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C.banner Announces 2015 Annual Results
- Revenue and Gross Profit Rise 8.0% and 4.2% to RMB3,045.8 Million and RMB1,862.4 Million Respectively
- Net Profit Attributable to Equity Holders of the Company Increases 6.3% to RM257.5 Million
- Diversifying Brands and Products Portfolio and Implementing Global Branding Strategy
HONG KONG, Mar 15, 2016 - (ACN Newswire) - C.banner International Holdings Limited ("C.banner" or the "Company", together with its subsidiaries, the "Group", stock code: 1028),the leading international integrated retailer and the second largest retailer of middle-to-high-end women's formal and leisure footwear in the PRC, today announced its annual resultsfor the year ended 31 December 2015 ("yearunder review").
Despite the recovery pace of the global economy was slower than expected, China recorded decelerating growth rate and the retail sector still faced a difficult period, C.banner achievedsteady growth of the financial performance during the year under review. During the year under review, the Group's total revenue increased by8.0% to RMB3,045.8 million. Gross profit increased 4.2% to RMB1,862.4 million.Profit attributable to equity holders rose 6.3% to RMB257.5 million.Gross profit margin was 61.1%. Basic earnings per share amounted to RMB12.64 cents, increased 4.4% year-on-year.
Mr. Chen Yixi, Chairman of C.bannersaid, "2015 was a challengingyear yet China had taken on a wide range of initiatives and policies during the year, among which, the launch of "One Belt, One Road" policy is expected to generate tremendous business opportunities for the Group. Weactively drove our business forward and were able to achieve a steady business growth.Last year, the Group successfully acquired British high-end toys retailer - Hamleys Group - as theCompany's first step of global branding strategy which helped to diversify our business operations and achieved greater synergy effects. In addition, the Group strengthened O2O (online to offline) strategy to provide diversified online products to meet the changing needs of consumers. The Group continued to create remarkable shopping experience for customers with a view to improving same store sales growth. In terms of store expansion, the Group strived to trim down inventory level through more attractive sales promotion and insisted on rational discounting policy to ensure the Group's probability. The Group also further optimized our brand portfolio, enhanced our brand image as an elegant and fashionable choice of lifestyle and insisted on the brand positioning as a mid-to premium footwear retailer."
Contributions from footwear retail and wholesaling operations year-on-year increased 3.4% to RMB2,643.2 million for the year ended 31 December 2015. The contribution from retail and wholesale was 86.8% as a proportion of revenue, while the proportion of revenue attributable to contract manufacturing rose to 9.6%. Contributions from toys business took over 3.6%.
During the year under review, the Group closed down a total of 33 proprietary retails outlets and reducedthird-party outlets by 65. As of 31 December 2015, it oversaw a total of 1,732 proprietary retailoutlets and 467 third-party outlets across China, maintaining a strong presence in over 31 provinces, municipalities and autonomous regions. Due to the negative sentiment in the retail market and the increasing level of competition, same-storesales growth for 2015 decreased slightly by approximately 0.7% compared to the previous year.
During the past year, the Group adoptedinnovative marketing strategies and enhanced consumption experienceto bolster sales and enhance brand awareness. The Group made the most of the new media platforms, such as WeChat official account, to reach a wider range of consumers, promote our brand and provide potential consumers with the latest product information. The Group continued to operate online flagship stores on Tmall.com and JD.com and launched more attractive online sales promotion to further integrate its O2O business. In addition to the internet marketing channel, the Group continued to implement a wide range of marketing strategies such as VIP member scheme, seasonal promotion, outdoor advertisement, product catalogues and brochures, all aiming at providing a fulfilling consumption experience for customers.
The Group's vertically integrated business model encompasses important parts of the industry chain, which include design and development, outsourcing,manufacturing, marketing, wholesaling and retailing of shoes. Such comprehensive model allows theGroup to provide pre-sale and after-sale services to customers directly and identify inconsistencies anddeficiencies in performance at every point of interaction with customers, greatly enhancing the Group's cost benefit of operation and core competitiveness.
Mr. Chen concluded, "Looking ahead, China's economy is heading towards the direction of "consumption-driven" growth. The on-going urbanization policy and the national plan of "One Belt,One Road" are expected to stimulate domestic and overseas demand, which in turn will contribute tothe substantial growth momentum for China's retail industry as a whole and the domestic footwearcompanies. The Group is optimistic about the outlook of the footwear market.In order to seize the market opportunities, the Group will build C. Banner into a renowned international integrated retailerwith multi-brand portfolio and leverage both C. Banner's position and experience in theretail industry and the newly added brand to expand our business with a focus on retail premises suchas department stores to further implement our global branding strategy. Besides, we will continue to develop online business and accelerate its growth to boost sales and enhancebrand awareness. In terms of network building, we will further diversify our distribution channels and strategicallycooperate with department stores and e-commerce platforms to expand our market share. Meanwhile, we will continue our efforts in optimizing our existing network and enhancing profitability of the Group.In addition, emphasis will be placed on developing online businessand platforms to seek new point of growth. Through successful mixes of existing and new businessesand well-thought visionary business plans, the Group is confident to delivergreater rewards to our valuable shareholders."
Sectors: Daily Finance, Daily News
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