DGAP-News: KINGHERO AG: Highly profitable in the first nine months of 2011
(firmenpresse) - DGAP-News: KINGHERO AG / Key word(s): Quarter Results
KINGHERO AG: Highly profitable in the first nine months of 2011
21.11.2011 / 08:01
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- Revenues grow by 23.3% to EUR 63.1 million
- Gross profit margin rises to 38.7%
- EBIT increases by 25.4% to EUR 16.3 million
- 13 new flagship stores opened
- New premium collection 'Auvadis' with SWAROVSKI ELEMENTS
Munich, 21 November 2011. KINGHERO AG, the German holding company of a
fast-growing Chinese fashion company, looks back on a very successful
business and financial development in the first nine months 2011. The
company managed to further improve its very good results of the previous
year and strengthened its position in the Chinese fashion market as one of
the leading manufacturers in the casual ware industry. KINGHERO increased
its revenues by 23.3% from EUR 51.2 million in the first nine months of
2010 to EUR 63.1 million in the first nine months of 2011. Gross profit
jumped up by 46.8% to EUR 24.4 million leading to a gross profit margin of
38.7%. As a result, EBIT rose by 25.4% to EUR 16.3 million compared to EUR
13.0 million in the corresponding period of the previous year. This
represents an EBIT margin of 25.9%.
The very good results are mainly due to the strong brand visibility and
brand image. One of the key elements in KINGHERO's strategy in order to
enhance the brand awareness and to raise profitability is to increase the
number of flagship stores. In Q3 2011, the company opened 13 new flagship
stores. Therewith the company operates a total of 32 flagship stores at the
end of Q3 2011 that already generate approximately 5.8% of total revenues.
These flagship stores were highly profitable with a gross margin of 64.5%
in the first nine months 2011.
Despite an increase in raw material prices and rise of labour costs, the
purchasing power of Chinese citizens is growing, and the Chinese economy is
increasingly driven by domestic consumption. The demand for high-end brand
products also intensifies and the branded apparel industry is expected to
benefit and show a healthy development. KINGHERO is more and more moving
into the higher price segment of the market and was able to raise average
selling prices by 38%, which more than compensated the material cost
increase.
As part of this pricing strategy, the new women's premium collection
'Auvadis' will be launched with SWAROVSKI ELEMENTS. 'Auvadis with SWAROVSKI
ELEMENTS 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,' states KINGHERO's CEO Zhang Yu.
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. KINGHERO expects
to operate 65 flagship stores by the end of 2011.
The Interim Statement 9 Months 2011 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 witha
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 1,100 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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21.11.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
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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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147094 21.11.2011
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