Hong Kong Listed Enterprise: Mushang Group Holdings Co., Ltd. (Stock Code: 1817) Performance Announcement

Recently, Mushang Group Holdings Co., Ltd. (stock code: 1817), a Hong Kong stock listed company, released the interim performance announcement for 2024. The announcement showed that as of June 30, 2024, its total revenue was 1.088 billion yuan, a slight increase of 0.3% over the same period in 2023; The gross profit reached 583 million yuan, a slight increase of 1% over the same period in 2023, and the gross profit margin increased to 53.6%; The profit before tax was 7.6 million yuan, a decrease of 23.0 million yuan from 30.6 million yuan in the same period of 2023. The announcement showed that the decrease was mainly due to the decrease in foreign exchange earnings and the increase in depreciation of the headquarters office building of the Group.

Mushang Group Holding Co., Ltd., together with its subsidiaries, is a leading fashion men's wear company headquartered in China, covering the field of neutral fashion. In 2007, it founded the brand GXG, launched gxg jeans in 2010 to cater to different men's wear styles, and in 2020, launched the commuter clothing brand MODE COMMUTER, which focuses on high quality.

Revenue by brand

From January to June 2024, the sales revenue of the main brand GXG will be 979 million yuan, an increase of 6.2% over the same period in 2023; The sales revenue of gxg jeans is 79 million yuan, 8.7% less than that of the same period in 2023; The sales revenue of Mode Commuter is 21 million yuan, an increase of 10.8% over the same period of 2023.

Divided by sales channel revenue

Due to the successful implementation of the Group's brand promotion measures and the increase of the average sales of stores, the sales of the self operated stores in this period increased by 2.9% compared with the same period in 2023, and the sales of the dealer stores in this period increased by 11.2% compared with the same period in 2023.

In terms of online channel sales revenue, online channel sales increased slightly by 1.7% or RMB 7.2 million to RMB 434.0 million compared with the same period in 2023.

Brand channel stores

The total number of offline stores will decrease from 1022 on December 31, 2023 to 958 on June 30, 2024.

In general, the gross profit of Mushang Group's holding performance grew at double levels, mainly driven by the rapid development of its main brand GXG, which also symbolizes its main brand promotion strategy. However, its jeans, children's clothing and neutral clothing all experienced varying degrees of revenue decline; Secondly, due to the enhanced product research and development to provide consumers with better product experience, some stores were optimized and adjusted in the channel, and the stores with poor profits were eliminated, providing a good foundation for the overall revenue and development of offline stores.