DGAP-News: KINGHERO AG: Highly profitable in a successful first half-year 2011
(firmenpresse) - DGAP-News: KINGHERO AG / Key word(s): Half Year Results
KINGHERO AG: Highly profitable in a successful first half-year 2011
29.08.2011 / 08:07
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Munich, 29 August 2011. KINGHERO AG, the German holding company of a
fast-growing Chinese fashion company, today published its financial results
for the first six months of 2011. The company continued to grow and
strengthen its position in the Chinese fashion market as one of the leading
manufacturers in the casual ware industry. KINGHERO increased its revenues
by 26.8% from EUR 33.0 million in the first half of 2010 to EUR 41.9
million in the first half of 2011. Gross profit jumped up by 51.6% to EUR
16.4 million leading to a gross profit margin of 39.6% (H1 2010: 32.8%). As
a result, EBIT rose by 43.3% to EUR 12.6 million (H1 2010: EUR 8.8
million). This represents an EBIT margin of 30.1%.
One of the key elements in KINGHERO's strategy in order to enhance the
brand awareness and to increase profitability is to increase the number of
flagship stores. In the first half of 2011, the company opened 12 new
flagship stores. Therewith the company operates a total of 19 flagship
stores at the end of the first half of 2011 that already generated
approximately 5% of total revenues. These flagship stores were highly
profitable with a gross margin of 64% in the first half of 2011.
In February, KINGHERO signed an agreement with PCD Stores, a profitable
operator of currently over 30 galleries and malls for premium luxury stores
in the PRC. Currently, KINGHERO is operating one flagship store in PCD
Xiamen.
Despite an increase in raw material prices and rise of labour costs, the
purchasing power of Chinese citizens is increasing, and the Chinese economy
is increasingly driven by domestic consumption. The demand for high-end
brand products is also rising. KINGHERO is more and more moving into the
higher price segment of the market. The company managed to increase the
average unit prices by 43% in H1 2011. As part of this pricing strategy,
the new women's premium collection 'Auvadis' was presented in Xiamen in
July. The collection will underline KINGHERO's commitment to high quality
and fashion, should also lead to rising average selling prices and an
increase of the awareness as a premium brand.
In May, the company successfully raised EUR 15 million in a capital
increase. The proceeds are to be invested mainly in new flagship stores in
2011 and 2012.
Despite the macro-economic challenges, the management board confirms the
positive outlook for the full year 2011 with group revenues of EUR 105
million and margins at least at the previous year's level. This outlook
does not include the sales from additional 30 flagship stores, which
KINGHERO intends to open in 2011 with the proceeds of the capital increase
in May 2011. The definite opening dates of these additional 30 KINGHERO
flagship stores are not yet determined. Therefore, KINGHERO will specify
the expected additional revenues for 2011 with the presentation of the 9
months results. Currently, KINGHERO operates 28 flagship stores. By the end
of 2011 the company expects to operate 65 flagship stores in total.
The half-year report is available on the website www.kinghero.de for
download.
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 and 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
Jens Hecht
Phone: +49 (0) 40 60 91 86 0
jens.hecht(at)kirchhoff.de
KINGHERO AG
Gustav-Heinemann-Ring 44
81739 Munich
Germany
Phone: +49 (0) 89 67 34 68 84
xiaoping.zhao-moll(at)kinghero.de
Disclaimer
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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29.08.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
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Language: English
Company: KINGHERO AG
Gustav-Heinemann-Ring 44
81739 München
Germany
Phone: 089 - 6734 6884
Fax: 089 - 6734 6887
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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137219 29.08.2011
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Datum: 29.08.2011 - 08:07 Uhr
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News-ID 59855
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