The Brand Is Expected To Reduce Its Annual Loss By Half As A Result Of The Sale Of Assets.

The brand management giant Global Brands Group Holding Ltd. (0787.HK) Li Biao brand Co., Ltd. released on Friday, Ying Xi, the annual loss is expected to significantly narrowed 50 - 60%.

Although surplus is released, the loss narrowed mainly due to the sale of assets, while its continuing business losses will expand significantly by 55- 65%.

Therefore, Li Bao brand actually surpassed the police on Friday.

No fashion Chinese network (micro signal: nofashioncn) and local retail observation (micro signal: retailinsider) data show that as of the end of March 2018, the 2017/2018 financial year, the profit label brand loss of 903 million U.S. dollars, of which the operating loss of up to 1 billion 50 million U.S. dollars.

According to Friday's announcement, the continued operation of the profit brand 2018/2019 fiscal year is expected to lose at least $1 billion 575 million.

The increase in operating losses was mainly due to the completion of the sale of North American children's clothing at the end of the year.

However, the profit label brand, known as 2017/2018, and past losses, should not be used for comparative purposes. The relevant data will be adjusted and reproduced in accordance with applicable accounting principles and policies to reflect relevant events such as the sale of business. In the 2018 fiscal year, the continuing business and the discontinued business have not been disaggregated.

In a statement on Friday, the brand said that the group is launching a major restructuring plan to reduce operating expenses and improve efficiency, and has achieved results. It is expected that the net loss in the second half of fiscal year 2018/2019 is much lower than that in the first half of fiscal year.

Up to the end of September, in the first half of fiscal year, the profits of the brand were 284 million dollars.

Despite the fact that the accounting policy and data are "adjusted and restated", it is no doubt that the brand and the business of Hongkong Feng family have fallen sharply.

The market value of the brand is less than 700 million Hong Kong dollars, and its market value has continued to refresh the record low in 2014.

Fung family's most important Li & Fung Ltd. (0494.HK) Lifeng Co., Ltd. has been losing money for two consecutive years. Its three-year and three year pformation plan has not achieved concrete results in financial performance, nor has it been approved by investors. Li Feng shares have also been refreshing its new low in the past 20 years, and its market value has fallen below HK $10 billion.

In order to reduce the cost of brand financing, Victor Fung Feng Guo Jing and William Fung Feng Guoguan family Feng Shi Holdings (1937) Limited provide shareholder loans to the company, reducing the unpaid principal amount of the group's revolving credit financing to 174 million 100 thousand US dollars in May 31, 2019, while the total loan principal amount provided by the Feng family is currently 292 million 200 thousand dollars.

In addition to selling $1 billion 380 million for North American children's clothing business, the brand is further selling its core business at the end of November, selling its children's clothing business in China at HK $20 million or HK $156 million.

In October of last year, Feng Yuming, a professional manager of Feng family, resigned as CEO of Li Biao brand, and was replaced by Richard Nixon Darling, Bruce Rockowitz.