Nine Hing Holdings Last Year Adjusted By Net Profit Increased By 36.7%, Market Share Rose.

1836.HK Holdings Limited (the 1836.HK) has a net profit of $65 million 455 thousand a year, an increase of 5.6% over the $61 million 955 thousand in 2017 and a profit of 36.7% to 105 million 100 thousand US dollars after adjustment.

On Thursday, the group also said that Jiang Zhigang and Zhao Mingjing would both resign as chairman and vice chairmen of the group, but would be pferred to non-executive directors, while executive director Chen Limin would take over as chairman of the group.

In the performance report, Jiang Zhigang said that despite the difficulties of Sino US trade friction, exchange rate immobility and the unfortunate bankruptcy of a few customers in 2018, China's rising labor cost has become a particularly difficult long-term challenge for the group. However, with the increasing utilization rate of Vietnam's manufacturing plants, the group has also speeded up its capacity allocation adjustment.

Over the past year, group sports product orders have been flourishing, while orders for fashion and leisure shoes have also resumed growth.

In the year of 2018, nine Xing holdings increased by 0.7% to $1 billion 588 million 600 thousand, excluding the sale of China's retail business, an increase of 3.3% over revenue.

During the reporting period, manufacturing revenues totaled $1 billion 550 million 700 thousand, an increase of 2.7% compared with $1 billion 510 million 300 thousand in 2017. Shipments increased from 56 million 600 thousand pairs in the previous year to 60 million 200 thousand pairs, reaching a target of 60 million double, an increase of 6.4%. The average selling price fell by 3.4% to 25.8 dollars, or less than the median figure expected by management.

With the growth of shipments, nine Hing Holdings in 2018 increased its share of the global high-end footwear market by 100 basis points to 11%.

During the reporting period, fashion shoes remained the largest source of revenue for the group, representing a decrease of 240 points from 36.4% in 2017, 28.7% and 32.1% in casual footwear and fashion footwear respectively, and 29.1% and 28.1% in the same period in 2017.

Retail business accounted for 2.8% last year, down 120 basis points from the same period last year.

North America and Europe contributed 51.1% and 29.2% of revenue to the group last year, while the Chinese market contributed 10% of revenue.

American brands such as Michael Kors, ToryBurch, Deckers, Timberland and Alexander Wang accounted for nine US $766 million in sales, an annual increase of 3.4%.

At present, only a small number of footwear exports from China to the United States, but many customers want to change their production areas to other places.

The group has production lines in Vietnam, Indonesia and Bangladesh. By the end of 2017, Vietnam's new factory, which mainly produces fashionable sports shoes, was put into operation, and recently closed the Guangxi factory.

The cost of Guangxi customs plant may offset the rise in profit margins of Vietnam's new plant and the lifting of the depreciation of the renminbi to profitability.

Nine Xing holdings recorded a gross profit of US $277 million 100 thousand in 2018, an annual increase of 2.6%, excluding the one-time item of $42 million 900 thousand. The adjusted operating profit increased 35% to 110 million 800 thousand US dollars a year. The adjusted operating profit margin increased by 180 basis points to 7% over the same period last year.

The Group intends to send 45 Hong Kong cents last year's interest, an increase of 50% over the same period, and a total dividend of 75 Hong Kong cents in the whole year.

In the early morning of Friday, the shares of 1836.HK Holdings Co., Ltd. rose sharply at 20%, closing at HK $11.94 a day, up 18.22% from nine.