Kidsland Announces 2019 Interim Results
Leading Toy Distributor in China Significantly Improves Profitability
HONG KONG, Aug 27, 2019 - (ACN Newswire) - Kidsland International Holdings Limited ("Kidsland" or the "Group"; stock code: 2122), the largest toy retailer and distributor in China, today announced its interim results for the six months ended 30 June 2019 ("the reporting period"). During the reporting period, thanks to sustainably improving revenue growth and better cost control, the Group improved its profitability, laying a solid foundation for sustaining growth in the future.
During the reporting period, net loss was approximately RMB1.9 million, 96.1% lower than that in the same period last year, and adding back non-cash share-based compensations, the Group would record a net profit of approximately RMB3.0 million. EBITDA, prepared on a basis comparable to that used in the prior period, is approximately RMB19.9 million, improving from an EBITDA loss of approximately RMB28.7 million last year.
Revenue of the Group increased by about 4.8% to approximately RMB850.0 million (first half of 2018: RMB811.1 million), with gross profit at approximately RMB361.5 million (first half of 2018: RMB347.0 million) growing by about 7.8%, and gross profit margin improved to about 42.5% in the reporting period. The Group managed to reduce selling and distribution and general and administrative expenses for the period by about 4.7% year-on-year. Increased revenue and gross profit margin and decreased expenses combined translated into significant improvement of the Group's results.
The Group has an extensive sales network comprising self-operated retail channels and wholesale channels. In the reporting period, the Group optimized its sales network by closing down underperforming shops and resizing and remixing the Group's product portfolio. As at 30 June 2019, it had 750 (30 June 2018: 781) self-operated retail points of sale, consisting of retail shops and consignment counters, and 849 distributors (30 June 2018: 973). The optimized sales network has allowed the Group to continue to enjoy stable revenue growth and improve efficiency, and in turn, profitability.
The Internet has become a main distribution channel in Mainland China. To leverage on the power of the Internet, the Group operates 20 online stores and has seven online key accounts on platforms such as Tmall, JD.com, Xiaohongshu and Kaola. During the reporting period, the Group's direct e-commerce (online stores and online key accounts) revenue was RMB80.7 million, growing about 21.4% year-on-year and as of 30 June 2019, represented about 9.5% of the Group's total revenue (2018: about 8.2%).
In the first half of 2019, the Group also took a big step forward by opening the FAO Schwarz flagship store in Beijing. The store, striving to offer high-quality experiential shopping, has set new heights in the toy industry in Mainland China, bolstered the Group's reputation, and cemented the Group's leading position in the marketplace.
Mr. Lee Ching Yiu, Chairman and CEO of Kidsland, said, "Although the mainland economy is going through adjustments and the Sino-US trade war continues, adding uncertainty to the outlook of the retail market, we remain focused on improving our product and sales channel mix and operational efficiency, and we are glad to see our efforts bearing fruit. We believe we are well-positioned to make performance leaps in the near future."
About Kidsland International Holdings Limited (stock code: 2122)
Kidsland International Holdings Limited ("Kidsland" or "the Group") is engaged in retail, wholesale, e-commerce and brand operation of toys and infant products in China. As the largest toy retailer and distributor in China, Kidsland has over 18 years of industry experience. The Group owns the most comprehensive online and offline sales network in China. Currently, its self-operated offline retail system includes Kidsland and Babyland stores, LEGO Certified Stores, and the FAO Schwarz flagship store. With concepts of and experience in brand building, value appreciation and maintenance, outstanding marketing capabilities, and flexible use of online and offline marketing strategies, Kidsland has built a leading toy and infant products distribution franchise in China.
Strategic Financial Relations Limited
Vicky Lee Tel: (852) 2864 4834 Email: [email protected]
Antonio Yu Tel: (852) 2114 4319 Email: [email protected]
Queenie Lee Tel: (852) 2114 2881 Email: [email protected]
Fax: (852) 2527 1196
Source: Kidsland International Holdings Limited
Sectors: Daily Finance, Daily News
Copyright ©2020 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
More Latest Release >>
NEC and PERSOL CAREER Start PoC of Recruitment Service for International IT Engineers using Blockchain Technology
Aug 13, 2020 09:57 JST
Hitachi and Bombardier Awarded Contract to Supply 23 Very High-speed Frecciarossa Trains to Trenitalia for Operation by ILSA on Routes in Spain
Aug 12, 2020 17:56 JST
Hitachi Rail to Acquire Railway Technology Firm Perpetuum to Accelerate UK Digitization Strategy
Aug 12, 2020 17:33 JST
SDK Revises Forecast of Consolidated Performance for Full-year 2020
Aug 12, 2020 16:00 JST
Showa Denko Announces 2020 2Q Consolidated Financial Results
Aug 12, 2020 16:00 JST
Banqsoft Acquires Concent to Expand and Broaden its Market Position
Aug 12, 2020 09:18 JST
Mitsubishi Corporation: Commercial Operations Commence at Cameron LNG
Aug 11, 2020 09:07 JST
TOYOTA GAZOO Racing Back on Track at SPA
Aug 07, 2020 18:04 JST
Leveraging EV/PHEV as Resources for Virtual Power Plants Commencement of Trial Operation of V2G Business Demonstration Facilities
Aug 07, 2020 09:03 JST
SDK to Record Operating/Non-operating Expenses for Acquisition of Hitachi Chemical's Shares, and Extraordinary Loss
Aug 06, 2020 16:00 JST
Mitsubishi Corporation: Trials of "KnowRoute", AI-Controlled On-Demand Bus Service to Commence in Shiojiri City, Nagano Prefecture
Aug 06, 2020 13:36 JST
Honda's Consolidated Financial Summary for the Fiscal Q1 Ended June 30, 2020 and Forecasts for the FY Ending March 31, 2021
Aug 05, 2020 18:45 JST
DENSO Establishes Pittsburgh Innovation Lab to Accelerate Automated Driving R&D
Aug 05, 2020 16:09 JST
Fujitsu Enhances VPS Series to Drive DX for Production Preparation Tasks
Aug 05, 2020 12:30 JST
Mitsubishi Corporation: R&D on Use of CO2 in Concrete
Aug 05, 2020 11:13 JST
MHPS Receives Contract for AQCS Equipment for a Chemical Plant in Poland
Aug 04, 2020 15:19 JST
MHI Machine Tool Develops "FR Series" of Machines to Manufacture Gears for Robots
Aug 04, 2020 12:10 JST
MHPS to Change Company Name to "Mitsubishi Power"
Jul 31, 2020 16:02 JST
DENSO Announces First Quarter Financial Results
Jul 31, 2020 14:11 JST
BluE Nexus and Toyota to Strengthen Sales Structure of Electrified Systems to Prepare for Accelerated Adoption of Electrified Vehicles
Jul 31, 2020 12:28 JST