Shandong Ruyi Took Over, Hongkong Li Bang Men'S Wear Narrowed In The Fourth Quarter Of 2018 To Achieve Profitability.

0891.HK, a senior menswear retailer in Hongkong, narrowed its losses to HK $264 million 800 thousand last year, down 56.5% from a huge loss of HK $608 million 300 thousand in the same period of 2017.

Group Chairman Qiu yfu said that in 2018, the year of the reform of Li bang, Beijing (formerly known as "Shandong") became the controlling shareholder of Klc Holdings Ltd.

Ruyi holdings currently has more than 20 international brands, including Aquascutum, D 'URBAN, Sandro, Maje and Claudie Pierlot. It has about 6000 outlets in over 80 countries and regions, and has international influence. When Ruyi holdings shares, Li Bang will get the best opportunity for internationalization. The group also employs Paul David Haouzi as its president, responsible for specific operation matters.

Sun Weiying, CEO of the group from the Italian department, said in a statement of achievement that since May last year, the group has reorganized its management and has been looking for property around the world in an effort to internationalize its development.

At the same time, it also reorganized in real time, closed down poor shops, optimized manpower structure and reduced related costs. The group's financial performance improved in the four quarter, and gross profit margin increased by 330 basis points in the last three months and realized quarterly profits.

In 2018, the profits of Li Bang increased by HK $1 billion 723 million 100 thousand, up 1.3% from HK $1 billion 701 million 300 thousand in 2017, of which retail revenue decreased by 2.6%, but same store sales increased 1%. Thanks to the authorization agreement with Ruyi group, authorized revenue increased by 108.9% last year.

At the end of last year, Li bang and Ruyi Group signed an agreement. The Hongkong company announced that in addition to selling inventory to Feng's 1937 group, the controlling shareholder of the company, Ruyi group, will be a new buyer of the company's inventory.

The inventory sales agreement with Ruyi group reached 55 million Hong Kong dollars per year from two years to the end of 2020.

Ruyi group will pay the deposit to Li Bang men's clothing after confirmation of the purchase order, and pay the balance 60-90 days after receiving the goods.

Benefiting from the Ruyi group agreement, selling products to European customers of Ruyi group, the authorized revenue of Europe last year rose from HK $79 million to HK $165 million, wholesale income decreased from HK $38 million 800 thousand to HK $23 million 600 thousand, while authorized wholesale income for the Greater China market decreased from HK $68 million 300 thousand to HK $58 million 100 thousand.

The mainland's retail revenue of HK $690 million last year, compared with the 737 million 700 thousand HK $6.5% in 2017, declined by 6.5%. The decline in revenue was mainly due to the net closing of 43 stores in the period. As of the end of the reporting period, the group operated 163 stores in the mainland market. The annual retail sales in Hongkong increased by 2.9% to HK $520 million 600 thousand, while the same store sales increased by 2.9%, mainly due to the stimulation of mainland tourists. The Hongkong shops were reduced from 38 to 36 in the end of the reporting period, while the Taiwan market had a retail income of HK $38, the same store sales increased by 2.9%, and the retail outlets increased to between the outlets.

In 2018, the gross profit margin of Li Bang men's clothing was HK $1 billion 195 million 300 thousand, an increase of 3% from HK $1 billion 160 million 300 thousand in 2017, and gross profit margin of 69.4%, a 120 basis point increase year by year.

The gross margin improvement was mainly stimulated by the adjustment of product positioning and pricing strategy, supplemented by effective cost control measures, with a gross profit margin of 69.9% in the fourth quarter.

The core Chinese market, which had a gross profit margin of 70% last year, improved by 60 basis points, mainly due to reduced sales incentives.

Core earnings losses also decreased from HK $441 million in 2017 to HK $248 million 100 thousand in 2018.

By the end of 2018, the group had 1796 employees, a decrease of 21% compared with 2283 at the end of 2017. The decrease was mainly due to the reduction of shops and Singapore offices, and the restructuring of the European and greater China market teams.

The layoffs were hit by the media in Hongkong at the end of November 2018. It is reported that since the end of October, the Hongkong group has begun to cut down the employees of the state, and many departments such as business, procurement, administration and accounting have been affected.

The mainland business has begun to integrate in recent months.

Business restructuring resulted in expenditure of HK $59 million 900 thousand in 2018.

As of the end of December, the 253 stores of the world's public pport battalion were 297 less than the 297 in 2017.