Bosideng Reports CNY330 Million Net Profit In Interim Results For 2011

Hong Kong-listed Chinese apparel company Bosideng has published its interim results for the financial year 2011, stating that by September 30 the company's revenue increased by 47.4% year-on-year to CNY2.739 billion, and its net profit surged by 196% year-on-year to CNY327 million.

According to the report, Bosideng's down coats business was still its major income source. With a year-on-year growth of 46.8%, it contributed CNY1.775 billion to the company, accounting for 64.8% of the total revenue. Its processing management business made CNY631 million, a year-on-year increase of 21.8%; and its non-down business made CNY332 million, a year-on-year increase of 154.3%.

For store distribution, Bosideng has developed 10,970 specialty stores by the end of the reporting period, including 8,434 down clothing specialty stores, and 2,536 non-down clothing specialty stores. By region, it has 5,834 specialty stores in North China, accounting for over 50% of the total.

The report also said that affected by the debt crisis in Europe and America in the second and third quarters of 2011, the consumer demands in the international market declined. However, the domestic Chinese market kept growing, despite the price increases in raw materials and the pressure brought by the appreciation of Chinese yuan.

As a leading down clothing maker and retailer in China, Bosideng has previously launched a development strategy to expand its non-down product line. By acquiring and introducing non-seasonal clothing brands, the company aims to create new profit points, improve profit-making capacity, and fully implement brand diversification. In addition, the company has reportedly invested CNY300 million in the purchase of a real estate project in the central shopping area in London, which will be established as Bosideng's European headquarters and men's apparel flagship store.