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Hengdeli Announces 2018 Interim Results
Maintaining Stable and Seeking Sustainable Development
HONG KONG, Aug 21, 2018 - (ACN Newswire) - Hengdeli Holdings Limited ("Hengdeli" or the "Company" and, together with its subsidiaries, the "Group"; stock code: 3389), an international retailer of renowned brand watches and manufacturer of watch accessories, announced its interim results for the six months ended 30 June 2018 (" the period under review").
As at 30 June 2018, the Group recorded revenue of RMB1,344,045,000, representing a year-on-year ("YOY") increase of 27.2%; the gross profit margin was 16.1%, representing a YOY decrease of 70bps, which was mainly due to the Group's corresponding provisions for old stocks; profit for the period amounted to RMB34,054,000, representing a YOY increase of 126.7%; profit attributable to equity shareholders of the Group amounted to RMB30,812,000, representing a YOY increase of 115.7%, increase in the profit was mainly due to the increase in revenue and decrease in financial costs.
For the sales of renowned watches, the Group operated a total of 63 retail outlets in areas such as Hong Kong, Macau, Taiwan and Malaysia as at 30 June 2018. The steady and rising trend in the Chinese economy in 2017 continued with progresses in social and economic development realised and the political and economic atmosphere in Hong Kong future improved. Under the favourable economic environment, the Group's sales in Hong Kong greatly increased by 31.7% as compared with the same period of last year. Moreover, the profit also better improved in light of the continuingly enhanced operation and management level, and decreased expense ratio.
During the period under review, the Group established a company in Malaysia mainly operating retail sales and maintenance business of internationally renowned watches. In the first half of the year, the company acquired the "Watchshoppe" business from the local world-renowned watch dealers, primarily including five retail outlets, three of which are located in Kuala Lumpur and two in Penang, all located in the central business district of the city. The Group believes that such acquisitions will not only bring new revenue to the Group, but also make Malaysia an important base for the Group to expand the market in places with large Chinese population such as Southeast Asia.
The Group's watch accessories manufacturing business maintained a strong momentum with progress realised and stability secured. The Group timely updates its product design, further enhances customer services, optimizes product techniques, and constantly improves its automation and informatization technology. Sound operating environment, progressive strategy and scientific management have enabled various businesses of the industrial group to continuously maintain promising growth momentum in productivity and sale during the period under review. The turnover has increased by 20.6% compared with the same period of last year, achieving further improvement of development potential and competitiveness, as well as constant enhance of overall strength.
At present, the global politics and economy are not quite stable, while both the financial market and the real economy may be subject to certain risks. However, the Group believes that the favourable long-term fundamentals in Chinese economy remain unchanged. The construction of Guangdong-Hong Kong-Macao Greater Bay Area will also enable Hong Kong and Macao to maintain stability and progress of the operating environment. Looking forward to the future, by continuously sticking to the principle of "maintaining stable and healthy growth and seeking sustainable development" and the strategy of "seeking progress in stability", and continuously leveraging its core competitiveness, the Group will continue to respond to market and identify new opportunities, also will engage in more in-depth cooperation with brand suppliers and international peers through various ways, seek for newer and broader development model for the Group to achieve breakthroughs and expand business, so as to create greater value for both our shareholders and community at large.
Hengdeli Holdings Limited
Hengdeli Holdings Limited (the "Company" or "Hengdeli" and its subsidiaries, collectively as the "Group") is a recognised retailer of internationally renowned brand watches and manufacturer of watch accessories. The Group's shareholders include: the Zhang family; the prestigious watch manufacturer and distributor SWATCH Group; and internationally respected luxury goods conglomerate LVHM Group.
The Group owns an extensive retail network comprised of: "Elegant" (top internationally renowned brand watches), "Hengdeli" / "Watchshoppe" (mid and mid-to-high end internationally renowned brand watches), as well as single-brand boutiques. As at 30 June 2018, the Group had 63 retail outlets, selling watches from more than 50 internationally renowned brands in Hong Kong, Macau, Taiwan and Malaysia etc, and provides comprehensive after-sales services for internationally renowned brand watches.
The Group also owns a number of watch accessories manufacturing enterprises, including the manufacturing of furniture and items used for watch sales and watch packaging products, commercial space design, production and decoration, serving customers throughout the greater China region, Asia Pacific and other countries and regions such as Switzerland and the United States.
The Group has maintained sound and in-depth collaborations with many world-renowned premier brand suppliers including SWATCH Group, LVMH Group, RICHEMONT Group, and KERING Group etc..
The Company has been listed on the Main Board of the Hong Kong Stock Exchange since 2005 under stock code 3389. The abbreviated stock name is: Hengdeli
Source: Hengdeli Holdings Ltd
Sectors: Daily Finance
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