Tao Bo 2020 Net Profit In Fiscal Year To Achieve 2 Billion 303 Million Yuan To Accelerate Digital Transformation

In May 25th, Tao Bo International Holdings Limited (short wave) released its 2020 financial year performance report. As at the end of February 29, 2020, the group's revenue was RMB 33 billion 690 million yuan, an increase of 3.5% compared with the previous year. The operating profit of the group was RMB 3 billion 303 million yuan, up 2% from the previous year. Billion yuan, an increase of 4.7% over the previous year.

The growth is mainly due to the further improvement of our store performance, the increase in the gross sales area and the growth of wholesale business scale, but the overall size growth has been affected by the outbreak in early 2020, he said.

　　 According to the brand, the main brands, including Nike and Adidas, earn 29 billion 489 million 500 thousand yuan, accounting for 87.5%, an increase of 4.4% over the previous year. Other brands including Puma, CONVERSE, and Wei Fu brand (fan, The North Face and Tim Pak LAN), Reebok, Arthur, ghost tomb tiger and Cage, earned 3 billion 904 million yuan, down 4.2% from the same period last year. The main brand and other brands are differentiated according to the relative income of the group.

In the second half of this year, Tao Bo confirmed the income of 30 million 400 thousand yuan RMB. According to the channel, wholesale business revenue increased by 35.4% in the second half, and direct retail business fell by 8.5%. Store upgrading and digitalization continued and total sales area increased by 10.6%.

In the fiscal year ending February 29, 2020, the number of Direct stores increased by 52 compared with last year, and the gross sales area increased by 10.6%. As of February 29, 2020, our 8395 Direct stores have covered nearly 300 cities in the country.

At the beginning of 2020, the main consumer scenario of sporting goods was changed from physical stores to diversified digital scenes. In this regard, Tao Bo accelerated the application of digital tools that have been devoted to development. In the physical stores, we can quickly promote the opening of small programs and mobile cashiers, and meanwhile, we can get through the stock sharing and assist the shops in inventory management by means of technology, so as to ensure the supply of goods and reduce the risk of inventory.

Facing the impact of the 2020 epidemic, Tao Bo established a localized community network and a large-scale membership system, providing high-quality and personalized content interaction, and diversified membership services and benefits. In the prospective digital scenario, the consumer touch capability helps us constantly expand the consumption scenarios and boundaries, making the contact with consumers richer, so that we can meet the needs of consumers in high quality and efficiently in many dimensions.

The digital transformation helps to actively explore ways to enhance the service capabilities of individual stores, and to provide more possibilities for expanding contact resources with consumers, so that services can surpass the physical boundaries of existing physical stores.

As a sports subsidiary of BELLE International's sports business, Tao Po has the largest and highly sinkable sports shoes and clothing store network in China. In 2017, after the privatization of BELLE international, the market was reorganized, and it was finally split up in 2019 and landed at the Hong Kong stock exchange.

Tao Bo has 11 international sports, fashion and outdoor brand distribution rights: Nike, Adidas, Puma, Converse, Timberland, Vans, The North Face, Asics, Onitsuka, Timberland, and so on.