HONG KONG, CHINA--(Marketwired - Feb 20, 2017) - Cabbeen Fashion Limited ("Cabbeen") (HKSE: 2030), one of the leading menswear designer brands in China, announced its annual results for the year ended 31 December 2016 (the "Year").
Results and Operation Highlights:
Encouraging growth in the retail revenue generated from online platforms
- Total e-commerce retail revenue increased by over 43.8% to RMB247 million
- Operate online stores on popular e-commerce platforms including T-mall, JD.com, WeChat and Cabbeen's official website
Good progress in consignment model transformation
- As of 31 December 2016, 389 retail outlets were operated using consignment model, representing approximately 43.3% of the total retail outlets
- Target to have approximately 70% of retail outlets operated on consignment model by end of 2018
Retail network and performance
- Operating 899 retail outlets
- Strong customer loyalty with VIP members contribute over 50% of total retail revenue
- Up to 31 January 2017, sell-through rate of 2016 collections was over 66.4%
- Average retail discount was approximately 26.1%
- Revenue decreased by 14.4% to RMB1,161 million
- Gross profit decreased by 11.3% to RMB556 million with gross profit margin increased to 47.9%
- Profit for the Year down by 36.8% to RMB181.7 million
- Basic earnings per share is RMB0.26
- Recommend a final dividend of 5.0 HK cents per share, together with the interim dividend of 6.8 HK cents per share paid earlier, will bring the total dividend for the Year to 11.8 HK cents per share
- Dividend payout ratio is approximately 40.3%
Commenting on the future prospects, Mr. Ziming Yang, Chairman of Cabbeen said, "We remain cautious of the macroeconomic dynamics in China, but we believe there are still tremendous growth opportunities in the long run as the growth in China will continue to be fueled by growth in consumption by the emerging middle-class across China.
"Looking forward, we will continue to invest in people and enhance our operational efficiency so that we will be equipped to seize market opportunities. We will stay focused on our multi-brand strategy as we believe a wide range of apparel products targeted at different customer groups is a key for business growth. Regarding retail channels development, we plan to gradually increase the number of retail outlets to be operated on consignment model in the coming few years, while remain prudent for physical stores expansion and offer more product items for our online shops."
Cabbeen is a leading fashion casual menswear company in China, which is principally engaged in the design of apparel, footwear and accessories, brand management and sales of fashion casual apparels. According to China Fashion Association, Cabbeen is a leading Chinese designer brand based on factors including retail revenue, the number of retail outlets and brand awareness. The Group currently owns four fashion menswear brands, namely "Cabbeen Lifestyle", "Cabbeen Urban" "Cabbeen Chic" and "2AM".