1 billion 114 million, an increase of 2.44% over the previous year.

The turnover of our company is HK $616 million, which is the same as last year, accounting for 25.12% of the total revenue this year.

COMFIT turnover increased by 8.96% to HK $232 million over the previous year, accounting for 9.47% of the total revenue of the year.

As for E-BRA, the turnover increased by 5.23% to HK $246 million over the previous year, accounting for 10.04% of the total revenue of the year.

LIZACHENG increased its turnover by 10.72% to HK $52 million 120 thousand in the current year.

The sales volume of an duo increased by 23.17% to HK $71 million 810 thousand compared with the previous year, accounting for 2.93% of the total revenue this year.

IVU turnover increased by 42.91% to HK $115 million over the previous year, accounting for 4.70% of the total revenue of the year.

In many brands, IVU and Andrew business growth is more prominent, mainly benefiting from the group's increased investment in the two brands during the year to catch more cities below the second line.

In response to the increasingly personalized and diversified market demand, the group will continue to play its advantages of scale efficiency and multi brand strategy.

In terms of the sales network, the group will allocate brand and product mix according to the market segmentation characteristics of the retail outlets, and operate integrated stores at suitable locations to catch a wider target audience and balance the proportion of counters and specialized stores.

In view of the rapid growth of the electricity supplier market, the group will continue to explore opportunities for e-commerce channels, develop more electronic commerce monopoly commodities, continuously improve the logistics system to enhance the efficiency of shipments, and make full use of online retail outlets to play the biggest effect of full channel sales.