DGAP-News: KINGHERO AG: Record Net Profit 2010 and increasing Gross Margins 2011
(firmenpresse) - DGAP-News: KINGHERO AG / Key word(s): Final Results
KINGHERO AG: Record Net Profit 2010 and increasing Gross Margins 2011
02.05.2011 / 09:13
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- Revenues of EUR 72.8 million leading to a record Net Profit of EUR 14.4
million
- Gross Margin reaches over 40% for Q1 2011
- Sales guidance for 2011 of approx. EUR 105 million
Munich, 2 May 2011. KINGHERO AG, the German holding company of a
fast-growing Chinese fashion group, announces the audited financial figures
for 2010.
In 2010, revenues* of KINGHERO Group accounted for EUR 72.8 million,
increasing by 49% from EUR 48.9 million in the previous year. EBIT** grew
by 37% to a record of EUR 18.2 million, representing an EBIT margin of 25%.
Net profit came in at EUR 14.4 million with the net profit margin reaching
20%.
The gross margin was maintained at 31%, despite rising material costs,
which were successfully passed on to the consumers during the reporting
period. Due to the furnishing of several new flagship stores towards the
end of 2010 as well as increased general marketing expenses the EBIT margin
was slightly lower than in 2009.
'The last year was very successful for our company. The IPO in August 2010
at the Frankfurt Stock Exchange was a historical milestone. We have
continuously delivered on our promises and invested the IPO proceeds into
the growth of the company. Hence, I am confident that 2011 will be another
year of strong growth,' states Zhang Yu, CEO and founder of KINGHERO.
In 2010, KINGHERO opened 7 flagship stores, acquired a knitting company and
a zipper manufacturer as new suppliers, enhanced its production capacity
and expanded its retail network.
In the current financial year, KINGHERO will continue its strong investment
in the expansion of the direct and indirect sales networks, product
development and further improving time to market for new collections. The
company intends to increase the number of flagship stores to 35 in 2011,
including 5 flagship stores in PCD malls through cooperation with PCD
stores (Group) Limited. In the current financial year, KINGHERO has already
opened 7 additional flagship stores, bringing the total number to 14
flagship stores.
Since KINGHERO Group was legally formed on 31 March 2010 the audited
financial statements report financials for the period from 1 April to 31
December 2010. During this 9 months period the company reached sales of EUR
57.8 million and a net profit of EUR 10.9 million. As of 31 December 2010
total equity amounts to EUR 58.6 million corresponding to an equity ratio
of 88.3%.
The full Annual Report 2010 of KINGHERO AG is available on the website at
www.kinghero.de.
According to preliminary calculations, sales in Q1 2011 amounted to EUR
18.5 million and hereby 24% above the sales of the extremely strong Q1 2010
(EUR 14.9 million). The sales growth would have been even higher if 10 of
the stores with the highest sales had not been renovated at the end of Q1
according to the increased quality standards of the company. The gross
margin reached more than 40% in Q1 due to seasonal effects and successful
price increases. This is higher than in the comparable period of the
previous year (37%) and significantly above the 31% gross margin in the
full year 2010.
In the course of 2011 the Management Board expects continuously increasing
demand and intends to significantly expand thenetwork of flagship stores.
Based on these measures and the increasing strength of the KINGHERO brand
the company expects to increase growth rates in the second half of 2011.
For full year 2011, the company now expects to reach group sales of approx.
EUR 105 million. Previously, the sales guidance 2011 was around EUR 100
million.
*The revenues are the combined revenues of all subsidiaries of the KINGHERO
AG for Q1 and the consolidated audited revenues of the KINGHERO Group for
Q2-Q4.
**Combined Group EBIT, 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 1,000 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.
For further information please contact:
Kirchhoff Consult AG
Dr. Kay Baden
Phone: +49 (0)40 60 91 86 0
baden(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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02.05.2011 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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122396 02.05.2011
Datum: 02.05.2011 - 09:13 Uhr
Sprache: Deutsch
News-ID 33920
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Kategorie:
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