Attention: Interim Performance Announcement Of Tebu In 2020

On July 13, Tebu International Holdings Co., Ltd. released its financial forecast and business operation in mainland China in the second quarter of 2021. TEPCO expects the group's net growth to be no less than 65% (Unaudited) in the six months to June 30.

The performance of the main brands in mainland China is also quite good. In the second quarter of 2021, retail sales (including online and offline channels) increased by 30% - 35% over the same period last year, and the retail discount level was 25% to 20% off the same period last year. In the first half of 2021, retail sales increased by 40% - 45% year-on-year, and retail inventory turnover decreased from 5-5.5 months in the same period of last year to about 4 months.

In this regard, Tebu Group believes that there are three reasons for this:

First of all, the retail performance of the main brand of Tebu was strong, and the replenishment orders of agents increased significantly; Secondly, the e-commerce business of the main brand of Tebu has been accelerated by increasing the promotion efforts on several online platforms, social media and live channels, which has promoted the product sales; In addition, children's clothing business in product design, brand positioning and retail network management after restructuring, showing a strong momentum of development.

As for the improvement of the gross profit margin of the main brands of Tebu, Tebu group said that the main reason was that it continued to innovate and diversify its products according to the preferences of consumers. In addition, the one-time inventory repurchase in the first half of 2020 also led to a low base of comparison.

Source: interim performance of Tebu in 2020

It is reported that the net profit of Tebu in the first half of 2020 will be 248 million yuan, which is expected to exceed 400 million yuan this year.