DGAP-News: KINGHERO AG signs agreement with leading luxury shopping mall chain to open flagship stores in prime locations
(firmenpresse) - DGAP-News: KINGHERO AG / Key word(s): Contract
KINGHERO AG signs agreement with leading luxury shopping mall chain to
open flagship stores in prime locations
16.02.2011 / 12:24
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- Contract with PCD Stores, a leading operator of premium luxury malls and
galleries, mainly in Chinese tier one or tier two cities
- Agreement enables KINGHERO as one of few Chinese Brands to place flagship
stores in leading luxury malls in the PRC
Munich 16 February 2011. KINGHERO AG, the German Holding Company of a
strongly growing fashion company in the PRC, today announces the start of a
cooperation with PCD Stores (Group) Limited. PCD Stores is a highly
profitable Hong Kong listed operator of currently over 30 galleries and
malls for premium luxury stores in the PRC. The agreement enables KINGHERO
as one of few Chinese fashion brands to open flagship stores in cooperation
with PCD Stores in the same premium luxury locations as for example Gucci,
Boss, Cartier and Swarovski. The initial five stores will be located in the
tier one and tier two cities Xiamen, Qingdao, Xi'an and Changchun.
As a part of its organic growth, KINGHERO intends to increase the number of
flagship stores from 7 to 30 in the course of the business year of 2011.
With the new agreement, the Company intends to open five additional
flagship stores with sizes between 80 and 200 sqm, operated directly by
KINGHERO. The average costs for the opening of each flagship store are
expected to be around Euro 300,000, including base rental cost one year in
advance. Due to the high level infrastructure in PCD locations and a
partially success based rental agreement with PCD Stores, the initial cost
for those openings are lower than the average cost per store opening of
Euro 400,000 experienced so far by KINGHERO. The establishment will be
executed using the company's existing funds as well as KINGHERO's strong
operational cash flow.
Mr. Alfred Chan, CEO of PCD Stores, comments on the business agreement:
'Having introduced many international luxury brands to the PRC market, we
feel it is now time to present up and coming local brands to the affluent
Chinese shopper. We are very pleased to start a close cooperation with
KINGHERO, as one of the most fashionable local brands in China today. We
look forward to jointly grow our businesses in the years to come.'
Zhang Yu, the CEO of KINGHERO comments: 'With the improvement of our
production and design facilities and the considerable investments into our
IT infrastructure, enabling us to closely monitor quantities, prices and
turnover in every flagship store, we feel that it is possible to even
increase the speed of the roll out of our flagship stores. With PCD Stores
as the leading operator of luxury malls in the PRC, we have found the ideal
partner for our growth strategy. PCD's premium locations and leading brands
complement KINGHERO's brand image very well as those premium locations draw
in high end shoppers for the best consumer brands available in the Chinese
market today.'
In future years, the cooperation could considerably accelerate the expected
growth of KINGHERO's revenues and shield the operational margins from
declining, as the sales portion of sales through directly and fully
controlled flagship stores carry considerably higher margins than wholesale
sales.
About KINGHERO AG
KINGHERO AG is the German Holding Company of the KINGHERO Group of
companies, mainly active in the People's 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.
Website: http://www.kinghero.de
About PCD Stores (Group) Limited
PCD Stores (Group) Limited is a strong luxury department store chain with
extensive experience in the luxury goods market in China. Today, PCD Stores
is the leading operator of premium department stores in China. In the fast
growing Chinese retail market, PCD Stores has built its network around
high-income customers in major cities like Beijing, Changchun, Guiyang,
Liupanshui, Nanning, Qingdao, Taiyuan, Xi'an, Xiamen and Zunyi. Over the
years, the Group has continued to improve and capture market shares in the
high-end segment of the retail market in China. Having introduced many
international luxury brands to the PRC market, the 'fleur-de-lys' logo of
PCD Stores has become the symbol of excellence in shopping.
Website: http://www.pcds.com.cn
For 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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16.02.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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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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112404 16.02.2011
Datum: 16.02.2011 - 12:24 Uhr
Sprache: Deutsch
News-ID 33222
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Kategorie:
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