DGAP-News: KINGHERO AG with strong growth in 2010
(firmenpresse) - DGAP-News: KINGHERO AG / Key word(s): Preliminary Results
KINGHERO AG with strong growth in 2010
07.02.2011 / 07:30
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- Continued strong demand for KINGHERO fashion, leading to a 48.5% revenue
increase
- Gross margin maintained at 32%, despite rising raw material prices
- Record EBIT of EUR 18.35 Million
- Positive Outlook
Munich 07 February 2011. KINGHERO AG, the German holding company of a
fast-growing Chinese fashion group, announces the preliminary financial
figures for 2010.
The revenues* of the KINGHERO Group accounted for EUR 72.62 Million in
2010, increasing by 48.5% from the EUR 48.9 Million in the previous year.
The gross margin was maintained at 32%, despite rising material costs,
which were successfully passed on to the consumers during the reporting
period.
The EBIT** grew by 38% to a record high of EUR 18.35 Million, leading to an
EBIT margin of 25.3%. Despite the strong growth in 2010, the furnishing of
7 flagship stores towards the end of 2010 as well as increased general
marketing expenses, the EBIT margin 2010 was almost on the same level as
the 2009 EBIT margin of 27%.
'We are very pleased to show a record result in the company's history. The
development of our brand was also supported by the very successful IPO of
KINGHERO in Germany in 2010. In addition, the access to a strong equity
market and our strong balance sheet, showing RMB 268 Million ( EUR 29
Milllion) in cash at the end of 2010, open exciting strategic options for
KINGHERO. This could even accelerate the strong organic growth of KINGHERO'
states Zhang Yu, the CEO and founder of KINGHERO.
Due to KINGHERO's sourcing, production, pricing and sales strategies, the
management believes that the on-going increase of raw material prices,
driven also by the strong demand from Chinese customers, will not
materially impact on KINGHERO's overall profitability. One of the key
distributors Mr Li Quan, who is running about 37 KINGHERO stores states,'
Due to the high quality and very fashionable products of KINGHERO, I am
able to pass the price increase completely to our clients. I am very happy
to further grow with KINGHERO.'
Due to the strong demand for KINGHERO products and the successful start of
the roll-out of our flagship stores, we expect group revenues of around EUR
100 Million in 2011.
The audited, consolidated 2010 financial statements will be published on 18
April 2011.
*The revenues are the combined revenues of all subsidiaries of the KINGHERO
AG for Q1 and the consolidated revenues of the KINGHERO Group for Q2-Q4.
**EBIT of operational entities, the average exchange rate 2010 used is
1EURO=8.97 RMB
About KINGHERO AG
KINGHERO AG is the German Holding Company of the KINGHERO Group of
companies, mainly active in the Peoples Republic of China (PRC). The Group
is a strongly growing apparel manufacturer and designer, featuring a
leading Chinese fashion brand for the strongly growing urban middle class
in China. The key to the Company's success is a high fashion degree with a
European 'touch and feel' as well as an upscale quality. The high speed of
the design and marketing of new collections ensures a fit to the changing
demands of the growing urban middle class in China. Being in this business
for more than 25 years, the group and its more than 900 employees produce
attire for all seasons under the KINGHERO brand. The product portfolio
includes suits, jackets, shirts, pants, sweaters for men and women and is
divided into a business casual range and a general casual range.
Für further information please contact:
Kirchhoff Consult AG
Verena Rauch
Phone: +49 (0)40 60 91 86 0
verena.rauch(at)kirchhoff.de
KINGHERO AG
Montenstr. 11
80639 Munich
Germany
Phone: +49 (0)89 12 71 13 29
xiaoping.zhao-moll(at)kinghero.de
Disclaimer
This publication is not an offer of any securities for sale or a
solicitation of an offer to purchase any securities. The shares have been
sold.
This document is not an offer of securities for sale or a solicitation of
an offer to purchase securities in the United States. The shares of
KINGHERO AG (the 'Shares') have not been registered under the U.S.
Securities Act of 1933, as amended (the 'Securities Act') and may not be
offered or sold in the United States unless registered under the Securities
Act or pursuant to an exemption from such registration. There will be no
public offering of the Shares in the United States and the Shares will not
be registered under the Securities Act.
This document is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii)
high net worth entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as 'relevant persons'). The Shares are
only available to, and any invitation, offer or agreement to subscribe,
purchase or otherwise acquire such securities will be engaged in only with,
relevant persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents.
End of Corporate News
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07.02.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
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Language: English
Company: KINGHERO AG
Montenstr. 11
80639 München
Deutschland
Phone: 089 - 127 11 329
Fax: 089 - 127 11 313
E-mail: contact(at)kinghero.de
Internet: www.kinghero.de
ISIN: DE000A0XFMW8
WKN: A0XFMW
Listed: Freiverkehr in Düsseldorf, Hamburg, Stuttgart; Open Market
(Entry Standard) in Frankfurt
End of News DGAP News-Service
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111233 07.02.2011
Datum: 07.02.2011 - 07:30 Uhr
Sprache: Deutsch
News-ID 33149
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