Feng'S Family'S Brand Business Deteriorated Sharply, With A Loss Of 261 Million A Year.

Feng's brand management giant Global Brands Group Holding Ltd. (0787.HK) Li Biao brand Co., Ltd. is being forgotten by the market. Even on the day of the announcement, the company's stock turnover is less than 800 thousand, which is no different from the average volume.

On Wednesday, the market ended in the afternoon, after the release of the profit brand of the company, the annual performance was released. In the 2019 fiscal year ended March, the turnover of the company decreased by 4.6%, from 1 billion 585 million US dollars to 1 billion 513 million US dollars, and the net loss narrowed from 903 million US dollars to 400 million US dollars, an improvement of 55.7% compared with the same period last year, which is in line with the group's expectation of narrowing 50- 60% at the end of May.

However, the narrowing of the losses narrowed mainly to $139 million from the sale of $734 million, while the group's ongoing business continued to deteriorate. The loss in the 2019 fiscal year increased from $169 million to $261 million, an increase of 54.4%, slightly below the expected 55-65% growth. During the reporting period, the profit and loss of the core brand EBITDA of the brand was changed from profit to loss, with a net loss of US $19 million, while in the 2018 fiscal year, we recorded a profit of US $134 million.

Last year, at the end of October, Richard NixonDarling, the successor of Feng family's professional manager Bruce Philip Rockowtiz, Le Yumin, the chief executive officer of Li Biao brand, said in the performance report that in the past year, the brand has undergone significant changes, and in October 29, 2018 completed part of the North American licensing business, including all the children's clothing, accessories and part of the West Coast fashion business in North America. The exchange's funds were used to settle long-term debts and distribute special interest. At the same time, the company sold the Chinese mainland children's clothing business in October 2018.

Richard Darling also said that since its last half year, it has been committed to streamlining its structure, and announced a restructuring plan in November last year, aiming to reduce its operating expenses by $100 million a year. According to the current progress, the cost savings plan can raise US $140 million and reduce the related expenditure of goods by US $24 million. In addition, management has appointed several new appointments, including North American president and operations director RonVentricelli, chief financial officer Mark Caldwell, and supply chain President Rob Sinclair, in an effort to promote group transformation.

According to Richard Darling, the transformation of the brand also includes the global supply chain, digitalization, rapid supply and strengthening of its own brand. The above strategy is similar to that of Feng family's Admiral Company Li &Fung Ltd. (0494.HK) Lifeng limited, mainly in response to the rapid changing trend of the global retail industry.

After the sale is completed, the brand will be reclassified into three major businesses: North America, Europe and brand management.

In 2019, North American business revenue, which accounted for 70% of the group's turnover or $1 billion 46 million, fell by 5.4% year on year, and business losses increased sharply from $43 million to $167 million. The brand portfolio of North American business, including Spyder, Aquatalia, JonesNew York, Frye, Calvin Klein, Katy Perry and Sean John, has also developed two brand clothing brands, namely, the brand of shoes brand and the brand of "shoes and shoes".

Brand portfolios include Spyder, AllSaints, Reiss, Calvin Klein, and European businesses such as Aquatalia and Fiorelli. Last year, revenues dropped slightly from 0.7% to $374 million, while operating losses narrowed from $119 million to $79 million.

As for the brand management business, it is mainly a joint venture founded by Li Biao brand and Creative Artists Agency (CAA) -- the world's largest brand management company, CAA-GBGBrand Management Group (CAA-GBG), and the new joint venture Brand Company, established by the famous star David Beckham David Beckham and its business partner, Simon. CAA-GBG currently has well-known IP licensing including Playboy, Netflix, F1 and Coca Cola, while the latest achievement of Seven Global is the men's skin care brand, which is cooperated with L'Or al Al (L'OREAL) group, which was launched in China last September.

The brand management department is the only profit Department of the profit brand last year, and its operating profit has dropped from 49 million US dollars to 31 million US dollars. The main reason is that the turnover declined by 10.3% from 103 million US dollars to 92 million US dollars.

By the end of March, the profit of the brand was increased from $93 million to $379 million, mainly from the sale of $1 billion 48 million.

On Wednesday's closing, Global Brands Group Holding Ltd. (0787.HK) brand price reported HK $0.68, corresponding to HK $700 million market value.